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2024-06-18 App_26610_2024

Source: 
language skills of representatives, language skills of a contact person, ocation of the registered offices, language of the patent, wrong workflow, existence of parallel proceedings, language change request
Art. 49 UPCA - Language of proceedings at the Court of First Instance, Art. 73 UPCA - Appeal
R 4 – Lodging of documents, R 9 – Powers of the Court, R. 13 – Contents of the Statement of claim, Rule 220 – Appealable decisions, Rule 321 – Application by both parties to use of the language in which the patent was granted as language of the proceedings, Rule 323 – Application by one party to use the language in which the patent was granted as language of the proceedings
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The following text is not a complete transcript of the decision/order:

ORDER
of the President of the Court of First Instance
in the proceedings before the Local Division DÜSSELDORF
pursuant to R. 323 RoP (language of the proceedings)
issued on 18/06/2024

APPLICANTS (DEFENDANTS IN THE MAIN PROCEEDINGS):
1- Apple Retail Germany B.V. & Co. KG
Maximilianstraße 54 - 80538 - München
Germany
2- Apple Distribution International Ltd.
Hollyhill Industrial Estate, Hollyhill - T23 YK84 - Cork
Ireland
3- Apple GmbH
Prinzregentenplatz 7 - 81675 - Munich
Germany
4- Apple Retail France EURL
3-5 rue Saint Georges - 75009 – Paris
France
5- Apple Inc.
One Apple Park Way - CA 95014 - Cupertino
US
Represented by: Tilman Müller-Stoy (Bardehle Pagenberg)
No. APP_26610/2024
UPC_CFI_99/2024

RESPONDENT (CLAIMANT IN THE MAIN PROCEEDINGS):
Ona Patents SL
Carrer de Calàbria 149 En. 1 - 08015 – Barcelona
Spain
Represented by: Christof Augenstein (Kather Augenstein)

PATENT AT ISSUE:
Patent n° EP 2263098.

SUMMARY OF FACTS - SUBJECT - MATTER OF THE PROCEEDINGS:
By a Statement of Claim filed on 14 March 2024, Ona Patents SL. brought an infringement
action against Apple Retail Germany B.V. & Co. KG, Apple Distribution International Ltd.,
Apple GmbH, Apple Retail France EURL and Apple Inc. (hereinafter collectively referred to as
“Apple”) based on EP 2263098 entitled “Positioning of mobile objects based on mutually
transmitted signals” before the Local Division Düsseldorf.
By an application dated 10 May 2024, the abovementioned defendants, referring to R. 323
RoP, requested that the language of proceedings be changed from German to English
(hereinafter the “Application”). The Application was forwarded by the Judge-rapporteur to
the President of the Court of First Instance of the UPC pursuant to R. 323.1. RoP.
By an order dated 14 May 2024, the Claimant in the main action (No. ACT_11910/2024
UPC_CFI_99/2024) was therefore invited, in accordance with R. 323.2 RoP, to state within 10
days its position on the admissibility of the Application and on the use of the language in
which the patent was granted (namely English) as language of the proceedings.
Ona Patents SL has submitted its written comments on the Application on 24 May 2024.
The panel of the LD Düsseldorf has been consulted according to R. 323.3 RoP.

REQUESTS OF THE PARTIES:
Apple requests the language of the proceedings be determined to be the language of the
patent in suit EP 2 263 098, namely English (Rule 323.1 RoP).
Ona Patents SL requests the court to reject the Application to change the language of the
proceedings.

