WIPO Arbitration Costs

The World Intellectual Property Organization (“WIPO”) Arbitration and Mediation Center (“WIPO Center”) is an international arbitration institution based in Geneva, Switzerland, and specialised in the settlement of IP and technology disputes. For parties contemplating WIPO arbitration, it is important to understand the anticipated costs of the arbitration, the payment structure, and the likelihood of cost recovery. Familiarity with these factors allows parties to effectively plan their budgets and reduce the risk of unanticipated financial exposure. As in most arbitrations, legal fees generally represent by far the largest share of total costs.

In a WIPO arbitration, parties must generally anticipate incurring the following cost heads: (1) WIPO fees; (2) legal fees; (3) expert fees (if needed); (4) hearing costs; and (5) other costs. A table of WIPO arbitration costs can be downloaded here.

Importantly, these amounts are often recoverable from the losing party.

This note will examine each of the costs associated with a WIPO arbitration, particularly one administered under the WIPO Arbitration Rules as effective from 1 July 2021 (the “WIPO Rules”) and the WIPO Schedule of Fees and Costs.

Heads of Cost in WIPO Arbitration

1. WIPO Fees

The fees charged by the WIPO Center include three components: (1) the registration fee; (2) the administration fee; and (3) the arbitrators’ fees.

Each of these fees charged by the WIPO Center is broken down in further detail below:

A. Registration Fee

The first cost to be paid in a WIPO arbitration is a non-refundable registration fee of USD 2,000. It must be paid by the claimant at the time the Request for Arbitration is submitted to the WIPO Center (Article 69(a)).

Should the Respondent wish to raise a counterclaim, any such counterclaim will also be subject to the payment of a non-refundable USD 2,000 registration fee (Article 69(b)).

The WIPO Center will take no action on a Request for Arbitration or counterclaim until the registration fee is paid (Article 69(c)). Further, if a party fails, within 15 days of receiving a written reminder from the Center, to pay the registration fee, the Request for Arbitration or counterclaim submitted by that party will be deemed withdrawn (Article 69(d)).

B. Administration Fee

An administration fee must also be paid to compensate the WIPO Center for its work in administering the arbitration. The administration fee is set according to the amount in dispute, as shown in the table below:

The amount of the administration fee will thus be between USD 4,000 and USD 60,000 and can be calculated using the Fee Calculator provided on the WIPO Center’s website.

The administration fee must be paid by the claimant to the WIPO Center within 30 days after the claimant receives notification from the Center of the amount to be paid (Article 70(a)).

Likewise, if the respondent has raised a counterclaim, it too must pay an administration fee within 30 days of notification from the WIPO Center (Article 70(b)).

Where a party increases the amount of its claim or counterclaim, the administration fee may also be increased according to the above table, with the increased amount payable by the party that brought the claim or counterclaim (Article 70(d)).

If a party fails to pay the administration fee within 15 days of a written reminder from the WIPO Center, it will be deemed to have withdrawn its claim or counterclaim or the increase in its claim or counterclaim (Article 70(e)).

C. Arbitrators’ Fees

The parties must also compensate the arbitral tribunal for its work. The rate of the arbitrator(s) compensation will be agreed before the establishment of the arbitral tribunal by the WIPO Center in consultation with the parties and the arbitrator(s) and will likely be between USD 300 and USD 600 per hour.

The WIPO Center will consider factors such as the amounts in dispute, the number of parties, the complexity of the dispute, the status, and any special qualifications required of the arbitrator.

Parties should keep in mind that arbitrations decided by a tribunal of three arbitrators tend to be significantly more expensive than those decided by a sole arbitrator, as three arbitrators must be paid for their work rather than one.

2. Legal Fees

In addition to the above institutional costs, parties must also budget for the legal fees incurred for the work of counsel and their teams, which typically represent the most significant portion of total costs, as a contested arbitration case can take over 1,000 hours of work by a party’s legal team.

Aceris Law, valuing transparency and predictability in costs, has made available online its own Arbitration Legal Fee Calculator, based on the amount in dispute. Aceris Law offers reasonable, capped legal fees for legal representation in international arbitrations, ensuring that clients benefit from high-quality advocacy with clear and upfront cost expectations. Alternatively, clients may opt for legal fees on a competitive hourly basis.

3. Expert Fees

Expert evidence is frequently used in international arbitration. Experts are appointed by parties to give their independent opinion on issues beyond the arbitral tribunal’s expertise, such as quantum, delays, and foreign law, often in the form of expert reports and expert testimony at the final hearing, thereby assisting the arbitral tribunal in its decision-making process.

Therefore, if such evidence is necessary, parties choose the expert they wish to appoint and pay for his/her fees and expenses. However, the fees of a party-appointed expert cannot be linked to the outcome of the case in order to preserve the impartiality and independence of the expert.

4. Hearing Costs

Hearings are an integral part of most arbitrations, and parties must also plan for hearing-related expenses, although this represents only a small portion of the overall arbitration costs. These costs typically amount to between USD 2,000 and USD 15,000 per party, though they can vary significantly.

