Key takeaways
Appeals of cost decisions are subject to a limited ‘marginal review’ for reasonableness and proportionality, not a full re-assessment (R. 221 RoP, R. 156.2 RoP)
This limited review is justified because the first-instance judge-rapporteur, who decides on costs in writing under R. 156.2 RoP, has managed the case throughout and is best positioned to assess them. The Court of Appeal confirmed this standard is consistent with its established case law (Tiroler vs SSAB).
Awarded costs are proportionate if below the applicable ceiling, which is determined by the action’s value (Art. 69(1) UPCA, R. 152.1 & 152.2 RoP)
The successful party can recover reasonable representation costs (R. 152.1 RoP) up to a ceiling set by a scale based on the case value (R. 152.2 RoP). An award of EUR 300,000 was deemed proportionate as it was well below the EUR 600,000 ceiling for a case valued at EUR 5 million.
Costs are ‘reasonable’ if they relate to activities essential for the action, based on an ex-ante assessment by a diligent party (R. 370.6 RoP)
The unsuccessful party failed to demonstrate that the first-instance court erred in finding the successful party’s costs, including those from a local law firm branch, were essential for the counterclaim.
A first-instance court’s careful exclusion of non-recoverable costs demonstrates a thorough and proportionate assessment, justifying the final award
The Court of Appeal noted approvingly that the first-instance court had already reduced the successful party’s initial claim by excluding costs that were unascertainable, related to separate proceedings, or incurred post-conclusion.
Division
Court of Appeal
UPC number
UPC CoA 051/2026
Type of proceedings
Application for leave to appeal a cost decision
Parties
Applicant (for leave to appeal): Suinno Mobile & AI Technologies Licensing Oy
Respondent: Microsoft Corporation
Patent(s)
EP 2 671 173
Jurisdictions
UPC
Body of legislation / Rules
Art. 69(1) and (3) UPCA, R. 151 RoP, R. 152.1 RoP, R. 152.2 RoP, R. 156.2 RoP, R. 221 RoP, R. 370.6 RoP
