THE AUTHORS<\/strong>: High-tech and technology-related disputes often have unique features, which are frequently not well-suited for resolution in open courts, and not even under common Alternative Dispute Resolution procedures (\u201cADR\u201d).<\/p>\n\n\n\n Such disputes might concern, for example, issues related to tech ownership or patent rights, start-up financing and shareholder disputes, quality, and project management. These issues often require specific expertise, strict confidentiality, and quick resolution \u2013 all are attributes that might not be applicable in the conservative rules of ADR. For example, the duration of ordinary legal proceedings can be significantly prolonged, potentially sabotaging the company\u2019s or project\u2019s development, and even leading to dissolution, causing substantial damage to the parties involved.<\/p>\n\n\n\n In view of the unique features associated with technology-related disputes, Israel initiated model clauses for managing arbitration proceedings, specifically tailored to high-tech companies and technological fields, and proposed their integration into the recommended UNCITRAL model resolution clauses. Indeed, two years after the Israeli initiative, UNCITRAL announced the adoption and integration of the unique model clauses as part of its UNCITRAL Arbitration Rules 2021<\/a>. Notably, this marks the first time that an Israeli initiative has been adopted by UNCITRAL and implemented as an applicative instrument.<\/p>\n\n\n\n The new \u2018SPEDR<\/a>\u2019 model clauses, propose arbitration rules that can be adopted as part of the arbitration terms – either in advance within the alliance agreement or after the dispute arises – and include customized \u2018Tailor Made\u2019 features.<\/p>\n\n\n\n Below are some of the key innovations included in the SPEDR model, we recommend being familiar with:<\/p>\n\n\n\n Although the rules of procedure proposed by the SPEDR Model Clauses can assist technology companies resolve disputes more effectively, parties should bear in mind that expedited arbitration might not always be advisable. This is especially when the dispute concerns complex legal or professional issues, that require the extensive presentation of evidence, multiple witness statements, and detailed expert analysis. Therefore, the \u2018SPEDR\u2019 Model Clauses<\/a> permit a Tribunal that deems expedited arbitration unsuitable for a certain dispute, to determine that the \u2018SPEDR\u2019 modifications shall no longer apply, consequently transitioning the procedure to a \u201cregular\u201d arbitration procedure.<\/p>\n\n\n\n Notably, and as part of the recent legislation tendencies under Israeli law (including the recently adopted UNCITRAL Model Law on International Commercial Arbitration 2006<\/a>), the adoption of the \u2018SPEDR\u2019 Model Clauses by the UNCITRAL<\/a> coincides with another recent development under the Israeli law, relevant to the management of international disputes – the enactment of amendment article 102 of the Courts Law, 1984-5744. The amendment incorporates the United Nations Convention on International Settlement Agreements Resulting from Mediation (\u201cSingapore Convention on Mediation (2019)\u201d)<\/a> and stipulates that a mediation settlement will be enforceable and honoured by Israeli courts if it explicitly refers to the Singapore Convention. This provides certainty in international mediation agreements and encourages companies to seek mediation and resolve disputes that arise. This is also, an attribute, that may be of particular relevance to the High-Tech industry.<\/p>\n\n\n\n ABOUT THE AUTHOR<\/strong><\/p>\n\n\n\n Gidon Even-Or <\/strong>is the Head of AYR\u2019s<\/strong> International Arbitration practice and a partner in Litigation and Dispute Resolution Department. Adv. Even-Or is the chairman of the High-Tech Arbitration committee in ICC Israel<\/a>.<\/p>\n\n\n\n Adv. Even-Or represents local and international corporations in complex commercial, corporate and shareholder related disputes and he has a unique expertise in cross border conflicts and international arbitration proceedings.<\/p>\n\n\n\n Recognized by \u2018The Legal 500\u2019<\/a> international ranking guide that recommended his achievements in the field of Dispute Resolution \u2013 Local Litigation and Arbitration and was awarded a Next Generation Partner recognition. <\/p>\n\n\n\n
Gidon Even-Or, <\/strong>Head of International Arbitration at\u00a0AYR\u00a0& Co.<\/strong>
Ksenya Zemsckov<\/a>, <\/strong>Associate at\u00a0AYR\u00a0& Co.<\/strong><\/p>\n\n\n\n
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