1

Ignacio de CastroWIPO Arbitration and Mediation Center

Solving Disputes: The Services of the WIPO Arbitration and

Mediation Center

WIPO-INSME Training Program May 13, 2005

http://arbiter.wipo.int

2

WIPO Arbitration and Mediation Center

• Established October 1994• Purpose: to promote the resolution of IP/IT

disputes through arbitration and mediation Information and events

• On IP arbitration and mediation

Mediation and (Expedited) Arbitration Rules • Tailored to IP and technology disputes• Not restricted to IP disputes

Specialized ADR procedures (domain names)

http://arbiter.wipo.int

3

WIPO Center Experience: Domain Names

• Leading domain name dispute provider (56%)

• Parties from 120 countries,

• 11 languages

• Average duration: 45-60 days

http://arbiter.wipo.int

UDRP.info

Sunrise.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 1 15,087

2003 1,100 - - - 1,100

2004 1,175 - - 3 1,178

22,411

4

ADR Options

WIPO CONTRACT CLAUSE /

SUBMISSION

MEDIATION

SETTLEMENT ARBITRATION EXPEDITED ARBITRATION

AWARD

http://arbiter.wipo.int

5

WIPO Center Experience: Mediation and Arbitration

• Statistics35 mediations25 arbitrationsParties from 15 countries

• Procedures in English, French and German

• Subject MatterContractual

• Patent licenses, trademark coexistence agreements, distribution agreements, R&D, joint ventures, software/IT

Submission once dispute has arisen:• Patent infringement

http://arbiter.wipo.int

6

Mediation and Arbitration Case Filing

http://arbiter.wipo.int

0

5

10

15

20

25

30

1998 1999 2000 2001 2002 2003 2004

Arbitration Mediation

7

Mediation Elements

• Non-binding / party control

Procedure: Parties can cease to participate after first meeting with the mediator

Outcome: Not imposed but developed by the parties

• Based on interests of the partiesValue creation

• Fast and efficient

http://arbiter.wipo.int

8

WIPO Mediation Example • R&D company 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 of patent license failed

• Multinational infringement proceedings?

• Parties submit to WIPO Mediation

http://arbiter.wipo.int

9

COMMENCEMENT

APPOINTMENT OF MEDIATOR

• Request for mediation Mechanics - Arts. 3-5 Administration fee - Art. 21 Statute of limitations

• Appointment of mediatorParties or Center after

consultation - Art 6List of candidates

Commencement and

Appointment of Mediator

http://arbiter.wipo.int

10

Mediation Sessions

INITIAL CONFERENCE

MEETINGS

APPOINTMENT OF MEDIATOR

COMMENCEMENT

• Alternatives to settlement

Risk and cost of litigation

• Interests of the partiesUse of patented technology vs.

further business

• Settlement optionsMutual interest in cooperation

http://arbiter.wipo.int

11

Conclusion of the Mediation

• Settlement agreementLicense and agreement on

further business relationshipEnforceable under contract law

But usually voluntary compliance

• TerminationWithdrawal by one or both

parties after the first meetingDecision of the mediator

http://arbiter.wipo.int

INITIAL CONFERENCE

MEETINGS

APPOINTMENT OF MEDIATOR

COMMENCEMENT

CONCLUSION

12

WIPO ARBITRATION

Request for ArbitrationRequest for Arbitration

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

Appointment of Arbitrator(s)

Appointment of Arbitrator(s)

Statement of Claim(30 days)

Statement of Claim(30 days)

Statement of Defense(30 days)

Statement of Defense(30 days)

HearingsHearings

Closure of Proceedings(9 months)

Closure of Proceedings(9 months)

Final Award (3 months)Final Award (3 months)

Further Written Statements and Witness

Statements

Further Written Statements and Witness

Statements

http://arbiter.wipo.int

Request for Arbitration and Statement of ClaimRequest for Arbitration and Statement of Claim

WIPO EXPEDITED ARBITRATION

Answer to Request for Arbitration and

Statement of Defense (20 days)

Answer to Request for Arbitration and

Statement of Defense (20 days)

Appointment of Arbitrator

Appointment of Arbitrator

Hearing (maximum 3 days)

Hearing (maximum 3 days)

Closure of Proceedings(3 months)

Closure of Proceedings(3 months)

Final Award (1 month)Final Award (1 month)

•One exchange of pleadings

•Shorter time limits

•Sole arbitrator

•Shorter hearings

•Fixed arbitrator’s fees

•Party autonomy

•Flexibility

•Efficiency

•Rules on technical evidence

•Confidentiality provisions

13

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

Arbitration Proceedings

http://arbiter.wipo.int

Testing the water

Interim measures

Registration and administration fees

Request for ArbitrationRequest for Arbitration

14

Amount in dispute Expedited Arbitration

Arbitration

Registration Fee Any Amount $1,000 $2,000Administration Fee * Up to $2.5 M $1,000 $2,000

