Arbitration and Mediation Center
http://arbiter.wipo.int
Resolving Intellectual Property
and Technology Disputes through
Arbitration and Mediation
Eun-Joo MIN
Arbitration and Mediation Center
World Intellectual Property Organization (WIPO)
Geneva, Switzerland
1
Arbitration and Mediation Center
http://arbiter.wipo.int
Trends in IP ADR (1)
• Internationalization of creation and use of IP rights &
globalization of markets; need for cross-border solutions
for disputes
– Accommodate different languages, cultures, (geographically
limited) laws
– Avoid litigation in several jurisdiction
– Avoid home-court advantage
• Growth of complex long-term relationships; strategic
alliances; need to co-exist
– Licensing, cross-licensing, patent pooling
– Need for mechanisms that preserve relations
2
Arbitration and Mediation Center
http://arbiter.wipo.int
Trends in IP ADR (2)
• Increasingly technical and specialized nature of IP
– need for specific expertise of “neutral”
• Growth of IP/technology contracts
• Closely guarded relationships: confidentiality
• Highly competitive areas; Short product and market cycles
– Need for time-efficient procedures
• Increasing cost of multi-front litigation
• Dispute resolution as business decision
Alternative to ADR?
 Routine IP litigation on a multi-country front3
Arbitration and Mediation Center
http://arbiter.wipo.int
Arbitration and Mediation (1)
• Party control / autonomy / consensual
• Flexibility : “à la carte”
• Expertise
– Party selection of neutrals; tailored appointment
• Neutral
– Arbitrator/mediator, language, law, venue
• Confidential
– Existence, disclosures, result (WIPO Arb Rules Arts. 52, 73-76)
• Less adversarial than court litigation
– Restore a working business relationship
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Arbitration and Mediation Center
http://arbiter.wipo.int
Arbitration and Mediation (2)
• Single Procedure
– Multi-jurisdictional disputes in one proceeding
– No jurisdictional problems
– Time & cost effective (WIPO Arb Rules, Art 38)
• Arbitration: finality / enforceability of awards
– New York Convention
 with limited exceptions (e.g. denial of due process), “automatic”
enforcement of arbitral awards
 137 signatories
– inter-partes effect
• Mediation: commercial solutions
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration and Mediation Center
• Time & cost efficient resolution of IP and technology
disputes, between private parties, away from court
• Established in 1994 as part of international bureau of
WIPO
• Procedures
– Mediation
– (Expedited) Arbitration
– Mediation followed, in the absence of a settlement, by
arbitration
– Expert Determination
– Domain Name Dispute Resolution
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration and Mediation Options
WIPO CONTRACT CLAUSE /
SUBMISSION AGREEMENT
MEDIATION
SETTLEMENT
ARBITRATION
EXPEDITED
ARBITRATION
AWARD
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Arbitration and Mediation Center
http://arbiter.wipo.int
Recommended WIPO Mediation Clause
“Any dispute (…) shall be submitted to mediation in accordance with
WIPO Mediation Rules. The place of mediation shall be […]. The language to be
used in the mediation shall be […].”
Recommended WIPO Arbitration Clause
“Any dispute, (…) shall be referred to and finally determined
by arbitration in accordance with the WIPO Arbitration Rules. The arbitral
tribunal shall consist of [three arbitrators][a sole arbitrator]. The place of
arbitration shall be […]. The language to be used in the arbitral
proceedings shall be […]. The dispute, controversy or claim
shall be decided in accordance with the law of […].”
