The present application relates to the field of block chain based settlement method.
More particularly, relates to an on-line automated dispute resolution among adverse
parties in a confidential environment.
10 BACKGROUND OF THE INVENTION
Contracts provide the legal framework for conducting business. Many businesses
today, particularly large corporations, are party to hundreds, perhaps thousands, of
contracts, each, by definition, granting various rights and creating various obligations.
Keeping track of the existence of every contract, and ensuring compliance with the
15 various rights and obligations they create, presents an enormous challenge. Other
problems arise dispute and negotiation. Even simple contracts often go through a
dispute before any settlement is reached. The process of solving the disputes,
negotiation and document review and approval, both among and between parties, to a
contract is often a complex process during which it is difficult to keep track of various
20 draft versions and approvals.
Because of the logistical, emotional, and monetary expense associated with resolving
a dispute via the legal system, many people try to resolve a dispute on their own, by
coming to some form of agreement between the parties to the dispute. The method of
offline negotiation and other methods to resolve disputes, such dispute resolution
25 methods are inefficient, and there may be many defects.
3
5 In recent years, internet-based systems have arisen that guide parties through a
settlement process of a disputed contract. In many of these online settlement systems,
each party is entitled to make a limited number of offers/counter-offers. The offers or
bids are kept secret. If the two offers are within a predetermined range, as calculated
by the online system, then many systems "split the difference" and inform the parties
10 of their settlement amount.
There remains a need for an automated dispute settlement system that retains the
security of confidentiality while providing flexible approaches to meet the desires of
the participants by use of a block chain network.
15 SUMMARY OF THE INVENTION
An aspect of the present invention is to address at least the above-mentioned problems
and/or disadvantages and to provide at least the advantages described below.
The present invention relates in general to the field of dispute resolution conducted
over a data processing network and in particular to using the Internet to apply a multi20 discipline methodology and system to prepare parties for the resolution of contract
disputes through mediation, arbitration and summary jury trials. The present dispute
resolution methods which is applied to a computer network to produce a method of
helping parties resolve disputes in an effective manner which is free from traditional
and logistical constraints, and also enables the parties to successfully resolve their
25 claims easily, efficiently and inexpensively.
4
5 The object of the present invention is to propose a block chain-based electronic dispute
resolution method and system, which is applied to a distributed e-commerce platform
based on a block chain to solve the drawbacks of the dispute resolution in the existing
transaction process.
Accordingly, in one embodiment of the present invention provides an automated
10 method for a contractual dispute resolution. The method including the step of accessing
data corresponding to at least one distributed ledger, identifying a dispute involving a
contractual agreement between a first party and one or more counter parties classifying
the identified dispute into specified categories based on the type of dispute and the
scale of dispute, issuing notices to the first party and the second party and other
15 counterparties if any, the notice including information about default in performance of
the contract and seeking filing of their replies and affidavits, along with data entry in
specified field of the contract, allowing all the parties to submit their claim, reply to
other parties claim, rejoinder to replies and rejoinder to rejoinders with a final offer or
proposal for acceptance of the counter party for the closure of the dispute, proposing
20 to all the parties with an offer for mutual settlement within a certain time period for
acceptance and generating, upon acceptance on the offer for mutual settlement, a final
order as the terms of settlement of the dispute contract. Further, processing to derive
an award if the waiting time period of acceptance is expired, wherein the processing of
the award is by Artificial Intelligence (AI) engine to match and identify Acts and Rules
25 along with existing case laws. The present invention in all its aspects and embodiments
5
5 is not limited to only two parties and therefore encompasses nth party/s or parties,
wherein n is an integer corresponding to number of parties/users who enter into a
contract or may in some manner be affected/related parties to a contract, and for the
sake of brevity the term Second Party wherever used in reference to a contract with the
First Party will imply at least one or more counterparties i.e. nth counterparties are
10 implied wherever the term Second Party is mentioned within this document.
In another aspect of the present invention provides an automated method or an AI based
framework for a contractual dispute resolution. The steps of method includes accessing
data corresponding to at least one distributed ledger, identifying a dispute involving a
contractual agreement between a first party and one or more second parties, issuing
15 notices to the first party and the second party, the notice including information about
default in performance of the contract and seeking filing of their replies and affidavits,
along with data entry in specified field of the contract, allowing both the parties to
submit their claim, reply to other parties claim, rejoinder to replies and rejoinder to
rejoinders with a final offer or proposal for acceptance of the counter party for the
20 closure of the dispute, proposing to both the parties with an offer for settlement within
a certain time period for acceptance, and providing a plurality of options to settle the
dispute if the offer for settlement is rejected, wherein the option to settle the dispute
includes mediation, neutral evaluation and arbitration.
