"Settlement Over Litigation" Intellectual Property Dispute Mediation Up 19% Yearly

#Small business owner Mr. A and mid-sized company B, who had been engaged in a trademark dispute for over four years, reached a settlement during the mediation process of the Industrial Property Dispute Mediation Committee, withdrew all lawsuits and criminal complaints, and concluded the dispute within two months of mediation. Instead of enduring the fatigue caused by litigation, they chose a quick resolution through settlement.

Cases of resolving disputes through settlement rather than litigation are increasing. Statistics show that among 10 parties who resolved disputes through settlement, 9.5 are individuals and small businesses, and when both parties participated in mediation, 66% concluded the dispute through settlement.

According to the Korean Intellectual Property Office (KIPO) on the 25th, the ‘Industrial Property Dispute Mediation System’ has recently emerged as a reasonable alternative for quickly resolving intellectual property disputes.

The Industrial Property Dispute Mediation System is a mechanism that resolves disputes arising in the fields of industrial property rights such as patents, trademarks, designs, utility models, as well as trade secrets, unfair competition acts, and employee inventions through dialogue and agreement between the parties involved.

It has the advantage of resolving disputes more swiftly and amicably than litigation or adjudication. The establishment of mediation has the effect of a ‘judicial settlement’ equivalent to a final judgment, allowing for compulsory execution if the opposing party fails to comply with the agreement, which is also considered a strength of this system.

This is why the Industrial Property Dispute Mediation System is presented as a reasonable alternative in intellectual property disputes.

Thanks to this, cases of resolving issues through settlement are also on the rise. For example, the number of applications for industrial property dispute mediation, which was 45 cases in 2019, increased to 76 cases last year, confirming an average annual growth rate of 19% during the same period.

This year, 38 applications have been received as of this month, and it is expected that the number of mediation applications will exceed 100 by the end of the year.

Among companies applying for industrial property dispute mediation from 2019 to 2022, the mediation success rate when the opposing party agreed to mediation averaged 66% over four years. This can be seen as evidence that the Industrial Property Dispute Mediation System is effective in resolving disputes.

Notably, as of April 21 this year, among the 312 total applications by company classification, 297 applications (95%) were from individuals and small businesses, confirming a high utilization rate of the system by individuals and small businesses.

This is interpreted as being due to the fact that cases are typically concluded within an average of two months when using the Industrial Property Dispute Mediation System, no separate costs are incurred, and the settlement process is not complicated, which reduces the burden on small businesses with limited capital.

Kim Si-hyung, Director of the Industrial Property Protection Cooperation Bureau at KIPO, said, “The Industrial Property Dispute Mediation System is becoming an effective dispute resolution tool for small businesses that lack time and financial resources,” adding, “KIPO plans to expand support for dispute resolution through mediation so that our companies can quickly resolve disputes and focus on their core business.”

This content was produced with the assistance of AI translation services.