Mediation outside litigation

In a world of complex disputes and escalating legal costs, it is high time we turn our attention to a more harmonious approach to conflict resolution.

While traditional litigation has its merits, it often leaves both parties financially drained and with damaged relationships. A viable alternative lies in the form of mediation, particularly through the Intellectual Property Office of the Philippines, or IPOPHL, through our Bureau of Legal Affairs.

Since the launch of the Mediation Outside Litigation Incentive Program in 2022, we have seen Intellectual Property owners take the strong step toward an amicable IP conflict resolution. The BLA’s incentive program quickly gained traction among disputing parties — especially as the Philippines seeks to benefit from the opportunities in the digital economy, where IP conflicts are more widespread.

At its core, mediation is a voluntary and confidential process where a neutral third party, IPOPHL’s mediators trained by the World Intellectual Property Organization, facilitates communication and negotiation between disputing parties.

In fact, IPOPHL remains the only government agency accredited by the Office for Alternative Dispute Resolution of the Department of Justice, the main agency of the government tasked to implement the ADR Act of the Philippines.

The goal is to find a mutually amicable solution that accommodates the interests of both sides. In the context of IP disputes, which can be highly technical and contentious, the role of IPOPHL as a mediator offers unique advantages.

 

A swift and cost-effective resolution

One of the primary advantages of mediation is its cost-effectiveness compared to litigation. Traditional court battles are known for their high expenses, which can financially cripple individuals and MSMEs.

Mediation provides an affordable alternative, as it requires fewer resources and is less time-consuming. It allows parties to redirect their focus to innovation and growth rather than draining financial resources on prolonged legal battles.

 

Preserving business relationships

In most instances, litigation can be adversarial, pitting one party against another in a zero-sum game. The outcomes often result in a clear “winner” and a “loser,” fostering animosity between the parties.

Mediation, on the other hand, encourages open communication and understanding. It encourages the development of conflict-free discourse, where both parties can find common ground and potentially continue their business relationship in the future.

 

Tailored solutions

IP disputes can be highly nuanced, necessitating creative and tailor-fit resolutions. Courts may offer standardized remedies, but mediation empowers the parties to explore unique solutions that align with their specific needs and interests. Such tailored resolutions can lead to more satisfactory outcomes and foster a sense of ownership over the agreement.

 

Empowering the parties

Mediation shifts the power back into the hands of the parties involved. Rather than having their fate decided by a judge or jury, the parties actively participate in shaping the outcome of the dispute. This empowerment can lead to more meaningful and sustainable resolutions, as both parties are invested in the process and committed to adhering to the agreed-upon terms.

Early mediation welcomes the possibilities for creative solutions and the preservation of relationships even after conflict. Given the extensive benefits of MOL, many rights holders have embraced this game-changing approach for intellectual property stakeholders.

As such, the BLA continues to provide a cost-effective MOL at reduced fees for disputing parties opting to seize the opportunity of embracing this win-win solution for all.

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