General 

1. What kind of claims are subject to PIs? 

PIs apply to claims involving the infringement of all typical IP rights, including patents, trademarks, and copyrights.

2. Is any prior, out of court action (e.g. a warning letter) required before filing an application for a PI?

No.

3. Does an application for a PI need to be filed within a certain deadline?

PIs apply to claims involving the infringement of all typical IP rights, including patents, trademarks, and copyrights.

4. How quickly can PIs be obtained?

For copyright, patent and trademark infringements, PIs can be obtained within 15 days following the date of submission of the application for PI.

5. Can PI proceedings be suspended?

No. However, in certain situations the court might, at the counterparty’s request, reverse, vacate or withdraw the ruling.

6. Which kind of evidence is required in PI proceedings? 

The application for the PI shall specify why there is cause for ordering the PI. The application shall also include a definitive request for specific measures the applicant wishes to have ordered.

Where the application for PI is filed prior the filing of a statement of claim, in addition to the above,  the applicant shall prove presumptively that if the application was submitted after the opening of the proceedings it would frustrate the objective intended to be achieved by the PI.

Ex parte preliminary injunctions

7. Is it possible to obtain an ex parte PI (without hearing the counterparty)?

Yes. In proceedings for copyright, patent or trademark infringements, if hearing the counterparty is likely to cause delay leading to irreparable harm, the PI may be ordered without hearing the counterparty.

Costs and Security

8. Are the costs recoverable from the counterparty in the event the PI is issued?

Yes.

It depends on the final outcome of the proceedings. As a general rule, the court costs of the successful party shall be covered by the unsuccessful party.

9. Is the applicant required to provide a security deposit when requesting a PI?

In cases of copyright, patent and trademark infringements, the applicant may also request the court to order the provision of counter-security if in exchange - in lieu of demanding the termination of the infringement - the applicant agrees for the infringer to continue the alleged acts of infringement.

The court may also order the provision of counter-security even in the absence of any request on the part of the holder of the IP rights, provided that the holder of the IP rights has filed a claim for the termination of the infringement and it was turned down by the court.

Remedies 

10. Is it possible to appeal or file other remedies against a PI? If so, does this suspend the effect of the PI?

General rules:

Yes. A PI can be appealed separately from and prior to the final judgment. An appeal shall not have a suspensory effect with regard to the enforcement of the PI.

The court shall also have the powers to reverse the ruling upon request.

11. How long do the proceedings to challenge a PI usually take?

Usually within 15 days of the date of lodging the appeal.

Enforcement  

12. When does a PI become effective?

Generally, a PI becomes enforceable the day after the ruling is communicated in writing, unless the court provides otherwise.

If the court ordered a PI conditional upon the provision of security, the court establishes the performance of the security requirement by way of a separate ruling, and the PI shall become provisionally enforceable when said ruling is adopted.

Legal measures available to enforce the PI are as defined in Judicial Enforcement Act.

If the obligor has failed to voluntarily perform the required act, it shall be inspected on-site by the bailiff if necessary.

In the event of failure of performance the bailiff shall refer the case to the court. The court shall determine the manner of enforcement, such as

  1. ordering the obligor to pay the cash equivalent of the specific act;
  2. granting authorization to the judgment creditor to perform or to cause to be performed the specific act at the cost and risk of the obligor, and at the same time ordering the obligor to advance the estimated costs of such;
  3. to impose a fine upon the obligor up to 500,000 forints;
  4. enforcing the specific act with police assistance.

Damages 

14. Can the counterparty seek damages if the PI is later found to be unjustified and cancelled?

Yes.

Where the court ordered a PI conditional upon provision of security, and later dismisses the action brought by the applicant, in its final judgement the court shall prescribe that the deposited security is released to the counterparty. Additionally,  compensation for any losses resulting from the PI could be payable.

Main proceedings 

15. Are further proceedings on the merits required in order for the court to grant a final injunction?

Yes, in order to grant a final PI, the case shall be considered by court on the merits (it can also be agreed upon by the parties’ / granted within alternative dispute resolution proceedings). However, as indicated in comments in para 1 above, a PI cannot be identical to the essence of the claim.