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2025-08-11 App_20446_2025

Source: 
Security for costs
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Rule 158 – Security for costs of a party, Rule 333 – Review of case management orders, Rule 355 – Decision by default (Court of First Instance)
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The following text is not a complete transcript of the decision/order:

Local Division Munich
UPC_CFI_114/2025
ACT_7504/2025

Procedural Order
of the Court of First Instance of the Unified Patent Court
Local Division Munich
issued on 11 August 2025

Claimant:
Syntorr LP, 1 Georgiou Gennadiou, 6031 Larnaca, CY
represented by: Henrik Holzapfel

Defendants:
1. Arthrex Inc., 1370 Creekside Boulevard, Naples, Florida 34108 – US
2. Arthrex GmbH, Erwin-Hielscher-Str. 9, 81249 Munich – DE
3. Arthrex Distribution Hub EMEA B.V., Ampèrestraat 9, 5928 PE Venlo - NL
represented by: Ralph Nack

Language of the proceedings:
English

Patents at issue:
EP 3 835 470

Panel:
Panel 1 of the Local Division Munich
Deciding Judge:
This order has been issued by the Judge-rapporteur Tobias Pichlmaier

Points at issue:
Security for costs

PARTIES REQUESTS
Defendants request that the Court
1. order the Claimant to provide security in the total amount of EUR 3.300.000
for the costs and expenses incurred and/or to be incurred by the Defendants
i.e., EUR 1.100.000 per Defendant, which the Claimant has to pay either by
payment into a bank account of the Unified Patent Court or by a bank guar-
antee issued by a major European bank under the direct supervision of the
European Central Bank to be chosen by Claimant;
2. order that Claimant provide the security according to request No. 1 within
three weeks,
or, in the alternative to request No. 2,
2a. order that Claimant provide the security according to request No. 1
within a period to be determined by the Court.
Claimant requests are as follows:
I. The Court refrains from ordering the Claimant to provide security for the
costs and expenses incurred and/or to be incurred by the Defendants.
II. In the alternative, the Court orders the Claimant to provide security in the
total amount of EUR 1.000.000 (further in the alternative: up to EUR
2.000.000, as deemed appropriate by the Court) in aggregate for all De-
fendants for the costs and expenses incurred and/or to be incurred by the
Defendants, and the Court allows the Claimant to provide security by insur-
ance with anti-avoidance endorsement from an insurer licensed in the Eu-
ropean Union and to be chosen by the Claimant, within a time limit of six
weeks.
III. Further in the alternative, the Court orders the Claimant to provide security
in the amount and in the way that the Court deems appropriate.

SUMMARY OF THE FACTS
In the view of Defendants Claimant is obliged to provide adequate security for costs.
Claimant has concluded a litigation insurance with an anti-avoidance endorsement giv-
ing the Defendants an irrevocable and direct claim against the insurer.
In the opinion of Defendants this insurance policy is no adequate substitute for the
statutory means of security provision under Rule 158(1) RoP.

GROUNDS
Claimant is obliged to provide adequate security for costs.
According to Rule 158(1) RoP, Claimant’s insurance policy is no adequate security.
An order to provide a security exceeding the regular ceiling for recoverable costs (2
Mio. € in the case at hand) is not justified.
This order may only be appealed if it has first been reviewed by the panel pursuant to
Rule 333.1 RoP (UPC_CoA_430/2025).

ORDER
I. It is ordered that Claimant must provide security for costs to Defendants in the
total amount of € 2.000.000,00 by 30 September 2025. The security can be pro-
vided either
- by a bank guarantee issued by a bank established and authorised to op-
erate within the territory of the EPC Contracting Member States
or
- by depositing the security amount in the Unified Patent Court's account
set up for this purpose.
II. Claimant's attention is drawn to the fact that a default judgment may be entered
in accordance with Rule 355 RoP if the security is not provided within the time
limit set in this order.
III. The parties' further requests are dismissed.

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