The Benefits of Alternative Dispute Resolution Methods - Banking and Financial - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 29343895

The Benefits of Alternative Dispute Resolution Methods

Author:Mr Enrique Morineau
Profession:Becerril Coca & Becerril

The importance of Industrial Property around the world has increased in such scale that a lot of different commercial aspects of the way we do business today are affected by it. This fact, together with the globalization of both the monetary exchanges and telecommunications, presents a rise in the number of international and, more precisely, inter-company transactions as a consequence.

Nevertheless, despite globalization, the international Law has not yet been standardized, which puts us in an awkward position when it comes to the results in the resolution of controversies of the above mentioned inter-company relations.

Everyday, the annual rate of international trades increases, showing a series of problems for both the parties involved in the original contract interested in solving a controversy derived from it as well as the international courts, based on the time and money invested in their solution.

This places us in a situation where we need to have different options of ending a contractual dispute without wasting valuable time, money and, most importantly, the business relationship, since big trades are often terminated due to relatively small problems. Now, the problem is not the lack of alternative methods, but the lack of information each company may have of them.

Therefore, it is important that the Intellectual Property legal advisors, reach their clients and aid them in the gathering of information regarding Alternative Dispute Resolution (ADR) systems, for the inclusion of several Clauses tending to solve the arising problems via this non-legal court methods, that will result in savings in the field of the aforementioned issues.

We need to clarify that an ADR system does not prevent clients from resolving their problems at court when necessary (i.e. when one of the parties is not willing to negotiate, or wants to obtain a public precedent), but provides them with a faster and cheaper second option.

Another group of reasons for choosing ADR, would be the saturation of the international courts and the similarities in protection and application of arbitration, mediation and other ADR options resolutions before the courts ruling.

Since companies need and search protection outside their own territorial borders, based on the every-day use of...

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