Patent Mediation and Arbitration Center (PMAC) – Alternative dispute resolution in patent law

Additional options for dispute resolution in patent matters: The Patent Mediation and Arbitration Center will commence operations in Ljubljana and Lisbon in early 2026.

The PMAC complements the Unified Patent Court (UPC), headquartered in Paris, with alternative dispute resolution procedures. The aim is to offer fast, confidential, and cost-effective solutions for complex and cross-border patent disputes.

Typical areas of application are expected to be patent licensing conflicts, cross-border infringement lawsuits, and patent disputes in joint projects or joint ventures.

Structure and types of proceedings

The PMAC offers two specialized forms of alternative dispute resolution (ADR) for patent disputes: mediation and arbitration.

The mediation process follows a highly party-autonomous approach. The parties agree on one or more mediators. They can choose from a list of experienced patent lawyers and technical specialists or select their own suitable individuals. The procedure begins with the signing of a mediation agreement that specifies the subject matter of the dispute, the objective (e. g., global settlement/licensing structure), and confidentiality standards. If an agreement is reached, it can be recorded as an enforceable settlement by the UPC upon request.

The arbitration procedure is based on international standards. The parties can appoint a single arbitrator or a three-member arbitral tribunal. Here, too, the parties have a say in the selection of arbitrators, as they are each free to appoint one member of the three-member arbitral tribunal. The proceedings can be structured flexibly, for example with regard to language or place of arbitration. In principle, a final award is issued, which can be enforced like a state court judgment. However, if the parties expressly agree, only a recommendation without legal force may be issued. Arbitration proceedings are also subject to more extensive confidentiality rules than state court proceedings.

The PMAC has not yet issued or published final mediation and arbitration rules, but comments on published drafts were collected until the end of July.

Enforceability

Arbitration administered by the PMAC offers a significant advantage over many other ADR procedures. First, an arbitral award enforceable in all contracting states is guaranteed. This is based on the reciprocal reference in the Agreement on a Unified Patent Court and the applicability of the New York Convention. The PMAC thus closes a gap between out-of-court settlement discussions and judicial enforcement, with the effect that parties can achieve faster and at the same time legally secure solutions.

Scope of application and scope of decision

The PMAC has a remarkably broad scope of application. The PMAC is not reserved exclusively for cases already pending before the UPC. In principle, all disputes relating to European bundle patents or unitary patents, as well as knowledge and technology-related ancillary disputes (e. g., license fees, FRAND, R&D cooperation) can be brought before a mediator or an arbitral tribunal in accordance with the rules of the PMAC.

A frequently controversial topic is the inclusion of nullity issues. In principle, an arbitral tribunal cannot declare patents invalid under the rules of the PMAC. Nevertheless, the PMAC opens up practical possibilities. Parties can agree in mediation or arbitration proceedings to limit the patent claim or to abandon the patent altogether in a legally binding manner. Through these mechanisms, the PMAC remains within the contractually permissible framework, but still enables a holistic resolution of the conflict, including clarification of validity issues.

Strategy

For in-house counsel, the strategic question arises as to which cases the PMAC is particularly suitable for and preferable to other procedures. On the one hand, mediation or arbitration proceedings under the rules of the PMAC are recommended for complex licensing and FRAND constellations in which economic interests are to be modulated and where a public decision by an adjudicating body is undesirable, for example for competition or PR reasons. On the other hand, PMAC is particularly suitable for "global settlements" in which parallel US, Asian, and European proceedings are settled as a package.

Our practical tips

• Strategic use in the run-up to disputes: Companies should consider mediation proceedings under the PMAC rules at an early stage, especially if complex licensing relationships or FRAND negotiations are pending. An amicable solution in mediation proceedings under the PMAC rules can avoid lengthy and costly litigation.
• Protection of trade secrets: The confidentiality of the proceedings makes the PMAC particularly suitable for cases involving sensitive technical or economic information.
• Inclusion in contract drafting: It is advisable to include arbitration clauses in favor of the PMAC arbitration rules in license or research cooperation agreements. This establishes a clear dispute resolution mechanism that provides security for the parties in the event of a conflict.

We will continue to monitor the activities of the PMAC. At HEUKING, our experts in patent law and dispute resolution will be happy to advise you on all questions relating to the new Mediation and Arbitration Center for Patent Matters.

This article was created in collaboration with our research assistant Philipp Wiese.