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

VO, which has offices in the Netherlands, Belgium and Germany, is the second European IP firm to secure external backing this week
The Bardehle Pagenberg attorneys-at-law discuss the firm’s Managing IP EMEA Awards 2026 success, Unified Patent Court litigation strategy, and evolving European patent trends
A patent battle between two legal tech companies and a loss for Elon Musk’s xAI against OpenAI were also among the top talking points
With drug prices a hot topic in the US, courts are seemingly more reluctant to prevent the entry of generics to the market
Academic Eden Sarid joins us during Pride Month to discuss queer expression and IP law, Patagonia v Pattie Gonia, and how queer and AI-generated creations both pose novelty concerns
Patent attorney Michael Henson joins the firm to lead its freshly launched blockchain and digital assets practice
A dispute over mammogram technology, and a development in the case between GSK and Moderna were also among the top talking points in recent weeks
With rankings for Western Europe set to be published on June 25, we sat down with our research lead to find out what practitioners and law firms can expect
Peter O’Sullivan, a professional services executive, says he is looking forward to helping Pearce IP become the leading life sciences firm in Australia and New Zealand
Matteo Di Lernia, advocate at LCA Studio Legale, unpicks the CJEU’s ruling in M.M. Ristorazione v Villa Ramazzini, including its impact on litigation strategies
Gift this article