Turkey: Turkey introduces mandatory mediation for money-related IP disputes
Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

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

An intimate understanding of a client’s sector is essential to winning new business, a survey of over 28,000 corporate counsel reveals
Counsel say a Federal Circuit ruling on the obviousness test for design patents may increase the time IP owners spend defending their rights
While the INTA Annual Meeting is over for another year, here are a few things Managing IP learned after attending IP’s biggest party
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Four sources reveal which tools they have been using – or building – to help them with a range of tasks from invention generation to claim sufficiency
Managing IP reveals Wednesday's highlights, including a discussion on how AI is helping lawyers improve their "gut instinct" trademark decisions
Managing IP reveals Tuesday’s highlights, including an illuminating discussion celebrating women in the workplace and the challenges that remain
Dana Northcott, INTA’s 2024 president and associate general counsel for Amazon's IP team, talks about her work for the association
Managing IP reveals highlights from the INTA Annual Meeting, including law firms’ diversity and ESG concerns and a new beginning for a Chinese firm
Firms with a broad geographic reach are more likely to win work, especially from global companies with high turnovers, according to survey data of nearly 29,000 corporate counsel
Gift this article