Patent Dispute Model Clauses

1.      Multi Step Clause

Negotiation

If a dispute arises out of or relates to this Agreement, or its breach, the disputing party may give the other party written notice of any dispute not resolved in the normal course of business. Within [30] days after delivery of the written notice, executives who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement shall meet at a mutually acceptable time and place and thereafter as often as they reasonably deem necessary, to attempt to resolve the dispute.

Mediation

If the dispute has not been resolved by negotiation within [45] days after delivery of the initial notice of negotiation, [or if the parties failed to meet within]30[days after delivery], the parties agree to resolve the dispute through mediation by a sole mediator selected by the parties or, at any time at the option of a party, to mediation by the CPR Mediation Procedure [as modified by the CPR Streamlined Mediator Selection Procedure].

2.      Pre-Dispute Clause (Arbitration)

If not thus resolved, any controversy or claim arising out of or relating to this contract, or the enforcement, breach, termination or validity thereof, shall be finally resolved by arbitration in accordance with the [current] CPR Rules for Non-Administered Arbitration of Patent and Trade Secret Disputes [in effect on the date of this contract], by (a sole arbitrator) (three neutral arbitrators, none of whom shall be appointed by either party) (three arbitrators, of whom each party shall appoint one). [The arbitrator(s), and not the court, shall have primary responsibility to hear and determine challenges to the jurisdiction of the arbitrator(s). OR The court, and not the arbitrator(s), shall have primary responsibility to hear and determine challenges to the jurisdiction of the arbitrator(s).] The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1 et seq., and judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof. The place of the arbitration shall be (city, state). Insofar as the proceeding relates to patents, it shall also be governed by 35 U.S.C. §294, to the extent applicable.

3.      Existing Dispute Submission Agreement (Arbitration)

We, the undersigned parties, hereby agree to submit to arbitration in accordance with the CPR Rules for Non-Administered Arbitration of Patent and Trade Secret Disputes (the “Rules”) in effect on the date of this agreement the following controversy:

[Describe briefly]

We further agree that the above controversy shall be submitted to [a sole arbitrator] [three neutral arbitrators, none of whom shall be appointed by either party] [three arbitrators, of whom each party shall appoint one]. [The arbitrator(s), and not the court, shall have primary responsibility to hear and determine challenges to the jurisdiction of the arbitrator(s). OR The court, and not the arbitrator(s), shall have primary responsibility to hear and determine challenges to the jurisdiction of the arbitrator(s).] We further agree that we shall faithfully observe this agreement and the Rules and that we shall abide by and perform any award rendered by the arbitrator(s). The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§1 et seq., and judgment upon the award may be entered by any court having jurisdiction thereof. The place of the arbitration shall be [city, state]. Insofar as the proceeding relates to patents, it shall also be governed by 35 U.S.C. §294, to the extent applicable.