Party Did Not Waive Right to Arbitrate Patent Licensing Dispute, 2nd Cir. Affirms

NEW YORK — A party has not waived its right to arbitrate a patent licensing agreement by waiting four months to demand arbitration after filing suit in federal court, a federal appeals court has affirmed, holding that the opposing party was not prejudiced by the delay.

In an Oct. 5 ruling, the 2nd Circuit further held that the party did not “act inconsistently with its contractual right to arbitration.”

LG Electronics Inc. entered into a patent license agreement with Wi-LAN USA Inc., which allows LG to make and sell products containing technology under patents controlled by Wi-LAN.

The PLA contains …