International Patent & Trademark Attorney at Tech Corp International Strategist
Answered a year ago
Carefully drafting dispute resolution clauses with clear mandate in the trademark agreements from the start is essential to avoid any expensive litigation. These provisions ought to establish a precise, sequential escalation procedure that involved parties must adhere to prior to contemplating legal action before the court of law. The agreements and contracts signed between the parties must include negotiation followed by mediation and ADR under the dispute resolution clause. The clause should state that both parties must negotiate in good faith within a certain amount of time, usually 30 days, once a conflict starts. Senior executives from each organization should meet at this time to talk about the problem and try to come up with a cooperative solution. This direct dialogue often resolves misunderstandings before they escalate. If negotiation fails in the stipulated timeframe, the next step should be mediation with a time frame of 90 days. You should specify in your clause that the parties must try mediation within, say, forty-five days of the conclusion of the negotiation period. The provision should outline the process for choosing the mediator (perhaps from an accredited ADR organization) and allocating expenses. Through mediation, a third party that is impartial can enable parties have a conversation and come up with innovative solutions that may not be immediately obvious to the parties involved in the dispute. For example, a disagreement might emerge on the quality of goods bearing the trademark after Company A grants Company B a trademark license. They would initially engage in negotiations rather than launching a lawsuit right away. If those don't work, they engage with a mediator who assists them in creating a new, mutually agreeable quality control procedure. By doing this, they avoid the cost and unpredictability of litigation while maintaining their commercial relationship. In the event that mediation is unsuccessful, binding arbitration would be the last step prior to litigation. Include information about the arbitration procedure in the dispute resolution clause, such as the number of arbitrators (usually one or three), the rules to be followed (such the WIPO Arbitration Rules for trademark disputes), the arbitration's location, and the completion date. This strategic approach offers several advantages and provides multiple instances for settlement while setting precise due dates to keep the process from going on forever.