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Future of  Jutsice  Webinar  


Panelists Vincent  Polley  –  Moderator   Founder  of  KnowConnect  PLLC    

Ethan Katsh  –  Director,   NaAonal  Center  for   Technology  and  Dispute   ResoluAon  

Vikki Rogers  –  Director   Inst.  of  InternaAonal   Commercial  Law  

ChiJu Nagarajan  –   Head  of  eBay  &  Paypal   Community  Courts  

Timothy Sze  –  Lecturer,   Hong  Kong  University  of   Science  and  Technology  


Ethan Katsh   Director   NaAonal  Center  for  Technology  and  Dispute  ResoluAon  


The Future  of  JusAce   New  processes  to  achieve  jusAce  or  gain  access   to  jusAce   –  Why  we  need  new  processes   –  How  technology  can  help   •  Emergence  of  Online  Dispute  ResoluAon  (ODR)   •  What  these  processes  might  look  like  


Why we  need  new  processes   Increase  in  disputes   Conflict  is  a  growth  industry  (first  page  of  Ge#ng  to   Yes)   –  Impact  of  technology:  TransacAons  and  RelaAonships   –  What  do  we  know  about  disputes?   •  Broad  range  –  numerous  and/or  novel   –  simple  to  complex   –  low  value  v.  high  value   –  two  parAes  –  mulA-­‐party   –  private  and  public   –  large  number  of  categories  (commercial,  personal,  territorial,   cultural,  etc.)  


Second Life  


Wikipedia •  Over  a  million  entries   •  More  than  500,000  contributors   •  Users  resolve  problems   –  Dispute  resoluAon  process   –  MediaAon  Cabal  


Technology is  a  great  dispute   generator   Byproduct  of  online  transacAons   Byproduct  of  online  relaAonships   Byproduct  of  increasing  value  of  informaAon   Byproduct  of  broader  distribuAon  of  informaAon   Byproduct  of  virtual  goods  and  virtual  property   Byproduct  of  increasing  creaAve  acAvity   Byproduct  of  increasing  complexity   Byproduct  of  acceleraAng  pace  of  change   Byproduct  of  Web  2.0     Can  it  be  a  dispute  resolver?  


How can  technology  help  resolve   disputes?   •  All  dispute  resoluAon  (except  perhaps  war)   involves  communicaAng  and  managing  the   flow  of  informaAon   •  All  soaware  involves  managing  the  flow  of   informaAon   •  Two  funcAons  of  computers  –   communicate  informaAon  and  process   informaAon  


What does   online  dispute   resoluAon  mean?     •  Resolving  conflicts  that  occur  online   or   •  Resolving  conflicts  by  using  online   resources  –  technology  assisted  dispute   resoluAon    


What do  ODR  systems  look  like?   •  Blind  bidding  -­‐  CyberseJle   •  Technology-­‐assisted  negoAaAon  -­‐  SquareTrade/eBay   disputes   •  Online  brainstorming  -­‐  NaAonal  MediaAon  Board/UMass   project   •  Non-­‐binding  arbitraAon  -­‐  ICANN  domain    name  disputes   •  MediaAon  Cabal  –  Wikipedia   •  Virtual  juries  –  eBay   •  Online  ombuds  office  –  U.S.  Army   •  Peace  building  –  maps  and  single  text  draaing  –  Sri  Lanka   •  Courts  -­‐  ?  


Further informaAon     hJp://www.odr.info     hJp://www.odr2012.com    


Vikki Rogers   Director   InsAtute  of  InternaAonal  Commercial  Law  


THE FUTURE OF JUSTICE How Technology is Shaping The Dispute Resolution Ecosystem A Webinar brought to you by IBO The Internet Bar Organization

Taming the Wild World Wide Web: Who Will Govern E-Justice? Vikki Rogers Director, Institute of International Commercial Law Pace Law School


Setting Parameters    *  Technology * Technology Assisted Dispute Resolution vs. Online Dispute Resolution Platform * Justice * Disputes  


