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I recently overheard one of my colleagues make the following observation: “Well, with AIA being so challenger friendly, quick, and relatively inexpensive I am not sure how important arbitration clauses are anymore in patent license agreements.” Contrary to the thoughts expressed by my brethren, in my view the benefits of arbitration provisions in a patent license are enhanced, not diminished under the American Invents Act (AIA).

Both prior to the passage of the America Invents Act and after its enactment, the seminal advantages in arbitrating patent disputes remain unchanged. These include:

• Reduced costs;

• More rapid and final resolution of disputes having both domestic and international implications;

• The ability of the parties to narrow the scope of the issues;

• The confidentiality of the proceedings;

• The generally less antagonistic nature of the proceeding making it less likely to rupture a commercial relationship; and

• The benefit of having experts with legal and technical backgrounds acting as arbitrators.

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