In yet another aspect of the present invention provides a system for providing integrated
25 dispute resolution services over a computer network for resolving a dispute between a
6
5 first party and a second party. The system includes one or more server including a
processor and a memory storing executable instructions that, when executed by the at
least one processor, causes the at least one processor to perform the steps of: accessing
data corresponding to at least one block chain ledger, obtaining notification data
identifying a dispute involving a contractual agreement between a first party and one
10 or more second parties, issuing notices to the first party and the second party, the notice
including information about default in performance of the contract and seeking filing
of their replies and affidavits, along with data entry in specified field of the contract;,
allowing both the parties to submit their claim, reply to other parties claim, rejoinder
to replies and rejoinder to rejoinders with a final offer or proposal for acceptance of the
15 counter party for the closure of the dispute, proposing to both the parties with an offer
for settlement within a certain time period for acceptance and providing a plurality of
options to settle the dispute if the offer for settlement is rejected, wherein the option to
settle the dispute includes mediation, neutral evaluation and arbitration.
Other aspects, advantages, and salient features of the invention will become apparent
20 to those skilled in the art from the following detailed description, which, taken in
conjunction with the annexed drawings, discloses exemplary embodiments of the
invention.
25
7
5 BRIEF DESCRIPTION OF THE DRAWINGS
The above and other aspects, features, and advantages of certain exemplary
embodiments of the present invention will be more apparent from the following
description taken in conjunction with the accompanying drawings in which:
Figure 1 shows a block diagram of the system network.
10 Figure 2 shows a flow chart of an automated method of mutual settlement for a
contractual dispute resolution, in accordance with one embodiment of the
present invention.
Figure 3 shows a flow chart of an automated method or an AI based framework
for a contractual dispute resolution, in accordance with one embodiment of the
15 present invention.
Figure 4 shows a flow chart of a method performing the mediation as alternate
dispute resolution mechanism.
Figure 5 shows a flow chart of a method performing the arbitration as alternate
dispute resolution mechanism
20 Figure 6 illustrates apparatus that may be used to implement aspects of the
present disclosure including executable software.
Persons skilled in the art will appreciate that elements in the figures are illustrated for
simplicity and clarity and may have not been drawn to scale. For example, the
dimensions of some of the elements in the figure may be exaggerated relative to other
8
5 elements to help to improve understanding of various exemplary embodiments of the
present disclosure.
Throughout the drawings, it should be noted that like reference numbers are used to
depict the same or similar elements, features, and structures.
10 DETAILED DESCRIPTION OF THE INVENTION
FIG. 1 shows a block diagram of the network utilized in accordance with the method
of the present invention. At the heart of the system is a distributed ledger (e.g.,
transaction chain or block chain) network 150 preferably implemented on the Internet
and providing a distributed ledger, which is immutable. The network may use public
15 key/private key cryptography to insure identification integrity and other algorithms to
insure trust before a block of at least one transaction is added to the distributed ledger.
The network can be implemented on any platforms that permit the running of smart
contracts, such as the hyper ledger block chain or any other form or platform for
distributed ledger.
20 In an example embodiment, party A is at location 110, such as a computer in party A's
house or office, and party B is at location 120, such as a computer in party B's house
or office. It is also possible for parties A and B to be at the same location. It is also
possible for there to be more than two parties, or on the other hand for there to be only
one party seeking an advisory opinion. It is also possible for the number of parties to
25 change during a dispute resolution process, such as if a first party starts the dispute
9
5 resolution process and another party joins in while the process is on-going. Network
150 couples the parties to a resolution element 130. Network 150 is a communication
medium such as the Internet, wired or wireless communication mediums, the telephone
system, broadcast networks, cable, a combination of the aforementioned examples, etc.
In an example embodiment, the resolution element 130, may be an attorney, a
10 counsellor, a law student, a social worker, or other form of professional or credentialed
individual who can help the parties resolve the dispute. In another embodiment,
resolution element 130 comprises one or more “Squires”. The Squires may be “regular”
people who have been elevated to Squire status, for example, by demonstrating some
proficiency or knowledge of the relevant law or facts. The Squires may be located at
15 various locations throughout the world, interconnected to the network 150, and
connected to a dispute system server 140 via the network 150.
Figure 2 shows a flow chart of an automated method of mutual settlement for a
contractual dispute resolution.
20 At step 210, the method access data corresponding to at least one distributed ledger.
At step 220, the method identifies a dispute involving a contractual agreement between
a first party and one or more second parties. The identified dispute represents a dispute
between the first and second parties regarding a conformity of the one or more
performed activities to the contractual agreement. In an example embodiment, the
25 contract may be or may include one or more milestones. In an example embodiment,
10
5 the milestone directed to track performance of agreed terms and condition of the
contract between two or more parties. The performance of milestone which may be
defined or considered by the method as an objective evaluation of fulfilment i.e.
compliance or failure i.e. non-compliance of agreed terms and conditions of contract.
