Warning Letters: Facilitated Submission of Caveats Possible

Rejecting a warning, e.g. in competition law, bears the risk of the warning party evoking an interim injunction at court within a few days which might bring business operations to a standstill. Interim injunctions are often issued by courts without hearing the opposing party. If the party receiving the warning wants to ensure that its arguments are considered by the judge, it has to submit them with a protective statement as soon as it has been warned (“caveat”).

The motion for an interim injunction against advertisement on the Internet can be made at any Regional Court in Germany. In this case, the party receiving the warning would have to submit identical caveats to all Regional Courts in Germany. To minimize this effort, as of 1 January 2016, the legislator has provided a central electronic “Register for Caveats”. The caveat can be registered in form of an electronic document in this data base, which is then scanned by the courts when a motion for an injunction is received. If a motion for an injunction is made, the court has to notify the party which has submitted the caveat. This makes it easier for the party receiving the warning to enforce claims for reimbursement against the company which unsuccessfully made a motion for an interim injunction.