EUPillar SA Joskin Machines Agricoles v. BV Veenhuis Machines, M. H. Vanbuel and SA Broekx

Summary

(decision by the Court of First Instance of Liège) Joskin and Veenhuis manufacture agricultural machinery, such as manure spreaders. The dispute between the parties centers on the possible infringement of patents relating to the slurry distributors and injectors. The dispute between the parties goes back to 1997. Joskin accused Veenhuis of infringing its patent on a slurry distributor, while Veenhuis accused Joskin in turn of infringing its patent on an injector. In May 1998, the parties end their discussions with a cooperation agreement. Veenhuis will place its orders with Joskin, who will have to deliver at least 40 manure distributors a year. In 1998, Veenhuis orders 76 distributors, and another 50 in 1999. Joskin complains about unpaid invoices. The parties negotiated about a license contract for the patent, but in October 1999 Joskin said it was no longer interested. After more failed negotiations, Joskin brings proceedings against Veenhuis on 25 July 2003, for 6,525.22 EUR in unpaid invoices and 200,000 EUR in damages. As a counterclaim, Veenhuis seeks the annulment of Joskin’s patent, 68,999.94 EUR in compensation for faulty products delivered by Joskin and 25,000 EUR in damages for the harm done to its reputation. Veenhuis also introduces its own claim for patent infringement. (i) Jurisdiction over the claim of Joskin against Veenhuis As regards its jurisdiction, the court considers that Art. 5(3) Brussels I grants jurisdiction, in matters relating to tort, to the courts for the place where the harmful event occurred. There is no doubt that the infringement of a patent is a matter relating to tort and that Art. 5(3) is applicable. It is alleged that Veenhuis distributes counterfeited manure spreaders, in violation of Joskin’s patent, on Belgian territory. On that point, the Belgian courts have jurisdiction. However, Veenhuis argues that the court’s jurisdiction is limited to measures which have their effect on Belgian territory. In case of intellectual property rights infringements, if the perpetrator of the infringement is not established in Belgium but in another Member State, he can be sued in Belgium if the act of counterfeit is committed in Belgium. In that case, the event which gives rise to and is at the origin of the damage is located in Belgium and the Belgian courts have jurisdiction for all the harm caused. If the act of counterfeit is situated elsewhere, the Belgian courts also have jurisdiction because of the place where the damage occurred, but their jurisdiction is limited to the harm caused in Belgium. In the case at hand, the counterfeit machines were produced in the Netherlands and were sold in Belgium. The courts have jurisdiction only over the harm caused in Belgium. The court will ensure that - if it issues an order to stop counterfeiting Joskin’s patent – the scope of that order is limited to Belgian territory. (ii) Jurisdiction over the claim of Joskin against Vanbuel and Broekx Vanbuel and Broekx were forced to join the proceedings. They are clients of Veenhuis and bought some of the disputed machines. The descriptive attachment of the goods took place at the premises of Vanbuel and Broekx. Broekx is a company seated in Bree, within the district of Antwerp. Mr. Vanbuel is a natural person domiciled in Wijgmaal, also within the district of Antwerp. Together they contest the territorial jurisdiction of the courts of Liège. The court agrees. The infringement that is attributed to the defendants by the claimant is the use of a counterfeited machine – this use also took place in the district of Antwerp. The application of Art. 6(1) Brussels I requires that at least one of the other defendants is domiciled within the territorial jurisdiction of the court seised. This is not the case here: the jurisdiction of the court over the claim against the other defendant is based on Art. 5(3), not on the defendant’s domicile. The judge transfers this part of the claim to the Court of First Instance of Antwerp.