The method check whether any of the milestone which was set in the contract failed, if
10 yes, the method identifies as a non-compliance and a potential source of dispute and
inform the parties respectively for future course of actions who may in an example
embodiment identify the notified non-compliance as a dispute.
At step 230, the method classifies the identified dispute into specified categories based
on the type of dispute and the scale of dispute. The type of dispute details includes
15 classification of the contract (for e.g. insurance contract, derivative contract, purchase
contract etc.), any amount of the dispute, location information regarding where the
dispute occurred, a time and or date when the dispute occurred, and the basic
underlying facts of the dispute. In an example embodiment, the method classifies the
dispute with the help of Artificial Intelligence (AI) engine which classifies dispute into
20 specified categories which may be based on type and/or scale (e.g. monetary amount).
At step 240, the method issues notices to the first party and the second party, the notice
including information about default in performance of the contract and seeking filing
of their replies and affidavits, along with data entry in specified field of the contract.
In an example embodiment, the AI engine issue notices to both the parties, informing
11
5 default in performance of contract and seeking filing of their Replies and Affidavits,
along with data entry in a specified field.
At step 250, the method allows both the parties to submit their claim, reply to other
parties claim, rejoinder to replies and rejoinder to rejoinders with a final offer or
proposal for acceptance of the counter party for the closure of the dispute.
10 At step 260, the method proposes to both the parties with an offer for settlement within
a certain time period for acceptance. The step of proposing the offer is based on the
optimal settlement amount, wherein the proposal is associated with a predicted
likelihood of acceptance. Further, proposing including a time period having a deadline
notification which provides a reminder regarding a settlement deadline for the dispute
15 between the first party and the second party. In an example embodiment, if the offer
stays unaccepted within one week, AI Engine acts to match and identify Acts and Rules
along with existing case laws and begin the process of deriving its award.
At step 270, the method generates, upon acceptance on the offer for settlement, a final
order as the terms of settlement of the dispute contract. The step of generating the final
20 order is facilitated by an Artificial Intelligence (AI) engine, the AI engine including
Machine Learning (ML) models which is capable of making predictions about the
likelihood of settlement amounts which will be accepted by both the parties and also
store the upgraded interpretations for provisioning of fixation of responsibility and
punishments/penalties.
12
5 In an example embodiment, the AI engine which has been continually working in the
background to learn the constitution of laws, all acts and stipulations, etc. etc. by
identifying actors, subjected rules, jurisdictions, etc. and has also been working in the
background to identify within the existing case laws all actors, matter of dispute, points
of contention, etc. and has been developing on the understanding of laws and practices,
10 with lateral understanding and modern upgraded interpretations will become a
reservoir of legal do(s) & don’t(s) and provisions of fixation of responsibility and
punishments/penalties, etc. In an embodiment the AI engine’s legal reservoir to be
verified by a panel of legal experts from time to time, and its understanding of rules to
be upgraded in the form of machine learning, by fixing non-conformities and by
15 realigning machine understanding.
Further, the processing to derive an award if the waiting time period of acceptance is
expired, wherein the processing of the award is by AI engine to match and identify
Acts and Rules along with existing case laws. The disclosed method integrates artificial
intelligence-based (AI-based) to produce relevant data in a manner which is more
20 reliable, accurate and efficient. In an example embodiment, the method may process
facts and apply case-based reasoning (CBR) technologies to legal data. A much broader
approach is the application of artificial intelligence (AI) engine to legal reasoning. In
any of these computerized AI applications, facts, play a crucial role in automatic
inference, and gathering facts from court decisions for processing millions of decisions
25 found in legal databases.
13
5 Once the dispute is reached to a point of settlement, the method updated the contract
distributed ledger or the smart contract with hash of the settlement signed-off. All the
transaction which are executed on the chain are recorded concurrently and each
transaction has a hash value. For example, each block may include at least a block
header and one or more data values. Each block header may include at least a
10 timestamp, a block reference value, and a data reference value. The timestamp may be
a time at which the block header was generated. The block reference value may be a
value that references an earlier block (e.g., based on timestamp) in the blockchain. In
some embodiments, a block reference value in a block header may be a reference to
the block header of the most recently added block prior to the respective block. In an
15 exemplary embodiment, the block reference value may be a hash value generated via
the hashing of the block header of the most recently added block. The data reference
value may similarly be a reference to the one or more data values stored in the block
that includes the block header. In an exemplary embodiment, the data reference value
may be a hash value generated via the hashing of the one or more data values. With
20 this information, one can find out how much value belonged to each address at any
point in history. Every block contains a hash of the previous block. Each block is
guaranteed to come after the previous block chronologically because the previous
block's hash would otherwise not be known. Each block is also computationally
impractical to modify once it has been in the chain for a while because every block
25 after it would also have to be regenerated.