Technology Internet

Internet Intermediaries

Devices Used to Access the Internet

Mobile Phones

Computers


Internet Intermediaries Internet access and service providers

E-commerce intermediaries

Data processing and web hosting providers, including domain name registrars

Internet payment systems

Internet search engines and portals

Participative networking platforms

Source: OECD Report, The Economic and Social Role of Internet Intermediaries, April 2010


Mobile Phones • Mobile phones numbered more than 4.6 billion by the end of 2009* • Mobile broadband subscriptions overtook fixed broadband subscribers in 2008* • Worldwide profits from mobile payments totaled over $68 billion in 2009, and are expected to reach over $630 billion by 2014** • 81.3 million mobile payment users worldwide in 2009, and projected to be 490 million users by 2014** • 5 billion consumers worldwide use mobile phones while only 1.5 have access to financial services** • Mobile payments linked to credit cards offer the strongest protection**

* Source: OECD Report, The Economic and Social Role of Internet Intermediaries, April 2010 * *Source: Consumers Union Report, Mobile Pay or Mobile Mess: Closing the Gap Between Mobile Payment Systems and Consumer Protections, June 2011


Technology Assisted Dispute Resolution

Online Dispute Resolution Platforms

Janus

Negotiation * Mediation * Conciliation * Arbitration * Litigation


Part 1: Just Process *    Impartiality of ODR Personnel & Decision-Makers* * Accessibility & Convenience* * Efficiency*/Speed of Process * Reasonable Cost* * Transparency* (in process and/or decisions rendered by ODR provider) * Principle of Representation* * Neutral Platforms   * Source: Alternative Dispute Resolution Guidelines Agreement reached between Consumers International and the Global Business Dialogue on Electronic Commerce November, 2003


Part 2: Enforcement Can “justice� be attained if a judgment or agreement cannot be enforced?


UNCITRAL Working Group III on Online Dispute Resolution •  Draft Procedure Rules for Online Dispute Resolution for Cross-Border Electronic Commerce Transactions •  Intended for high-volume, low-value cross-border business-to-business and business-to-consumer disputes •  Provides two phases: (1) automated negotiation phase + (2) facilitated settlement & arbitration phase


Structure of  the  Rules   (1)  Scope  of  ApplicaAon;     (2)  DefiniAons;     (3)  CommunicaAons   (4)  Commencement  [of  ODR  proceedings];     (5)  NegoAaAon;     (6)  Appointment  of  neutral;     (7)  Facilitated  SeJlement;     (8)  Conduct  of  ODR  proceedings;     (9)  [Issuing  of][CommunicaAon  of][decision][award];     (10) Language  of  proceedings;     (11) RepresentaAon;     (12) Exclusion  of  liability;  and     (13)   Costs.    


Lingering Questions •  •  •  •  •  •  •  •  • 

What will be the point of intersection between legal rules and system design? How will the creation of the global ODR system be driven, via the creation of the UNCITRAL instruments or the resolution of the system design issues? Will the UNCITRAL legal instruments be sufficient to provide the necessary backbone for a global system? Can one set of instruments satisfy the procedural needs for the resolution of B2B and B2C disputes? Does an effective resolution system require pre-dispute agreements, arbitrators and awards, or would agreements post-dispute, neutrals and decisions be sufficient? What is going to attract merchants to the system (how can contractual relationships be created to bind merchants?), and who would be the relevant parties to the agreement? ‘Modern’ internet intermediaries revived the work on this subject and logically should be part of the functioning of the system, but where and at what stage? What should be the scope of the substantive principles to base decisions upon – should we have detailed principles for $70 disputes or are ‘symbolic’ principles sufficient? How will voluntary compliance with decisions be encouraged? In the alternative, how will cost-effective and practical enforcement be achieved?


Pushing the Envelope •  Ensuring a “just process” in platforms in which users do not realistically have redress back to courts (closed redress systems). •  Providing access to a “just process” via ODR platforms when national courts might not otherwise provide access.


