Latest updates

Authorisation requirements for third-country insurers: implications of a hard Brexit
Mannheimer Swartling
  • Insurance
  • Sweden
  • 16 July 2019

In the event of a hard Brexit, UK insurers must obtain authorisation as third-country insurers in Sweden in order to offer their products to the Swedish market. Notably, insurers that are uncertain of whether the business which they intend to conduct constitutes insurance business in Sweden and is thus subject to authorisation can apply for a preliminary ruling from the Swedish Financial Supervisory Authority on the issue.

Liability for damages due to export of toxic waste: final ruling
Advokatfirman Lindahl
  • Environment & Climate Change
  • Sweden
  • 15 July 2019

In a long and extensive environmental liability suit in Sweden, approximately 800 Chileans sued a Swedish mining company. The claim was based on the grounds that the mining company had exported toxic waste to Chile which subsequently caused damage to the plaintiffs' health. The case regards a potentially tortious act which occurred more than 30 years ago and poses the question of whether a company can be liable for environmental damage disclosed long after the tortious act has taken place.

Conditions and consequences of CEO employment termination
Wistrand
  • Employment & Benefits
  • Sweden
  • 10 July 2019

Company leaders such as CEOs are expressly excluded from the scope of the Employment Protection Act. Therefore, the parties to a CEO's employment agreement must agree its terms. However, the reasonability and validity of the agreed terms and conditions may be assessed or determined by the Swedish courts. Given the lack of applicable law in this area, the parties to a CEO's employment agreement must agree on the terms relating to both active employment and termination (by either party).

One small step for alcoholic beverage marketers, one giant leap for wine critics
Westerberg & Partners Advokatbyrå Ab
  • Product Regulation & Liability
  • Sweden
  • 06 June 2019

The Patent and Market Court of Appeal recently assessed the use of quotations from wine reviews in ads and found the terms 'bargain' and 'recommended' and the phrase 'an excellent alternative for the big party' acceptable under the applicable Swedish and EU law. This ruling marks a small but significant shift in the strict Swedish jurisprudence on the subject and may give market actors a reason to pop a celebratory bottle.

Watch out! Patent and Market Court of Appeal finds watch protected by copyright
Westerberg & Partners Advokatbyrå Ab
  • Intellectual Property
  • Sweden
  • 27 May 2019

For the first time, the Patent and Market Court of Appeal has confirmed that a watch can be protected by copyright as a work of applied art, even in a crowded design field. The decision enables rights holders to not only pursue counterfeits on the basis of trademark infringement, but also to prosecute copycat watch models on the basis of copyright protection in physical and digital environments.

Arbitral award set aside for violation of due process
  • Arbitration & ADR
  • Sweden
  • 23 May 2019

In a recent decision, the Supreme Court confirmed that Section 34(7) of the Arbitration Act – under which an arbitral award must be set aside if an irregularity occurred in the course of the proceedings and probably influenced the case's outcome – should be applied restrictively. This decision is a rare example of a Swedish court setting aside an award based on procedural irregularities under Section 34(7).

It's complicated: principles for clarifying uncertain employer-employee relationships
Wistrand
  • Employment & Benefits
  • Sweden
  • 01 May 2019

The Labour Court recently issued two decisions which further outline the principles for determining the 'real' employer when an employer-employee relationship is unclear. The decisions confirm that the court still places a strong emphasis on protecting employees' rights. Thus, in the interests of full transparency, employers must fulfil their obligations by ensuring that employees have full knowledge of any agreement between their employer and another company that performs employment-related functions.

New guidance on classification of insurance‑based investment products
Mannheimer Swartling
  • Insurance
  • Sweden
  • 30 April 2019

The Council for Advance Tax Rulings has further clarified the demarcation between insurance products and other investment products under Swedish law. The council found that a unit-linked insurance plan under which the beneficiary was entitled to 99% of the invested capital on realisation of the insured risk and the policyholder received no risk compensation during the insurance period did not constitute an insurance product under Swedish law.

Arbitral award challenge based on Achmea unsuccessful
  • Arbitration & ADR
  • Sweden
  • 14 March 2019

The Svea Court of Appeal has largely upheld two arbitral awards which Poland had challenged on the ground that the arbitration provision in the investment treaty between Poland, Luxembourg and Belgium was incompatible with EU law according to Achmea. However, the court granted leave to appeal to the Swedish Supreme Court, as it deemed the case to include issues of importance for the guidance of the application of law.

Preliminary injunction denied in Swedish darunavir SPC proceedings
Westerberg & Partners Advokatbyrå Ab
  • Intellectual Property
  • Sweden
  • 11 March 2019

The Patent and Market Court of Appeal recently handed down a preliminary injunction ruling in Sandoz v GD Searle LLC relating to the supplementary protection certificate (SPC) for darunavir. The ruling clarifies that SPCs enjoy a validity presumption for the purpose of a preliminary injunction ruling in the same way that patents do. However, in the instant proceedings, the court found that Sandoz, against which the lower court had issued a preliminary injunction, had managed to rebut the presumption.

