Fujifilm v. Kodak Patent Infringement: UPC Court of Appeal Reverses First-Instance Decision

The Unified Patent Court (UPC) has issued a pivotal ruling in the nearly three-year-long patent infringement dispute between U.S.-based Eastman Kodak Company and Japan's Fujifilm Corporation.

The dispute originates from patents relating to lithographic printing plate technology. In October 2023, Fujifilm filed a complaint before the UPC, alleging that Kodak's Sonora X, Sonora Xtra-2, and Sonora Xtra-3 product families infringed its European Patent (EP 3 511 174). Both Fujifilm and Kodak, as traditional imaging giants that have transitioned into the digital printing sector, are direct competitors in this technology field.

In April 2025, the UPC Mannheim Local Division issued a first-instance decision, preliminarily finding Fujifilm's patent valid and Kodak infringing, and granted an injunction against Kodak's relevant products in Germany. In July of the same year, the Mannheim Local Division rendered a more groundbreaking order, extending the territorial effect of that injunction to the United Kingdom – marking the first time in UPC history that it exercised long-arm jurisdiction and issued an injunction against a non-member state. This order triggered extensive discussion within the European and U.S. intellectual property legal communities. In January 2026, because Kodak was found to have not fully complied with the first-instance injunction orders, the Mannheim Local Division imposed a fine exceeding €1.7 million on Kodak, giving Fujifilm a comprehensive advantage at the first-instance stage.

However, on 2 June 2026, the case took a fundamental reversal. The UPC Court of Appeal issued its second-instance judgment, entirely overturning the first-instance decisions of the Mannheim Local Division and revoking the injunctions against Kodak in both Germany and the UK. The appellate court's reversal was based on two substantive findings:

As to Germany: Kodak's defence of "prior user rights" was upheld. The court found that Kodak had adduced sufficient evidence that it had, in good faith, made substantial and effective prior use of the claimed technology in Germany before Fujifilm's patent filing date. Accordingly, Kodak's activities did not constitute infringement in Germany.

As to the UK: Fujifilm failed to meet its burden of proof. The court held that Fujifilm had not provided adequate evidence to establish that Kodak's three German affiliates had jointly infringed the UK part of the patent in question, and thus dismissed Fujifilm's claims in that regard.

Furthermore, the Court of Appeal expressly confirmed in its judgment that the UPC has jurisdiction to hear patent infringement cases involving non-member states (such as the UK), provided that the defendant has a domicile within a UPC member state (as in the present case, Germany), thereby establishing jurisdiction under the Brussels I Regulation (Recast). At the same time, the court emphasised that such jurisdiction is exercised on a "remedial" rather than "determinative" basis. This means that the UPC may adjudicate infringement disputes and issue injunctions, but it has no competence to ultimately determine the validity of the patent in a non-member state (e.g., the UK). This qualification sets an important boundary for the UPC's future practice of long-arm jurisdiction.

According to reports of 14 July 2026, the UPC Court of Appeal ruled in a separate dispute between the same parties concerning another patent (EP 3 476 616). In that decision, the court upheld part of Fujifilm's claims, finding that Kodak's relevant products infringed the patent in Germany and granting an injunction. However, the court once again rejected Fujifilm's request for an injunction covering the UK market, on the ground that Fujifilm had failed to provide sufficient evidence that Kodak had infringed the corresponding UK portion of that patent.

These series of decisions amply demonstrate the heightened complexity of cross-border patent litigation. China Intellectual Property Lawyer Network will continue to follow further developments.