Thank you


Chi2u Nagarajan   Director   Ebay  &  Paypal  Community  Courts  


ODR The  Indian  PerspecAve     ChiJu  Nagarajan         July  27  2011    


Dispute ResoluAon   •  Needs  to  cater  to  this  vast  divide   •  Different  methodology  tools  and  design   required   •  EmoAons   •  Culture   •  Offline  and  Online  blurring   •  Service  via  Internet  and  Mobile    


Urban and  Cross  border  Disputes   •  Similar  to  any  developing  naAon   •  Internet  penetraAon  present   •  Smart  phone  and  3G  technology  available   •  Similar  ODR  mechanisms  can  be  used   •  India  can  be  both  a  consumer  of  ODR  and  a  technology   provider   •  Great  scope  


Rural •  Internet  penetraAon  available  but  limited   •  Kiosks  available   •  Mobile  phones  at  every  nook  and  corner   •  Family  and  Social  Disputes  


ODR Enablers   •  AlternaAve  Dispute  ResoluAon  strongly   advocated   •  IT  Act  2000  and  amendment  2008   •  The  Electronic  Service  Delivery  Bill,  2011,   which  aims  at  delivering  all  public  services  to   ciAzens  in  the  electronic  mode   •  Consumer  Online  Resource  and   empowerment  center   hJp://www.ccccore.co.in/  


First ODR  System  


Community Review  Forum  


PayPal Counterfeit  Court  


Gebruikersjury Â


MODRIA


Timothy Sze   Lecturer   Hong  Kong  University  of  Science  and  Technology  


The Future  of  JusAce:     How  Technology  is  Shaping  the  Dispute   ResoluAon  Ecosystem

Access to  Commercial  Jus?ce  in  the   Developing  World  –  China  Experience         Timothy  Sze   July  2011


Chinese Internet  :  Ready  for  third-­‐wave  growth   Technology  companies   Baidu,  Tencent,  Shanda   rose  from  the  ashes  of   dot-­‐com  bust.    

Web portals  in  late   1990’s  created  the   first  boom.  

We anAcipate   an   explosive   third   wave   propelled   by   Mobile   Internet,   E-­‐commerce,   Online   Gaming   and   Cloud  Compu?ng.  

First Wave  

Second Wave  

Third Wave  

Valua?on of  Listed  Companies  

Mature Market  

Major Opportuni?es  

Sina

$2.2B!

Baidu

$25B!

Sohu

$1.9B!

Shanda

$3B!

E-­‐COMMERCE

NetEase

$4.5B!

Giant

$1.8B!

ONLINE GAMING  (casual,  mobile,  social)  

Tencent

$38B!

Perfect World  

$1.7B!

CLOUD COMPUTING  

     MOBILE  INTERNET  


e-­‐Commerce Emergence  in  China    

There is  a  50x  opportunity  in  E-­‐commerce  as  China  grows  to  match  the  U.S.  ! e-­‐Commerce  Development   •  Payment  has  been  solved  via  escrow,  COD   •  Logis?cs  problems  also  solved! •  Taobao  =  50%  of  packages  shipped   •  B2C  rapidly  growing,  gaining  trust   •  In  each  domain,  top  2  B2C  will  be  valuable  

•  Yet, gap  with  US  is  s?ll  50x  (!)  in  e-­‐commerce!

e-­‐Commerce Accelerates  Adver?sing   •  E-­‐commerce  makes  adver?sing   measurable  &  targetable   •  E-­‐commerce  makes  adver?sing  more   valuable  

Data Source: iResearch, IAB & emarketer


China e-­‐Commerce  Analysis  &  OpportuniAes   User  

Pre-­‐ 1 purchase     search  

2 influence  

Product search,  yelp  

Microblog &   communiAes  

Decision

6 Platorm  

3 Shopping   B2B、B2C  

4 Payment   Bank,  carrier,   escrow  

LogisAcs

5 &  Service   Customer   Service  

Value proposiAon  needs  to  be  clear   Amazon:  1-­‐6              360  buy:  3,  4,  5   Dianping:  1,  2        Taobao:  3,  4,  6  

SaaS, cloud   1  

Big opportuni?es  in  3,  4,  5;  however,  it’s  “moving  boxes”  &  compe?ng  on  cost,  and  not  technology  play  

2

1, 2,  6  are  where  the  biggest  opportuni?es  are  for  technology  companies  