The factors that play a role in determining the hearing costs include:

• • Whether the hearing is hosted virtually or in person.
  • If it is in person, what venue will be reserved and during what period of the year.
  • The length of the hearing.
  • The number of people attending (tribunal, party representatives, legal teams, experts, witnesses, etc.).
  • The cost of a court reporter.
  • The cost of lunch and coffee breaks for the participants.
  • Whether translation services will be required.
  • The travel and hotel costs for the party, its legal team, and the arbitral tribunal.
  • Other costs, such as printing fees or fees for electronic data-hosting services.

Further, if an arbitration case is bifurcated, the parties may have to fund two hearings – one on the preliminary issues and, if the arbitration proceeds, one final hearing on the merits of the dispute.

Typically, hearing costs are split equally between the parties, but they can then be recovered in the award.

5. Other Minor Costs to Consider

Parties must also consider that other discrete costs may arise throughout the arbitration process.

For example, arbitration often involves a document production phase, in which a party may request that the opposing party produce documents relevant to the case. In some cases, this may require a party to wade through a great number of documents to produce the specific category requested, which can take time and lead to the generation of additional expenses.

As another example, in some instances, tribunals may request that submissions be made both electronically and in hard-copy format or via flash drive. In these cases, parties must also pay for printing and/or the necessary equipment, as well as courier services, in order to fulfil the tribunal’s request.

Additionally, if documentary evidence referred to in the arbitration is in a language other than that of the arbitration or if witnesses speak different languages, parties should plan to spend additional funds on translations.

Thus, parties must always be ready for minor, additional unforeseen costs that may arise throughout the arbitration process.

Timing of Payments in WIPO Arbitration

Upon receipt of notification from the WIPO Center that the arbitral tribunal has been established, the parties must each deposit an equal amount as an advance for the costs of the arbitration (the arbitrators’ fees, arbitrators’ expenses, costs of expert advice ordered by the tribunal, etc.), the amount of which will be determined by the WIPO Center (Article 72(a)).

The parties may be asked to make supplementary deposits as necessary throughout the arbitration (Article 72(b)).

Where a counterclaim is much larger in amount than the claims or involves the examination of significantly different matters, or is otherwise appropriate, the WIPO Center may require two separate deposits – one on account of the claim to be paid by the claimant and the other on account of the counterclaim to be paid by the respondent (Article 72(d)).

Suppose the deposits are not paid in full within 30 days of the receipt of a notification from the WIPO Center. In that case, the WIPO Center will inform the parties so that the other party may pay on behalf of the non-paying party (Article 72(c)). Further, if a party fails to pay the deposit within 15 days of a written reminder from the WIPO Center, its claim or counterclaim will be deemed withdrawn (Article 72(e)).

Any amount of the deposit that remains unspent after the award has been made will be returned to the parties (Article 72(f)).

Expedited Arbitration

If the parties have opted to pursue WIPO arbitration under the WIPO Expedited Arbitration Rules (“WIPO Expedited Rules”), which means that the arbitration will take place at an accelerated pace, they will be subject to different institutional costs than the above (while still incurring legal fees, expert fees (if necessary), hearing costs, etc.).

In an expedited arbitration, no registration fee is required upon submission of the Request for Arbitration by the claimant.

Like in normal WIPO arbitration, a party submitting a Request for Arbitration or a counterclaim must pay an administration fee (Article 62(a)-(b) WIPO Expedited Rules).

The administration fee is calculated according to the amount in dispute, as set out in the following table:

For the arbitrator’s fees, in expedited arbitration, when the amount in dispute is USD 10,000,000 and below, the parties pay a fixed fee as follows:

However, when the amount in dispute is above USD 10,000,000, the arbitrator’s fees will be determined as agreed by the WIPO Center in consultation with the parties and the arbitrator.

While the timings of the costs in expedited arbitration works effectively the same as that of normal WIPO arbitration and the claimant and the respondent in expedited arbitrations must also make deposits as above, in expedited arbitration, the deposits must be made within 20 days of a notification from the WIPO Center (as opposed to the 30 days given under the normal WIPO Rules)(Article 64(c) WIPO Expedited Rules).

Allocation of Costs in WIPO Arbitration

A party may be able to recover the costs of the arbitration from the opposing party.

Article 73 of the WIPO Rules states that in its award, subject to any agreement of the parties, the tribunal must apportion the costs of the arbitration – including the arbitrators’ fees, the travel, communication and other expense of the arbitrators, the costs of expert advice and such other assistance required by the tribunal, and other expenses such as the cost of meeting and hearing facilities – and the registration and administration fees of the WIPO Center between the parties in light of the circumstances and the outcome of the arbitration.

Article 74 also allows the tribunal to order a party to pay the other party’s expenses, including legal and expert costs.

Conclusion

Ultimately, careful planning, clear communication with counsel, and familiarity with the WIPO Rules and Schedule of Fees allow parties to manage their resources effectively and avoid unexpected expenses. By engaging experienced counsel and budgeting strategically, parties can ensure that WIPO arbitration remains a cost-efficient and reliable avenue for resolving complex international IP disputes.

Parties should also bear in mind that obtaining a WIPO award may not be the final step when facing a non-compliant opposing party. It is prudent to budget for possible enforcement proceedings, as turning an arbitral award into an actual recovery can sometimes involve further legal, court, and procedural expenses.

Parties considering commencing or defending a WIPO arbitration may contact Aceris Law to receive detailed information and a cost estimate based on their specific circumstances.