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Arbitration and Mediation Center
http://arbiter.wipo.int
http://arbiter.wipo.int/arbitration/contract-clauses/clauses.html
9
Arbitration and Mediation Center
http://arbiter.wipo.int
Mediation Process
Commencement
Appointment of Mediator
Request for Mediation (Art 3-5); Fees
Art 21)
Role of the mediator (Art 13);
Appointment (Art 6-7)
Conduct of the mediation (Art 9-12)
Initial Conference
Meetings
Conclusion
Set up the first meeting; Agree on
preliminary exchange of document, if any
Agree on ground rules of the process;
Gather information and identify issues;
Explore the interests of the parties;
Develop options for settlement;
Evaluate options
80% success; costs USD 6,000- 10
60,000; duration 1-7months
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Mediation Example 1
• Patent infringement dispute
– R&D company holding patents disclosed patented invention to
manufacturer during consulting contract
– No transfer or license of patent rights
– Manufacturer started selling products which R&D company
alleged included patented invention
– Negotiation patent license failed
– Parallel infringement proceedings in several jurisdictions?
• Parties submitted to WIPO Mediation
– Agreed license and new consulting contracts
11
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Mediation Example 2
• US software provider licensed software applications to
European telecom provider:
– 10 named users
– WIPO Mediation followed by WIPO Expedited Arbitration
– Place mediation: Paris; Applicable law: English
• Request for Mediation:
– Alleged breach of license: more than 50 users
– Outstanding fees: USD 10 million
– European telecom asked to provide list of unauthorized users
– No settlement, but issues narrowed down
– Total duration: 2 months, mediator’s fees: USD 13,000
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration
• Party autonomy
R equest for Arbitration
• Flexibility
Answ er to R equest for Arbitration (3 0 days)
• Efficiency
Appointm ent of Arbitrator(s)
• Rules on technical evidence
Statem ent of Claim (30 days)
• Confidentiality provisions
•Two exchange of pleadings
– Request & Answer
– Statement of Claim &
Defense
Statem ent of D efense (30 days)
Further W ritten Statem ents and W itness Statem ents
Hearings
C losure of P roceedings
Final Aw ard (3 m onths)
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration Example 1 [patent]
• Exclusive R&D and licensing agreement biotech co. and
pharma co.
• Alleged delays development and regulatory approval
biotech compound
• R&D entity terminated agreement started WIPO
arbitration proceedings
• Arbitrator expert in biotech-pharmaceutical
• Two-day hearing
• Settlement agreement
14
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration Example 2 [trademark]
• US university registers TM for email system in US,
Canada, etc.
• CN IT manufacturer registers TM for computer products
in 16 countries
• Opposition proceedings & litigation for 6 years
• TM coexistence agreement; WIPO arbitration clause
• US university’s TM application in CN refused, requests
CN manufacturer’s collaboration
• Request for specific performance (proxy registration &
license); sole arbitrator
• Interim award (specific performance)
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration
R equest for Arbitration
WIPO Expedited Arbitration
R equ est fo r Arbitration
an d S tate m e n t o f C laim
Answ er to Request for Arbitration (30 days)
A n sw e r to R e qu est fo r A rbitration
Appointm ent of Arbitrator(s)
Statem ent of Claim (30 days)
Statem ent of D efense (3 0 days)
an d S tatem en t o f D efen se (2 0 days)
Appo in tm en t o f Arbitrator
H earin g (m axim u m 3 days)
C lo su re o f P ro ceedin gs
Further W ritten Statem ents and W itness Statem ents
Fin al Aw ard (1 m o n th)
Hearings
C losure of Proceedings
Final Aw ard (3 m onths)
One exchange of pleadings ;
Shorter time limits; Sole
arbitrator; Shorter hearings;
Fixed arbitrators fees
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Expedited Arbitration Example 1
• Insurance
– Both parties see urgency and agree on short deadlines
– Only one issue in dispute
– One-day hearing
– Final Award: 5 weeks
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Expedited Arbitration Example 2
• Exclusive Patent License
– Dispute involving 1 European and 5 US patents
– US party rejected Asian party (inventor)’s claim that its
products embodies technologies covered by licensed patents
and refused to pay royalties
– Complex legal and technical issues (infringement, validity,
enforceability, contract defense)
– Business secrets, models, site visits (protective orders)
– 12 procedural orders, 2 preliminary awards
– eight-day hearing
– Final Award: 15 months
18
Arbitration and Mediation Center
http://arbiter.wipo.int
Drafting Arbitration Clauses (1)
• Essential elements:
– applicable rules, governing law
– number of arbitrators
– place of arbitration: arbitration-friendly environment; modern
arbitration act
– language
• Use model clauses and modify only as necessary
• Combine options, including mediation
– High settlement rate
• If arbitration, “make it fit” (e.g. expedited)
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Arbitration and Mediation Center
http://arbiter.wipo.int
Drafting Arbitration Clauses (2)
• Examples of defective arbitration clauses
– “Arbitration in Geneva”
– “Any disputes shall be solved by arbitration between the
parties; failing that, arbitration in the English language shall be
conducted in Houston, according to the Paris Convention, which
shall be final and binding upon the parties.”