3

Another valuable  opportunity  is  to  inves?gate  higher-­‐margin  social/entertainment  shopping  


Cloud CompuAng  OpportuniAes   1  

Cloud Compu?ng  may  create  a  “new  somware  /  IT”  industry  in  China! •  China  has  no  somware  industry  today  due  to  piracy.   •  Cloud  Compu?ng  will  create  opportuni?es  for  a  cloud-­‐genera?on  somware  industry:     Soaware  installaAon  and  upgrading  shiaing  from  the  user  to  the  cloud     Business  model  shiaing  from  expensive  upgrades  to  ads-­‐sponsored     IT  management  shiaing  from  end-­‐user  to  cloud-­‐services     Gaming  is  now  a  $20  billion  industry  thanks  to  Cloud  CompuAng  (from  $10  million  in  1998)  

2

China’s top  engineering  talent  can  tackle  global  opportuni?es  ! •  Chinese  engineers  are  plen?ful,  talented  and  lower-­‐cost.     •  Find  global  opportuni?es  (e.g.  iPhone  &  Android  applica?ons)  that  can  leverage  this.  

3

Future opportunity:  cloud  infrastructure   •  Chinese  websites  are  not  sophis?cated  to  appreciate  elas?c  services  yet   •  But  as  they  mature,  opportuni?es  will  be  emerge,  since  no  Amazon/Google!


ODR in  China •  •  •  • 

China has  the  highest  Internet  and  mobile  phone  usage  rates  in  the  world.     SubstanAal  changes  to  the  understanding  of  dispute  resoluAons.     The  applicaAon  of  online  faciliAes  to  facilitate  the  dispute  resoluAon  process  has   received  unprecedented  acceptance.   Key  organizaAons:  ADNDRC/CIETAC


Stay in  touch    odrbeijing@gmail.com


Thanks To  Our  Sponsors  


Thank You  for  A2ending     The  Future  of  Jus?ce     A  short  presentaAon  of  an  ODR  platorm  by  one  of  our  sponsors,   SmartSeJle,  will  begin  shortly.     Please  stay  on  this  screen  if  you  wish  to  conAnue  watching.  


Property Assessment Disputes By Ernest Thiessen, PEng, PhD, President & Founder For IBO Future of Justice Webinar, 2011 July 26 Sponsored in part by the National Research Council of Canada


Ernest Thiessen, PEng, PhD •  •  •  • 

Engineering Systems Analyst PhD from Cornell University Inventor of the Smartsettle eNegotiation System Founder, President & CEO of iCan Systems Inc. located in Vancouver BC •  Director, Summit Negotiations Society •  Repeat speaker at UN sponsored forums on Online Dispute Resolution •  Water conflict management lecturer for UNESCO-IHE


Smartsettle Team here today •  •  •  •  • 

Ernest Thiessen, PEng, PhD, President, Founder, Inventor Paul Miniato, Senior Systems Analyst Derek Barber, Senior Programmer Bruce Hiebert, PhD, VP Applications and Ethics Kristi Schroots, Senior Administrator


Comprehensive  Product  Offering Our advanced decision-maker suite scales from simple, single-issue to complex, multivariate cases Smartsettle One From the simple

Smartsettle Infinity to the Complex


Our Vision Conflict resolution in a more peaceful, collaborative & intelligent way throughout the world


Ordinary Negotiations suffer from Four Serious Problems 1.  Huge amounts  of  TIME  and  MONEY   are  wasted  with  a  tedious   negoAaAon  dance,   2.  Significant  VALUE  is  lea  on  the   table,   3.  RELATIONSHIPS  are  devastated  by   using  adversarial  tacAcs,  and   4.  WEAKER  parAes  are  inAmidated  by  


Collaboration & Generosity

Smartsettle addresses these problems with a process using formulas that: •  encourage collaboration, and •  reward generosity.


Smartsettle One Negotiation Simulation Taxpayer says that Assessor evaluated his property too high.


