1. Key takeaways
Requirements for requesting cost security based on undue
burden of enforcement in a foreign jurisdiction
Pursuant to Article 69(4) UPCA and Rule 158.1 RoP, the Court
may, upon a party's request, order the opponent to provide
adequate security for the legal costs and other expenses incurred
by the defendant, which the applicant may be liable to bear. This
is particularly applicable in the cases outlined in Articles 59 to
62 UPCA.
If the applicant's request is based solely on the argument
that enforcing a cost decision against the opponent would be unduly
burdensome due to the opponent's registered place of business
being in a non-EU state (e.g. the United States of America), the
applicant bears the burden of substantiating this claim. To do so,
the applicant must provide not only evidence of the foreign law
applicable in the jurisdiction where enforcement is sought but also
demonstrate how that law is applied in practice.
