A cost-effective alternative

• Pages: 19-22

The growing number of international IP trans-

actions has substantially changed the ways in

which cross-border disputes are resolved

worldwide. Due to the significant length,

costs and complexity of IP court litigation,

parties increasingly employ alternative dis-

pute resolution (ADR) mechanisms, often

seen as more efficient.

As portrayed in the previous articles in this WIPO

Magazine, IP litigation before national courts can

undeniably be very expensive and lengthy. The

table1below describes the average length and

costs of patent litigation in various jurisdictions.

The WIPO Arbitration

and Mediation Center

Established in 1994, the WIPO Arbitration

and Mediation Center (the WIPO Center) of-

fers ADR options for the resolution of inter-

national commercial disputes between pri-

vate parties. The WIPO Center is recognized

as an international and neutral forum espe-

cially appropriate for cross-border and

cross-cultural disputes. It has developed

different types of ADR procedures that are

conducted under the WIPO Mediation,

Expedited Arbitration, Arbitration and

Expert Determination Rules (WIPO Rules).

A COST-EFFECTIVE

ALTERNATIVE

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1 This table has been

developed by the WIPO

Arbitration and

Mediation Center,

based on figures

provided in “Patent

Litigation, Jurisdictional

Comparisons, The

European Lawyer Ltd,

London 2006”, as well

as the insights and

experience of patent

practitioners in

particular jurisdictions.

It provides an

indication of the

average duration and

cost of patent litigation

in those jurisdictions.

19

Characteristics of Legal System

- Civil law

- Unified litigation

- No specialized courts

- Civil law

- Bifurcated litigation

- Specialized court for

invalidity

- Civil law

- Unified litigation

- Specialized courts

- Civil law

- Unified litigation

- Commercial courts

- Common law

- Unified litigation

- Specialized courts

- Mediation promoted

- Civil law

- Bifurcated litigation

- Specialized courts

- Civil law

- Bifurcated litigation

- Specialized courts

- Common law

- Unified litigation

- Specialized court

of appeals (CAFC)

- Jury trial available

- Mediation promoted

Average Duration

First Instance: 18-24 months

Appeal: 18-24 months

First Instance: 12 months

Appeal: 15-18 months

First Instance: few months -

24 months

Appeal: 18-24 months

First Instance: 12 months

Appeal: 12-18 months

First Instance: 12 months

Court of Appeal: 12 months

House of Lords: 24 months

First Instance: 6 months (in law)

Appeal: 3 months, no limit

when foreigners litigate

First Instance: 14 months

Appeal: 9 months

First Instance: up to 24 months

Appeal: 12 + months

Average Cost

€80,000-150,000 (1st Inst.)

€50,000 (1st Inst.)

€70,000 (App.)

€50,000-150,000 (1st Inst.)

€30,000-70,000 (App.)

€100,000 (1st Inst.)

€50,000 (2nd Inst.)

€750,000-1,500,000 (1st Inst.)

€150,000-1,500,000 (App.)

€150,000-1,500,000 (House of

Lords)

US$150,000 (1st Inst.)

US$50,000 (App.)

US$300,000 (1st Inst.)

US$100,000 (App.)

Up to US$4,000,000 (1st Inst.)

US$150,000-250,000 (App.)

Country

France

Germany

Italy

Spain

U.K.

China

Japan

U.S.