POINTS AT ISSUE:
In support of the request, Apple states that Ona Patents has not responded to the defendant's
proposal for an amicable solution pursuant to R. 321 RoP without any comprehensible
justification and that the Application – being necessary for an adequate legal defence – shall
be granted for the following reasons:
- As part of the assessment to be made pursuant to Art.49(5) UPCA, the positions of the
parties must be taken into account, "in particular the position of the defendant";
- According to UPC_CoA_101/2024_order of 17 April 2024, certain circumstances are
relevant while others are not to be considered, and should the respective interests be
equivalent, the wording of Art. 49 (5) UCPA states that the position of the Defendant
is decisive;
- The Application is admissible, pursuant to R. 323.1 RoP the filing of a unilateral request
to change the language before the expiry of the time-limit imposed for lodging the
Statement of Defence promotes the efficient conduct of proceedings;
- Applying the standards provided by the abovementioned case law, the requested
change is imperative in the present situation as being efficient and justified by the
principle of fairness, with regard to the language used in the relevant technology, the
documents of prior art, the exhibits submitted, the corporate language of the
Defendants, the working language of Ona Patents SL. and the domicile of most of the
parties;
- The inconvenience incurred if the language remains German would be more
important for Apple due to the tight lime-limits to organize its defence, which are
further shortened by translation requirements;
- The requested change would not delay the proceedings.
Ona Patents states that the Application must be rejected for the following reasons:
- It is primarily inadmissible pursuant to R. 4.1 RoP because it was erroneously filed
using a R.9 RoP “generic procedural application” in the Case Management System
(hereinafter “CMS”) while a dedicated workflow is provided under the designation
"Application by a single party to use the language in which the patent was granted as
language of the proceedings";
- Apple fails to substantiate any violation of the requirements of fairness and
expediency due to the current language in which the action was filed. The Claimant is
a medium-sized start-up company and got prepared to conduct the proceedings in
German;
- The circumstances addressed by the Court of Appeal (UPC_CoA_101/2024
ApL_12116/2024, order of 17 April 2024, para. 21 seq.) are merely an exemplary list
of relevant factors in the context of a case-by-case approach, and should the cited
criteria be applied, the language initially chosen would be retained as the parties are
already involved in parallel national proceedings dealing with similar technical issues.
Apple is the largest listed company in the world and protection of smaller entities is a
central concern of the legislator, the Respondent has its own IP litigation department
sized for conducting patent disputes in German while Ona Patents SL is a Spanish start-
up founded in 2023. The majority of the defendant's registered office is not in an
English-speaking country;
- The Claimant can choose the language in which he wants to file its action and the
change pursuant to R. 323.1 RoP in conjunction with Art. Art. 49(5) UPCA is a
systematic exception to this principle for reasons of fairness;
- The choice of the language of the patent cannot bind the plaintiff, as at the time of
the application the language regime of the UPC was not foreseeable and it was not
the choice of the legislator to standardize the language of the patent as language of
the proceedings;
- The defendant does not present any relevant circumstances that could justify the
requested change, and fails to specify how its right to a fair trial could be violated if
the proceedings were continued in German.
By generic procedural applications dated 14 June 2024 (App_35829/2024, App_35890/2024,
App_35891/2024 and App_35892/2024), Apple requested the authorization to submit
further comments referring to another decision rendered on 30 May 2024 (22744/2024
UPC_CFI_26/2024) and to the content of the response given by Ona Patents.
A decision to change the language of the proceedings requires weighing the respective
interests of the parties in light of all relevant circumstances. In the context of this case-by-
case assessment and with regard to the arguments and facts previously submitted, the
reasoning and outcome of a recent order rendered on the same matter does not appear to
be a sufficient reason for allowing additional observations – mainly relating to the situation
of the Applicant – that are not foreseen by R. 323.2 RoP.
Further facts and arguments as raised by the parties will be addressed below if relevant to
the outcome of this order.

