UPC Imposes Penalty Payment on Revolt in e-bike Dispute with MyStromer

In the dispute between MyStromer and Revolt Zykling over e-bike technology, the Düsseldorf local division has imposed the first penalty payment in a UPC case. This follows the UPC's first ex parte decision in June, in which the court issued a PI in the case within one day of the application.

The subject of the dispute is EP 2 546 134 B1, which covers a combination structure of bicycle frame and motor hub in an e-bike. The patent holders are Taiwan, China-based Fairly Bike Manufacturing and Swiss-based MyStromer.

The companies accuse Revolt Zykling of infringing their property rights with its Opium series of speed pedelecs. The defendant had originally announced the sale of these e-bikes on its website for April 2023. Although delivery was delayed, the pedelecs were presented at the trade fair EuroBike 2023, which took place in Frankfurt from June 21 to 25. Visitors at the fair could test-ride the bikes.

Shortly after the trade fair began on June 22, MyStromer applied for a preliminary injunction against Revolt Zykling at the UPC’s local division in Düsseldorf.

A series of firsts

In the UPC’s first ex parte decision, handed down on the same day as the PI application, the Düsseldorf local division granted the first PI of the new court and ordered the defendant to cease and desist from selling in Germany, the Netherlands, France and Italy. This included the products at the EuroBike trade fair. According to the PI, Revolt Zykling would have to pay a penalty of up to €250,000 if it did not comply (case ID: ACT_525740/2023; UPC_CFI_177/2023; order no. 526778/2023).

However, the defendant’s compliance with the PI was limited and delayed. As a result, the UPC has now imposed a penalty payment the first time.

According to the reasoning, the bailiff served the PI on Revolt Zykling on June 23 at 3.30pm at the trade fair in Frankfurt. However, the stand remained open for a further two and a half hours. Although the company shut down its website promptly, visitors could still book test rides on the e-bikes until the next day via Instagram.

In addition, MyStromer accuses the defendant of having confirmed in a letter to its Belgian authorised dealers at the end of June that the sale of the Opium series to customers from Germany, the Netherlands, France and Italy would remain permitted.

MyStromer calls for penalty

MyStromer considered this to be a violation of the PI and in July applied for the imposition of a penalty payment. The court followed the claimant’s argumentation with regard to the trade fair and the offer via social media. However, the judges did not consider the letter to the Belgian authorised dealers to be a violation of the PI.

In the meantime, however, a dealer in south Germany offered pedelecs of the patent-infringing series for sale one Sunday in September. The Düsseldorf local division also considered this to be a violation of its order. It has therefore imposed a penalty payment totaling €26,500. This is mainly due to the German dealer offering the bikes for sale in September. In addition, the defendant must bear three-quarters of the costs of the proceedings.

Revolt may appeal the penalty order but has not yet taken this step.

The main proceedings on the infringement issue are pending (case ID: ACT_552758/2023). There are also parallel infringement and nullity suits pending in Switzerland.