14
5
Figure 3 shows a flow chart of an automated method or an AI based framework for a
contractual dispute resolution.
At step 310, the method access data corresponding to at least one distributed ledger.
At step 320, the method identifies a dispute involving a contractual agreement between
10 a first party and one or more second parties.
At step 330, the method issues notices to the first party and the second party, the notice
including information about default in performance of the contract and seeking filing
of their replies and affidavits, along with data entry in specified field of the contract.
At step 340, the method allows both the parties to submit their claim, reply to other
15 parties claim, rejoinder to replies and rejoinder to rejoinders with a final offer or
proposal for acceptance of the counter party for the closure of the dispute.
At step 350, the method proposes to both the parties with an offer for settlement within
a certain time period for acceptance.
At step 360, the method provides one or more options to settle the dispute if the offer
20 for settlement is rejected, wherein the option to settle the dispute includes mediation,
neutral evaluation and arbitration. If the offer for settlement is rejected which
implements that the dispute is not simple in nature, then the method provides option
for other modes of resolution which may be attempted. For example, the method
provides various options to settle the disputes by way of mediation or neutral evaluation
25 and or arbitration.
15
5 In an example, the mediation process may be a fully automated process which may be
initiated by a buyer or seller complainant to settle a dispute with mediation services.
The mediation process may be utilized to resolve any number of different types of
disputes and uses a mediator that interacts with the disputants (e.g., email,
videoconference, instant messaging, biometric authentication based communication
10 medium, web-based platform, etc., combinations thereof) to resolve the dispute. The
mediator may be a human being or an automated process. The mediator seeks to elicit
from the disputants a mutually acceptable resolution to the dispute but has little or no
power to impose a resolution on the parties.
On the other hand, Arbitration is a procedure in which a dispute is submitted by
15 agreement of disputing parties to an arbitrator or to several arbitrators who give a
decision on the dispute that is binding on the disputing parties. Typically, once
disputing parties freely agree to submit a dispute to arbitration, a party cannot withdraw
from the arbitration. Mediation, however, is a procedure in which a neutral
intermediary, the mediator, endeavours, at the request of the parties to a dispute, to
20 assist them in reaching a mutually satisfactory settlement of the dispute. The mediator
typically does not have any power to impose a settlement on the parties. Mediation is
typically also voluntary in the sense that either party may, if it so chooses, abandon the
mediation at any stage prior to the signing of an agreed settlement.
16
5 Figure 4 shows a flow chart of a method performing the mediation as alternate dispute
resolution mechanism.
In an example embodiment, the Mediation which is internationally accepted for its
ability to bring two or more disputing parties to an agreement that resolves the
dispute(s). Mediation is conducted with a “Mediator,” who is a neutral party, trained
10 and skilled in techniques and methods that open and improve dialogue between
disputing parties, facilitating the parties in reaching an agreement which each may view
differently, but which has the same impact; i.e., ending the dispute.
At step 410, the method allows both the parties to provide a brief of all the particulars
of the dispute in a prescribed format. In some embodiments, the method may provide
15 dispute resolution services which may be used to allow parties to work together with
the aid of a Neutral Evaluator, whereby a neutral impartial assessment of the facts of
the dispute, interpretation of commercial rules, conventions, technicalities and a fair
legal opinion is provided to parties in order to guide them towards reconciliation. The
inputs provided by a Neutral Evaluator may be non-binding but can succeed as an
20 alternative dispute resolution technique whereby parties have been provided better
understanding of contractual obligations and prevalent legal framework.
At step 420, the method appoints or opts for a mediator to mediate the dispute.
At step 430, the method provides information relating to the dispute to the mediator by
both the parties. For example, when parties have a dispute, they may access an on-line
17
5 calendar of mediators' availabilities. The disputing parties (i.e., the claimant and the
respondent) may agree to a mediator through a scheduling interface.
At step 440, the method provides the proposed mediator solution to the parties. For
example, the method may provide one or more option of mediator to select by both the
parties. In a working example, the option of mediator provided by the method to the
10 disputed parties may be 3 options to both the parties. Further, the method may ask the
respective parties to select at least two option from the list of 3 options. The method
may opt for a mediator which is selected by the both parties. Upon selecting a mediator
and a time slot, the parties may be provided with contact information and a schedule
for submitting any documentation. Mediators may be notified of their selection, if the
15 mediator accepts the case, the disputing parties may be notified. In some embodiments,
dates and other information may be automatically published for information that is due
before the meeting with the mediator. In response to receiving an indication that a
mediator has been assigned to the case the method may notify the parties of the
mediator assigned to the case which includes one or more information relating to the
20 mediator, such as contact information and biographical information.
At step 450, the method receives a response from each party and initiating the process
of settlement negotiation and acceptance. In an example, the method may provide both
the user with an initial claim summary for their review and approval.
