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Will the battle over Internet-filtering software play out on the investment treaty playing field?

Over on the always-interesting International Economic Law and Policy Blog, Simon Lester has been musing about the recent controversy over internet-filtering software in China. As has been widely reported in the financial press, computer makers are facing demands to install internet-filtering software (ostensibly to combat the problem of Chinese internet users being exposed to online pornography).

Simon wonders how China’s actions square with its international trade obligations, but finds little clarity in the public statements of the US Trade Representative – which criticize the Chinese actions.

A piece in the Wall Street Journal offers a bit more clarity, insofar as it describes the tig [...]

Special Masters in International Arbitration

As international arbitration becomes ever more sophisticated and complex, one wonders whether it will continue to have the institutional capacity to address its protean tasks. Claims in the billions of dollars are now common. Thousands of individuals are affected by the outcome of a single arbitration decision. And the complexity of the cases is such that even the most skilled arbitrator may excel in part of the case—such as determining liability—but flounder with respect to another part of the case—such as assessing damages.

Meanwhile the machinery of international arbitration struggles to cope with the pace of change. Although the landscape has changed dramatically in recent deca [...]

The Exemption of Functions of Arbitration from VAT under Swiss Law

Under the applicable Swiss law, fees and charges arising in connection with the exercise of functions of arbitration are exempted from VAT. Specifically, the respective section of Article 23(1) of the Swiss Federal Act of 2 Sept. 1999 on Value Added Tax (“VATL”) reads as follows:

“[...] For services which they perform in sovereign right, the departments mentioned above, institutions, persons and organizations are not tax-liable, even if they levy fees, contributions or other charges for such services. The exercising of functions of arbitration qualifies as sovereign. [...]” [non-official translation].

On 19 June 2009, the Swiss Federal Court deliberated and decided upon the scope of the exem [...]

Sixth Circuit Rejects International Abstention Doctrine in Compelling Arbitration

Addressing an issue of first impression, the United States Court of Appeals for the Sixth Circuit recently held that, notwithstanding a prior-filed lawsuit in Australia, the doctrine of international abstention did not prevent a federal court from deciding a motion to compel arbitration under Chapter 2 of the Federal Arbitration Act. Answers in Genesis of Kentucky, Inc. v. Creation Ministries Int’l, Ltd., 556 F.3d 459, 469 (6th Cir. 2009). The court applied the traditional abstention doctrine established by the Supreme Court in Colorado River Water Conservation Dist. v. United States, 424 U.S. 800 (1976), and also considered the language of, and policies behind, the New York Convention. The [...]

Brazil: place of arbitration.

Dear all,
As you know, arbitration in Brazil has become a reality. After several decades of being considered as the last frontier of international arbitration in Latin America, Brazil is now one the most important country in the practice of arbitration on this continent. The last years’ ICC International Arbitration Court statistics show the influential position of Brazil in Latin America.

However, does Brazil have the sufficient elements to become the natural choice for the Latin-American parties, as the place of arbitration? Brazil has a modern law (Law 9.307/96), it has ratified the 1958 New York Convention (in 2002) and in addition, the case law has been very consistent in ruling in f [...]

Emergency Arbitrator – The Proposed New Procedure of the SCC Rules

The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) has recently proposed the inclusion of an “Emergency Arbitrator” procedure in the SCC Rules (see Draft New Rules with Notes). On 18 June 2009, the drafting committee for the Emergency Arbitrator proposal presented the main amendments gathered from the comments of the arbitration community to the Board of the Arbitration Institute of the SCC.

Since the announcement (see SCC website: SCC strengthens its Arbitration Rules) in April 2009, the details of the Draft Rules have been vividly discussed. At the hearing held on the SCC premises on 23 April 2009 (see GAR: SCC to add new rule on interim measures) members of the inter [...]