Beruflich Dokumente
Kultur Dokumente
(https://www.linkedin.com/company/wolters-kluwer)
(https://www.youtube.com/user/WoltersKluwerComms)
A R B I T R A B I L I T Y ( H T T P : / / A R B I T R AT I O N B LO G . K LU W E R A R B I T R AT I O N . C O M / C AT E G O RY / A R B I T R A B I L I T Y / ) ,
I N D I A ( H T T P : / / A R B I T R AT I O N B LO G . K LU W E R A R B I T R AT I O N . C O M / C AT E G O RY / I N D I A / ) ,
I N T E L L E C T UA L P RO P E RT Y ( H T T P : / / A R B I T R AT I O N B LO G . K LU W E R A R B I T R AT I O N . C O M / C AT E G O RY / I N T E L L E C T UA L - P RO P E RT Y / ) ,
I N T E L L E C T UA L P RO P E RT Y R I G H T S ( H T T P : / / A R B I T R AT I O N B LO G . K LU W E R A R B I T R AT I O N . C O M / C AT E G O RY / I N T E L L E C T UA L - P RO P E RT Y-
RIGHTS/)
Introduction
The juxtaposition of laws that seemingly operate in different domains has posed a continual challenge to arbitration – conventionally,
in the form of concerns over arbitrability of disputes. Here, arbitrability connotes the notion that a dispute, by its nature, is capable of
being adjudicated beyond public fora, through a private tribunal chosen by parties. This ‘objective’ arbitrability differs from
‘subjective’ arbitrability, which is the scope of arbitrable disputes as defined in an arbitration agreement. This post deals with
objective arbitrability. In the context of intellectual property rights (‘IPR’) disputes, concerns of objective arbitrability stem from the
impact arbitral awards may have on non-consenting parties. Owing to insufficient legislative engagement with this issue, judicial
position on arbitrability of IPR disputes in India remains unsettled.
This is not however a rigid or inflexible rule. Disputes relating to subordinate rights in personam arising from rights in rem
have always been considered to be arbitrable.
Further, it also excluded from the scope of arbitration in India, disputes arising from statutes that vest exclusive jurisdiction in
specified courts.
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 1/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
Every suit or other civil proceeding arising under this Chapter in respect of the infringement of copyright in any work or
the infringement of any other right conferred by this Act shall be instituted in the district court having jurisdiction.
According to the Court, this provision only precludes infringement claims from being brought before a court hierarchically lower than
the competent district court. Section 62(1) was not, however, intended to oust the jurisdiction of an arbitration tribunal. Based on this
preliminary finding, the Court proceeded to analyse the nature of infringement claims. It noted that while an infringement action
arising from a contractual relationship may succeed against a certain defendant, this decision would not necessitate the success of
such action against a different defendant. Thus, while the overlying copyright is a ‘right in rem’ enforceable against the world at
large, the specific contractual dispute over its infringement is a ‘right in personam’ action against a particular individual. Accordingly,
the dispute was held to be arbitrable. Without explicitly referencing the Booz Allen obiter, the Court followed the Supreme Court’s
reasoning – that is, it refrained from summarily dismissing questions of arbitrability without assessing the nature of rights at issue.
The Court’s finding has been positively received in select subsequent decisions. (See e.g., Deepak Thorat S/o Dinkar Thorat v.
Vidli Restaurant Ltd., 2017 SCC OnLine Bom 7704 (https://indiankanoon.org/doc/2033826/) .) Its decision also aligns with the
literal approach to the interpretation of statutes followed by Indian courts. (See e.g., Swedish Match AB & Anr. v. Securities and
Exchange Board of India & Anr. (https://indiankanoon.org/doc/64332/) , (2004) 11 SCC 641.)
The Bombay High Court continued to heed the Supreme Court’s warning in subsequent decisions such as Indian Performing Rights
Society v. Entertainment Networks, 2016 SCC OnLine Bom 5893 (‘IPRS’). Unlike the Telemax case, the Court in IPRS was tasked
with deciding whether averments of the Claimant’s right to claim royalties in relation to broadcasting of a sound recording were
arbitrable. The arbitrator decided against the need to obtain a license from the Claimant, differentiating between rights held in
original music works and in sound recordings. However, the Court on review found that by virtue of this decision:
[IPRS’s] …rights as a licensor were destructed in the impugned award not only against the claimant, but also against the
world at large.
