More Parties Turn to Alternative Dispute Resolution

Alternative dispute resolution [ADR] is becoming more of a preferable method when it comes to resolving business disputes. John Lee, a solicitor of Simmons & Simmons, discussed the strengths and weaknesses of both ADR and arbitration at the Asia-Pacific IP Forum.

"ADR is increasingly becoming an appropriate dispute resolution method especially in terms of mediation," Lee said. To define ADR, Lee used a recognized definition by Brown & Marriott on ADR Practices: "[ADR] involves a range of procedures that serve us as alternative to arbitration for resolution of disputes."

Negotiation is the method that is applied in ADR, and it allows parties to reach an agreement on a dispute. Since it is based on consensus, the outcome of the dispute is usually positive. The strengths, Lee said, are that ADR is relatively more economical and quicker. It also preserves the relationship of the parties while enforcing communications. Flexibility is another advantage, too, allowing arrangements to be made on short notice.