AYLO PREMIUM LTD, BRIDGEMAZE GROUP LLC, BROCKWELL GROUP LLC, AYLO BILLING US CORP., AYLO FREESITES LTD, AYLO Billing Limited v. Respondent

UPC-000463

The defendants filed an application under Rule 9.1 of the Rules of Procedure seeking cost assessment for attorney fees incurred during an appeal proceeding brought by the plaintiffs against an order requiring security for costs under Rule 158 RoP. The Local Chamber Mannheim held the application inadmissible, ruling that costs arising from the application, opposition, or defense of procedural orders, including security-for-costs orders, cannot be assessed in a separate cost assessment proceeding under Rule 150 RoP but must instead be assessed as part of the overall procedural costs in the cost assessment following the substantive decision.

Jurisdiction
European UPC
Court / Office
Mannheim (DE) Local Division
Case Number
UPC-000463
Judge(s)
Diese Anordnung wurde erlassen durch den rechtlich qualifizierten Richter

Detailed Summary

This order was issued by the Local Chamber Mannheim in case UPC_CFI_471/2023 concerning European Patent EP 2 479 680. The plaintiffs are DISH Technologies L.L.C. and Sling TV L.L.C., both based in Englewood, Colorado, USA. The defendants are six entities associated with the AYLO group and related companies: AYLO Premium Ltd (Cyprus), AYLO Billing Limited (Ireland), AYLO Freesites Ltd (Cyprus), AYLO Billing US Corp. (USA), Brockwell Group LLC (USA), and Bridgemaze Group LLC (USA). The matter concerns an infringement action and a cost assessment dispute.

During the ongoing infringement proceedings, the defendants filed an application under Rule 9.1 RoP seeking cost assessment for quantified attorney representation costs they allegedly incurred in an appeal proceeding brought by the plaintiffs against an order requiring security for costs (Prozesskostensicherheit) under Rule 158 RoP. In the appeal proceeding, the Court of Appeal had permitted the plaintiffs' withdrawal of the appeal with the defendants' consent and had imposed the costs of the appeal on the plaintiffs pursuant to Rule 265.2 RoP. The plaintiffs opposed the cost assessment application. The central dispute between the parties was whether the attorney costs claimed for the appeal response were justified, given that the plaintiffs declared withdrawal of the appeal on 11 November 2024 and the defendants consented on 15 November 2024. The deadline for the appeal response expired on 19 November 2024. The defendants, who filed their appeal response on the day the deadline expired, claimed they only learned through the CMS system on 20 November 2024 about the Court of Appeal's acceptance of the appeal withdrawal, which had occurred on 19 November 2024.

& Analysis: The court determined that the application was inadmissible. The court's guiding principle (Leitsatz) established that costs incurred for the application, opposition, or defense of procedural orders—including orders concerning security for costs under Rule 158 RoP—are not subject to a separate cost assessment procedure under Rule 150 RoP. Rather, such costs, if applicable, are to be assessed as part of the total procedural costs in the cost assessment proceeding under Rule 150 RoP that follows the substantive decision. Additionally, the court noted that even if the application were admissible, it would have become moot (gegenstandslos) due to the cost-related decision rendered by the panel in its decision of 6 June 2025 regarding the infringement action and the counterclaim for revocation.

Final Order & Ruling: The order was issued by the legally qualified judge Böttger as the rapporteur on 6 August 2025. The court declared the defendants' application for cost assessment inadmissible, holding that costs arising from procedural orders such as security-for-costs orders must be addressed in the comprehensive cost assessment following the substantive decision rather than through a separate cost assessment proceeding.

Practitioner Note

This case demonstrates the evidentiary and procedural standards applied in patent matters before Mannheim (DE) Local Division. Understanding the court's reasoning in AYLO PREMIUM LTD, BRIDGEMAZE GROUP LLC, BROCKWELL GROUP LLC, AYLO BILLING US CORP., AYLO FREESITES LTD, AYLO Billing Limited vs Respondent is valuable context for structuring arguments or assessing risk in similar proceedings.

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