By distinguishing the case at hand from Telemax based on the implications of the relief granted for third parties, the Court clarified
that arbitrating the case would have implications for IPRS’s rights to collect royalties on their works from third parties as well.
Moreover, it would also affect several other copyright owners in the underlying musical works who were not parties to the arbitration
in question. Therefore, the award was rightly set aside.
Conclusion
IPR form a crucial constituent of commercial transactions and are comprised in the bundle of rights therein. To ipso facto declare
them non-arbitrable would upset the purpose of the Arbitration Act, impair the efficacy of commercial arbitration and disregard party
autonomy. Thus, the inflexible stance adopted in the Impact Metals and Ayyaswamy decisions is misconceived.
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 2/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
Admittedly, it is important to keep ‘rights in rem’ beyond the reach of arbitration. In light of the progressive reforms of the 1996 Act in
recent years, this could be achieved through legislative clarifications. For example, both the United States of America and
Switzerland permit the arbitration of patent infringement claims, provided that the consequent award is registered with the relevant
patent authority or board. (See 35 United States Code (U.S.C) § 294(d) (https://www.law.cornell.edu/uscode/text/35/294) ;
Article 193.2, Swiss Federal Act on Private International Law
(https://www.unine.ch/files/live/sites/florence.guillaume/files/shared/publications/pil_act_1987_as_from_1_1_2017.pdf) ,
1989.) This simultaneously safeguards the complementary interests of effective arbitration of IPR disputes and public interest in
‘rights in rem’. A similar legislative provision could be emulated in India. Further, the ‘arbitrable’ aspects of intellectual property could
be clarified via legislation, as is the case in Hong Kong. (See Part 11A, Hong Kong Arbitration (Amendment) Ordinance, 2017
[Ord. No. 5 of 2017] (https://www.wipo.int/edocs/lexdocs/laws/en/hk/hk212en.pdf) .) Clarifications concerning the scope of
counterclaims permissible in IPR arbitrations (such as express exclusion of counterclaims challenging the validity or registration of
IPR) are also crucial. Swift action here is essential to set ghosts of the past to rest.
________________________
To make sure you do not miss out on regular updates from the Kluwer Arbitration Blog, please subscribe here
(http://arbitrationblog.kluwerarbitration.com/newsletter/). To submit a proposal for a blog post, please consult our Editorial
Guidelines (http://arbitrationblog.kluwerarbitration.com/editorial-guidelines/).
(http://www.kluwerarbitration.com/?utm_source=arbitrationblog&utm_medium=banner&utm_campaign=free-demo)
(http://arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/?
print=pdf)
(http://arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/?
print=print)
It’s a Beautiful Day in the Neighborhood? An Overview of Interviews with Our Editors: Perspectives on Arbitration in Iran
Arbitration Law in the U.S. and Canada from Oveis Rezvanian, Director of the Tehran Regional
(http://arbitrationblog.kluwerarbitration.com/2019/08/14/its-a- Arbitration Centre
beautiful-day-in-the-neighborhood-an-overview-of-arbitration-law- (http://arbitrationblog.kluwerarbitration.com/2019/08/16/interview
in-the-u-s-and-canada/) with-our-editors-perspectives-on-arbitration-in-iran-from-oveis-
ERIC MORGAN (HTTP://ARBITRATIONBLOG.KLUWERARBITRAT I ON . C OM/ AU TH OR / ER I C - rezvanian-director-of-the-tehran-regional-arbitration-centre/)
MORGAN/) (OSLER HOSKIN & HARCOURT LLP (HTTP://WWW.OSLER.COM)) AND CHARLES MIHAELA MARAVELA ( ASSOCIATE EDITOR)
('CHIP') B. ROSENBERG (HTTP://ARBITRATIONBLOG.KLUWERARBITRAT I ON . C OM/ AU TH OR / MI H AEL A-MAR AVEL A/ )
(HTTP://ARBITRATIONBLOG.KLUWERARBITRAT I ON . C OM/ AU TH OR / C H AR L ES-C H I P-B- (MIHAELA MARAVELA LAW OFFICE)/AUGUST 16, 2019
ROSENBERG/) (KING & SPALDING (HTTPS://WWW.KSLAW.COM/?LOCALE=EN))/AUGUST (HTTP://ARBITRATIONBLOG.KLUWERARBITRAT I ON . C OM/ 2 0 1 9 / 0 8 / 1 5 / AR BI TR ABI L I TY-OF-
14, 2019 IPR-DISPUTES- IN- INDIA-342B-OR-NOT-TO-BE/)
(HTTP://ARBITRATIONBLOG.KLUWERARBITRAT I ON . C OM/ 2 0 1 9 / 0 8 / 1 5 / AR BI TR ABI L I TY-OF-
IPR-DISPUTES- IN- INDIA-342B-OR-NOT-TO-BE/)
Leave a Reply
YOUR EMAIL ADDRESS WILL NOT BE PUBLISHE D . REQUIRED FIELDS ARE MARKED *
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 3/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
COMMENT
NAME *
EMAIL *
WEBSITE
SAVE MY NAME, EMAIL, AND WEBSITE IN T HIS BROWS E R FOR T HE NE XT T IME I CO MME N T.
