UPC_CFI_1547/2025; UPC_CFI_1172/2026 – NovaCloud v Amazon

Expert Commentary

Settlement Facts 1. This case concerns infringement proceedings. 2. A settlement was reached after the closure of the written proceedings. The Court 1. The Court accepts the withdrawal of the proceedings and rules that each party bears its own costs. 2. The Court sets the value of the litigation on € 5 million. Comment In view of the enormous potential damage resulting from an injunction, some parties such as Facebook, Amazon, carmakers etc., cannot afford to take even a small chance to lose, because decisions have no suspensive effect and, even if the dispute is in fact only a monetary dispute, the principle of proportionality remains, in practice, a(n almost) dead letter, particularly in relation to so called submarine patents. In this case, the patent application was published on 6 July 2022, based on a great-grandparent application filed more than 14 years earlier. Disclaimer: this case was handled by my law firm, but I made the above remarks before. I do not handle UPC cases and have no inside knowledge. If I write “a small chance to lose”, this is not based on an assessment of this particular case, but this is a general observation.

Full Decision Text

[Hier eingeben] DECISION Of the Court of First Instance of the Unified Patent Court Local Division Munich issued on 29 September 2026 CLAIMANT NovaCloud Licensing, LLC 530 Lytton Avenue, Palo Alto, California, USA represented by Dr. Johannes Druschel (Finnegan Henderson Farabow Garrett & Dunner LLP) DEFENDANTS: 1. Amazon.com, Inc. 251 Little Falls Dr., Wilmington, Delaware, USA 2. Amazon Web Services, Inc. 251 Little Falls Dr., Wilmington, Delaware, USA 3. Amazon Web Services EMEA S.à.r.l. Avenue John F. Kennedy 38, 1855 Luxembourg 4. AWS European Sovereign Cloud GmbH Behlerstraße 3A, Haus B2, 14467, Potsdam, Germany represented by Klaus Haft (HOYNG ROKH MONEGIER) PATENT AT ISSUE: EUROPEAN PATENT 4 024 777 PANEL: Panel 1a of the Local Division Munich LOCAL DIVISION MUNICH UPC_CFI_1547/2025 UPC_CFI_1172/2026 2 UPC_CFI_1547/2025 UPC_CFI_1172/2026 LANGUAGE OF THE PROCEEDINGS: English SUBJECT MATTER OF THE PROCEEDINGS: R. 265.1 RoP – Application for leave to withdraw the action SUMMARY OF THE FACTS 1. On 12 November 2025, the Claimant filed a patent infringement action against the Defendants. 2. By submission dated 16 September 2026, the Claimant withdrew its infringement action, and on 25 September 2026, the Defendants withdrew their counterclaim for revocation. 3. The parties agreed to each other's withdrawals and that each party shall bear its own costs. GROUNDS FOR THE DECISION 4. The withdrawals, to which the parties jointly expressed their will and acceptance, are in accordance with R. 265.1 RoP. 5. The decision on Costs, according to R. 265.2(c) RoP, is to be issued in accordance with the parties' agreement – each shall bear its own costs. 6. The value of the infringement action is set at 2 Mio. EUR, that of the counterclaim for revocation at 3 Mio. EUR (50% plus-rule). The overall value is therefore 5 Mio. EUR. DECISION: 1. The withdrawals of the infringement action and of the counterclaim for revocation are permitted. 2. The proceedings are declared closed. 3. This decision shall be entered on the register. 4. Each party shall bear its own costs. 5. The value of the infringement action is set at 2 Mio. EUR, that of the counterclaim for revocation at 3 Mio. EUR. The overall value is 5 Mio. EUR. 3 UPC_CFI_1547/2025 UPC_CFI_1172/2026 issued on 29 September 2026 NAMES AND SIGNATURES DR. MATTHIAS ZIGANN PRESIDING JUDGE TOBIAS PICHLMAIER LEGALLY QUALIFIED JUDGE RUTE LOPES JUDGE RAPPORTEUR LEGALLY QUALIFIED JUDGE JOHANNES MESA PASCASIO TECHNICALLY QUALIFIED JUDGE FOR THE DEPUTY-REGISTRARMatthias ZIGANN Digital unterschrieben von Matthias ZIGANN Datum: 2026.09.29 10:35:49 +02'00'Mesa Pascasio Johannes 2026-09-29 10:46:37 +0200TOBIAS GÜNTHER PICHLMAIER Digital unterschrieben von TOBIAS GÜNTHER PICHLMAIER Datum: 2026.09.30 08:24:50 +02'00'RUTE ALEXANDRA DA SILVA SABINO LOPES Assinado de forma digital por RUTE ALEXANDRA DA SILVA SABINO LOPES Dados: 2026.09.30 09:34:41 +01'00'Sofia Katharina Haseneder Digital unterschrieben von Sofia Katharina Haseneder Datum: 2026.09.30 10:55:12 +02'00'

Key Holdings

• The Court accepts the withdrawal of the infringement proceedings following a settlement reached after the closure of written proceedings.
• Upon settlement and withdrawal, the Court orders that each party bears its own costs.
• The Court determines and fixes the value of the litigation at €5 million.

Tags

• Settlement
• Withdrawal of proceedings
• Cost allocation
• Value of litigation