At step 460, the method provides the final outcome of the mediation in response to a
25 mutual agreement between the first party and the second party.
18
5 At the mediation session, the mediator may be used to facilitate the disputing parties to
work together. The method may query the users whether another mediation session is
desired. If another mediation session is desired, the method may repeat the process of
mediation. In response to an indication that the users have terminated the mediation or
in response to an indication that an agreement has been reached, the method may close
10 the case which is bound by a mutual agreement between the first party and the second
party.
One the dispute is reached to a point of mutual agreement by way of mediation, the
method updated the contract distributed ledger or the smart contract with hash of the
mediation signed-off. All the transaction which are executed on the chain are recorded
15 concurrently and each transaction has a hash value. For example, each block may
include at least a block header and one or more data values. Each block header may
include at least a timestamp, a block reference value, and a data reference value. The
timestamp may be a time at which the block header was generated. The block reference
value may be a value that references an earlier block (e.g., based on timestamp) in the
20 blockchain. In some embodiments, a block reference value in a block header may be a
reference to the block header of the most recently added block prior to the respective
block. In an exemplary embodiment, the block reference value may be a hash value
generated via the hashing of the block header of the most recently added block. The
data reference value may similarly be a reference to the one or more data values stored
25 in the block that includes the block header. In an exemplary embodiment, the data
19
5 reference value may be a hash value generated via the hashing of the one or more data
values. With this information, one can find out how much value belonged to each
address at any point in history. Every block contains a hash of the previous block. Each
block is guaranteed to come after the previous block chronologically because the
previous block's hash would otherwise not be known. Each block is also
10 computationally impractical to modify once it has been in the chain for a while because
every block after it would also have to be regenerated.
Figure 5 shows a flow chart of a method performing the arbitration as alternate dispute
resolution mechanism. Arbitration processes are increasingly used to settle conflicts
15 between potential litigants, saving time and money. Arbitration normally awards the
arbitrator the power to decide the substantive questions and issue a decision to which
the parties are bound. Arbitration is a procedure in which a dispute is submitted by
agreement of disputing parties to an arbitrator or to several arbitrators who give a
decision on the dispute that is binding on the disputing parties. Typically, once
20 disputing parties freely agree to submit a dispute to arbitration, a party cannot withdraw
from the arbitration. On the other hand, mediation is an attempt to negotiate until the
parties reach some kind of a consensus on the issues.
At step 510, the method receives a request for appointing an Arbitrator.
At step 520, the method receives brief particulars of the dispute in a prescribed format
25 from both the parties.
20
5 At step 530, the method forms a panel of arbitrators and providing a choice to select or
indicate preferred arbitrator by both the parties, and upon selection, a common choice
of both parties to appoint as an arbitrator. For example, when parties have a dispute,
they may access a list of potential arbitrators and either agree to use a particular
arbitration or participate in a selection process to determine the arbitrator. An arbitrator
10 may be appointed by, for example, a case manager. The parties may be provided with
a schedule for the submission of arguments, evidence, replies, and any other suitable
information.
At step 540, the method receives claim statement/ petition with all supporting
documents within a certain time period fixed by the arbitrator, and also allowing both
15 the parties to submit their reply to other parties claim, rejoinder to replies and rejoinder
to rejoinders.
At step 550, the method frames issues for resolution based on the received claims from
both the parties to access and evaluate. In an example embodiment, the arbitrator may
provide a decision on the dispute.
20 At step 560, the method prepares an award within a predetermined time period, and
share the same with parties through communication engine.
In an example embodiment, the one or the other disputed party may request for
Arbitrator appointment. Further, the method may ask brief particulars of the dispute in
a prescribed format entered by party/parties. The method which has access of Al
25 engine, may provide option of 3 or 4 Arbitrators which each party has to select and
21
5 may also suggest to each party for indicating any/all preferred Arbitrator. A common
choice may become an Arbitrator. Once the arbitrator is appointed, further fee for
arbitrator is fixed. In an example embodiment, the claim statement/ petition has to be
filed in predetermined time period fixed by the arbitrator (e.g. 15 days) with all
supporting documents, including the process of extension of time. The method, further
10 shares claim statement with other party, seeking counter claim & reply within 15 days.
Furthermore, the counter claim from respondents with all supporting documents are
submitted. The claimants reply to counter claims along with their supporting
documents. In an example embodiment, rejoinder from defendant with all supporting
documents, claim/ counter claim amendment process which is an optional process. The
15 Arbitrator's may have the power to call for any additional documents or confirmation
or witness etc. from either/both parties or third parties independently. Further, there is
also an option of consultation via video conference or face to face. Once, arbitrator has
all the documents, then the method frames the issues for resolution. The framing of
issues for resolution is assessed & evaluated by both parties. The arbitrator call for
20 settlement exploration and an award is drafted. The award is confidential document
and the publication of award happen, by sharing with parties by the arbitrator.
