Audi AG v.Network System Technologies LLC
Luxembourg (LU) · UPC-001267
The Court of Appeal of the Unified Patent Court set aside the Munich Local Division's order denying Audi AG's applications for security for costs against Network System Technologies LLC (NST). The Court held that NST, a small US-based special purpose patent enforcement entity with only two employees, no physical assets, and limited funding, failed to provide sufficient comfort that a possible cost order would be recoverable. The Court ordered NST to provide security for costs in amounts of EUR 100,000, EUR 100,000, and EUR 300,000 in the three related proceedings, either by deposit or bank guarantee from an EU-licensed bank, within three weeks of service.