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Resolving U.S. Patent Disputes Outside of the U.S.

By Scott Kolassa
March 29, 2006

Patents, by their very nature, are territorial, granting a right to exclude in the country that issues them. Thus, a patentee seeking to enforce its U.S. Patent must do so in a federal district court or, if goods are being imported into the country, at the International Trade Commission ('ITC').

However, consider the following scenario: A Licensor and a Licensee enter an agreement whereby Licensor grants Licensee a license to intellectual property rights that include U.S. Patents. The agreement contains either 1) a forum selection clause selecting the courts of some country other than the United States or 2) an arbitration clause mandating the resolution of the dispute in foreign arbitration.

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