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International Litigation & Arbitration: December 2012 Archives

Three Strikes and You're Out: Using Baseball Arbitration to Resolve International Tax Disputes

As more and more companies conduct business across international borders, questions of tax revenue recognition and transfer pricing taxes become more and more salient. Tax authorities in different nations, fighting over which country gets to tax the multi-national corporation's income, enter into sometimes-heated disputes over where that income should be recognized, leading to costly and time-consuming litigation.

Nokia Sues RIM to Enforce International Arbitration Award

Finnish company Nokia Oyj recently commenced what could be a protracted battle to enforce an international arbitration award won last month against Blackberry-maker Research in Motion Ltd. ("RIM").  In late November, Nokia sued RIM in federal court in California to enforce the Swedish arbitrator's decision, which stated that Nokia is entitled to receive royalties on RIM's sale of WLAN-compliant mobile devices.  "Wireless local access network systems" or "WLAN" technology allows mobile devices to connect to WiFi networks. 

A Treaty for Enforcement of Judgments Abroad

The litigation of international disputes in U.S. Courts is often disfavored for the simple reason that the enforcement of judgments abroad is notoriously difficult. International arbitration is the preferred alternative to litigation because the United States, along with 145 other countries, is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, (commonly referred to as the New York Convention), a treaty that provides for the recognition and enforcement of international arbitral awards. Within the next year, the United States is expected to begin implementing a new treaty that will eliminate major obstacles to the enforcement of judgments abroad as to certain civil matters. The implementation of the treaty will give parties to international commercial agreements more flexibility in choosing their preferred method of dispute resolution.

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