Arbitration Clauses in License Agreements (Part 1)

This 2010 case is a good reminder that courts will give effect to arbitration clauses if that’s what the parties have chosen in their license agreements.

  • In PRM Energy Sys., Inc. v. Primenergy, LLC, 592 F.3d 830 (8th Cir. 2010) , the United States Court of Appeals, Eighth Circuit decided to uphold an arbitration clause in a patent license agreement, which was drafted to cover “all disputes arising under” the agreement. A complex series of agreements and disputes led PRM to sue Kobe Steel, a non-party or ”non-signatory” to the original license agreement that contained the arbitration clause. However, Kobe Steel convined the court that the arbitration clause should be enforced. The court decided that PRM’s claims were so intertwined with patent license that contained the arbitration clause that it would be unfair to allow PRM to rely on the license agreement in making its claims, but to avoid the arbitration clause of that same agreement.

In Canada, courts have also shown that they are prepared to uphold arbitration clauses. Consider this case:

  • The case of University of Toronto v. John N. Harbinson Ltd. 2005 CanLII 47089 (ON SC), dealt with a broad arbitration clause that said: “Any dispute, controversy or claim arising from this Agreement or its breach, termination or alleged invalidity shall be settled by arbitration in accordance with the Arbitrations Act of Ontario, as amended.” In this case, the court decided that the arbitration clause should be upheld, particularly since no Patent Act claims or remedies were being sought.

Related reading: See Did You Say Arbitration in Kazakhstan?, reviewing a case where arbitration was triggered by one of the parties, and the Alberta Court decided that the breach of contract questions fell within the scope of the arbitration under the law of Kazakhstan.

Calgary - 07:00 MDT

No comments yet. Be the first.

Leave a reply

You must be logged in to post a comment.

i want to buy prednisone without a perscription order prednisone free next day airprednisone on line Buy accutane with visa where can i purchase synthroid 200 mcg mastercard without a prescription buy finpecia no prescription low cost where to buy finpecia without a prescription where can i purchase zithromax online purchase Buspar no visa online without prescription buy Atarax amex purchase cheap Atarax online buying Cytotec online lisinopril lisinopril buy lisinopril lisinopril buy Metformin from india Metformin side effects buy Lisinopril cheap uk buy Lisinopril buy Lisinopril legally buy finpecia over counter buy finpecia online prednisone no physician prednisone in mexico without a perscription purchase Buspar without prescription to ship overnight where to buy Amitriptyline without a prescription Premarin mexico valtrex generic pharmacy iframe Buy Valtrex from usa without a perscription purchase Maxalt without buy Metformin without a credit card buy Metformin no rx finpecia online pharmacy buy cheap valtrex without prescription free fedex delivery Valacyclovir Amitriptyline from india Premarin drug order cheap overnight Premarin online Maxalt purchase buy cheap generic prednisone online canada pharmacy no prescription buy prednisone oral Metformin online purchase buy Metformin doctor prescription order metformin without prescription to ship overnight where to purchase metformin no prescription no fees metformin order online metformin suppliers buy Metformin in united states online Metformin sale buy Metformin from india finpecia online no rx finpecia with fedex buy finpecia next day delivery purchase Premarin without prescription to ship overnight where buy Premarin