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

Explosm, the independent Texas studio behind the hit webcomic Cyanide & Happiness, partnered with Temu’s IP protection team to combat counterfeiters infringing on its brand
The latest in a dispute over juicing machines, and a shakeup in judicial compositions were also among the top developments
Patent partner Robert Hollingshead explains why the firm remains committed to Japan despite several US firms exiting the Japanese and greater Asia market
Emma Green, partner at Bird & Bird, shares why the Iceland v Iceland dispute could prompt businesses and lawyers to think differently about brand enforcement
Attain IP, developed by two UK patent lawyers, will meet ‘forensic’ needs of patent attorneys by showing a verifiable reasoning chain, according to its co-founders
The High Court of Australia has allowed a fashion designer to retain her registered ‘Katie Perry’ trademark for clothing
Sim & San secured the win for Dr. Reddy’s, which will allow the pharma company to manufacture and export semaglutide, the active ingredient in Ozempic
Lucas Amodio joins our ‘Five minutes with’ series to discuss artificial intelligence systems and patent law
The Americas research cycle has commenced, so don't miss the opportunity to submit your work
Practitioners have welcomed extended funding of the specialist police unit until 2029, while the UKIPO says it is exploring increased scale
Gift this article