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General
- What kind of claims are subject to PIs?
- Is any prior, out of court action (e.g. a warning letter) required before filing an application for a PI?
- Does an application for a PI need to be filed within a certain deadline?
- How quickly can PIs be obtained?
- Can PI proceedings be suspended?
- Which kind of evidence is required in PI proceedings?
- Ex parte preliminary injunctions
- Costs and Security
- Remedies
- Enforcement
- Damages
- Main proceedings
jurisdiction
General
1. What kind of claims are subject to PIs?
PIs can be filed to act against ongoing or imminent violations of copyright, trademarks, patents and unfair competition. The essential condition is the risk of first offence or repetition of the infringing act.
According to Austrian IP legislation, PIs can be granted to:
- secure claims for injunctions,
- removal,
- reasonable compensation,
- damages,
- and surrender of profits.
PIs can be issued to secure the claim itself and to preserve evidence. PIs securing monetary claims - are possible in cases of commercially conducted infringements if enforcement is at risk.
PIs can be issued even without the need to certify a risk to the claim or threat of irreparable damage. Only the existence of IP rights and their infringement must be certified.
2. Is any prior, out of court action (e.g. a warning letter) required before filing an application for a PI?
A prior out of court action, such as a warning letter, is not a legal requirement.
However, in practice, sending a warning letter is advisable for the following reasons:
- Costs: A warning letter can often avoid a costly legal dispute.
- Time: A warning letter may lead to a quicker solution than court proceedings.
- Amicable settlement: It offers the opportunity to settle out of court.
- Proof of seriousness: It shows that the right owner is prepared to take legal action, which increases the pressure on the infringer to meet the demands.
3. Does an application for a PI need to be filed within a certain deadline?
No. There is no deadline and urgency is not a requirement. However, the general limitation period should be observed (3 years).
4. How quickly can PIs be obtained?
PIs can usually be obtained within two to four weeks after filing the PI at court.
Proceedings for PIs are usually held inter partes with both parties participating. After filing a PI, the infringing party is usually given one to two weeks to respond, and the court decides whether to issue the PI immediately afterwards.
5. Can PI proceedings be suspended?
Suspension of PI proceedings can be requested upon agreement of all parties.
Suspension of proceedings due to the prejudicial nature of another legal dispute is inadmissible. However, the Austrian Supreme Court of Justice has recognised a suspension due to a pending preliminary ruling procedure before the ECJ.
6. Which kind of evidence is required in PI proceedings?
Evidence submitted in PI proceedings is subject to a lower standard of proof. It is sufficient to convince the court that the facts presented are overwhelmingly likely to be true. Only means of certification evidence that can be presented to the court without significant effort is admissible. This excludes expert opinion (but not the submission of a private expert opinion) and oral witness examinations. Usual means of evidence are affidavits and documentary evidence.
Ex parte preliminary injunctions
7. Is it possible to obtain an ex parte PI (without hearing the counterparty)?
Yes. PIs can be issued ex parte if delay is likely to result in irreparable harm or there is a risk of evidence being destroyed. However, this is quite unusual in Austria.
Costs and Security
8. Are the costs recoverable from the counterparty in the event the PI is issued?
The applicant of the PI initially has to bear his own costs, including for appeal proceedings. If the applicant prevails in the main proceedings, they are entitled to reimbursement of the costs of the successful provisional proceedings. If the applicant is unsuccessful in the provisional proceedings, however, they are not entitled to reimbursement of costs for the provisional proceedings, even if successful in the main proceedings.
9. Is the applicant required to provide a security deposit when requesting a PI?
No - only if the resulting disadvantages for the opponent can be compensated by monetary damages and the applicant provides a security, which is determined by the court at its own discretion.
Remedies
10. Is it possible to appeal or file other remedies against a PI? If so, does this suspend the effect of the PI?
Yes, it is possible to appeal against a PI within two weeks after delivery. However, the appeal does not automatically suspend the PI. A suspension may be granted only upon request of the defendant if there is a legal ground for suspension and there is a risk of irreplaceable financial disadvantage.
11. How long do the proceedings to challenge a PI usually take?
The appeal court usually takes one to three months to decide the appeal. Depending on the presence of a significant legal question, the decision of the court of appeal can be contested within a further 14 days.
Enforcement
12. When does a PI become effective?
A PI becomes effective as soon as the PI request by the applicant is accepted by the court and delivered to the parties.
13. What legal measures are available to enforce compliance with a PI?
Fines of up to 100,000 euros per application per day may be imposed for non-compliance with the PI, in particular to obtain cease and desist. The penalties usually amount to several thousand euros per application; a new application can be made for each day of the violation.
Damages
14. Can the counterparty seek damages if the PI is later found to be unjustified and cancelled?
Yes. If the PI is denied, its application proves to be unjustified or if the PI fails to comply with the time limit set for bringing the action or initiating execution, the applicant must compensate its opponent for all losses caused by the PI. The amount of compensation is determined at the court’s discretion.
If the PI was obtained maliciously, a penalty for malicious misconduct can be imposed on the applicant at the request of the opponent.
Main proceedings
15. Are further proceedings on the merits required in order for the court to grant a final injunction?
If the PI has been granted in the provisional proceedings with legal effect, it shall remain in force until a different decision is made in the main proceedings.