Two companies entered into a worldwide non-exclusive license agreement for a patented technology. The licensor initiated arbitration proceedings alleging that the licensee had not paid the current royalties.
By four arbitral awards, the sole arbitrator held the licensee responsible. Subsequently, it
brought forth annulment proceedings to set aside the awards.
The Court of Appeal refused to annul the awards. Among other factual findings, the Court also held that the mandate of the arbitrator is defined by the subject-matter of the dispute, as determined by the parties’ claims and is not limited to the statement of the issues in the terms of reference.