News & Insights

Dire predictions have recently been made by commentators pondering the future of patent arbitration in light of the new U.S.Patent and Trademark Office (USPTO) post-grant trial proceedings (post-grant review (PGR) and inter partes review (IPR)) implemented by the Leahy-Smith America Invents Act (AIA). Contrary to those views, patent arbitration is still very much alive, widely used, and, where employed in appropriate situations and structured properly, will likely see increasing use. …

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There is a hole in our arbitral system. Despite being among the most efficient and prevalent means of resolving commercial disputes, and one generally favored by courts,3 arbitration is dangerously susceptible to the problem of nonpayment. Simply put, a respondent seeking to avoid liability may be able to “game” the system by refusing to pay its share of arbitration fees. All too frequently, this leaves the claimant without an effective remedy to hold the nonpaying respondent accountable. …

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