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ARBITRATION FOR INTELLECTUAL PROPERTY DISPUTES


Posted By Sarthak on 07 May 2018

Claims arising from an Intellectual Property licensing and other commercial transactions are essentially 'in personam' disputes - Nothing exists under Indian Law which ousts such disputes from arbitration. Arbitration can avoid parallel litigations and has inherent advantages in delaing with commercial disputes in respect of flexibility, confidentiality and finality. Intellectual Property arbitrations are rare because IP disputes frequently do not involve a preexisting contractual relationship. Arbitration, however, requires a contractual agreement to arbitrate.

Eros International Media Ltd. Vs. Telemax Links India Pvt. Ltd. [(2016) 6 Bom CR 321]

> The Hon'ble Bombay High Court on application of Section 8 of the Arbitration & Conciliation Act, 1996 has held that IP disputes arising out of an agreement are arbitrable if such agreement contains an arbitration clause. The court passed the order in favourt of Telemax and held that:

            - Provisions of Copyright Act and the Trademark Act do not oust the jurisdiction of an arbitral panel.

            - Although IP rights are special rights, they are still a species of property rights and share much with their more tangible cousins to whom acts such as the Sale of Goods Act, 1930 or the Transfer of Property Act, 1882 apply.

> The court further held that Eros' action is in personam as it is seeking a particular relief agaisnt a particular defined party.

 

Through the recent amendment of Arbitration and Conciliation Act, 2015 an application for setting aside the arbitral award shall be disposed of expeditiously and in any event within a period of one year from the date on which the notice is served upon the other party.

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