Efficient Dispute Resolution - WIPO Alternative Dispute Resolution ...
Efficient Dispute Resolution - WIPO Alternative Dispute Resolution ...
Efficient Dispute Resolution - WIPO Alternative Dispute Resolution ...
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<strong>Efficient</strong> <strong>Dispute</strong> <strong>Resolution</strong> - <strong>WIPO</strong><br />
<strong>Alternative</strong> <strong>Dispute</strong> <strong>Resolution</strong><br />
Mechanisms<br />
Barcelona, November 28, 2011<br />
Judith Schallnau, Lawyer, <strong>WIPO</strong> Arbitration and<br />
Mediation Center
2<br />
<strong>Dispute</strong> <strong>Resolution</strong> Needs in R&D and<br />
Technology Transfer (I)<br />
International<br />
International R&D collaboration, different national laws<br />
Industry partners, research institutes, universities from<br />
different countries may have diverging expectations<br />
and understandings of commercial and legal concepts<br />
Need for neutral procedure (e.g. law, language, place)<br />
Neutral expertise<br />
Complex questions related to IP and technical issues<br />
Need for an experienced neutral intermediary<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
3<br />
<strong>Dispute</strong> <strong>Resolution</strong> Needs in R&D and<br />
Technology Transfer (II)<br />
Efficiency<br />
Large investments in time and money, high competitive<br />
pressure<br />
Need for time- and cost-effective procedures<br />
One procedure for differences pertaining to IP protected in<br />
different countries<br />
Confidentiality<br />
New developments, patentability<br />
Need for confidentiality (existence, content, outcome)<br />
Preserving party relationships<br />
Long-time collaborations can be preserved where<br />
amicable solutions are sought, e.g. in a mediation<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
4<br />
Court Litigation<br />
Hurdles in litigating multi-jurisdictional disputes:<br />
Different legal systems<br />
Expensive & lengthy<br />
Risk of contradictory results<br />
Cross-border injunctions frequently not favored<br />
Consolidation of foreign patent infringements frequently not<br />
favored<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
Patent Litigation<br />
5<br />
Country Characteristic of Legal System Average Length Average Cost<br />
France<br />
Germany<br />
- Civil Law<br />
- Unified Litigation<br />
- No specialized courts<br />
- Civil Law<br />
- Bifurcated Litigation<br />
- Specialized court for invalidity<br />
First Instance: 18-24 months<br />
Appeal: 18-24 months<br />
€80,000-150,000 (1 st Inst.)<br />
Bifurcated Litigation First Instance: 12 months<br />
€50,000 (1 st Inst.)<br />
Appeal: 15-18 months €70,000 (App.)<br />
- Civil Law<br />
Italy - Unified Litigation<br />
- Specialized courts<br />
- Civil Law<br />
Spain - Unified Litigation<br />
- Commercial Courts<br />
- Common Law<br />
- Unified Litigation<br />
UK - Specialized courts<br />
- Mediation promoted<br />
China<br />
Japan<br />
USA<br />
- Civil il Law<br />
- Bifurcated Litigation<br />
- Specialized courts<br />
- Civil Law<br />
- Bifurcated Litigation<br />
- Specialized courts<br />
- Common Law<br />
- Unified Litigation<br />
- Specialized court of appeals<br />
(CAFC)<br />
- Jury trial available<br />
- Mediation promoted<br />
First Instance: few months –<br />
24 months<br />
Appeal: 18-24 months<br />
First Instance: 12 months<br />
Appeal: 12-18 months<br />
First Instance: 12 months<br />
Court of Appeal: 12 months<br />
Supreme Court: 24 months<br />
First Instance: 6 months<br />
Appeal: 3 months<br />
First Instance: 14 months<br />
Appeal: 9 months<br />
First Instance: up to 24<br />
months<br />
Appeal: 12 + months<br />
€50,000-150,000 (1 st Inst.)<br />
€30,000-70,000 (App.)<br />
€100,000 (1 st Inst.)<br />
€50,000 (2 nd Inst.)<br />
€750,000-1,500,000 (1 st<br />
Inst.)<br />
€150,000-1,500,000 (App.)<br />
€150,000-1,500,000<br />
(Supreme Court)<br />
USD150,000 (1 st Inst.)<br />
USD50,000 (App.)<br />
USD300,000 (1 st Inst.)<br />
USD100,000 (App.)<br />
Up to USD4,000,000 (1 st<br />
Inst.)<br />
USD150,000-250,000 (App.)<br />
