§294 Voluntary arbitration

Summary

Allows patent contracts or parties in a dispute to require or agree in writing to settle patent validity or infringement issues by arbitration. Such arbitration clauses are valid, cannot be canceled, and can be enforced unless the contract can be undone for the same reasons any other contract can be undone. Arbitration and arbitrator awards follow title 9 unless title 9 conflicts with this law. If a party raises them, the arbitrator must consider the defenses in section 282. An arbitrator’s award is final and binding only between the parties, and the parties may agree that a court of competent jurisdiction from which no appeal can or has been taken may later modify the award if the patent is later found invalid or unenforceable. When an award is made, the patentee, assignee, or licensee must give written notice to the Director, with one notice for each patent. The notice must list the parties’ names and addresses, the inventor, the patent owner, the patent number, and include a copy of the award. If a court modifies the award, the party asking for that change must notify the Director, who will enter the notice in the patent’s prosecution record. If the required notice under subsection (d) is not filed by the patentee, any party to the proceeding may provide it. An award cannot be enforced until the Director receives the required notice.