Dispute resolution

German law does not provide for a separate arbitration tribunal or mediation agency for matters relating to online law. There are merely various arbitration agencies for disputes concerning domain names, such as the WIPO Arbitration and Mediation Centre (World Intellectual Property Organisation). However, arbitration centres within intellectual property organisations usually rule in favour of the owner of a protective right. Moreover, the proceedings and contents of arbitration awards are restricted. For example, it is not possible to award compensatory damages.

There are no such arbitration agencies for disputes relating to the area of internet law. Arbitration agencies not specialising in this area, such as general mediation centres and mediators, are rather unsuited for resolving such disputes, as they usually lack the necessary expert knowledge.

It is recommended to include an arbitration clause in an agreement in order to provide for arbitration or mediation proceedings. Otherwise it might be difficult to make use of arbitration proceedings, because one of the parties might not be interested in resolving a dispute in such a manner (any more). In such a case, only mediation proceedings, which are generally not obliging, would be possible.

Nevertheless, the Code of Civil Procedure attempts at providing for some possible solutions. For example, disputes relating to software programming can be solved by means of the so-called preservation of evidence involving a expert appointed by the court. Often, it is possible to make comparisons on the basis of his expert’s opinion.

Services offered by Horak Attorneys-at-Law include among others:

Organizing and carrying out arbitration and mediation proceedings

• Representation in national and international arbitration proceedings
• Mediation

Court Proceedings and Arbitration in Online Law in Germany

Legal disputes in online law (Onlinerecht) in Germany can be resolved through court proceedings (Gerichtsverfahren) or alternative dispute resolution (ADR), such as arbitration (Schiedsverfahren). The choice of procedure depends on factors like the nature of the dispute, jurisdiction, costs, and efficiency. Below is a detailed explanation of both legal avenues, including procedures, relevant courts, arbitration institutions, and case law.

1. Court Proceedings (Gerichtsverfahren) in Online Law

A. Jurisdiction of Courts in Online Law Disputes

Different courts handle online law disputes, depending on the type of case and the amount in controversy.

1. Local Courts & Regional Courts (Amtsgericht & Landgericht)

• Amtsgericht (Local Court) – Handles disputes up to €5,000.
• Landgericht (Regional Court) – Handles disputes above €5,000 and cases involving legal professionals.

✅ Example:
A consumer sues an online shop for €3,000 due to a defective product → The case is handled by the Amtsgericht.

2. Specialized Courts in Online Law Cases

• Commercial Courts (Handelsgericht) – For disputes between businesses (B2B).
• Intellectual Property Courts (Marken- & Urheberrechtliche Kammern) – Handle copyright & trademark disputes.
• Data Protection Supervisory Authorities & Administrative Courts – Handle GDPR and data privacy cases.

✅ Example:
A company files a lawsuit against a competitor for trademark infringement in e-commerce → The Landgericht’s IP Chamber has jurisdiction.

B. Steps in a Civil Online Law Lawsuit

1. Filing a Claim (Klageeinreichung)

• The plaintiff submits a statement of claim (Klage) to the competent court.
• The defendant receives a summons (Ladung) and a deadline to respond.

2. Preliminary Proceedings (Vorverfahren)

• The defendant submits a written defense (Klageerwiderung).
• The court examines the case’s admissibility and merit.

3. Main Hearing (Hauptverhandlung)

• Both parties present arguments & evidence (Beweiseinbringung).
• Witnesses and experts may be heard.

4. Judgment (Urteil)

• The court issues a binding decision, which can be enforced.
• Appeals may be filed with a higher court (Berufung, Revision).

✅ Example Case: BGH, Az. I ZR 7/16
A company sued an online platform for copyright infringement. The BGH ruled that platforms must remove illegal content but are not automatically liable for user-generated content.

C. Costs & Duration of Court Proceedings

• Court fees depend on the amount in controversy (€300 - €10,000+).
• Lawyer fees (Rechtsanwaltsvergütungsgesetz, RVG) apply if legal representation is required.
• Duration: 6 months – 2 years, depending on complexity.

✅ Example:
A consumer files a lawsuit against an online retailer for €8,000. The case goes to the Landgericht and lasts 8 months before a final judgment is issued.

2. Arbitration & Alternative Dispute Resolution (ADR) in Online Law

A. Arbitration (Schiedsverfahren)

Arbitration is an alternative to litigation where private arbitrators, instead of state courts, decide the case. It is commonly used in B2B e-commerce, IT law, and domain name disputes.

1. Arbitration Institutions in Germany

• German Institution of Arbitration (DIS) – Handles commercial disputes.
• WIPO Arbitration Center – Specializes in domain name and IP disputes.
• European Consumer Centres Network (ECC-Net) – For consumer arbitration in online shopping.

✅ Example:
An IT company and a cloud provider have a contract dispute → They agree to arbitration at the DIS to avoid lengthy court proceedings.

B. Mediation (Mediation)

Mediation is a non-binding dispute resolution where a neutral mediator helps parties reach a settlement. It is commonly used in consumer rights, e-commerce, and influencer disputes.

✅ Example:
A social media influencer and a brand disagree over a contract. Instead of going to court, they engage in mediation and reach a compromise.

C. Online Dispute Resolution (ODR) for E-Commerce & Consumer Disputes

Under EU law (EU Regulation 524/2013), online disputes between consumers and businesses can be resolved through the EU Online Dispute Resolution (ODR) platform.

✅ Key Features of ODR:

• Free or low-cost alternative to litigation.
• Fast resolution (weeks instead of months).
• Binding or non-binding decisions, depending on parties' agreement.

✅ Example:
A consumer in Germany disputes a defective product sold by a French retailer. Instead of going to court, they use the EU ODR platform to resolve the claim within 30 days.

3. Comparison: Court Proceedings vs. Arbitration in Online Law

Criteria	Court Proceedings	Arbitration
Time	6 months – 2 years	3-12 months
Costs	Higher due to court & lawyer fees	Generally lower, but arbitrators charge fees
Binding Decision	Yes	Yes
Appeal Possible?	Yes (Berufung, Revision)	No (unless contract allows appeal)
Privacy	Public trial	Confidential process
Common Use Cases	Consumer law, copyright disputes, GDPR cases	B2B contracts, domain name disputes

4. Strategic Considerations in Choosing a Legal Route

✅ Court Proceedings are ideal for:
✔ Consumer disputes against large companies.
✔ Cases requiring precedent-setting judgments.
✔ GDPR and intellectual property violations.

✅ Arbitration is better for:
✔ Business-to-business (B2B) conflicts.
✔ Confidential disputes (e.g., SaaS contract breaches, NDA violations).
✔ International e-commerce disputes (due to enforceability).

✅ Example:
A German SaaS provider sues a U.S. tech company for a contract breach → Arbitration is preferable due to international enforceability.