IPR litigation is slow, expensive, and hostile

Disputes in general arise from a divergence of interests or belief and/or breach of fiduciary duty that cannot be reconciled.18) The occasional occurrence of such disputes is inevitable among parties that differ in interests, perceptions, and preferences, but they can be managed and resolved, when they occur, through various mechanisms. Dispute resolution mechanisms somewhat differ in countries because they are specified by national laws that reflect a country's history, political system, economic and social circumstances, and cultural factors.19) Generally, the methods for resolving disputes can be divided into two procedures: court litigation and alternative dispute resolution (ADR) methods. 20)

Judicial litigation in court is the traditional way of resolving disputes; however, beginning in the late 1980s and early 1990s, many enterprises became increasingly concerned that civil lawsuits were too expensive, too slow, and too cumbersome.21) This concern led to the growing use of mechanisms for alternative dispute resolution (ADR), such as mediation and arbitration. 'Alternative' dispute resolution is usually considered to be an effective substitute to litigation because it has many advantages, such as being generally less time-consuming and costly. As a result, ADR techniques (including negotiation, conciliation, and arbitration), once seldom used to resolve disputes, are employed with increasing frequency, in both IP disputes and in many other fields. Table 2 provides a comparison of these four methods for resolving disputes (litigation, negotiation, conciliation, and arbitration), and the following text provides detailed descriptions of each.