Transcript 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.

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
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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?
 Routine IP litigation on a multi-country front3
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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
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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
 with limited exceptions (e.g. denial of due process), “automatic”
enforcement of arbitral awards
 137 signatories
– inter-partes effect
• Mediation: commercial solutions
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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
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WIPO Arbitration and Mediation Options
WIPO CONTRACT CLAUSE /
SUBMISSION AGREEMENT
MEDIATION
SETTLEMENT
ARBITRATION
EXPEDITED
ARBITRATION
AWARD
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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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http://arbiter.wipo.int/arbitration/contract-clauses/clauses.html
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Mediation Process
Commencement
Appointment of Mediator
Request for Mediation (Art 3-5); Fees
Art 21)
Role of the mediator (Art 13);
Appointment (Art 6-7)
Conduct of the mediation (Art 9-12)
Initial Conference
Meetings
Conclusion
Set up the first meeting; Agree on
preliminary exchange of document, if any
Agree on ground rules of the process;
Gather information and identify issues;
Explore the interests of the parties;
Develop options for settlement;
Evaluate options
80% success; costs USD 6,000- 10
60,000; duration 1-7months
Arbitration and Mediation Center
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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
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Arbitration and Mediation Center
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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
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Arbitration and Mediation Center
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WIPO Arbitration
• Party autonomy
Request for Arbitration
• Flexibility
Answer to Request for Arbitration (30 days)
• Efficiency
Appointment of Arbitrator(s)
• Rules on technical evidence
Statement of Claim (30 days)
• Confidentiality provisions
Statement of Defense (30 days)
•Two exchange of pleadings
Further Written Statements and Witness Statements
– Request & Answer
– Statement of Claim &
Defense
Hearings
Closure of Proceedings
Final Award (3 months)
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Arbitration and Mediation Center
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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
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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)
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Arbitration and Mediation Center
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WIPO Arbitration
Request for Arbitration
WIPO Expedited Arbitration
Request for Arbitration
and Statement of Claim
Answer to Request for Arbitration (30 days)
Appointment of Arbitrator(s)
Statement of Claim (30 days)
Statement of Defense (30 days)
Further Written Statements and Witness Statements
Answer to Request for Arbitration
and Statement of Defense (20 days)
Appointment of Arbitrator
Hearing (maximum 3 days)
Closure of Proceedings
Final Award (1 month)
Hearings
Closure of Proceedings
Final Award (3 months)
One exchange of pleadings ;
Shorter time limits; Sole
arbitrator; Shorter hearings;
Fixed arbitrators fees
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Arbitration and Mediation Center
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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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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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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)
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Arbitration and Mediation Center
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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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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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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
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Arbitration and Mediation Center
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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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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
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WIPO Arbitration and Mediation Cases
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1998
1999
2000
2001
2002
Arbitration
2003
2004
2005
2006
Mediation
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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
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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)
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Arbitration and Mediation Center
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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
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of IP disputes (UDRP)
Arbitration and Mediation Center
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WIPO Neutrals
LIST OF MEDIATORS AND ARBITRATORS
BIOGRAPHICAL DATA
• Over 1,000 experts
• 70 nationalities
David W. PLANT, Esq.
215 Little Lake Sunapee Road
New London, NH 03257
United States of America
• Broad range of ADR, IP, and
technical backgrounds
Telephone:
(1-603) 526 2653/2655
Facsimile: (1-603) 526 2654
E-mail:
[email protected]
Date of Birth: April 22, 1931
Nationality: USA
EDUCATIONAL AND PROFESSIONAL QUALIFICATIONS
Registered to practice before United States Patent & Trademark Office, 1982;
Licensed to practice in United States Supreme Court, 1968;
Licensed to practice law, N.Y. State Bar, 1957;
LLB, Cornell University, 1957;
BME, Cornell University, 1953.
• Appointment in WIPO
Cases
• Referral Service
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Arbitration and Mediation Center
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WIPO Schedule of Fees (Arbitration) :
Competitive Rates
(All amounts are in United States dollars )
Amount in dis pute
Regis tration Fee
Adminis tration Fee *
Arbitrator(s ) Fees *
Any Amount
Up to $2.5 M
Over $2.5 M and up
to $10 M
Over $10 M
Up to $2.5 M
Over $2.5 M and up
to $10 M
Over $10 M
Expedited
Arbitration
$1,000
$1,000
$5,000
$ 5,000
+0.05% of amount
over $10 M up to a
maximum fee of
$15,000
Arbitration
$2,000
$2,000
$10,000
$10,000
+0.05% of amount
over $10 M up to a
maximum fee of
$25,000
$20,000
(fixed fee)
As agreed by the
$40,000 Center in cons ultation
(fixed fee) with the parties and
the arbitrator(s )
As agreed by the
Center in
Indicative rate(s )
cons ultation with
the parties and the $ 300 to $ 600 per hour
arbitrator
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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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ECAF: Log-In
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Arbitration and Mediation Center
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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
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WIPO ECAF
Case Management
 Case Overview
• Contact Information
• Time Tracking
• Finance Overview
• Message Board
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Arbitration and Mediation Center
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WIPO ECAF
Case Management
• Case Overview
• Contact Information
 Time Tracking
• Finance Overview
• Message Board Contact
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Arbitration and Mediation Center
http://arbiter.wipo.int
WIPO ECAF Security
WIPO ECAF Use Example
• Authentication
– ECAF username
– ECAF password
– RSA SecurID password
– Changing passcode generated
by RSA SecurID (Valid only for
60 seconds)
• Encryption
• 1 US Claimant; Respondents
in 3 (US and Europe)
locations
• Claimant represented by 2
NY firms, 1 German firm;
Respondents represented by
2 German firms.
– Modern SSL (Secure Socket
Layer) system
• Firewall protection
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Arbitration and Mediation Center
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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
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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
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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
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Applicability of UDRP
• Applicable to all gTLDs
(.biz, .com, .info, .net,
.org)
• Applicable to certain
ccTLDs (.ch, .co, .ec, .fr,
.na, .ph, .ve, etc.)
ICANN