Source: This chart is based on figures provided in Patent Litigation - Jurisdictional Comparisons, Thierry Calame,<br />
Massimo Sterpi (ed.), The European Lawyer Ltd, London 2006.<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
What is <strong>Alternative</strong> <strong>Dispute</strong> <strong>Resolution</strong><br />
(ADR)<br />
6<br />
A range of procedures to resolve disputes « out-of-court of » in a<br />
private forum with the assistance of an independant<br />
intermediary (e.g., mediator, arbitrator, expert)<br />
Mediation<br />
Arbitration<br />
Expert Determination<br />
Combined with a court procedure, i.e. when mandated by<br />
competent court<br />
Normally consensual (ADR contract clause or submission<br />
agreement)<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
<strong>WIPO</strong> Arbitration and Mediation Center<br />
7<br />
Offices in Geneva and Singapore<br />
ADR of IP <strong>Dispute</strong>s requires a specialized ADR provider<br />
<strong>WIPO</strong> panel members experienced in IP and technology - able to<br />
deliver informed results efficiently<br />
Very competitive <strong>WIPO</strong> fee structure<br />
Status as international agency<br />
Services include mediation, (expedited) arbitration, expert<br />
determination<br />
Parties can shape the process with the help of <strong>WIPO</strong> Rules,<br />
contract clauses<br />
Active case management: time and cost<br />
<strong>WIPO</strong> ECAF (online case management)<br />
Procedural guidance, training programs<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
8<br />
Mediation, Arbitration, Expert Determination<br />
Mediation: an informal procedure in which a neutral intermediary,<br />
the mediator, assists the parties in reaching a settlement of their<br />
dispute, based on the parties’ respective interests. The mediator<br />
cannot impose a decision. The settlement agreement has the force<br />
of a contract.<br />
Arbitration: a procedure in which the parties submit their dispute to<br />
one or more chosen arbitrators, for a binding and final decision<br />
(award) based on the parties’ respective rights and obligations and<br />
enforceable as an award under arbitral law.<br />
Expert Determination: a procedure in which the parties submit a<br />
specific matter (e.g. technical question) to one or more experts who<br />
make a determination on the matter, which can be binding unless<br />
the parties have agreed otherwise.<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
9<br />
ADR in R&D and Technology Transfer<br />
Agreements<br />
Consistency<br />
Agreements involving multiple<br />
parties<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
10<br />
<strong>WIPO</strong> <strong>Dispute</strong> <strong>Resolution</strong> Clause<br />
Mediation<br />
Future disputes (dispute resolution clause in initial contract)<br />
"Any dispute, controversy or claim arising under, out of or relating<br />
to this contract and any subsequent amendments of this contract,<br />
including, without limitation, its formation, validity, binding effect,<br />
interpretation, performance, breach or termination, as well as noncontractual<br />
claims, shall be submitted to mediation in accordance<br />
with the <strong>WIPO</strong> Mediation Rules. The place of mediation shall be<br />
[specify place]. The language g to be used in the mediation shall be<br />
[specify language].“<br />
Existing diputes (separate submission agreement)<br />
"We, the undersigned parties, hereby agree to submit to mediation<br />
in accordance with the <strong>WIPO</strong> Mediation Rules the following<br />
dispute:<br />
[brief description of the dispute]<br />
The place of mediation shall be [specify place]. The language to<br />
be used in the mediation shall be [specify language]."<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
<strong>WIPO</strong> <strong>Dispute</strong> <strong>Resolution</strong> Clause<br />
Mediation followed by Arbitration<br />
11<br />
Try mediation before arbitration, at<br />
least until<br />
lapse of time period<br />
termination<br />
Combining the benefits<br />
arbitration ti well-prepared<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