• Examples of “creative” arbitration clauses
– “Disputes relating to patent infringement shall be finally
determined in accordance with the WIPO Expedited Arbitration.
Contractual disputes [different institution].”
– “Disputes relating to US patents: US arbitrator. Disputes
relating to European patents: EU arbitrator. Each award can be
challenged by and finally determined by arbitration in
accordance with WIPO Arbitration Rules. The tribunal shall
consist of three arbitrators.”
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Arbitration and Mediation Center
http://arbiter.wipo.int
Mediation followed by Arbitration
• Try mediation before arbitration, at least until
– lapse of time period
– termination
• Combining the benefits
– arbitration well-prepared
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Arbitration and Mediation Center
http://arbiter.wipo.int
Expert Determination
• Accommodate expeditious resolution of disputes
between parties, concerning an issue of limited scope
(e.g. royalty rate dispute) or clarification of certain
technical or scientific issues by a neutral third party
• More informal, flexible and expeditious than arbitration
• Determination binding (unless parties agree otherwise)
• May be combined with other WIPO procedures
22
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration and Mediation
Case Experience (1)
• 45 mediations
• 49 arbitrations
• Parties from 16 countries (domestic & international)
– France, China, Finland, Germany, Ireland, Israel, Italy, Japan,
the Netherlands, Panama, Romania, Switzerland, USA, etc.
• Place of Arbitration
– France, Germany, the Netherlands, Switzerland, USA
• Procedures
– English, French, German
23
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration and Mediation
Case Experience (2)
• Subject matter:
– Contractual: Patent licenses, pharmaceutical distribution
agreements, R&D, joint ventures, software/IT, copyright
collecting societies, trademark coexistence agreements, art
marketing, other commercial relationships (construction,
finance, employment).
– Patent infringement
• High success rate
– Value in dispute: USD 20,000 - 600 million
24
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Arbitration and Mediation Cases
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18
16
14
12
10
8
6
4
2
0
1998
1999
2000
2001
2002
Arbitration
2003
2004
2005
2006
Mediation
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Arbitration and Mediation Center
http://arbiter.wipo.int
http://arbiter.wipo.int/center/caseload.html
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Arbitration and Mediation Center
http://arbiter.wipo.int
Role of the WIPO Center as an
Administering Authority (1)
• Administered vs. Ad Hoc?
– Hard to agree on procedure once dispute arisen; do you know
suitable neutrals; which administering institution (do not
combine)
• Rules with IPR orientation
– Mediation, (Expedited) Arbitration, Expert Determination
– e.g. WIPO Arb Rules Arts 48-52: special rules on experiments,
site visits, agreed primers and models, trade secrets and
confidential information, protective orders, confidentiality
advisor
• Model contract clauses
• List of neutrals (arbitrators, mediators, experts)
27
Arbitration and Mediation Center
http://arbiter.wipo.int
Role of the WIPO Center as an
Administering Authority (2)
• Competitive fees
• Efficient and cost-effective case administration
– Establishment of the Tribunal, challenges, support in appointment of
experts, management of fees and costs
• Hearing facilities
– Free of charge in Geneva and Singapore
• WIPO Electronic Case Facility (ECAF)
• International, institutional knowledge, guidance,
supervision
• Design and operation of procedures for special categories
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of IP disputes (UDRP)
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Neutrals
L IST O F M E D IA T O R S A N D A R B IT R A T O R S
• Over 1,000 experts
B IO G R A PH IC A L D A T A
• 70 nationalities
D avid W . PLA N T, Esq.
