Whose Rights, Which Property, What Borders? Global Litigation Is Exploding As Trade and Tech Grow

The intertwined growth in global trade and technological development has spurred new products, new revenues and new jobs. It has also inspired an exponential spike in litigation.

Much of the legal activity is a reflection of the uncertainty generated by the replacement in value of tangible property with intellectual property.

Competition is also an issue as the terms of global interactions across borders has become more complex. Some of the litigation spans as many as 50 different jurisdictions, which often means differing legal codes and philosophies.

The expense entailed in pursuing legal remedies in this fashion is almost certainly not sustainable, however profitable the prize may be. Even behemoths like Samsung, Google and Apple have indicated a willingness to negotiate or settle rather than incur endless costs.

The most interesting question may be whether creative, innovative approaches to dispute resolution can be crafted in order to save time and money. That could be one of the latest killer apps. JL

Jane Croft reports in the Financial Times:

Disputes involving litigation in several countries has become more frequent in the past two years

Companies are being routinely challenged by complex cross-border litigation which can involve up to as many as 50 jurisdictions, according to a new study. The report, which surveyed 146 senior lawyers and executives from 18 different industries, found that almost half said that disputes involving litigation in several countries has become more frequent in the past two years.
They reported that 90 per cent of these disputes involved at least two or three overseas countries. The most common source of disputes was wrangles with customers but other problem areas issues included intellectual property, competition and antitrust complaints.
Almost two-thirds of those surveyed in the UK cited competition and intellectual property as the key area for cross-border disputes – particularly in the manufacturing, pharmaceuticals and technology sectors.
On average, those questioned handled 15 cross -border disputes each year but some respondents had dealt with as many as 1,000. The most challenging legal jurisdictions were reported to be China, US, Brazil and India.
Michael Davison, global co-head of litigation at Hogan Lovells, the authors of the report, warned of the risks of ‘weak’ cross-border dispute resolution practice.
He said: “Lawyers are expected to anticipate and address legal or regulatory hurdles in advance. Having an early assessment of pros and cons of pursuing the dispute is important.”