What is the effect of an arbitration award on third parties not involved in the arbitration?

An arbitration award in patent cases has limited effect and is binding only on the parties involved in the arbitration. This limitation is clearly stated in 35 U.S.C. 294(c):

“An award by an arbitrator shall be final and binding between the parties to the arbitration but shall have no force or effect on any other person.”

This means that:

• The arbitration award is conclusive for the parties involved in the dispute.
• Third parties not involved in the arbitration are not bound by the award.
• The award does not affect the rights of individuals or entities who were not part of the arbitration proceedings.

This provision ensures that the rights of third parties are protected and that arbitration outcomes do not have unintended consequences on uninvolved parties in patent matters.