Arbitration is currently rarely used in patent disputes because arbitration provisions are part of patent licensing agreements but most patent disputes are not between licensees and licensors.
Arbitration can however be a valuable tool (saving time and money) in resolving patent disputes if parties to a license/industry dispute resolution agreement devote time and effort preparing an arbitration provision to meet their objectives
Use of arbitration is not limited to pre-existing contractual provisions. Parties can agree to arbitration after a dispute arises or even modify existing arbitration provisions after the details of the dispute are known.
With the soaring costs of litigation, patent holders have become more reluctant to enforce patent rights. Artful and careful use of arbitration provisions can provide a company with the opportunity to design a potential solution that fits within the company’s objectives and budget.