WIPO Arbitration and Mediation Center

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					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

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   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?
            Ô 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
                                                                    4
   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
         v with limited exceptions (e.g. denial of due process), “automatic”
           enforcement of arbitral awards
         v 137 signatories
   – inter-partes effect
• Mediation: commercial solutions
                                                                               5
   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                           6
Arbitration and Mediation Center
http://arbiter.wipo.int




WIPO Arbitration and Mediation Options




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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




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  Arbitration and Mediation Center
  http://arbiter.wipo.int




                            Mediation Process
     Commencement                    ÞRequest for Mediation (Art 3-5); Fees
                                     Art 21)
                                     ÞRole of the mediator (Art 13);
Appointment of Mediator              Appointment (Art 6-7)
                                     ÞConduct of the mediation (Art 9-12)
   Initial Conference                ÞSet up the first meeting; Agree on
                                     preliminary exchange of document, if
                                     any
            Meetings                 ÞAgree on ground rules of the process;
                                     Gather information and identify issues;
                                     Explore the interests of the parties;
                                     Develop options for settlement;
                                     Evaluate options
          Conclusion                                                   10
                                     Þ80% success; costs USD 6,000-
  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          12
    Arbitration and Mediation Center
    http://arbiter.wipo.int



                              WIPO Arbitration
• Party autonomy
• Flexibility
• Efficiency
• Rules on technical evidence
• Confidentiality provisions
•Two exchange of pleadings
   – Request & Answer
   – Statement of Claim &
   Defense
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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)                 15
Arbitration and Mediation Center
http://arbiter.wipo.int

       WIPO Arbitration            WIPO Expedited Arbitration




                                      One exchange of pleadings ;
                                      Shorter time limits; Sole
                                      arbitrator; Shorter hearings;
                                      Fixed arbitrators fees
                                                                16
  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

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  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)
                                                                19
  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
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 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



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Arbitration and Mediation Center
http://arbiter.wipo.int




 WIPO Arbitration and Mediation Cases




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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
  of IP disputes (UDRP)                                 28
Arbitration and Mediation Center
http://arbiter.wipo.int




                          WIPO Neutrals

                                   • Over 1,000 experts
                                   • 70 nationalities
                                   • Broad range of ADR, IP,
                                     and technical backgrounds
                                   • Appointment in WIPO
                                     Cases
                                   • Referral Service


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Arbitration and Mediation Center
http://arbiter.wipo.int



   WIPO Schedule of Fees (Arbitration) :
           Competitive Rates




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   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


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Arbitration and Mediation Center
http://arbiter.wipo.int




                          ECAF: Log-In




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   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
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Arbitration and Mediation Center
http://arbiter.wipo.int




   WIPO ECAF
Case Management


  è     Case Overview
  • Contact Information
  • Time Tracking
  • Finance Overview
  • Message Board




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Arbitration and Mediation Center
http://arbiter.wipo.int




   WIPO ECAF
Case Management


• Case Overview
• Contact Information
è    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
                                       • 1 US Claimant; Respondents
                                         in 3 (US and Europe)
   – RSA SecurID password                locations
   – Changing passcode generated       • Claimant represented by 2
     by RSA SecurID (Valid only for      NY firms, 1 German firm;
     60 seconds)                         Respondents represented by
• Encryption                             2 German firms.
   – Modern SSL (Secure Socket
     Layer) system
• Firewall protection
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   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



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  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




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   Arbitration and Mediation Center
   http://arbiter.wipo.int




                             Applicability of UDRP

• Applicable to all gTLDs                         ICANN
  (.biz, .com, .info, .net,                           ß
  .org)                                     Registrar Accreditation
                                                   Agreement
• Applicable to certain                               ß
  ccTLDs (.ch, .co, .ec,                        Registrar
  .fr, .na, .ph, .ve, etc.)
                                                      ß
                                           DN Registration Agreement
                                                      ß
                                         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,                autos-yahoo.com, cn-yahoo.com,
                                        email-yahoo.com, greetings-
    mazda.com.mx                     yahooo.com, greetingz-yahoo.com,
    dknymall.com                     hotels-yahoo.com, jejuyahoo.com,
                                             music-yahoo.com,
gallerielafayette.com              myanmaryahoo.com, news-yahoo.com,
      microsoft.li                 photos-yahoo.com, playhoo.com, play-
                                      yahoo.com, t-yahoo.com, www-
   pfizerviagra.com                     yahooshop.net, yaawoo.com,
    madonna.com                                 yahaho.com,
                                    yahoobooting.net, yahoofinance.net,
 morganfreeman.com                       yahoo-greeting-cards.com,
    viagra.com.ve                  yahoogreetings.net, yahoohouse.com,
        三共.com                        yahooink.net, yahooselect.com,
                                     yahooshopping.net, yahootax.com,
     恒生指数.com                        yahootravel.net, yaho-screen.com,
                                       yahosoft.com, yaho1004.com,
     fortunéo.com                     yahwhoo.com, 123yahoo.com ... 42
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




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Arbitration and Mediation Center
http://arbiter.wipo.int




 WIPO Domain Name Dispute Resolution




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   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

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   Arbitration and Mediation Center
   http://arbiter.wipo.int




                              Information

• http://arbiter.wipo.int
• arbiter.mail@wipo.int
• eunjoo.min@wipo.int
• Mailing list: http://arbiter.wipo.int/subscribe




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