top of page

Survey Shows Top Challenge with Tech Litigation is Cost

September 27, 2017, Palo Alto, CA – Silicon Valley Arbitration & Mediation Center (SVAMC), a leading not-for-profit that advances the use of arbitration and mediation in technology-related business disputes around the world, today released the results of a study that underscores the benefits of arbitration over litigation for companies throughout the technology sector.

SVAMC, together with the Global Technology Dispute Resolution Council, recently surveyed corporate and law firm counsel, neutrals, and others with wide expertise in the technology business, with the goal of identifying the most significant obstacles and benefits they encounter in litigation and arbitration.

“Industry experts have confirmed that cost, time to resolution, and decision-makers with specialized expertise are critical concerns in technology company disputes,” said Gary L. Benton, Chairman of SVAMC.

Respondents identified the top three problems with litigation as:

  • cost (64%),

  • time to resolution (57%), and

  • inexperienced or unqualified judges (46%).

More than 20% said that their main concerns included overly intrusive discovery practice, random jury verdicts, or an inability to implement enforcement internationally.

Survey respondents identified the top benefits of arbitration to be:

  • specialized expertise (76%),

  • time to resolution (54%), and

  • increased privacy (40%).

These were closely followed by streamlined processes and flexible procedures.

“Technology companies in Silicon Valley and beyond struggle with expensive, high-stakes court battles that leave them with less-than-satisfying results,” Benton said. “Arbitration offers an attractive alternative, particularly when the confidentiality of trade secrets or other business information is critical to one or both parties. The ability to enforce international awards is particularly attractive to the growing number of technology companies that operate globally. ”

The survey showed that even arbitration can stand improvement, with more than 62% of survey respondents seeking even shorter time to arbitral resolution. Respondents also called for lower arbitration costs, and identified a need for more qualified or specialized arbitrators.

Major technology companies often spend $3-5 million on legal fees for patent disputes, which typically take three to five years to resolve through the courts. Commented CEO Benton: “We at SVAMC encourage technology companies to consider arbitration; take advantage of the opportunity to craft a flexible process fit to the dispute; choose experienced counsel; and to select arbitrators with specialized expertise and strong backgrounds in technology industry law and practice.”

For details on the survey, Click here: SVAMC 2017 Survey Report.


About Silicon Valley Arbitration & Mediation Center

SVAMC is a non-profit serving the global technology sector through educational programming and related activities. SVAMC works with leading technology companies, law firms, ADR institutions, and universities in Silicon Valley and around the globe to promote effective and efficient resolution of technology-related business disputes. Visit for additional information.

bottom of page