Usually, many license
agreements have arbitration clauses. Accordingly IP lawyers have to handle
arbitration issues inevitably and we have been assisted and represented our
clients regarding arbitration matters.
KCAB (The
Korean Commercial Arbitration Board) was established in 1966 and had been duly
approved as an official arbitration institution in the Republic of Korea. As international
trade and commerce increases, disputes have been arising. In case parties
decided to use arbitration, KCAB has been frequently chosen to resolve disputes.
There are two kind of
dispute resolution systems ensuring enforceability of their decisions; judicial
and arbitration proceedings. Due to its strict confidentiality, arbitration is
not as well known while it has been used as typical ADR process.
Arbitration only handles
such disputes related to contracts with arbitration agreement in it or a
separate written agreement. For KCAB, a model Arbitration Clause must be included
in contracts as follows: “Any disputes, controversies, or difficulties, or
differences which may arise between the parties out of, in relation to, or in
connection with this contract, or for the breach thereof, shall be finally
settled by arbitration in accordance with the Arbitration Rules of the Korean
Commercial Arbitration Board and under the Laws of Korea.”
KCAB has developed rules
and practice to meet users’ high and various demands and then would become a
new arbitration hub in northeast Asia. KCAB recognizes the paramount need to be
neutral, independent and internationally minded administrator in order to
deliver the most reliable, efficient and world class dispute resolution
services.
Usually litigation in
foreign country can be costly, time-consuming. KCAB arbitration can provide
fast, impartial and confidential resolution of business disputes, and sometimes
cheap compared to litigation.
Korea is a signatory state
of the U. N. Convention on the Recognition and Enforcement of Foreign Arbitral
Awards (New York Convention) since 1973. Also KCAB has signed around 50
international cooperation agreements with similar arbitral organizations
throughout the world.
In closing, the followings
are copied from the website of KCAB:
“In summary, the most
significant and attractive features of KCAB arbitration for international
parties are:
1. Impartiality - The KCAB is
independent, neutral and respected arbitral institution.
2. Party autonomy - Parties may
choose the arbitrators, place, language and procedure of the arbitration.
3. Finality - Arbitration decisions
are final and binding on the parties, enforceable in the courts of the vast
majority of countries.
4. Efficiency - Disputes are
resolved both quickly and expertly, saving time and cost.
5. Privacy - Proceedings are closed
to the public and the award is confidential.”