215 Little Lake Sunapee R oad
N ew London, N H 03257
U nited States of A m erica
• Broad range of ADR, IP, and
technical backgrounds
Telephone:
(1-603) 526 2653/2655
Facsim ile:
E-m ail:
(1-603) 526 2654
D PlantA D R @ aol.com
D ate of Birth: A pril 22, 1931
N ationality: U SA
E D U C A T IO N A L A N D PR O FE SSIO N A L Q U A L IFIC A T IO N S
R egistered to practice before U nited States Patent & Tradem ark O ffice, 1982;
Licensed to practice in U nited States Suprem e C ourt, 1968;
Licensed to practice law , N .Y . State Bar, 1957;
LLB, C ornell U niversity, 1957;
BM E, C ornell U niversity, 1953.
• Appointment in WIPO
Cases
• Referral Service
29
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Schedule of Fees (Arbitration) :
Competitive Rates
(All amounts are in United States dollars )
Amount in dis pute
Regis tration Fee
Adminis tration Fee *
Arbitrator(s ) Fees *
Any Amount
Up to $2.5 M
Over $2.5 M and up
to $10 M
Over $10 M
Up to $2.5 M
Over $2.5 M and up
to $10 M
Over $10 M
Expedited
Arbitration
$1,000
$1,000
$5,000
$ 5,000
+0.05% of amount
over $10 M up to a
maximum fee of
$15,000
Arbitration
$2,000
$2,000
$10,000
$10,000
+0.05% of amount
over $10 M up to a
maximum fee of
$25,000
$20,000
(fixed fee)
As agreed by the
$40,000 Center in cons ultation
(fixed fee) with the parties and
the arbitrator(s )
As agreed by the
Center in
Indicative rate(s )
cons ultation with
the parties and the $ 300 to $ 600 per hour
arbitrator
30
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Electronic Case Facility (ECAF)
• Available for arb / med cases under WIPO Rules
– Certain exceptions: America’s Cup Jury Procedure
• Main features
– Web-based electronic docket
– Facilitation of party / neutral case management
– Easy, Instant, Location-independent, Secure
• User Information
– http://arbiter.wipo.int/ecaf/introduction.jsp
31
Arbitration and Mediation Center
http://arbiter.wipo.int
ECAF: Log-In
32
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO ECAF Docket
• Docket allows submission
in most common formats
(Word, PDF, JPG, etc.)
• All actors may view and
search the Docket (by
submitting actor, date,
subject title)
• Email alerts communicated
to all actors when new
submission made
33
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO ECAF
Case Management
 Case Overview
• Contact Information
• Time Tracking
• Finance Overview
• Message Board
34
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO ECAF
Case Management
• Case Overview
• Contact Information
 Time Tracking
• Finance Overview
• Message Board Contact
35
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO ECAF Security
WIPO ECAF Use Example
• Authentication
– ECAF username
– ECAF password
– RSA SecurID password
– Changing passcode generated
by RSA SecurID (Valid only for
60 seconds)
• Encryption
• 1 US Claimant; Respondents
in 3 (US and Europe)
locations
• Claimant represented by 2
NY firms, 1 German firm;
Respondents represented by
2 German firms.
– Modern SSL (Secure Socket
Layer) system
• Firewall protection
36
Arbitration and Mediation Center
http://arbiter.wipo.int
Domain Name System v.
