Originally from World Arbitration and Mediation Review (WAMR)

As technology and innovation develop, businesses become more global, and startups are increasingly entering into cross-borders agreements not only with customers and employees, but also with contractors, business partners, and other stakeholders.  This article focuses on business-to-business (“B2B”) disputes. 

Because litigation is based on standardized rules, laws, and public proceedings, which are not confidential and do not change as fast as technology does, litigation tends to impede and seriously slow down business and product advancement.  Thus, litigation is often lethal to startups when unimpeded competitors take advantage.  Speed is the name of the game, especially for tech startups.

As a result, including arbitration clauses in startup B2B agreements is an important initiative for these companies to protect themselves.  However, there are very few arbitral institutions specialized in technology disputes, especially in Latin American countries.  Considering this scenario, Section II of this article will provide an overview of technology dispute arbitrations and technology-related business disputes in Latin America.  Section III will analyze the pros and cons of tech startups using arbitration to solve conflicts. Finally, Section IV will outline the most desirable characteristics that Latin American arbitral institutions specialized in new technology disputes should have.