The first case of successfully resolving a semiconductor patent dispute through a combination of trial and mediation has emerged. The “trial-mediation linkage” system, which had previously been primarily applied in trademark and design cases, has been extended to the patent field starting this year.
The Intellectual Property Trial and Appeal Board (IPTAB) of the Korean Intellectual Property Office announced on June 26 that a patent invalidation trial involving companies in the semiconductor equipment sector was concluded through “mediation,” resulting in a mutual agreement between the parties.
Mediation refers to the process of resolving a case with the assistance of a neutral third-party mediator. When mediation is reached during a patent invalidation trial, it has the same legal effect as a judicial settlement.
The trial-mediation linkage system allows the presiding judge, when they determine that resolving the dispute through mediation is more appropriate than through a trial, to obtain the consent of both parties and initiate mediation procedures with the Industrial Property Dispute Mediation Committee. In such cases, the presiding judge and trial examiners participate as mediators, and the mediation must be concluded within a maximum of six months.
Disputes in the field of intellectual property rights are generally resolved through trials and litigation. However, resolving disputes through trials and lawsuits often involves significant time and cost burdens, and even then, one party wins and the other loses, making it difficult for both sides to achieve a genuine reconciliation after the dispute ends.
For this reason, the IPTAB had previously introduced and operated the trial-mediation linkage system in the fields of trademarks and designs. This year, the necessary systems and procedures were also established to activate the trial-mediation linkage in the patent field.
In particular, the recent case of a patent dispute between semiconductor equipment companies being amicably resolved through trial-mediation linkage is significant as it marks the first such case since the system was introduced in the patent field.
Previously, the IPTAB identified the causes of the dispute between the parties and, before the conflict escalated, recommended converting the trial into a mediation procedure. When the parties accepted this recommendation, the case was transferred to the Industrial Property Dispute Mediation Committee for mediation proceedings.
During the mediation, the two parties participated in two mediation meetings and held several rounds of negotiations. Through this process, they reached a mutual agreement to share the patent rights, concluding the mediation in just three months (establishment of mediation), and the ongoing trial was also terminated.
Most importantly, after the mediation, the two parties not only resumed cooperation contracts such as supply agreements but also agreed to jointly pursue future technology development. Unlike the trial and litigation procedures, they were able to reach an agreement in a relatively short period of time and restore a cooperative relationship based on reconciliation.
A representative of one of the companies involved in the mediation stated, "If not for the IPTAB's recommendation to pursue mediation, the dispute could have dragged on for a long time, causing significant burdens for the companies. However, by swiftly resolving the dispute through mediation, both companies were able to restore their cooperative relationship, which is very meaningful."
Seo Eulsu, Chief Judge of the IPTAB, said, "This case demonstrates the potential of the trial-mediation linkage system as an effective means of dispute resolution. The IPTAB will continue to make efforts to swiftly and flexibly resolve patent disputes through mediation procedures in cases where mediation is deemed appropriate."
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