The Arbitration Clause

AuthorDavid A. Allgeyer
Pages29-39
29
CHAPTER 6
The Arbitration Clause
Let’s assume you have determined that a patent arbitration is a
good idea in your agreement. It’s now time to consider drafting
the arbitration clause for a possible patent arbitration.
WHAT TO AVOID
Let’s begin with what not to do. The easiest approach to draft-
ing an arbitration clause is to simply copy one out of the last
agreement with an arbitration clause someone in your office did.
I have seen some pretty strange and even contradictory arbi-
tration clauses. I am convinced fairly mindless copying explains
how they came into being. Let me give you an example:
Any disputes between these parties about this con-
tract shall be subject to binding arbitration under the
Federal Arbitration Act and the Minnesota Revised
Uniform Arbitration Act. Before arbitrating, the par-
ties agree that they will try to settle the case through
mediation. If they cannot so settle this matter, they
will each pick an arbitrator and the arbitrators they
pick will pick a third arbitrator. The prevailing party
will be awarded its attorneys’ fees and costs.
Right away, you are set up to possibly have to litigate over this
clause. First, the federal act is different than the state act, so

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