UPC CFI LD Paris, 11 April 2024: Competence Local Division in case of multiple defendants

Preliminary objections concerning competence of the Paris Local Division dismissed (Rule 19(1)(b) RoP, Article 33(1)(b) UPCA). The Claimant has demonstrated that one of the defendants is domiciled in France, that all the defendants have a commercial relationship and that the action relates to the same alleged infringement. The internal jurisdiction of the Paris Local Division under Article 33(1)(b) UPCA is justified. 

If in a case of multiple defendants one of the defendants has its residence within the territory of the local division seized, article 33(1)(b) UPCA applies regardless of whether the other defendants are based inside or outside the CMS or inside or outside the EU. 

Hence the only requirements to be met are: 1) the multiple defendants have a commercial relationship and 2) the action relates to the same alleged infringement. 

The requirement of a commercial relationship implies a “certain quality and intensity”. However, to avoid multiple actions regarding the same infringement and the risk of irreconcilable decisions from such separate proceedings, and to comply with the main principle of efficiency within the UPC, the interpretation of the link between the defendants should not be too narrow. The fact of belonging to the same group (of legal entities) and having related commercial activities aimed at the same purpose (such as R&D, manufacturing, sale and distribution of the same products) is sufficient to be considered as “a commercial relationship” within the meaning of the Article 33(1)(b). 

UPC has jurisdiction over infringement acts that began before 1 June 2023 and continued after this date and that are not covered by the period of limitations. This applies on the basis of Articles 3(c), 32(1)(a) and 72 UPCA. 

IPPT20240411, UPC CFI, LD Paris, ARM v ICPillar