In an example embodiment, the AI engine which can match and identify Acts and Rules
along with existing case laws and begin the process of deriving its award. AI which
works continually at the background in order to learn one or all of the constitution of
25 laws, all acts and stipulations, etc. by identifying actors, subjected rules, jurisdictions,
22
5 etc. and also to identify within the existing case laws all actors, matter of dispute, points
of contention, etc. In an example embodiment, the AI engine has been developing an
almost human like understanding of laws and practices, with lateral understanding and
modern upgraded interpretations will become a reservoir of legal do(s) & don’t(s) and
provisions of fixation of responsibility and punishments/penalties, etc. In an
10 embodiment the AI engine’s legal reservoir to be verified by a panel of legal experts
from time to time, and its understanding of rules to be upgraded in the form of machine
learning, by fixing non-conformities and by realigning machine understanding, thereby
gradually bringing the AI Legal Reservoir at par with human legal experts. In an
embodiment the AI engine can match the disputed cases, interpret actors and points of
15 dispute, milestones achieved, and based on matching the relevant Acts as well as case
laws from AI Legal reservoir to pronounce an Award within a specified short interval.
In an another example embodiment of the present invention which may allow to choose
to vet the award initially through legal experts, every change in award to bring further
feed to the engine for the improvement in reservoir and gradually arrive at a point in
20 time where AI based Award are considered very impartial, exhaustively literature
scanned, very efficient & practical.
One the dispute is reached to a point of settlement by way of arbitration, the method
updated the contract distributed ledger or the smart contract with hash of the arbitral
award signed-off. All the transaction which are executed on the chain are recorded
25 concurrently and each transaction has a hash value. For example, each block may
23
5 include at least a block header and one or more data values. Each block header may
include at least a timestamp, a block reference value, and a data reference value. The
timestamp may be a time at which the block header was generated. The block reference
value may be a value that references an earlier block (e.g., based on timestamp) in the
blockchain. In some embodiments, a block reference value in a block header may be a
10 reference to the block header of the most recently added block prior to the respective
block. In an exemplary embodiment, the block reference value may be a hash value
generated via the hashing of the block header of the most recently added block. The
data reference value may similarly be a reference to the one or more data values stored
in the block that includes the block header. In an exemplary embodiment, the data
15 reference value may be a hash value generated via the hashing of the one or more data
values. With this information, one can find out how much value belonged to each
address at any point in history. Every block contains a hash of the previous block. Each
block is guaranteed to come after the previous block chronologically because the
previous block's hash would otherwise not be known. Each block is also
20 computationally impractical to modify once it has been in the chain for a while because
every block after it would also have to be regenerated.
Referring now to FIG. 6 a controller 600 is illustrated that may be utilized to implement
some embodiments of the present invention. The controller may be included in one or
25 more of the apparatus described above, such as the Blockchain Server, and the Network
24
5 Access Device. The controller 600 includes a processor unit 610, such as one or more
semiconductor based processors, coupled to a communication device 620 configured
to communicate via a communication network (not shown in FIG. 6). The
communication device 620 may be used to communicate, for example, with one or
more online devices, such as a personal computer, laptop, or a handheld device.
10 The processor 610 is also in communication with a storage device 630. The storage
device 630 may comprise any appropriate information storage device, including
combinations of storage devices (e.g., hard disk drives and server farms), solid state
drives, optical storage devices, and/or semiconductor memory devices such as Random
Access Memory (RAM) devices and Read Only Memory (ROM) devices.
15 The storage device 630 can store a software program 640 (executable software code
executable on demand) for controlling the processor 610. The processor 610 performs
instructions of the software program 640, and thereby operates in accordance with the
present invention. The processor 610 may also cause the communication device 620 to
transmit information, including, in some instances, control commands to operate
20 apparatus to implement the processes described above. The storage device 630 can
additionally store related data in a database 650.
In various embodiments, a controller 600 may be incorporated into a network access
device such as a smart device (e.g. a smart phone or smart tablet); a personal computer
(PC), a network server, or specialized user interactive device. Controllers may also be
25 incorporated into specialized equipment, such as a scanner or printer. Typically, the
25
5 scanner or printer will be in logical communication with a distributed network, such as
a wide area network (WAN), a virtual private network (VPN) and/or the Internet. A
Blockchain will be stored on a server (Blockchain Server) including one or more
processors operative via executable software to perform the method steps described
herein. Typically, the Blockchain Server will be accessible via a communications
10 network via network access device with a controller executing executable software.
