Mediators Post

Mediation: an effective alternative for tech lawsuits.

Author´s name: Appu Kumar

Profile: Software Developer

Location: New Jersey

In last two decades, we have seen various tech startups sprouting across the global. Many of them have to pull down their shutter due to expensive patents infringement lawsuits or litigation over intellectual property. A small firm usually does not have enough resources to deal with ugly lawsuits even if the case is in their favor. Legal battles discourage entrepreneurs to venture in to an industry where large enterprise has a firm footing. It ultimately hurts the entrepreneurs, industry and consumers. Need of the hour is to raise the awareness of alternative dispute resolution among entrepreneurs and industry leaders.

Impact of legal battle is not limited to small firm. A noteworthy patent infringement litigation between Samsung and Apple is a good example to be quoted. Both the companies have their business spread out across multiple countries each having different patent/intellectual property law. While Apple won a ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK. Each company spent billions of dollars, gained negative publicity and wasted their resources in non-productive activities which could have been easily avoided by mediating a solution outside the court.

Mediation is the best method of resolving most high tech and other intellectual property disputes with much less expense than a full lawsuit. Due to lack of subject knowledge or understanding of underlying technology among juries, it can be unrealistic to expect a fair judgment in technology lawsuits. Mediation can help to control the outcome of disputes. It can avoid the risk of disclosing confidential and sensitive information to competitors which can be vital for their future growth especially in case of tech startup. Due to the low cost and minimal time invested in mediation, and its high success rate, mediation should be the first choice for dispute resolution in technology industry.

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Pankaj Kumar

Thank you for integrating ADR into the technology sector to resolve conflicts.

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