Its main feature is the separation between infringement action and nullity action.

Infringement actions are brought before ordinary civil courts. Each region (Bundesland) has designated one or a few court of first instance (Landgericht) that can hear patent, trademark and design cases. An appeal against their decision can be filed before the corresponding regional appeal court (Oberlandesgericht). In certain cases, their decision can be challenged before the Federal Court of Justice (Bundesgerichtshof) in Karlsruhe.

Before ordinary civil courts, the Parties must be represented by a German attorney-at-law (Rechtsanwalt). However, German IP attorneys (Patentanwalt) have a right of audience, too. In practice, most infringement cases are brought before the first instance courts of Düsseldorf, Munich, Hamburg, Cologne (trademarks) or Mannheim ; these courts have specialised sections.

Nullity actions concerning patents, trademarks and designs can only be brought before the Federal Patent Court (Bundespatentgericht) in Munich. The sections of this court are composed of both legally trained judges and technically trained judges. An appeal agains its decisions can be brought before the Federal Court of Justice in Karlsruhe. 

The Federal Patent Court has also exclusive jurisdiction for appeals against decisions of the German Trademark and Patent Office (DPMA) (for instance in case of refusal of a patent application, or in patent opposition cases) ; in certain cases, this decision can be challenged before the Federal Court of Justice.

In all proceedings before the Federal Patent Court, the parties must be represented by a German IP attorney (Patentanwalt) or an attorney-at-law (Rechtsanwalt) ; a double representation (by both an IP attorney and an attorney-at-law) is useful only in cases presenting a certain legal complexity. In patent cases, a German IP attorney (who always has a strong technical background) usually is the best choice.

In brief :

1) Nullity action (patents, trademarks, designs)

First instance = Federal Patent Court (Munich)

Second instance = Federal Court of Justice (Karlsruhe)

2) Infringement action (patents, trademarks, designs)

First instance = Designated civil courts of first instance

Second instance = regional courts of appeal

Certiorari (granted in certain cases only) = Federal Court of Justice (Karlsruhe)

3) Appeal against decision of the German Trademark and Patent Office

= Federal Patent Court (Munich)

Certoriari (granted in certain cases only) = Federal Court of Justice (Karlsruhe)

The cost of legal proceedings in Germany depends on the "value of the case". (Streitwert). The value of the case is defined by the court on the basis of the financial interest of the case for the plaintiff. The vlaue of the case determines the court fee as well as the minimum attorney fees for the attorney-at-law and the IP attorney involved in the case. 

Example :

Value of the case : 1 000 000 € (a realistic value for a patent infringement case)

Fee levied by the court of first instance : 13,368.00 €

Minimum attorney fee for each attorney (including prepraration of the case and audience, not including v.a.t.) : 11,260.00 €

If the parties are represented by both an IP attorney (Patentanwalt) and an attorney-at-law (Rechtsanwalt), each of them will charge these minimum attorney fees.

In patent infringement cases, the court will usually nominate an expert ; this adds to the total cost of the litigation.

The loosing party will have to reimburse the court fees and the prevailing party’s standard (minimum) attorney fees. The court can decide apportionment of fees and costs if each party prevails on certain issues.