A number of embodiments of the present disclosure have been described. While this
specification contains many specific implementation details, there should not be
construed as limitations on the scope of any disclosures or of what may be claimed, but
rather as descriptions of features specific to particular embodiments of the present
15 disclosure. While embodiments of the present disclosure are described herein by way
of example using several illustrative drawings, those skilled in the art will recognize
the present disclosure is not limited to the embodiments or drawings described. It
should be understood the drawings and the detailed description thereto are not intended
to limit the present disclosure to the form disclosed, but to the contrary, the present
20 disclosure is to cover all modification, equivalents and alternatives falling within the
spirit and scope of embodiments of the present disclosure as defined by the appended
claims.
The headings used herein are for organizational purposes only and are not meant to be
used to limit the scope of the description or the claims. As used throughout this
25 application, the word “may” be used in a permissive sense (i.e., meaning having the
26
5 potential to), rather than the mandatory sense (i.e., meaning must). Similarly, the words
“include”, “including”, and “includes” mean including but not limited to. To facilitate
understanding, like reference numerals have been used, where possible, to designate
like elements common to the figures.
The phrases “at least one”, “one or more”, and “and/or” are open-ended expressions
10 that are both conjunctive and disjunctive in operation. For example, each of the
expressions “at least one of A, B and C”, “at least one of A, B, or C”, “one or more of
A, B, and C”, “one or more of A, B, or C” and “A, B, and/or C” means A alone, B
alone, C alone, A and B together, A and C together, B and C together, or A, B and C
together.
15 The term “a” or “an” entity refers to one or more of that entity. As such, the terms “a”
(or “an”), “one or more” and “at least one” can be used interchangeably herein. It is
also to be noted the terms “comprising”, “including”, and “having” can be used
interchangeably.
Certain features that are described in this specification in the context of separate
20 embodiments can also be implemented in combination in a single embodiment.
Conversely, various features that are described in the context of a single embodiment
can also be implemented in combination in multiple embodiments separately or in any
suitable sub-combination. Moreover, although features may be described above as
acting in certain combinations and even initially claimed as such, one or more features
25 from a claimed combination can in some cases be excised from the combination, and
27
5 the claimed combination may be directed to a sub-combination or variation of a subcombination.
Similarly, while method steps may be depicted in the drawings in a particular order,
this should not be understood as requiring that such operations be performed in the
particular order shown or in a sequential order, or that all illustrated operations be
10 performed, to achieve desirable results.
Certain features that are described in this specification in the context of separate
embodiments can also be implemented in combination in a single embodiment.
Conversely, various features that are described in the context of a single embodiment
can also be implemented in combination in multiple embodiments separately or in any
15 suitable sub-combination. Moreover, although features may be described above as
acting in certain combinations and even initially claimed as such, one or more features
from a claimed combination can in some cases be excised from the combination, and
the claimed combination may be directed to a sub-combination or variation of a subcombination.
20 Moreover, the separation of various system components in the embodiments described
above should not be understood as requiring such separation in all embodiments, and
it should be understood that the described program components and systems can
generally be integrated together in a single software product or packaged into multiple
software products.
28
5 Thus, particular embodiments of the subject matter have been described. Other
embodiments are within the scope of the following claims. In some cases, the actions
recited in the claims can be performed in a different order and still achieve desirable
results. In addition, the processes depicted in the accompanying figures do not
necessarily require the particular order show, or sequential order, to achieve desirable
10 results. In certain implementations, multitasking and parallel processing may be
advantageous. Nevertheless, it will be understood that various modifications may be
made without departing from the spirit and scope of the claimed disclosure.
In certain implementations, multitasking and parallel processing may be advantageous.
Nevertheless, it will be understood that various modifications may be made without
15 departing from the spirit and scope of the claimed disclosure.

We Claim:
1. An automated method of mutual settlement for a contractual dispute resolution, the
method comprising:
accessing data corresponding to at least one distributed ledger;
identifying a dispute involving a contractual agreement between a first party
10 and one or more second parties;
classifying the identified dispute into specified categories based on the type of
dispute and the scale of dispute;
issuing notices to the first party and the second party, the notice including
information about default in performance of the contract and seeking filing of
15 their replies and affidavits, along with data entry in specified field of the
contract;
allowing all parties to submit their claim, reply to other parties claim, rejoinder
to replies and rejoinder to rejoinders with a final offer or proposal for
acceptance of the counter party for the closure of the dispute;
20 proposing to all parties with an offer for settlement within a certain time period
for acceptance; and
generating, upon acceptance on the offer for settlement, a final order as the
terms of settlement of the dispute contract.
2. The method as claimed in claim 1, further comprising:
30
5 processing to derive an award if the waiting time period of acceptance is
expired, wherein the processing of the award is by AI engine to match and
identify Acts and Rules along with existing case laws.
3.The method as claimed in claim 1, wherein the identified dispute represents a dispute
10 between the first and second parties regarding a conformity of the one or more
performed activities to the contractual agreement.
