Europe: The sky is not the limit

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Europe: The sky is not the limit

This summer, the Court of Justice of the EU issued a ruling that dealt with the application of article 14 of the EU IP Enforcement Directive. According to this article, EU member states must ensure that in court cases, the reasonable and proportionate legal costs and other expenses incurred by the successful party shall, as a general rule, be borne by the losing party. While one could gather from this that the sky's the limit as far as costs compensations in IP cases go, the Court ruling teaches us there may in fact be limits.

It all started with a court case in Belgium, in which claims were made to stop a patent infringement. The claims were denied and the plaintiff was ordered to bear the fixed costs (€11,000) of the defendant, based on provisions of national procedural law. In appeal, the amount of the fixed costs was under discussion, the original defendant claiming that the national provisions of fixed costs were not in conformity with Article 14 of the Directive, and that the plaintiff should pay all costs incurred, amounting to €225,862.55, which is obviously much higher than the fixed costs.

Accordingly, the Court had to rule whether national systems of fixed costs are in conflict with Article 14 of the Directive. Referring to the common goal of the Directive, the Court pointed out that IP infringers must be discouraged from infringing IP rights, justifying high cost awards. At the same time, Article 14 of the Directive merely states that the compensation covers the reasonable and proportionate costs, which does not imply all costs, but only "at least a significant and appropriate part of the reasonable costs". As long as these particular criteria are met, national law provisions are allowed to impose an absolute threshold above which no costs are compensated.

In national IP practices such as the Dutch, where full cost awards are nowadays the rule rather than the exception, this ruling may very well be regarded as the beginning of a new trend.

cleuver2.jpg

Jurriaan Cleuver


V.O.Johan de Wittlaan 72517 JR The HagueThe NetherlandsTel: +31 70 416 67 11Fax: +31 70 416 67 99info@vo.euwww.vo.eu

more from across site and SHARED ros bottom lb

More from across our site

Christine Chiramel, who joins a full-service law firm after 17 years of working at specialist firms, says she’s excited to explore how corporate commercial issues are blurring into IP
Practitioners say increasing the pecuniary jurisdiction of India’s most popular litigation forum to around $2 million would spark unpredictability and make it difficult for SMEs to benefit
The Spain-based firm has appointed an industry veteran to lead the group, which it hopes will strengthen its ability to support clients in ‘disruptive technologies’
Shaina Haria, a final-seat trainee at an international law firm’s UK office, shares how she fell in love with IP and why the area of law has changed the way she views the world
Now in its sixth edition, the IP Case Law Conference was focussed on the notion of ‘growing through change’
Nick Redfearn and Khanh Nguyen of Rouse discuss Vietnam’s latest identification in the 2026 Special 301 Report and how the country is taking genuine steps to meet US expectations
Tatiana Campello reflects on 30 years of practising at the firm, and urges women IP attorneys to think beyond the day-to-day
A David v Goliath battle involving TikTok, and Via Licensing Alliance adding new members to its Voice Codec patent pool, were also among the top talking points
Latham & Watkins bolstered its IP litigation bench in California with the addition of Kieran Kieckhefer, as partner demand for trial-ready expertise shows no sign of slowing
With the launch of a new patent eligibility AI tool, Sterne Kessler is leading a growing movement of law firms taking AI development into their own hands
Gift this article