The Benefits of Mediation and/or Arbitration over Trial

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Patent litigation in federal court is one of the most costly and time-consuming forms of dispute resolution in the United States and abroad. Even after spending millions to bring a case through trial, the winning party runs a very high risk of reversal at the U.S. Court of Appeals for the Federal Circuit or its foreign counterpart. In almost every patent dispute, arbitration and/or mediation can provide a cheaper, faster, and better alternative, even where the issues are complex and the stakes are high.

A recent arbitration vividly illustrates this point. The patent licensing dispute involved multiple parties, multiple agreements, multiple patents, and issues of claim construction and infringement under the laws of both the United States and Europe. Hundreds of millions of dollars in royalty payments were disputed, and the parties disagreed on whether any royalty payments were due and, if due, how they should be calculated.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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