Introduction While the arbitrability of patent validity disputes has long been established in many jurisdictions, the issue remains a subject of controversy in others, particularly in Germany. This debate arises from the fact that patents are intellectual property rights granted by a sovereign state, the validity of which is traditionally determined by state courts. Recently, the German Federal Court of Justice (Bundesgerichtshof) had another opportunity to take a definitive stance on this matter.[1] However, the…

The applicant sought recognition and enforcement of a Swedish award in Germany. In the arbitral proceedings, the respondent had only challenged whether the substantive contract, which allegedly contained the arbitration agreement, had been concluded. However, he had not raised objections to the arbitral tribunal’s jurisdiction. Can the respondent, at the enforcement stage, successfully invoke that there was no valid arbitration agreement? The Higher Regional Court of Stuttgart (“OLG Stuttgart”), rejected this in the decision dated…

The Bavarian Highest Regional Court (“BayObLG”) recently reaffirmed the stringent standards German courts apply when evaluating allegations of arbitrator bias. In its decision of November 7, 2024, the court rejected a challenge against a presiding arbitrator, emphasizing that neither procedural errors nor preliminary assessments raise justified doubts concerning impartiality. This ruling underscores the German courts’ thorough approach to arbitrator challenges. Moreover, the court endorses that the arbitral tribunal expressed its preliminary view on the case.…

The Higher Regional Court of Frankfurt (OLG) recently ruled that an arbitration clause in a framework supply agreement can also have effect vis-à-vis third parties benefiting from the supply agreement (decision of 2 January 2025, 26 SchH 1/23). The Court arrived at this conclusion by applying the German law concept of “supplementary contract interpretation” under Sections 133, 157 of the German Civil Code (Bürgerliches Gesetzbuch “BGB”). Factual Background In 2007, the pharmaceutical manufacturer (“Alpha”) concluded…