When there’s an intellectual property dispute between two businesses, one option is to use litigation. This involves going through the court system and typically begins when the party that believes their rights were infringed upon files a lawsuit against the other party.
However, there is another option: alternative dispute resolution (ADR). According to the U.S. Department of Labor, there are five general types of ADR that companies may consider:
- Mediation
- Arbitration
- Mini-trials
- Neutral fact-finding
- Negotiated rulemaking
The goal of ADR is to resolve disputes without the need for a trial or court involvement. Instead, both parties work together to negotiate and compromise, seeking a voluntary solution. But what are the benefits of choosing ADR?
It’s often faster and cheaper
One major advantage of ADR is that it often saves time and money. If both parties can quickly reach a solution that satisfies them, they can avoid the lengthy wait times associated with court dates and hearings. The court system is frequently backlogged, which can significantly delay the process. ADR, on the other hand, can be completed much faster, allowing business owners to return their focus to running their respective companies.
Business owners retain more control
Another benefit of ADR is that it gives the parties more control over the outcome. In litigation, both sides relinquish control and leave the decision in the hands of a judge. ADR, however, allows the parties to make their own decisions and find a mutually acceptable resolution, as long as they can reach an agreement.
Whether choosing litigation or alternative dispute resolution, it’s essential for those involved to understand the legal steps necessary to protect their interests.