GROUNDS FOR THE ORDER:
1- Admissibility of the Application
Ona Patents SL argues that the Application is inadmissible because it was submitted in the
form of a R. 9 RoP “generic procedural application” in the case management system of the
Court which provides a dedicated “R. 323 workflow” to be used for this purpose.
According to R. 4.1 RoP, “written pleadings and other documents shall be signed and lodged
at the Registry or relevant sub-registry in electronic form. Parties shall make use of the official
forms available online. The receipt of documents shall be confirmed by the automatic issue of
an electronic receipt, which shall indicate the date and local time of receipt”.
Pursuant to R. 9 RoP – “Powers of the Court” “1. The Court may, at any stage of the
proceedings, of its own motion or on a reasoned request by a party, make a procedural order
such as to order a party to take any step, answer any question or provide any clarification or
evidence, within time periods to be specified”.
The R. 9 workflow allows the parties to submit their requests in the course of the proceedings,
and the Court to take any decision relating to the management of the case. As does the
“R. 323 RoP” entitled "Application by a single party to use the language in which the patent
was granted as language of the proceedings", it provides the user with an electronic form,
which is an “official” one within the meaning of the abovementioned R. 4.1. RoP.
The Application shall thus be declared admissible.
2- Merits of the Application
According to Art. 49(1) UPCA, the language of the proceedings before a local division must be
an official language of its hosting Member State or alternately the other language designated
pursuant to Art. 49 (2). It is further provided by R. 323 RoP that “1. If a party wishes to use the
language in which the patent was granted as language of the proceedings, in accordance with
Article 49(5) of the Agreement (…) The President, having consulted [the other parties and] the
panel of the division, may order that the language in which the patent was granted shall be
the language of the proceedings and may make the order conditional on specific translation
or interpretation arrangements”.
Regarding the criteria that may be considered to decide on the Application, Art. 49 (5) UPCA
specifies that “(…) the President of the Court of First Instance may, on grounds of fairness and
taking into account all relevant circumstances, including the position of parties, in particular
the position of the defendant, decide on the use of the language in which the patent was
granted as language of proceedings. In this case the President of the Court of First Instance
shall assess the need for specific translation and interpretation arrangements”.
It has furthermore been stated that Art. 49 (5) UPCA must be interpreted in such a way that
the decision on whether or not to change the language of the proceedings to the language in
which the patent was granted must be determined considering the respective interests at
stake, without requiring it to constitute a disproportionate disadvantage (UPC CFI 225/2023
LD The Hague, order of 18 October 2023, UPC CFI 373/2023 LD Düsseldorf, order of 16 January
2024, UPC CFI 410/2023 LD Mannheim, order of 15 April 2024).
By an order dated 17 April 2024, to which both parties refer, the UPC Court of Appeal
(hereinafter “CofA”) ruled that when deciding on a request to change the language of the
proceedings to the language of the patent for reasons of fairness, all relevant circumstances
must be taken into account. These circumstances should primarily relate to the specific case,
such as the language most commonly used in the relevant technology, and to the position of
the parties, including their nationality, domicile, respective size, and how they could be
affected by the requested change, respectively (UPC_CofA_101/2024, Apl_12116/2024, para.
22-25).
In the event that the result of the balancing of interests is the same in the context of this
overall assessment, the CofA found that the emphasis given “in particular” to the position of
the defendant under Art. 49 (5) UPCA is justified by the flexibility afforded to the claimant
which frequently has the choice of where to file its action – since any local or regional division
in which an infringement is actually threatened or taking place is competent – and can
generally choose the most convenient timeframe to draft its statement of claim while the
defendant is directly bound by strict deadlines.
Based on the above, it follows that the position of the defendant (s) is the decisive factor if
both parties are in a comparable situation.
In the same decision, the CofA also held that “for a claimant, having had the choice of
language of the patent, with the ensuing possibility that the claimant/patentee may have to
conduct legal proceedings in that language, as a general rule and absent specific relevant
circumstances pointing in another direction, the language of the patent as the language of
the proceedings cannot be considered to be unfair in respect of the claimant” (para. 34).
In the present case, it is not disputed that English is the language commonly used in the
relevant field of technology in question, as it is reflected by the prior art cited in the patent in
suit and annexes submitted by the Claimant in the main proceedings without translation
pursuant to R. 13.1 (q) RoP.
As the Claimant has its registered offices in Spain and English is obviously the corporate
language of the Defendants, it can be inferred that English is the most convenient language
for Apple and a “neutral” working language for Ona Patents whose website is only available
in English, as highlighted by the Applicants.
The Apple group however, has organized itself to handle patents disputes in German notably
by appointing an in-house German litigator, as mentioned by an article published in January
2023 (Exhibit 1 provided by the Respondent). It is more generally to be noted that due to its
size and worldwide development, Apple has an extensive legal department with the
necessary resources to handle and coordinate proceeding in various languages.
Moreover, two of the five entities involved in the present case are located in Germany.
Regarding Ona Patents which is a medium-size company founded in 2023, the choice to file
its action in German is made in the context of parallel disputes between the same parties
before the regional court of Munich involving, according to the claimant, technically
comparable issues. Ona Patents also raises that its main contact person is able to discuss and
approve its representative written submissions in German, being indeed fluent in this
language.
It appears from these circumstances that Ona Patents had relevant reasons to file its
infringement action in German although the language of the patent and relating technology
is English, namely the language skills of the contact person likely to follow-up the proceedings
on its behalf, the location of the registered offices of two defendants and the existence of
parallel proceedings handled in German with limited resources compared to those of Apple.
It results in substance from the above that the requested change would represent a significant
drawback for the Claimant, while being in contrast a slight advantage in favor of the
Defendants.
Consequently, the outcome of balancing of the respective interests of the parties with regard
to all relevant circumstances of the case, leads the Court to reject the Application to change
the language of the proceedings to the language in which the patent was granted.

FOR THESE GROUNDS
1- The Application to change the language of the proceedings to the language in which
the patent at issue has been granted, is dismissed.
2- The present order shall not be conditional on specific translation or interpretation
arrangements.
3- An appeal may be brought against the present order within 15 calendar days of its
notification to the Applicants pursuant Art. 73. 2 (a) UPCA and R.220 (c) RoP.

INSTRUCTIONS TO THE PARTIES AND TO THE REGISTRY:
The next step is for the Applicants to file the Statement of Defence within the time period as
set by the Judge-rapporteur.

ORDER
Issued on 18 June 2024

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