As reported by WIRED, Sony recently revised its online Terms of Service and User Agreement. The move was prompted by the multiple security breaches of earlier this year in which hackers stole data from nearly 75 million Sony PlayStation customers. Section 15 of the revised agreement includes an arbitration clause with a class action waiver provision. Sony, however, provides for a right to op-out of the binding arbitration and class action waiver if customers follow the notification procedure stated within the provision. Here is part of the arbitration clause: Class Action Waiver. ANY DISPUTE RESOLUTION PROCEEDINGS, WHETHER IN ARBITRATION OR COURT, WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS OR REPRESENTATIVE ACTION OR AS A NAMED OR UNNAMED MEMBER IN A CLASS, CONSOLIDATED, REPRESENTATIVE OR PRIVATE ATTORNEY GENERAL ACTION, UNLESS BOTH YOU AND THE SONY ENTITY WITH WHICH YOU HAVE A DISPUTE SPECIFICALLY AGREE TO DO SO IN WRITING FOLLOWING INITIATION OF THE ARBITRATION. THIS PROVISION DOES NOT PRECLUDE YOUR PARTICIPATION AS A MEMBER IN A CLASS ACTION FILED ON OR BEFORE AUGUST 20, 2011. Will the new arbitration clause (which spans across three pages) pass judicial scrutiny? Let us know your thoughts. Related Posts: FBI Arrests Suspected LulzSec Member in Connection with Sony Cyber Attacks, Security Week Sony cleared of PSN Privacy Breach, The Sidney Morning Herald Own Motion Investigation Report Sony PlayStation Network, Australian Government Let the Litigation Begin – Sony PlayStation Data Breach Class Action Filed in Boston, Privacy & Security Matters Sony Says PlayStation Credit Cards Were Encrypted, WIRED Technorati Tags: law, ADR, arbitration

Last week, the Chartered Institute of Arbitrators (“CIArb”) launched the results of the CIArb’s survey into the costs of international arbitration. The survey was completed by arbitrators and lawyers from five continents and includes information on 254 arbitrations conducted between 1991 and 2010. Here are some of the highlights: The survey results indicate that the costs of international arbitration vary depending on where the arbitration takes place, with the UK as the most commonly chosen arbitral seat for survey respondents. Claimant costs noted in this survey averaged nearly 10% higher in the rest of Europe compared with in the UK, while external legal fees were over 26% higher in the rest of Europe. Common costs, such as arbitrators’ fees, were reportedly over 18% higher in Europe than in the UK. Furthermore party costs were returned as around 13% higher in civil law countries than common law countries. The survey results also showed that claimants spent 12% more than respondents, and that the average length of an arbitration was between 17 and 20 months. According to the survey, 62% of arbitral proceedings were administered by an institution, with the ICC appearing as the most popular choice for institutional arbitrations. The press release about the survey is here. You may download (free of charge) the results of the survey here. Technorati Tags: law, ADR, arbitration

To address the problem of excessive costs of the discovery process, particularly in patent litigation, the Advisory Council of the Federal Circuit created recently a task force to draft a model rule for e-discovery governance. The final product, “Model Order on E-Discovery in Patent Cases” was unveiled on September 27 by Chief Judge Randall R. Rader at the 2011 E.D. Texas Bench and Bar Conference. The goal of the Model Order, Chief Judge Rader said, is to “streamline e-discovery, particularly email production, and require litigants to focus on the proper purpose of discovery—the gathering of material information—rather than on unlimited fishing expeditions.” The 14 provisions of the Model Order address cost shifting, metadata, and the treatment of privileged information. The majority of the provisions address e-mail discovery. Download Chief Judge Randall R. Rader’s speech (pages 1-20) and Model Order (pages 21-28) here.

JAMS, the U.S. arbitration and mediation provider, has launched its international arm and unveiled a panel of more than 40 arbitrators and mediators to handle cross-border disputes. JAMS International is headquartered in London, with additional hearing locations in Amsterdam, Milan, New York, and Rome. For more information, visit the JAMS International website. The press release is here. Technorati Tags: law, ADR, arbitration