4.The method as claimed in claim 1, wherein the step of proposing the offer is based
on the optimal settlement amount, wherein the proposal is associated with a predicted
15 likelihood of acceptance.
5.The method as claimed in claim 1, wherein the step of proposing including a time
period having a deadline notification which provides a reminder regarding a settlement
deadline for the dispute between the first party and the second party.
20
6.The method as claimed in claim 1, wherein the type of dispute details includes any
amount of the dispute, location information regarding where the dispute occurred, a
time and or date when the dispute occurred, and the basic underlying facts of the
dispute.
25
31
5 7.The method as claimed in claim 1, wherein the step of generating the final order is
facilitated by the AI engine, wherein the AI engine including Machine Learning models
which is capable of making predictions about the likelihood of settlement amounts
which will be accepted by both the parties and also store the upgraded interpretations
for provisioning of fixation of responsibility and punishments/penalties.
10
8.The method as claimed in claim 1, further comprising:
updating the distributed ledger with a hash of the settlement signed-off, wherein
the transaction of settlement of the dispute contract between the parties are
recorded concurrently and each transaction is recorded with a hash value.
15
9.An automated method or an AI based framework for a contractual dispute resolution,
the method comprising:
accessing data corresponding to at least one distributed ledger;
identifying a dispute involving a contractual agreement between a first party
20 and one or more second parties;
issuing notices to the first party and the second party, the notice including
information about default in performance of the contract and seeking filing of
their replies and affidavits, along with data entry in specified field of the
contract;
32
5 allowing both the parties to submit their claim, reply to other parties claim,
rejoinder to replies and rejoinder to rejoinders with a final offer or proposal for
acceptance of the counter party for the closure of the dispute;
proposing to both the parties with an offer for settlement within a certain time
period for acceptance; and
10 providing a plurality of options to settle the dispute if the offer for settlement is
rejected, wherein the option to settle the dispute includes mediation, neutral
evaluation, and arbitration.
10.The method as claimed in claim 9, wherein performing the mediation as alternate
15 dispute resolution mechanism includes:
allowing both the parties to provide a brief of all the particulars of the dispute
in a prescribed format;
appointing a mediator to mediate the dispute;
providing information relating to the dispute to the mediator by both the parties;
20 providing the proposed mediator solution to the parties;
receiving a response from each party and initiating the process of settlement
negotiation and acceptance; and
providing the outcome of the mediation in response to a mutual agreement
between the first party and the second party.
25
33
5 11.The method as claimed in claim 10, further comprising:
updating the distributed ledger with a hash of the mediation signed-off, wherein
the transaction of mutual agreement by way of mediation of the dispute contract
between the parties are recorded concurrently and each transaction is recorded
with a hash value.
10
12.The method as claimed in claim 9, wherein performing the arbitration as alternate
dispute resolution mechanism includes:
receiving a request for appointing an Arbitrator;
receiving brief particulars of the dispute in a prescribed format from both the
15 parties;
forming a panel of arbitrators and providing a choice to select or indicate
preferred arbitrator by both the parties, and upon selection, a common choice
of both parties to appoint as an arbitrator;
receiving claim statement/ petition with all supporting documents within a
20 certain time period fixed by the arbitrator, and also allowing both the parties to
submit their reply to other parties claim, rejoinder to replies and rejoinder to
rejoinders;
framing of issues for resolution based on the received claims from both the
parties to access and evaluate; and
34
5 preparing an award within a predetermined time period, and share the same
with parties through communication engine.
13.The method as claimed in claim 12, further comprising:
updating the distributed ledger with a hash of the arbitral award signed-off,
10 wherein the transaction of settlement by way of arbitration of the dispute
contract between the parties are recorded concurrently and each transaction is
recorded with a hash value.
14.A system for providing integrated dispute resolution services over a computer
15 network for resolving a dispute between a first party and a second party, comprising:
at least one server including a processor and a memory storing executable
instructions that, when executed by the at least one processor, causes the at least
one processor to perform the steps of:
accessing data corresponding to at least one block chain ledger;
20 obtaining notification data identifying a dispute involving a contractual
agreement between a first party and one or more second parties;
issuing notices to the first party and the second party, the notice including
information about default in performance of the contract and seeking filing of
their replies and affidavits, along with data entry in specified field of the
25 contract;
35
5 allowing both the parties to submit their claim, reply to other parties claim,
rejoinder to replies and rejoinder to rejoinders with a final offer or proposal for
acceptance of the counter party for the closure of the dispute;
proposing to both the parties with an offer for mutual settlement within a certain
time period for acceptance; and
10 providing a plurality of options to settle the dispute if the offer for mutual
settlement is rejected, wherein the option to settle the dispute includes
mediation, neutral evaluation, and arbitration.