Intellectual Property System
• Domain name system
– largely privately administered
– result in global presence
– first come, first serve
• Intellectual property system
– publicly administered
– territorial rights
– examination
37
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO First Domain Name Process
• Commenced in July 1998 w/ endorsement by WIPO
member states
• Final report published in April 1999
• Main Recommendations
– Best Practices for Registration Authorities
– Administrative Procedure Concerning Abusive Domain Name
Registrations
– Exclusions for Famous and Well-Known Marks
– New gTLDs
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Arbitration and Mediation Center
http://arbiter.wipo.int
Uniform Domain Name
Dispute Resolution Policy (UDRP)
•
•
•
•
•
Approved by ICANN in October 1999
Administrative procedure
Limited to abusive registrations
Mandatory submission by domain name registrants
Remedies
– Transfer or Cancellation only
– No monetary damages
39
Arbitration and Mediation Center
http://arbiter.wipo.int
Applicability of UDRP
• Applicable to all gTLDs
(.biz, .com, .info, .net,
.org)
• Applicable to certain
ccTLDs (.ch, .co, .ec, .fr,
.na, .ph, .ve, etc.)
ICANN

Registrar Accreditation
Agreement

Registrar

DN Registration Agreement

Domain Name Registrant
40
Arbitration and Mediation Center
http://arbiter.wipo.int
UDRP Criteria
• Conditions for obtaining remedies:
1. Domain name must be identical or confusingly similar to
trademark; and
2. Registrant has no rights or legitimate interests in domain name;
and
3. Domain name is registered and used in bad faith.
• Examples of rights or legitimate interests:
– Registrant commonly known by the domain name
– Use for bona fide offering of goods or services
• Examples of bad faith:
– registration for purpose of profit sale to trademark owner
– pattern of preventing trademark owners from registration
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Arbitration and Mediation Center
http://arbiter.wipo.int
Sampling of Disputed Domain Names
volvoautomobile.com,
mazda.com.mx
dknymall.com
gallerielafayette.com
microsoft.li
pfizerviagra.com
madonna.com
morganfreeman.com
viagra.com.ve
三共.com
恒生指数.com
fortunéo.com
autos-yahoo.com, cn-yahoo.com,
email-yahoo.com, greetingsyahooo.com, greetingz-yahoo.com,
hotels-yahoo.com, jejuyahoo.com,
music-yahoo.com,
myanmaryahoo.com, news-yahoo.com,
photos-yahoo.com, playhoo.com, playyahoo.com, t-yahoo.com, wwwyahooshop.net, yaawoo.com,
yahaho.com,
yahoobooting.net, yahoofinance.net,
yahoo-greeting-cards.com,
yahoogreetings.net, yahoohouse.com,
yahooink.net, yahooselect.com,
yahooshopping.net, yahootax.com,
yahootravel.net, yaho-screen.com,
yahosoft.com, yaho1004.com,
yahwhoo.com, 123yahoo.com ...
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Arbitration and Mediation Center
http://arbiter.wipo.int
Why the UDRP?
• Global
• Directly enforceable decisions
• Non-profit fees
(USD 1,500 for 1-5 domain names)
• Fast – within 2 months
• Transparent – decisions publicly available
43
Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO Domain Name Dispute Resolution
.info
Sunrise
UDRP
.biz STOP
.name
ERDRP
Total
1999
1
-
-
-
1
2000
1,857
-
-
-
1,857
2001
1,556
1,579
53
-
3,188
2002
1,208
13,593
285
2003
1,100
-
-
2004
1,176
-
-
3
1,179
2005
1,456
-
-
1
1,457
266
-
-
Jan-Feb 2006
Total
8,620
15,172
338
1
-
15,087
1,100
-
266
5
24,135
44
Arbitration and Mediation Center
http://arbiter.wipo.int
Role of the WIPO Center
as a Resource Center
• IP ADR guidance
• Publications
• Workshops, conferences (upcoming events)
– WIPO Workshop for Mediators in Intellectual Property Disputes,
June 15-16, 2006
– WIPO Advanced Workshop for Mediators in Intellectual Property
Disputes, June 19-20, 2006
– WIPO Arbitration Workshop, October 17-18, 2006
– WIPO Advanced Workshop on Domain Name Dispute Resolution,
October 19-20, 2006
45
Arbitration and Mediation Center
http://arbiter.wipo.int
Information
• http://arbiter.wipo.int
• [email protected][email protected]
• Mailing list: http://arbiter.wipo.int/subscribe
46
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