IIPLA Blog
Tuesday, April 28, 2026

Damage Calculation Disputes Unified Patent Court

The Unified Patent Court (“UPC”) marks a significant shift in how patent infringement damages might be claimed across Europe and worldwide, consolidating claims that previously required separate actions in multiple coun…

IIPLA News Desk
Damage Calculation Disputes Unified Patent Court

The Unified Patent Court (“UPC”) marks a significant shift in how patent infringement damages might be claimed across Europe and worldwide, consolidating claims that previously required separate actions in multiple countries into a single, streamlined process.

As of August 2025, 18 member states covering about 80% of the EU’s GDP have agreed to having the UPC as a European Court,1 meaning that the UPC has an economic footprint of approximately €14 trillion GDP2 and covers over 300 million people.3 The UPC offers patent holders the opportunity to claim damages on a pan-European scale, increasing both potential recoveries and risks for infringers. The legal framework under Article 68 of the Unified Patent Court Agreement (“UPCA”)4 draws from Directive 2004/48/EC5 but introduces important nuances, especially regarding the infringer’s knowledge and methods of damage calculation.

What are some of the practical considerations for damages claims under the UPC from an economic point of view? How can practitioners navigate the interplay of local judicial experience and new unified procedures while considering economic impacts beyond traditional loss metrics?

The UPC’s jurisdiction over currently 18 European countries transforms the landscape of patent infringement damages.6 Traditionally, patent owners had to initiate separate claims in each member state, often facing divergent procedural rules and inconsistent damage awards. Since June 2023, under the UPC, a single proceeding can cover a patent portfolio spanning multiple countries, significantly broadening the scope and scale of potential damages.

This expansion affects not only plaintiffs seeking redress but also defendants, who must prepare for potentially larger and more complex damages claims. With an economic footprint of approximately €14 trillion GDP across the member states, the UPC covers around 80% of the economic performance in Europe.7 With potential claims covering over 300 million people, infringement cases involving industries such as pharmaceuticals or technology can result in substantial economic effects, either in case of damage awards or in cases of preliminary injunctions.

Furthermore, the UPC integrates procedural features from diverse legal frameworks and case law creating a hybrid model that will likely evolve as early case law develops. The judges come from several jurisdictions with both legal and technical backgrounds and expertise, including patent attorneys.