§294 Voluntary Arbitration

Summary

People who make or already have a patent contract can require or later agree in writing to have any dispute about the patent’s validity or infringement decided by arbitration. Those arbitration agreements are valid and enforceable unless normal contract law cancels them. The arbitration follows the federal arbitration rules (Title 9) unless those rules conflict with this law. The arbitrator must consider the legal defenses listed in section 282 if a party raises them. An arbitrator’s decision is final and only applies to the people who agreed to arbitration. The parties can agree that if a court of competent jurisdiction later issues a final judgment (one that cannot or has not been appealed) saying the patent is invalid or unenforceable, a court may change the arbitrator’s award and that change will govern the parties from that date. When an award is made, the patentee, assignee, or licensee must send written notice to the Director for each patent involved. The notice must name the parties and their addresses, the inventor, the patent owner, the patent number, and include a copy of the award. If a court changes the award, the party asking for the change must notify the Director. If no required notice is filed, any party may file it. The award cannot be enforced until the Director receives the required notice.