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What are the best strategies for resolving IP ownership disputes outside of court?

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Intellectual property (IP) ownership disputes can arise when parties involved in a contract disagree on who owns, controls, or benefits from the IP created or used in the course of the agreement. These disputes can be costly, time-consuming, and damaging to the relationships and reputations of the parties. Therefore, it is often preferable to resolve them outside of court, using alternative dispute resolution (ADR) methods. In this article, we will explore some of the best strategies for resolving IP ownership disputes outside of court, and how to prevent them from escalating in the first place.

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TAIWO OYENIYI (LL.B, B.L, B.Sc Quantity Surveying, PMP)

Construction Professional, Contract Administrator, Alternative Dispute Resolution (ADR) Expert ,Construction Claims…
Regis Felipe Campos

Líder do Comitê de Prote??o de Dados na Rivelli | Implementa??o da LGPD

1 Negotiate directly

One of the simplest and most effective ways to resolve IP ownership disputes outside of court is to negotiate directly with the other party, without involving lawyers or third parties. This can help preserve the trust and cooperation between the parties, and allow them to find a mutually acceptable solution that reflects their interests and needs. However, direct negotiation requires both parties to be willing to communicate, compromise, and respect each other's rights and obligations. To facilitate direct negotiation, it is advisable to have a clear and detailed contract that defines the scope, ownership, and transfer of IP, and to document any changes or agreements that occur during the contract execution.

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Yasir Mehmood

(HSE Officer) @ Royal Joinery Abu Dhabi | Nebosh, ISO 45001:2018
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ownership disputes outside of court is to negotiate directly with the other party, without involving lawyers or third parties. This can help preserve the trust and cooperation between the parties, and allow them to find a mutually acceptable solution that reflects their interests and needs. However, direct negotiation requires both parties to be willing to communicate, compromise, and respect each other's rights and obligations. To facilitate direct negotiation, it is advisable to have a clear and detailed contract that defines the scope, ownership, and transfer of IP, and to document any changes or agreements that occur during the contract execution

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Benny Lam

Specialist in Digital Signage | Fixed/Rental LED Displays | Supporting System Integrators, Advertising Agencies & Event Organizers | Original Factory-Direct Solutions for Small-Medium Businesses
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*Negotiate directly:* Talk it out! Open communication can often clear misunderstandings. *Mediation:* Use a neutral third party to facilitate a win-win solution. *Arbitration:* Get a binding decision from an expert, faster than court. *Co-ownership agreements:* Formalize shared ownership for future clarity.

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2 Mediate with a neutral facilitator

Another option for resolving IP ownership disputes outside of court is to mediate with a neutral facilitator, who can help the parties communicate, identify their underlying interests and concerns, and explore possible options for settlement. Mediation is a voluntary and confidential process that allows the parties to retain control over the outcome, and to tailor it to their specific situation and needs. Mediation can also help preserve or restore the relationship between the parties, and prevent further escalation of the conflict. However, mediation requires both parties to be willing to participate in good faith, and to abide by the terms of the settlement agreement.

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Kevin James Robson M.Sc. (Eng).

Projects CVP, Strategy, BD, Audits, Turnarounds, ESG, Coach and Mentor.
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This by far is the optimum solution. Both sides are blinded by the issue and rationality takes a second chair. The neutral facilitator brings all the issues into play and gets mutual buy in before both parties agree to the terms. It is usually a give and take resolution.

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3 Arbitrate with a binding decision

A third option for resolving IP ownership disputes outside of court is to arbitrate with a binding decision, which is issued by an arbitrator or a panel of arbitrators, who act as judges and apply the relevant laws and rules to the case. Arbitration is a formal and adversarial process that can be faster, cheaper, and more private than litigation, and that can offer more flexibility and expertise in dealing with complex IP issues. However, arbitration requires both parties to agree to submit their dispute to arbitration, and to accept the final and enforceable decision of the arbitrator, which may not reflect their preferences or expectations.

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4 Collaborate with a co-ownership agreement

A fourth option for resolving IP ownership disputes outside of court is to collaborate with a co-ownership agreement, which is a contract that establishes the rights and responsibilities of each party in relation to the shared IP. Co-ownership agreements can help avoid or minimize disputes by clarifying the scope, duration, and terms of the co-ownership, and by providing mechanisms for decision-making, dispute resolution, and termination. Co-ownership agreements can also help foster innovation and synergy between the parties, and enable them to leverage their complementary strengths and resources. However, co-ownership agreements require both parties to agree on the terms and conditions of the co-ownership, and to cooperate and coordinate their actions and interests.

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5 Prevent with a proactive approach

The best strategy for resolving IP ownership disputes outside of court is to prevent them from arising in the first place, by adopting a proactive approach that anticipates and addresses potential issues and risks before they become problems. A proactive approach involves conducting due diligence, defining and documenting the IP rights and obligations of each party, negotiating and drafting clear and comprehensive contracts, monitoring and managing the performance and compliance of the contracts, and communicating and resolving any issues or concerns as soon as they emerge. A proactive approach can help avoid misunderstandings, conflicts, and litigation, and enhance the value and benefits of the IP for all parties.

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Regis Felipe Campos

Líder do Comitê de Prote??o de Dados na Rivelli | Implementa??o da LGPD
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A atua??o proativa é muito capaz de evitar litígios judiciais. Inclusive, mesmo sendo o caso de negocia??o após a realiza??o de due diligencies, e a conclus?o de que n?o será possível excluir totalmente os riscos encontrados. O mapeamento específicos dos pontos de tangência, bem como, a delimita??o do objeto de negocia??o passam por previdências prévias que, uma vez adotadas, contribuem de forma eficaz na tratativa da quest?o de forma extrajudicial.

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Royce Sharp

Atmos Energy Operation Supervisor
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This approach is beneficial to all aspects of business, always take a couple minutes to reflect on anything your going to do to make sure your not missing anything important. This doesn’t have to be a long process but just a quick once over in your head to make sure you’re not setting yourself up for problems with a knee jerk decision. If you do make that mistake really Identify which side is right or wrong and either own up to the mistake and right your wrong or stand your ground.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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TAIWO OYENIYI (LL.B, B.L, B.Sc Quantity Surveying, PMP)

Construction Professional, Contract Administrator, Alternative Dispute Resolution (ADR) Expert ,Construction Claims Specialist, Arbitrator, Real Estate Lawyer, Barrister and Solicitor of the Supreme Court of Nigeria
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In recent times, alternative dispute resolution (ADR) methods of disputes resolution have been preferred by many in resolving various disputes ranging from construction, intellectual property, technology, etc., contracts due to its benefits. Benefits ranging from privacy, confidentiality, cost effectiveness, less time consuming and devoid of technicalities are some of the reasons leading to rise in its adoption as a means of resolving disputes. Some of the ADR methods are negotiation, mediation, conciliation and arbitration and if used appropriately and effectively can lead to speedy resolution of disputes without recourse to litigation.

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What are the best strategies for resolving IP ownership disputes outside of court?

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1 Negotiate directly

2 Mediate with a neutral facilitator

3 Arbitrate with a binding decision

4 Collaborate with a co-ownership agreement

5 Prevent with a proactive approach

6 Here’s what else to consider

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