A guide to the UPC and the UP - Flipbook - Page 407
Reduction of Court fees for Small and Micro Enterprises
20-29 Art.36(3) UPCA requires that the Court fees ensure a balance between the principle of fair
access to justice and an adequate contribution of the parties to the costs for the Court. In
particular, the interests of SMEs, micro-entities, natural persons, non-profit organisations,
universities and public research organisations should be taken into account.
20-30 After the Preparatory Committee’s consultation on fees and recoverable costs, a simple form
of direct support for those in need was proposed. 55 R.370(8) RoP provides that small and micro
enterprises that meet the specified criteria are entitled to a reduction of 40 per cent on both the
fixed and value-based fee both at first instance and in relation to an appeal. The party must
affirm in the SoC, counterclaim, application for a procedure or appeal that it is either a small or
micro enterprise (as applicable) as defined in Title I of the Annex to the European Commission’s
recommendation concerning the definition of micro, small and medium-sized enterprises. 56
The Court may order the party to supply further information about its financial resources and,
if the reduced payment is manifestly disproportionate and unreasonable in respect of the
party’s financial capacity, then the Court may order the remainder of the regular fee to be paid
and in addition, where the party’s affirmation is found to be wholly or partially incorrect, the
party may have to pay a penalty of up to an additional 50 per cent of the remainder of the
regular fee. 57
Failure to Pay Appropriate Fees
20-31 When a claimant fails to pay the appropriate fees upon lodging the SoC, the Registry will,
firstly, invite the claimant to correct the deficiency within 14 days. 58 If the fee is still not paid,
a decision by default may be rendered against the claimant declaring the action inadmissible. 59
Similarly, if a defendant, an applicant for a procedure or an appellant does not pay the
necessary fee, a decision by default may be rendered.
Reimbursement of Fees on Withdrawal or Settlement
20-32 On the basis that the Court has less work to do where the action settles early or is heard by
a single judge, the Court will reimburse some of the fees. The reductions available in such
circumstances are as follows: 60
–
If the action is heard by a single judge, 61 the party liable for the Court fees will be
reimbursed by 25 per cent;
–
In case of the withdrawal of an action 62 or if the parties have concluded their action by way
of settlement, 63 the party liable for the Court fees will be reimbursed by:
–
55
56
57
58
59
60
61
62
63
60 per cent if the action is withdrawn before the conclusion of the written procedure;
pp.18 and 19 Explanatory Note to the Preparatory Committee’s final draft – subject to legal scrubbing – Rules on Court fees
and recoverable costs, 25 February 2016.
Commission Recommendation No. 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized
enterprises (OJ No. L 124, 20.5.2003, p.36). A small enterprise is defined as one which employs fewer than 50 persons and
whose annual turnover and/or annual balance sheet total does not exceed €10 million. A micro enterprise is one with fewer
than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed €2 million.
r.370(8)(c) and (d) RoP.
r.16(3)(b) RoP.
art.70(2) UPCA and r.16(5) RoP. See chapter 12 (Written Procedure) paragraph 12-52.
r.370(9)(a) to (c) RoP.
r.345(6) RoP.
r.265 RoP. See chapter 11 (Overview of Procedure and General Procedural Provisions) paragraphs 11-156 to 11-158.
r.11 RoP. See chapter 22 (Settlement and the Patent Mediation and Arbitration Centre).
© Bird & Bird LLP | May 2023
A Guide to the UPC and the UP 397
