Introduction
Many industries have ridden the wave of unprecedented growth in international business in recent years. The high technology industry, in particular, has experienced rapid growth and globalization. Not surprisingly, one result is that
the technology industry is turning increasingly to international arbitration, conciliation and other international dispute resolution procedures to address disagreements in international business relationships.
the technology industry is turning increasingly to international arbitration, conciliation and other international dispute resolution procedures to address disagreements in international business relationships.
High Technology Disputes
High technology disputes typically concern intellectual property rights (ie., patents, copyrights and trademarks). For many high technology companies, intellectual property is the company's most valuable asset. By failing to take proper precautions in international transactions, high technology companies expose the protection of their intellectual property to the whims of foreign courts. All too often such courts do not
By failing to take proper precautions in international transactions, high technology companies expose the protection of their intellectual property to the whims of foreign courts.
fully recognize foreign intellectual property rights, do not understand the technology sufficiently to protect it, or are simply hostile to the interests of foreigners.
Advantages
International arbitration avoids these risks by providing for private, neutral resolution of international business disputes.
There are several additional advantages to international arbitration of technology disputes. First, is the availability of expert adjudicators. In arbitration, the parties may chose to select arbitrators with technical or other relevant expertise. Another advantage is the confidentiality of the proceedings. Arbitration provides greater assurances that proprietary technology will remain confidential.
Advantages which apply to arbitration of commercial disputes generally include: cost, which compared to litigation is often lower; time, which compared to litigation is typically faster; and flexibility, the parties are free to choose their arbitrators, the language, the substantive law, and the arbitration site. Further, arbitration is often more culturally acceptable than litigation and, due to its less adversarial nature, increases the possibility of maintaining critical business relationships.
Generally, interim relief, such as a court ordered preliminary injunction, often key in a technology dispute, is available in disputes being resolved by international arbitration. In fact, due to strong enforcement provisions in relevant international treaties, international arbitration often offers technology companies better protections than their own local courts can provide.
Planning
Typically, international arbitration is invoked through arbitration provisions in agreements between the parties. Careful consideration of arbitration provisions in the drafting of technology agreements is important. The particular advantages of international arbitration in technology disputes prompt many companies which have not properly planned for arbitration to agree to it after a dispute arises. Planning ahead is the safer course.
Conclusion
International arbitration is the superior choice for most international technology disputes. It is not the preferred course
International arbitration is the superior choice for most international technology disputes.
for every technology dispute. The decision to rely upon arbitration should be carefully considered in the context of the particular transaction. In many instances, turning to international arbitration is the only way to go.