Trademarks are valuable corporate assets that help distinguish one enterprise from another in a world where brand identity is king. Even with these protections in place, trademark ownership, infringement, and use is widely challenged. Litigation is a key part of the solution in many cases but it often takes a long time and it is usually very expensive. The result is a landscape that has helped fuel the increasing popularity of trademark arbitration as an alternative dispute resolution (ADR) option.
A trademark arbitration means.
Arbitration is a private, non-judicial binding process in which parties to a dispute agree to present their conflict to one or more arbitrators. These impartial third parties have wealthy knowledge to acquit conclusive and buddy settlement for the same (AHN). Particularly trademark arbitration that deals with disputes over trademark rights out of the normal public court system.
Benefits of Trademark Arbitration
Less expensive: Arbitration is generally less expensive than Litigation, but there are a few that may end up costing much more as well, depending on the circumstance or the nature of the issue to be resolved. The same cannot be said for court cases, which are usually a matter of public record but arbitration proceedings are private. It is important for businesses as some businesses do not like to reveal their sensitive information like trade secrets, brand strategies, etc to the general public.
Specialist Decision Making: Experience trademark law and IP arbitrators means decisions are made by people with expert knowledge and the finer points and principals of. Traditional courts typically lack this expertise.
Speed and Efficiency: In general, trademark arbitration provides an expedited process compared to the often protracted litigation process. These component-level processes combined with the department-store style shopping make for swifter outcomes, which helps to ensure that the company can get its attention back to the business.
Cost Savings: Arbitration is not inexpensive, but it can be more cost-effective than court litigation. Shorter timelines and low formality often mean lower attorneys’ fees and less expense due to protracted litigation.
Unlike the formalities of a court where cases are handed by the availability of the judge, arbitration works at the behest of the parties and works to their convenience. Accessibility for worldwide disputes in different time zones or jurisdictions is important.
Potential Drawbacks
The advantages of using trademark arbitration are so persuasive that it is difficult to think of reasons not to use it – hopefully the downsides set out below will mean you can then make an informed decision.”
More Limited Discovery: Arbitration oftentimes results in a more limited discovery process than the normal litigation process. This can be a disadvantage when a party needs a lot of proofs and evidences to support his/her case or defense.
Finality and Reviewability: the arbitration decision will be final and binding, and only in exceptional cases will an arbitration decision be subject to appeal. This permanence can work both ways; it offers closure but also means an unfavorable choice cannot be undone so swiftly.
Costs Can Be High: Especially with complex disputes requiring a number of expert witnesses or with long arbitration sessions, the costs can get high and eliminate some of the financial benefits of arbitration.
Selecting Arbitration Clauses
Given the benefits of arbitration, businesses also should consider incorporating arbitration clauses in contracts cautiously. Key considerations include:
The rules and governing law for arbitration.
Selecting trusted arbitration institutions (like WIPO Arbitration and Mediation Center).
Description: The number/type of arbitrators
Establishing procedures governing the selection of arbitrators and discovery.
Instead, trademark arbitration provides a legitimate alternative to litigation for official resolution of trademark-related disputes. The combination of privacy, professional judgment(on many decisions), pace, flexibility make this the best for businesses interested in protecting their brand with court baggage. With a cautious eye on the arbitration clauses in our contracts, our clients will be both litigating and arbitrating their way through trademark controversies more efficiently but safely.
