In a recent international survey of over 350 respondents
from 62 countries, licence agreements (especially those concerning
patents) are the main culprits in terms of giving rise to
The World Intellectual Property Organisation (WIPO) surveyed 350
businesses from 62 countries in industries such as IT, consumer
goods and biotechnology. While respondents said they saw a trend
towards resolving disputes out of court (29% said they tried
mediation before going to court), the two most common methods to
resolve disputes were litigation in the respondent's home
country, or litigation in another country. Arbitration came a
Respondents said the main considerations when negotiating
dispute resolution clauses were costs, time, enforceability,
quality of outcome (including expertise of the decision-maker),
neutral forum and confidentiality.
So let's do a side by side comparison of litigation and
Not cheap, but cheaper than litigation
Often many years, plus appeals
A bit over a year (and generally no
Difficult to enforce if parties are in different
Internationally recognised and enforceable
Quality of outcome
Judges not experts in the particular IT/ IP
Greater access to arbitrators with specific
In some jurisdictions the impartiality of judges
is not a given
Judgments are publicly available
Proceedings and results are confidential
So why is it that parties choose to resolve their disputes by
To us it's a no brainer. Perhaps it's time to reconsider
the dispute resolution clauses in your IT/IP contracts.
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This was an interlocutory decision about the appointment of a tutor for the child appellant, to carry on his proceedings.
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