Key takeaways
A default judgment for failing to provide security for costs is a discretionary sanction (Rule 158.5, 355.1 RoP) and requires a clear failure of diligence.
The Court found no failure of diligence where the claimant blocked the required funds in time, sought clarification on the procedure, and promptly submitted a compliant guarantee after receiving guidance.
Providing proof of blocked funds within a deadline, even if not a perfect guarantee, can demonstrate sufficient diligence to avoid a default judgment if promptly cured.
The claimant submitted a bank attestation of blocked funds by the deadline and, after receiving clarification from the judge, provided fully compliant first-demand bank guarantees ten days later.
Formal objections to a bank guarantee, such as unproven signatory authority, require evidence from the objecting party, who bears the burden of proof (Rule 271.2 RoP).
The Court dismissed the defendant’s arguments as unfounded, also finding that a guarantee valid until the “final decision” was sufficient, as this term would be interpreted under UPC rules.
An appeal against an order for security for costs does not suspend the obligation to provide it; the subsequent order on a default request is separately appealable.
The Court noted the claimant had appealed the amount of the security order, but this did not suspend the deadline (Rule 220.1 RoP). It confirmed the present order is appealable (Rule 220.2 RoP).
Division
Paris Local Division
UPC number
UPC_CFI_530/2025
Type of proceedings
Main infringement action (Application for a default decision)
Parties
Plaintiff: KEEEX SAS
Defendants: TRUEPIC INC., JOINT DEVELOPMENT FOUNDATION PROJECTS LLC, & COALITION FOR CONTENT PROVENANCE AND AUTHENTICITY (C2PA); ADOBE SYSTEMS SOFTWARE IRELAND LIMITED & ADOBE INC. ; OPEN AI OPCO LLC & OPEN AI IRELAND LTD
Patent(s)
EP 2949070
Jurisdictions
UPC
Body of legislation / Rules
Rule 8.3 RoP
Rule 158.5 RoP
Rule 220.1 RoP
Rule 220.2 RoP
Rule 271.2 RoP
Rule 284 RoP
Rule 355.1 RoP
Rule 355(2) RoP
Art. 48(6) UPCA