POST COMMENT
This site uses Akismet to reduce spam. Learn how your comment data is processed (https://akismet.com/privacy/).
Email SUBSCRIBE
BROWSE CATEGORIES
by Date...
(http://www.kluwerlaw.com/covid-contracts/?utm_source=arbitrationblog&utm_medium=banner&utm_campaign=COVID-
contracts)
(http://www.kluwerarbitration.com/born?utm_source=arbitrationblog&utm_medium=banner&utm_campaign=Born-Lectures-
Covid19)
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 4/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
Construction Arbitration in Central and Eastern Europe: Contemporary Issues
(https://lrus.wolterskluwer.com/store/product/construction-arbitration-in-central-and-eastern-europe-
contemporary-issues/)
Edited by Crina Baltag & Cosmin Vasile
€ 167
(http://arbitrati
alford/)
(http://arbitrati
baltag/)
(http://arbitrati
nasir-
gore/)
(http://arbitrati
lim/)
(http://arbitrati
dautaj/)
(http://arbitrati
diamond/)
(http://arbitrati
fanou/)
(http://arbitrati
lee/)
(http://arbitrati
mitsi/)
(http://arbitrati
ray/)
(http://arbitrati
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 5/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
c-
eernisse/)
Theresa Tseung (Assistant Editor for East and Central Asia) (https://www.linkedin.com/in/theresatny/)
(http://arbitrati
tseung/)
(http://arbitrati
carolina-
dallagnol-
assistant-
editor-
for-
africa/)
(http://arbitrati
habib/)
(http://arbitrati
loh/)
(http://arbitrati
mira/)
(http://arbitrati
sim/)
(http://arbitrati
prasad/)
(http://arbitrati
bonke-
assistant-
editor-
for-
europe/)
(http://arbitrati
draguiev/)
(http://arbitrati
prastalo/)
(http://arbitrati
al-houti/)
Zahra Rose Khawaja (Assistant Editor for the MENA Region) (https://www.dentons.com/en/zahra-rose-khawaja)
Dentons & Co, Dubai (https://www.dentons.com/)
(http://arbitrati
rose-
khawaja/)
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 6/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
Mohamed H. Negm (Assistant Editor for the MENA Region)
Egyptian State Lawsuits Authority, Ministry of Justice and University of Geneva (https://www.linkedin.com/in/mohamed-h-negm-8b088923/)
(http://arbitrati
h-negm/)
Giorgio Sassine (Assistant Editor for Canada and the United States)
Severson & Werson (https://www.severson.com/)
(http://arbitrati
sassine/)
(http://arbitrati
(http://arbitrati
paez/)
Gordon Blanke
Blanke Arbitration LLC (http://blankearbitration.com/)
(http://arbitrati
blanke/)
(http://arbitrati
born/)
Nikos Lavranos
NL-Investmentconsulting (https://www.nl-investmentconsulting.com/)
(http://arbitrati
lavranos/)
Michael McIlwrath
Baker Hughes (https://www.bakerhughes.com)
(http://arbitrati
mcilwrath/)
(http://arbitrati
scherer/)
(http://arbitrati
(http://arbitrati
von-
segesser/)
(http://arbitrati
sun/)
(http://arbitrati
zivkovic/)
AFFILIATES
AfricArb (http://https://www.linkedin.com/company/afric-arb/)
Members
(http://arbitrati
gID=1107)
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 7/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
Affiliates
(http://arbitrati
gID=517)
ArbitralWomen (http://www.arbitralwomen.org/)
Members (http://arbitrati
gID=513)
HK45 (http://www.hkiac.org/en/hkiac/hk45)
Members (http://arbitrati
gID=572)
(http://arbitrati
gID=518)
(http://arbitrati
gID=1248)
(http://arbitrati
gID=1354)
(http://arbitrati
gID=511)
Jeantet (http://www.jeantet.fr/)
Attorneys
(http://arbitrati
gID=894)
Linklaters (http://www.linklaters.com/)
