ISSUE:
- Whether disputes on the issue of refund of royalty is an arbitrable matter?
RULE:
- The rights granted to an IPR owner are considered as “rights in rem” because they protect the owner’s property from everyone and not just from one specific person.
- Any issues involving rights in rem are to be settled by Courts.
- Since determining the validity of intellectual property is an issue that can only be handled by the Copyright Board and is not subject to arbitration, the issue of refunding royalties cannot be settled by arbitration.
![](https://traceyourcase.com/wp-content/uploads/2023/10/Optimizing-Profit-by-Intercompany-Royalty-Payments.jpg)