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First Paragraph

International patent arbitration is an underutilized method of dispute resolution that has the potential to yield many benefits for companies within the pharmaceutical and biotechnology industries. These industries would benefit from international patent arbitration because patents are the companies’ primary assets, the costs of research and development (“R&D”) are high, and limited patent monopolies create a tight time constraint for receiving a return on costs. Additionally, the positive impact the biotechnology and pharmaceutical industries have on universal health puts pressure on the companies’ need for a quick, efficient, and low cost international resolution process. Arbitration provides just that. Arbitration is a blank canvas on which the parties have complete autonomy to modify the procedures to best fit their needs. This autonomy places a substantial amount of beneficial power in the hands of the companies and significantly diminishes the constraints of international litigation. The beneficial impact international arbitration has had for companies led it to become the standard method of dispute resolution among the energy, construction, insurance, shipping and commodities industries. Furthermore, this trend has extended to countries as a whole with many countries openly endorsing international arbitration. In particular, the United States Supreme Court has explicitly recognized “an emphatic federal policy in favor of arbitral dispute resolution.” Once the biotechnology and pharmaceutical industries embrace the use of patent arbitration, they will experience benefits that simply cannot be achieved in litigation.

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