CJEU Grants Jurisdiction Over Foreign IP Infringement Cases

The Situation: The Court of Justice of the European Union ("CJEU") issued a landmark decision on February 25, 2025, in the case of BSH Hausgeräte GmbH v. Electrolux AB. The ruling extends the jurisdiction of EU courts to adjudicate infringement cases involving foreign intellectual property rights, including copyrights, trademarks, and designs, provided the defendant is domiciled in an EU Member State.

The Development: The CJEU ruled that EU courts can award damages and injunctions for the infringement of foreign IP rights, even if the validity of those rights is contested in other jurisdictions. This decision applies to all types of IP rights, not just patents, and allows for enforcement actions against defendants domiciled in the European Union.

Looking Ahead: This decision is expected to have significant implications for IP litigation, potentially leading to an increase in cross-border IP enforcement actions within the European Union. Stakeholders should monitor how national courts implement this ruling and consider the strategic implications for IP enforcement and defense.

Jurisdiction Over Foreign IP Infringement. The CJEU's decision establishes that EU courts have jurisdiction to hear cases involving the infringement of foreign IP rights, regardless of the validity of those rights in other jurisdictions. This means that a court in an EU Member State can award damages and injunctions for the infringement of IP rights registered outside the European Union, provided the defendant is domiciled within the European Union.

Inter Partes Nature of the Decision. The ruling clarifies that decisions made by EU courts in such cases will have an inter partes effect, meaning they will apply only to the parties involved in the litigation. This ensures that the validity of the foreign IP rights remains unaffected in the jurisdiction where they are registered.

Discretion to Stay Proceedings. The CJEU also provided guidance on the discretion of national courts to stay infringement proceedings pending the outcome of validity challenges in the jurisdiction where the IP rights are registered. This allows courts to manage cases efficiently while respecting the exclusive jurisdiction of foreign courts over the validity of their IP rights.