Court Upholds Arbitration Clause In Patent License Dispute

Originally published in Blakes Bulletin in Intellectual Property - Special Patent Issue, September 2006

The Ontario Superior Court of Justice in Governing Council of the University of Toronto v. John N. Harbinson Limited supported the application of arbitration clauses in patent and other intellectual property license agreements, holding that a dispute relating to warranties regarding inventorship and ownership of the invention in a patent license agreement should be resolved pursuant to the arbitration clause in the agreement.

Increasingly, parties are including provisions in agreements to provide for the arbitration of disputes. Disputes in relation to technology, patent and other intellectual property licenses are particularly appropriate for arbitration because of the desire to maintain confidentiality about the licensed technology and rights, as well as the continuing relationship between the parties.