§294 Voluntary Arbitration

Summary

Allows patent contracts to require arbitration for disputes about patent validity or infringement. If there is no clause, the people in a current dispute can agree in writing to arbitrate. Such arbitration agreements are valid and enforceable unless normal contract rules say otherwise. Federal arbitration law (Title 9) applies unless it conflicts with these rules. Arbitrators must hear the defenses listed in section 282 if a party raises them. An arbitrator’s award is final and only binds the people who agreed to the arbitration. The parties can agree that a later final court ruling that a patent is invalid or unenforceable may let a court change the award, and that change will govern their rights from that date. The patent owner, assignee, or licensee must send a written notice and a copy of the award to the Director for each patent involved, and must notify the Director if the award is later changed. The Director will record the notice in the patent file. The award cannot be enforced until the Director gets the required notice.