Effect Of A Pre-Arbitration Conciliation Or Mediation Requirement

An award was challenged for want of going through pre-arbitration conciliation. The clause read in part (in translation):

Any controversy or dispute relating to the present contract and which cannot be resolved amicably (including conciliation under the WIPO rules) shall be submitted to an arbitral tribunal which alone shall have jurisdiction to decide finally, to the exclusion of the ordinary courts. Moreover, the arbitral tribunal shall alone have jurisdiction to decide on any dispute concerning the applicability of this arbitration clause. Negotiations underway shall in no way constitute a hindrance to the initiation of arbitration proceedings.

A dispute arose under a license agreement. Unsuccessful settlement discussions ensued. Licensor proposed to submit the dispute to arbitration, and licensee thereupon terminated the contract and demanded damages. Licensor initiated arbitration, during which an unsuccessful settlement offer was made. Licensee protested to the