Arbitration has emerged as a crucial alternative dispute resolution mechanism amidst the surge in litigation. Adopting the UNCITRAL Model, India sought a faster resolution for commercial disputes, influenced by global practices like the Uniform Arbitration Act of 1955. This hybrid approach aims for consensual, binding, neutral, and private resolutions, bridging mediation and litigation.
Intellectual Property Rights (IPR) safeguard intellectual creations like artistic works, literature, patents, trademarks, and more. Beyond protection, IPR encourages innovation and distinguishes products in markets, enhancing branding and business competitiveness. Mandatory IPR registrations under laws like the Legal Metrology Act ensure unique product identities, underpinning market integrity.
IPR now intricately integrates into India's commercial landscape, evident in every agreement and business strategy. Confidentiality agreements and disputes involving IPR breach complexities challenge existing legal frameworks. The Arbitration Act, 1996, mandates arbitration agreements for commercial disputes, excluding non-commercial, testamentary, or matrimonial matters.
Disputes in IPR vary between 'Right in rem' and 'Right in personam'. While arbitration handles the latter, certain disputes like patent validity remain contentious. The Commercial Courts Act, 2015, defines commercial disputes inclusive of IPR issues, yet specific exclusions and judicial interpretations influence arbitrability.
IPR's expanding role in commercial transactions necessitates its inclusion in arbitration laws. Contractual disputes rooted in IPR, such as trademark infringements, find resolution through arbitration clauses. Judicial interpretations like in Hero Electric Vehicles Pvt. Ltd. v. Lectro EMobility Pvt. Ltd. support arbitration's applicability in IP disputes, aligning with international practices promoting IP arbitration.
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