Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Turkey: Turkey introduces mandatory mediation for money-related IP disputes

Pursuant to the recent Code of Commencement of Execution Proceedings in Monetary Receivables Arising from Subscription Agreements (the Code) published in Official Gazette dated December 19 2018, mediation is now mandatory for commercial receivables claims. In line with Article 20 of the Code, Article 5/A is incorporated into the Turkish Commercial Code (TCC). This requires mediation for commercial receivables claims, in which compensation or payment of a certain amount is requested. Accordingly, mediation is a pre-condition of bringing a lawsuit before the courts. This recent development was implemented on January 1 2019.

Though the aforementioned Article 5/A does not clearly include IP-related disputes, according to Article 4/d of the TCC, civil suits regulated under IP-related codes are deemed as commercial where a request for compensation or payment of a certain amount is sought, for instance disputes arising from the price of licence agreements or transfer of IP rights and compensation due to IP right infringements etc.

Before mediation was stipulated as a pre-condition for commercial receivables claims, the Law on Labour Courts made mediation mandatory from January 1 2018 for labour disputes arising from an employment contract in which compensation or re-employment is sought. According to statistics shared by the Ministry of Justice, 65% of disputes were closed by mandatory mediation between January 2 2018 and May 27 2018. As a result of mandatory mediation introduced for commercial receivables actions from 2019, a notable reduction in commercial courts' workload is expected/hoped for as was achieved for labour disputes. It is also worth mentioning that mediation was first incorporated into the Turkish legal system as a discretionary alternative dispute resolution method in 2013 by Law no. 6325 on Mediation in Civil Disputes.

Though mediation is a relatively new concept for dispute resolution, it is possible to say that it has rapidly progressed in Turkey. Mediation offers parties a chance to reach an amicable solution by spending reasonable effort, time and cost and as a consequence was made mandatory first for labour and then commercial receivables actions, including some IP related-matters. However, still, in a certain number of cases it is considered a burdensome procedure that has to be completed before reaching the main stage – legal action.

In time, mediation might become mandatory for other types of IP disputes. Though it is expected that mandatory mediation will decrease the workload of IP courts, the impact of this new development cannot clearly be predicted, since it is conceptually new for Turkey where a culture of litigation dominates. We will wait and see what this brand new update brings to Turkish IP law.

alkan.jpg

Güldeniz

Doğan Alkan


Gün + PartnersKore Şehitleri Cad. 17Zincirlikuyu 34394İstanbul, TurkeyTel: + (90) (212) 354 00 00Fax: + (90) (212) 274 20 95gun@gun.av.trgun.av.tr

more from across site and ros bottom lb

More from across our site

Ronelle Geldenhuys of Australia’s Foundry IP considers the implications complex computer technologies such as AI have on decision-making
Bertha Ho, who helped the Hush Puppies owner with the sale of its IP rights in China and Hong Kong SAR, explains how to navigate complex transactions in the region
Online storytelling platform Humans of Bombay isn’t wrong for trying to protect its copyright, but it could have handled its dispute better
We have started accepting submissions from in-house counsel and teams for the 19th annual Managing IP Awards programme
Patient groups and generics makers may have to bear the brunt of India’s latest attempt at patent reform
Each week Managing IP speaks to a different IP lawyer about their life and career
Paolo Tavolato, who will share the role, said private equity support would help the IP consultancy achieve its ambitious M&A plans
Cyril Amarchand Mangaldas has hired former Anand & Anand partner Swati Sharma and hopes to compete with specialist IP firms
Rapporteur-Judge András Kupecz ruled that education and training weren’t legitimate reasons for a member of the public to access documents
Searches for comparison prior art will be a little easier, but practitioners will have to put more thought into claim construction and design patent titles