Over $2.5 M and up to $10 M

$5,000 $10,000

Over $10 M $ 5,000+0.05% of amount

over $10 M up to a maximum fee of

$15,000

$10,000+0.05% of amount

over $10 M up to a maximum fee of

$25,000

Arbitrator(s) Fees * Up to $2.5 M $20,000(fixed fee)

Over $2.5 M and up to $10 M

$40,000(fixed fee)

Over $10 M As agreed by the Center in

consultation with the parties and the

arbitrator

As agreed by the Center in consultation with the parties and

the arbitrator(s)

Indicative rate(s)$ 300 to $ 600 per hour

(All amounts are in United States dollars)

http://arbiter.wipo.int

Schedule of FeesArbitration Proceedings

15

Request for ArbitrationRequest for Arbitration

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

Party control

WIPO List

Impartiality and independence

Default

Jurisdiction of the tribunal

Appointment of Arbitrator(s)

Appointment of Arbitrator(s)

http://arbiter.wipo.int

Arbitration Proceedings

16

WIPO List of Neutrals

• 1,000 experts

• 100 nationalities

• Broad range of ADR, IP,

and technical

backgrounds

• Arbitrator’s feesRole of the WIPO

Center

http://arbiter.wipo.int

ORGANISATION MONDIALEDE LA PROPRIÉTÉ INTELLECTUELLE

Centre d’arbitrage et de médiation de l’OMPI

WORLD INTELLECTUALPROPERTY ORGANIZATION

WIPO Arbitration and Mediation Center

WIPO LIST OF NEUTRALS

BIOGRAPHICAL DATA

David Charles Langrigge PERKINSMilbank Tweed Hadley & McCloy LLPDashwood House69 Old Broad StreetLondon EC2M 1QSUnited Kingdom

Telephone: +44 207 448 3000 Facsimile: +44 207 448 3029E-mail : dperkins@milbank.com

Date of Birth: May 31, 1943Nationality: British

EDUCATIONAL AND PROFESSIONAL QUALIFICATIONS

LL.B., Newcastle University, 1966;Qualifying Examination Part II, Law Society of England and Wales, 1969.

LANGUAGES

English, oral comprehension of French.

PRESENT POSITION

Milbank Tweed Hadley & McCloy LLP, London.

17

Further written statements

Preparatory conference

http://arbiter.wipo.int

Arbitration Proceedings

Request for ArbitrationRequest for Arbitration

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

Appointment of Arbitrator(s)

Appointment of Arbitrator(s)

Statement of Claim (30 days)

Statement of Claim (30 days)

Statement ofDefense (30 days)

Statement ofDefense (30 days)

18

Request for ArbitrationRequest for Arbitration

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

•Presentation of evidencetribunal’s controladmissibility, disclosure

•Witnesses

•Experiments

•Primers and models

•Experts

Appointment of Arbitrator(s)

Appointment of Arbitrator(s)

Statement of DefenseStatement of Defense

Further Written Statements and Witness

Statements

Further Written Statements and Witness

Statements

HearingsHearings

Statement of Claim( 30 days)

Statement of Claim( 30 days)

http://arbiter.wipo.int

Arbitration Proceedings

19

Arbitration

Proceedings

•Award

•No appeal

•Enforcement

http://arbiter.wipo.int

Request for ArbitrationRequest for Arbitration

Answer to Request for Arbitration (30 days)

Answer to Request for Arbitration (30 days)

Appointment of Arbitrator(s)

Appointment of Arbitrator(s)

Statement of DefenseStatement of Defense

Further Written Statements and Witness

Statements

Further Written Statements and Witness

Statements

HearingsHearings

Statement of Claim(30 days)

Statement of Claim(30 days)

Closure of ProceedingsClosure of Proceedings

Final Award (3 months)Final Award (3 months)

20

• When is it appropriate?• Statement of Claim filed with Request for

Arbitration and Statement of Defense with Answer to the Request

• Sole arbitrator • Fixed arbitrator’s fees for disputes up to

USD 10 million • Shorter hearings • Time limits shortened

http://arbiter.wipo.int

Expedited Arbitration

21

WIPO Expedited Arbitration Case Examples

• Dispute inventor and manufacturer– 6 US and 1 European Patents

– Exclusive license, but no use

– Are other products infringing?

– Sole Arbitrator, eight days hearing

– Business secrets, models, site visits

– Final Award: 15 months

• Finance contract - urgent resolution needed– Shorter deadlines for party filings

– One day hearing

– Final Award: 6 weeks

http://arbiter.wipo.int

22

WIPO Procedures

• Tested Rules• Efficient and cost-effective administration

active case management

• List of specialized Neutrals1000 candidates from 70 countriesBroad range of ADR, IP and technical backgroundsWorldwide contacts

• Institutional certainty

http://arbiter.wipo.int

23

Information

• Mediation workshops, June 2005

• Arbitration workshop, October 2005

• http://arbiter.wipo.int

• arbiter.mail@wipo.int

• Mailing listshttp://arbiter.wipo.int/subscribe/index.html

http://arbiter.wipo.int