Arbitration: Incorporation of AAA rules in license creates clear and unmistakable intent to arbitrate

Qualcomm v. Nokia (Fed. Cir. 2006).

A 2001 license agreement between Nokia and Qualcomm includes an arbitration clause.  The agreement apparently does not cover all of Nokia’s products, and in 2005, and Qualcomm sued Nokia for patent infringement. The parties disputed whether the arbitration clause should apply here. Writing for a two-judge majority, Judge Prost explained that the parties “clearly and unmistakably” intended that the patent questions be arbitrated instead of a court as evidenced by the agreement’s incorporation of the AAA rules.

On remand, the district court will send the dispute to arbitration unless the arguments supporting arbitrability of the issues would be “wholly groundless.”

Notes:

• Read the Opinion
• One-line dissent by Newman

Comments

[jim frost]

Do you have a link to Newman's dissenting opinion?

[anonymous]

Judge Newman didn't write an opinion. The only word from her in this case is the line at the end:

"NEWMAN, Circuit Judge, dissents. Circuit Judge Newman would affirm the judgment of the district court."

[me]

As usual, Newman is right.