Litigation

Litigation refers to the legal act in international trade where, when disputes between buyers and sellers over contract performance, payment, goods quality, intellectual property, etc., cannot be resolved through negotiation or arbitration, one party files a lawsuit in court to resolve the dispute through judicial proceedings. Its main use scenarios include: the contract does not stipulate an arbitration clause, the arbitration award cannot be enforced, or the parties directly choose court jurisdiction. Notes: Litigation procedures are complex, time-consuming, and costly, and judgments may face difficulties in recognition and enforcement across borders (requiring reliance on the New York Convention or bilateral judicial assistance treaties). Compared with arbitration, litigation has characteristics such as compulsory jurisdiction, public hearings, and multiple levels of appeal, but has poorer flexibility and confidentiality. Foreign trade practitioners should clearly specify the dispute resolution method in the contract, give priority to arbitration, and pay attention to choosing a favorable jurisdiction.