Registrar Accreditation
Agreement

Registrar

DN Registration Agreement

Domain Name Registrant
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Arbitration and Mediation Center
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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
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Sampling of Disputed Domain Names
volvoautomobile.com,
mazda.com.mx
dknymall.com
gallerielafayette.com
microsoft.li
pfizerviagra.com
madonna.com
morganfreeman.com
viagra.com.ve
三共.com
恒生指数.com
fortunéo.com
autos-yahoo.com, cn-yahoo.com,
email-yahoo.com, greetingsyahooo.com, greetingz-yahoo.com,
hotels-yahoo.com, jejuyahoo.com,
music-yahoo.com,
myanmaryahoo.com, news-yahoo.com,
photos-yahoo.com, playhoo.com, playyahoo.com, t-yahoo.com, wwwyahooshop.net, yaawoo.com,
yahaho.com,
yahoobooting.net, yahoofinance.net,
yahoo-greeting-cards.com,
yahoogreetings.net, yahoohouse.com,
yahooink.net, yahooselect.com,
yahooshopping.net, yahootax.com,
yahootravel.net, yaho-screen.com,
yahosoft.com, yaho1004.com,
yahwhoo.com, 123yahoo.com ...
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Arbitration and Mediation Center
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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
.info
Sunrise
UDRP
.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
2003
1,100
-
-
2004
1,176
-
-
3
1,179
2005
1,456
-
-
1
1,457
266
-
-
Jan-Feb 2006
Total
8,620
15,172
338
1
-
15,087
1,100
-
266
5
24,135
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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
• [email protected]
• [email protected]
• Mailing list: http://arbiter.wipo.int/subscribe
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