Expanded authority granted to non-EU businesses by UPC
The Unified Patents Court (UPC) has made a significant decision that extends its jurisdiction to companies based outside the European continent. In a landmark ruling, the court asserted its authority over Dreame International, a Hong Kong-based company, due to the presence of its European representative.
The UPC's decision is particularly relevant in the context of litigation and arbitration, and it has far-reaching implications for various sectors such as Life Sciences & Healthcare, Technology, Science & Industry, Retail & Consumer, and more. Notably, the court's ruling impacts Europe's heavyweights like France, Germany, Ireland, Luxembourg, the Netherlands, Spain, and the United Kingdom.
In this case, the anchor defendant is Dreame International, which is required to have a Europe-based authorized representative to sell its products in Europe due to safety regulation obligations. Dyson, a UK-based company, sought an injunction against Dreame International to stop it from infringing Dyson's patent and selling a hair curler in Europe.
The court's Hamburg local division ruled that the UPC can grant an injunction against a non-EU company in this case. The decision acknowledges the potential consequences of its decision, noting that the burden is not unfair due to the need for an authorized representative to report to relevant authorities and for distribution channels to be under their control.
Catherine Drew, a patent specialist at Pinsent Masons, has stated her views on the UPC's decision. She noted that the ruling changes the landscape of patent litigation and intellectual property, potentially affecting companies worldwide. The UPC's decision opens the door to a broader international jurisdiction, extending its reach further to any company which has an authorized representative established in a member state of the court.
The UPC's ruling also considers the idea of an 'anchor defendant', a European domiciled defendant that draws in a defendant domiciled outside of Europe. This new ruling asserts the UPC's jurisdiction outside Europe, potentially impacting a broad spectrum of companies globally.
In a case that highlights the importance of adhering to patent laws, Dyson, the company found guilty by the UPC for patent infringement, was ordered to prohibit a hair device manufacturer from Hong Kong SAR from selling its products in Europe. The UPC's decision underscores the need for companies, regardless of their location, to respect intellectual property rights when operating within the European market.
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