One of the most remarkable
characteristics of
E-Commerce is that it occurs globally.
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Benefits of e-Business
IP may be used and licensed in many
countries simultaneously. The global characteristic of E-Commerce businesses
affects IP in a number of ways. It makes it difficult to find the infringer and
enforce IP rights that are violated on the Internet. It is unclear what courts
will have jurisdiction over disputes relating to E-Commerce and IP. Also, laws
affecting IP vary from country to country so levels of protection may be
different.
Lawsuits can be brought against
your E-Commerce business or, conversely, your business may seek redress in
national courts, but various legal procedural issues will affect such cases. If
the parties are in different countries, it will be difficult to determine which
court can or should be used. The court may or may not take jurisdiction (legal
control) over the case, depending on many factors, but especially the connection
between the parties and the country. As a practical matter, in order for a
lawsuit to succeed, the defendant has to reside in the country in which the
lawsuit is brought. Another difficult issue is what law to apply, especially if
the laws of the countries of the parties involved are different. Finally, even
if the lawsuit succeeds, it could be difficult to enforce a judgment in another
country.
International arbitration is one
way to deal with international E-Commerce disputes, though generally
participation is voluntary and cannot be forced. Arbitration clauses may be
agreed to in contracts, in which case the parties are later required to use
arbitration. You should consider specifying binding international arbitration in
any E-Commerce contracts involving international transactions. WIPO’s
Arbitration and Mediation Center specializes in international dispute settlement
and is well suited to solving international IP problems arising in E-Commerce.