<strong>WIPO</strong> Cases: Types of Procedure<br />
12<br />
Expedited Arbitration<br />
15%<br />
Mediation<br />
51%<br />
Arbitration<br />
34%<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
13<br />
Mediation Process<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
14<br />
<strong>WIPO</strong> Mediation in the Automotive Sector (I)<br />
U.S. company/ Swiss company<br />
Patent infringement dispute related to U.S. patents owned by<br />
U.S.company (automotive sector)<br />
Settlement agreement 2007<br />
<strong>Dispute</strong> <strong>Resolution</strong> clause: <strong>WIPO</strong> Mediation followed by <strong>WIPO</strong><br />
Arbitration<br />
Request for mediation in May 2009<br />
<strong>WIPO</strong> Center proposed list of candidates<br />
Parties chose from such list patent practitioner, knowledge of U.S.<br />
Patent Laws, fluent in English, experience in mediating patent<br />
infringement disputes<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
15<br />
<strong>WIPO</strong> Mediation in the Automotive Sector (II)<br />
Two-day hearing in August (June) in Geneva, <strong>WIPO</strong><br />
Mediator gave introduction, explained rules of the hearing (e.g.<br />
confidentiality, caucus) and his role<br />
Early agreement on framework for royalty payments<br />
Further discussions on business aspects<br />
Settlement in the afternoon of second day:<br />
« Term sheet » down-payment, annual instalments, net<br />
sales based royalty<br />
Re-drafted d original i licensing i agreement, final agreement<br />
until September 2009<br />
End of 2-years dispute within 5 months, parties avoided U.S. arbitration/<br />
high costs, further collaboration possible<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
16<br />
•One Exchange of Pleadings<br />
•Shorter Time Limits<br />
•Sole Arbitrator<br />
•Shorter Hearings<br />
•Fixed Fees<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
17<br />
<strong>WIPO</strong> Cases Related to R&D and<br />
Technology Transactions<br />
Parties involved<br />
Large companies<br />
SMEs<br />
Research organizations<br />
Universities<br />
iti<br />
Start-ups / Spin-offs<br />
Remedies<br />
Damages<br />
Payment of royalties<br />
Delivery of products<br />
Continuation of R&D<br />
activities<br />
Re-negotiation agreement<br />
Subject matter<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011<br />
Contractual and noncontractual<br />
R&D collaboration<br />
agreements<br />
Patent license agreements<br />
License option agreement<br />
Patent infringement<br />
Illegal use of Design<br />
Domestic / International<br />
<strong>Dispute</strong>s<br />
Europe, North America,<br />
Asia
<strong>WIPO</strong> Cases: Business Areas<br />
18<br />
Other 21%<br />
Pharmaceuticals<br />
15%<br />
Chemistry 1%<br />
Entertainment 10%<br />
Mechanical 15%<br />
Luxury Goods 4%<br />
Life Sciences 3%<br />
IT 31%<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
<strong>WIPO</strong> Cases: Subject Matter<br />
19<br />
Other 20%<br />
Patents 30%<br />
Copyright 12%<br />
Trademarks 14%<br />
IT 16%<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
20<br />
Settlement in <strong>WIPO</strong> Administered Cases<br />
Mediation<br />
Arbitration<br />
Non-Settlement<br />
30%<br />
Settlement<br />
44%<br />
Non-Settlement<br />
(Aw ard)<br />
56%<br />
Settlement<br />
70%<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
21<br />
Questions<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011
Additional Information<br />
22<br />
Download model clauses: http://www.wipo.int/amc/en/clauses/<br />
Contact information:<br />
General queries and case filing: arbiter.mail@wipo.int<br />
judith.schallnau@wipo.int; int; +41 22 338 7256<br />
Posted information on procedures, neutrals and case examples:<br />
http://www.wipo.int/amc/en/<br />
i t/ / /<br />
<strong>WIPO</strong> International Survey on <strong>Dispute</strong> <strong>Resolution</strong> in Technology<br />
Transactions: http://www.wipo.int/amc/en/index.html<br />
Thank you!<br />
Judith Schallnau, <strong>WIPO</strong> Arbitration and Mediation Center, Barcelona, November 28, 2011