LD Munich, August 26, 2025, procedural order, UPC_CFI_248-2025

The court may, pursuant to Art. 64(4) UPCA and R.158.1 RoP, at its own discretion and upon the defendant’s application, order the provision of security for the costs of the proceedings and any other costs of the party, taking into account the facts and arguments presented by the parties. In doing so, the court has to examine whether the claimant’s financial situation gives rise to legitimate and actual concerns that a possible costs order might not be enforceable, and/or that any costs order issued by the court might be enforceable only with disproportionate difficulty. The court has assumed such disproportionate enforcement difficulty in view of the claimant’s registered office in the People’s Republic of China. While Union law guarantees the recognition and enforcement of judgments of courts of Member States in other Member States, the court is of the opinion that there may be no comparable guarantees for the recognition and enforcement in states that are not members of the European Union or the European Economic Area.