UPC Legal Compass: PMAC – Fast and Confidential Patent Dispute Resolution under the UPC

Overview

The Patent Mediation and Arbitration Centre (PMAC) was officially launched in June 2023 alongside the start of the Unified Patent Court (UPC), marking a major advancement in European patent dispute resolution. PMAC provides for an out-of-court alternative to traditional litigation by offering mediation and arbitration services tailored specifically for patent disputes. With offices established in Ljubljana and Lisboa, PMAC enables patent holders and alleged infringers to resolve conflicts quickly, confidentially, and cost-effectively. This institution complements the UPC’s court procedures by providing parties with flexible, amicable, and enforceable solutions, helping to reduce the time and expense typically associated with patent litigation.

The Patent Mediation and Arbitration Centre (PMAC) is in the final stages of development, aiming to commence regular operations at the beginning of 2026. According to Aleš Zalar, the director of PMAC, the procedural rules will be finalized by the end of 2025, accredited mediators and arbitrators will be selected through a public tender process, and a technical case management system will be implemented.

The upcoming launch of the centre promises to improve the efficiency and transparency of patent dispute resolution for both patent owners and potential infringers.

PMAC Procedures

PMAC offers specialized alternative dispute resolution (ADR) procedures designed to handle patent disputes efficiently while maintaining confidentiality and procedural flexibility. These options serve as valuable alternatives to lengthy and costly court proceedings.

1. Mediation

Mediation under PMAC is a voluntary and confidential process where a neutral mediator facilitates dialogue between disputing parties to help them reaching a mutually acceptable agreement. The mediator does not impose decisions but guides discussions, clarifies interests, and encourages creative solutions. This approach is ideal for parties wishing to preserve business relationships and resolve disputes amicably. Mediation is faster and more cost-effective than formal litigation, with strict confidentiality. If an agreement is reached, it can be submitted to the UPC for confirmation, making the settlement legally enforceable across all UPC member states. Parties may withdraw from mediation at any time without affecting their rights to pursue other remedies.

2. Arbitration

PMAC offers arbitration as a more formal alternative to mediation, providing parties with a binding or non-binding decision depending on their preferences and agreements.

a. Non-Binding Arbitration

In this process, arbitrators review the dispute and provide a recommendation or advisory opinion that is not legally binding. This allows parties to obtain an impartial expert assessment while retaining the flexibility to negotiate further or proceed to litigation if they disagree with the recommendation. Non-binding arbitration is a cost-effective and less formal way to clarify complex patent issues.

b. Binding Arbitration

Binding arbitration results in a final, legally enforceable award. The arbitrators act as a private tribunal empowered to conclusively decide the dispute, with very limited grounds for appeal. This provides parties with legal certainty and can significantly reduce the duration and costs compared to court litigation. PMAC’s binding arbitration includes expedited procedures for smaller claims and the option to appoint an emergency arbitrator to grant urgent interim relief. Like mediation, arbitration is conducted confidentially. The binding award can be submitted to the UPC for confirmation, enabling enforcement across all UPC member states without additional recognition procedures.

3. Common Features and Benefits

All PMAC procedures prioritize confidentiality, cost efficiency, and procedural flexibility. Special safeguards protect sensitive information, particularly in disputes involving SEPs and FRAND licensing terms. The ability to confirm mediated settlements and arbitral awards through the UPC ensures cross-border enforceability within participating member states. By offering mediation, non-binding arbitration, and binding arbitration, PMAC provides a comprehensive spectrum of dispute resolution options tailored to parties’ needs – whether they seek to preserve relationships, gain expert guidance, or secure a definitive legal resolution.

PMAC thus has the ability to strengthen the European patent system by enabling faster, confidential, and enforceable dispute resolution under the UPC framework, supporting innovation and reducing the burden on courts.