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

Lawyers at Carpmaels & Ransford explain how the healthcare sector has not simply participated in the UPC’s early years, but actively shaped it
The firm has hired former in-house counsel Quintin Cassady to lead the launch of the new office
The combined firm has strong IP credentials across the US, Middle East, UK and Europe, despite Taylor Wessing’s German and French practices not joining
Priya Nagpal, who this month became the firm’s eighth IP partner, says its cross-practice expertise in areas closely linked to IP was a key draw
Harm van der Heijden is to join Ankar as head of patent innovation after 17 years in private practice
Alabama attorney Miya Aladebumoye has launched a new firm built on ‘big law’ experience and a personal touch approach
A UKIPO campaign aimed at combating fakes in the pre-loved fashion market and registration of the first Portuguese craft and industrial geographical indication were also among the top talking points
Chris Adams, Managing IP’s research lead, joins us to explain what practitioners need to know ahead of our first rankings release of 2026
Another IP litigator joins Winston & Strawn in Dallas as firm seeks to keep pace with ‘rapid’ growth of Texas market
Anthony O'Malley will replace Andrew Blattman at IPH, which owns several large IP firms across Australia, Asia and Canada
Gift this article