Attorneys
(http://arbitrati
gID=668)
Schoenherr (http://www.schoenherr.eu/)
Attorneys (http://arbitrati
gID=637)
YIAG (http://www.lcia.org/Membership/YIAG/Young_International_Arbitration_Group.aspx)
Members (http://arbitrati
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 8/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
gID=512)
YSIAC (http://www.siac.org.sg/ysiac/about-us)
Members (http://arbitrati
gID=515)
(http://arbitrati
gID=1018)
(https://www.law.ox.ac.uk/events/iii-oxford-symposium-comparative-international-commercial-arbitration)
(http://www.youtube.com/watch?v=soafLup0rOA)
(http://www.kluwerarbitration.com/)
RELATED SITES
Kluwer Arbitration (http://www.kluwerarbitration.com/)
Kluwer Mediation Blog (http://kluwermediationblog.com/)
Author Portal (http://authors.wolterskluwerblogs.com/)
RSS FEEDS
|RECENT PUBLICATIONS
Termination of Intra-EU BITs: Commission and Most Member States Testing the Principle of Good Faith under International Law
(http://arbitrationblog.kluwerarbitration.com/2020/05/13/termination-of-intra-eu-bits-commission-and-most-member-states-testing-the-principle-of-good-faith-
under-international-law/) May 13, 2020
Event Report: CISG and Arbitration, Old Friends Still Getting to Know Each Other (http://arbitrationblog.kluwerarbitration.com/2020/05/10/event-report-cisg-
and-arbitration-old-friends-still-getting-to-know-each-other/) May 10, 2020
RECENT COMMENTS
matthew Enilolobo on Is Online Dispute Resolution The Future of Alternative Dispute Resolution?
(http://arbitrationblog.kluwerarbitration.com/2018/03/29/online-dispute-resolution-future-alternative-dispute-resolution/#comment-227129)
Abdulrasheed Badmus on Turkey and Libya: Full Protection and Security or (Gunboat) Diplomacy?
(http://arbitrationblog.kluwerarbitration.com/2020/05/01/turkey-and-libya-full-protection-and-security-or-gunboat-diplomacy/#comment-227030)
Abdulrasheed Badmus on Africa Arbitration Academy Takes Over the Baton on Thought Leadership…Launches Virtual Hearing Protocol in Africa, for
Africa (http://arbitrationblog.kluwerarbitration.com/2020/05/07/africa-arbitration-academy-takes-over-the-baton-on-thought-leadershiplaunches-virtual-
hearing-protocol-in-africa-for-africa/#comment-227013)
Alexander Bedrosyan on The Hague Rules on Business and Human Rights Arbitration: Noteworthy or Not Worthy for Victims of Human Rights Violations?
(http://arbitrationblog.kluwerarbitration.com/2020/05/05/the-hague-rules-on-business-and-human-rights-arbitration-noteworthy-or-not-worthy-for-victims-of-
human-rights-violations/#comment-226891)
Michael Mcilwrath on Interviews of Our Editors: “What Does Kluwer Arbitration Blog Mean to You?”
(http://arbitrationblog.kluwerarbitration.com/2020/05/03/interviews-of-our-editors-what-does-kluwer-arbitration-blog-mean-to-you/#comment-226888)
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 9/10
5/13/2020 Arbitrability of IPR Disputes in India: 34(2)(B) or Not to Be - Kluwer Arbitration Blog
(http://www.arbitratorintelligence.org/)
ABOUT US CONTACT
About Kluwer Arbitration Blog (http://arbitrationblog.kluwerarbitration.com/about/) General Information
Kluwer Arbitration (http://www.kluwerarbitration.com/)
Kluwer Law International (http://www.kluwerlaw.com)
Other Online Products (http://www.kluwerlaw.com/catalogue/)
BACK TO TOP
arbitrationblog.kluwerarbitration.com/2019/08/15/arbitrability-of-ipr-disputes-in-india-342b-or-not-to-be/ 10/10