Trilogue negotiations: originator company compensation for parallel imported products
Westerberg & Partners Advokatbyrå Ab
  • Healthcare & Life Sciences
  • Sweden
  • 27 February 2019

The Stockholm Administrative Court recently ruled that under the so-called 'trilogue negotiations' between pharmaceutical companies, the Dental and Pharmaceutical Benefits Agency and the Swedish regions could require an originator company to compensate them for products marketed by parallel importers.

Does lack of impartiality justify a reduction in arbitrators' compensation?
  • Arbitration & ADR
  • Sweden
  • 14 February 2019

Although parties have the right to appeal arbitrators' compensation that has been decided by an arbitral institution and included in an arbitral award, a recent Svea Court of Appeal judgment suggests that strong reasons are required to adjust such a decision when it has been made in accordance with an arbitration agreement between said parties. Further, the existence of circumstances which could diminish confidence in an arbitrator's impartiality is insufficient to justify a reduction in compensation.

Labour Court clarifies freedoms of religion and conscience in healthcare sector
Wistrand
  • Employment & Benefits
  • Sweden
  • 13 February 2019

Sweden is one of the most secular countries in the world with full freedom of religion. Further, freedom of conscience is a right protected by the European Convention on Human Rights. However, domestic law recognises no right to conscientious objection. A recent Labour Court decision has clarified from an employment law perspective whether freedom of conscience gives healthcare professionals a right to conscientious objection.

Calculating copyright infringement damages using hypothetical licence fees
Westerberg & Partners Advokatbyrå Ab
  • Intellectual Property
  • Sweden
  • 11 February 2019

The Supreme Court recently rejected the application of a hypothetical licence fee to calculate reasonable compensation for massive copyright infringement through the operation of an illegal streaming site. This decision raises several interesting questions, including to what extent an infringer's illegal business model should be taken into account when calculating reasonable compensation.

Revised Environmental Code: new requirements for hydropower sector
Advokatfirman Lindahl
  • Environment & Climate Change
  • Sweden
  • 04 February 2019

A number of revisions to the Environmental Code recently entered into force. The new rules apply to operators of hydroelectric power plants and plants that originally intended to produce hydroelectric power. The legislative changes aim to provide hydroelectric power plants with modern environmental conditions and ensure efficient national access to hydroelectric power.

No infringement where software backups are passively stored
Westerberg & Partners Advokatbyrå Ab
  • Intellectual Property
  • Sweden
  • 24 December 2018

The Supreme Court recently declared that the mere passive storage of backups of copyrighted software with expired licences does not constitute copyright infringement. The judgment is significant as it clarifies which actions constitute copyright infringement and, from a practical perspective, relieves licensees from having to mine their backup servers in pursuit of potential 'sleeper' infringements.

Employment considerations following transfers of undertakings
Wistrand
  • Employment & Benefits
  • Sweden
  • 31 October 2018

Businesses considering purchasing all or part of a business in Sweden often make several economic and organisational considerations regarding the assets and liabilities of the business being acquired. Employment-related issues and how any redundancies can be handled may also be contemplated. Despite such considerations, buyers commonly disregard entirely, or at least underestimate, the importance of employment regulations in connection with a transfer of undertakings.

Counsel's personal liability for costs in challenge proceedings
  • Arbitration & ADR
  • Sweden
  • 25 October 2018

Often, the counsel representing a challenging party will also have acted as counsel in the arbitral proceedings and thus have personal and direct knowledge of the facts of the dispute (ie, what occurred during the arbitral proceedings). Therefore, a court may be less forgiving when a counsel makes an inaccurate statement of facts in challenge proceedings. Counsel representing parties challenging arbitral awards should be aware of this risk and are well advised to avoid potential grounds for personal liability.

Patent and Market Court rules on global retransmissions of TV broadcasts
Westerberg & Partners Advokatbyrå Ab
  • Intellectual Property
  • Sweden
  • 22 October 2018

On the ever-growing market for streaming services and online access to TV broadcasts, illegal services are common and sometimes difficult to shut down due to their technical complexity and the multi-jurisdictional scope of the infringing activities. The Patent and Market Court recently held three persons liable for global retransmissions of TV broadcasts, sentencing them to prison and awarding rights holders significant compensation for damages.

Judgment on public procurement puts parallel importers at a disadvantage
Westerberg & Partners Advokatbyrå Ab
  • Healthcare & Life Sciences
  • Sweden
  • 17 October 2018

The Stockholm Administrative Court recently ruled that the obligation on tenderers of public procurements of medicinal products to have routines which ensure that the use and handling of active ingredients would have as little effect on the environment as possible, as well as the obligation that they routinely survey and have dialogue with their subcontractors, were permissible. The decision has been appealed to the Administrative Court of Appeal in Stockholm, which has yet to make a decision.