Goal of exercise •  To use a hypothetical case to demonstrate how Smartsettle One streamlines simple negotiations: –  Removes time & meeting constraints –  Eliminates tedious negotiation dance –  Transforms adversarial negotiations into collaboration –  Eliminates single-party dominance •  Creates a field of equals


Eight Step Smartsettle Process 1.  2.  3.  4.  5.  6.  7.  8. 

Prepare for negotiation Define the problem Build a Framework for Agreement Exchange proposals Negotiate with Visual Blind Bidding Arbitration (optional) Uncover hidden value Implement the deal


Seven Steps (for simple low-value cases) 1.  2.  3.  4.  5.  6. 

Prepare for negotiation Define the problem Build a Framework for Agreement Exchange proposals Negotiate with Visual Blind Bidding Arbitration (optional)

idden 7.  Uncover   Implemenththe deal value  

Boil it   down  to  a   single   issue.  


Step 1: Prepare for negotiation •  Taxpayer claims assessment is too high. •  Assessor is not willing to change assessment. •  Taxpayer suggests they go to court. •  Assessor suggests that case may be suitable for Smartsettle One. •  Taxpayer watches short orientation video. •  Taxpayer agrees to use Smartsettle One.


Step 2: Define the problem Taxpayer and Assessor determine that the only issue is the evaluation of the property.


Step 3: Model the problem •  Assessor prepares Framework for Agreement with all issues resolved except for one numerical issue, assessment evaluation in this case. •  Parties may change the Framework for Agreement later, but it is simple enough that they probably won t


Step 4: Exchange proposals •  Parties confidentially enter optimistic proposals at a time and place of each party s choosing •  Parties review proposals and make counterproposals •  Parties may be face-to-face or anywhere on the Internet •  All information remains confidential


Step 5: Negotiate: Visual Blind Bidding •  Smartsettle generates Suggestions. •  Binding agreement is reached at the end of a session when parties accept the same value. •  If there is an overlap among accepted packages, Smartsettle favors the most generous party.


Step 6: Arbitrate if needed (optional) •  Parties may agree to Dampened Pendulum Arbitration to guarantee a settlement in Final Session.


Step 6: Implement the deal •  Framework for Agreement is filled in automatically and may be downloaded by the parties. •  Taxpayer is satisfied and the reputation of Property Assessment is preserved.


Visual Blind Bidding

low Taxpayer

high Assessor

Dispute has been boiled down to a single numerical issue: Assessment


Visual Blind Bidding Initial Optimistic Proposals

10 Taxpayer

Tedious 30 Negotiation Dance Assessor


Visual Blind Bidding Optimistic Proposals

10 13 Taxpayer

16

20

24

26

Suggestions

28

30 Assessor


Visual Blind Bidding Optimistic Proposals Hidden Acceptances 10 13 Taxpayer

16

20

24

26

Suggestions

28

30 Assessor


Visual Blind Bidding Optimistic Proposals Hidden Acceptances 10 Â 13 Taxpayer

16

20

24

26

Suggestions

28

30 Assessor


Visual Blind Bidding

It s a deal! 10 13

16

20

24

26

(there may  sAll  be  hidden  value)  

28

30

Works with any type of negotiation, any number of parties, and any type or number of issues.


Visual Blind Bidding

10

13

16

20

Reward for generosity

24

26

28

30


Visual Blind Bidding Assessor

14

15

16

17

Taxpayer

18

19

20

21

22

23

24

25


Assessor s final move

Agreement revealed ? ? by Smartsettle 14

15

16

17

18

19

20

21

22

23

24   24  

Zone of Agreement Taxpayer s final move Smartsettle considers the party that made the smallest last move as the most generous.

25


Dampened Pendulum Arbitration Assessor

13

14

15

16

17

18

Fair 19

20   20  

21

22

23

24

Final Deal Taxpayer

  Rewards generosity   Minimizes the need for arbitration   Minimizes clear-loser problems


Smartsettle Multivariate Process 100%

Fair & Optimal Solution

optimistic

Efficiency Frontier

Taxpayer Tentative Zone of Potential Agreement

walkaways

0

0

optimistic

Assessor

100%

Ibo future of justice - booklet  

A major development in the legal field is the emergence of online justice systems. This webinar will introduce you to this new force in the...