A historic paradigm shift has taken place in the European patent landscape. On 2 June 2026, the Patent Mediation and Arbitration Centre (PMAC) of the Unified Patent Court (UPC) was officially inaugurated in Ljubljana, Slovenia, marking the commencement of its full-scale operations.
This highly anticipated launch follows the formal adoption of its Rules of Operation on 24 April 2026, and the rollout of its dedicated Case Management System (CMS) on 12 May 2026. With preparations meticulously completed, the centre is now live.
This article provides a comprehensive, up-to-date analysis of why the PMAC was established under the UPC framework, its institutional role, its impact on future intellectual property disputes, and the key strategic considerations that standard-essential patent (SEP) holders and implementers must integrate into their practices in 2026.
1. Why Was the PMAC Established Under the UPC? (Background and Rationale)
European patent litigation—particularly cross-border disputes involving complex multi-jurisdictional issues or SEPs for telecommunications standards such as 5G and Wi-Fi—has traditionally been plagued by exorbitant litigation costs and protracted timelines.
While the establishment of the UPC enabled centralised litigation across Europe, formal court proceedings remain inherently rigid. A first-instance judgment still takes approximately 12 to 14 months to be rendered. Furthermore, because court proceedings are generally public, companies face the persistent risk of exposing trade secrets and sensitive commercial details of ongoing licensing negotiations to the market.
To address these systemic inefficiencies, the PMAC was officially launched to fulfil three critical market demands:
- Reduction of Litigation Costs and Accelerated Resolution: The centre offers a flexible alternative to traditional litigation, designed to achieve swift resolutions within months.
- Guaranteed Confidentiality: Proceedings are entirely confidential, allowing parties to explore amicable settlements without exposing negotiation details to competitors or the public.
- Global Resolution Beyond Judicial Jurisdiction: While courts are bound by the principle of territoriality and can only rule on national patent rights, Alternative Dispute Resolution (ADR) under the PMAC enables parties to resolve global licensing disputes through a single, comprehensive agreement.
2. Specific Roles and Services Provided by the PMAC
Operating out of two primary seats—Ljubljana (Slovenia) and Lisbon (Portugal)—with Aleš Zalar appointed as its inaugural director, the PMAC is not merely an advisory body. It functions as a comprehensive ADR hub backed by robust legal and institutional frameworks:
- Diverse ADR Mechanisms: Beyond standard mediation and arbitration, the centre offers hybrid mechanisms (such as Med-Arb) and Expert Determination, where independent experts provide technical or legal assessments.
- Strong Enforceability: Settlements achieved via PMAC mediation can be submitted to the UPC for confirmation. Once confirmed, they carry the same legal enforceability as a final court judgment across all UPC participating member states. Furthermore, arbitration awards are enforceable globally in over 170 countries under the New York Convention.
- Multilingual Proceedings: The centre administers cases in English, French, and German, ensuring high accessibility for multinational corporations inside and outside Europe.
Crucially, the PMAC’s primary Unique Selling Proposition (USP) is its inclusion of specialised FRAND provisions tailored specifically for SEP/FRAND disputes. This establishes a dedicated institutional framework to expertly guide complex IP negotiations, including the determination of global licensing royalty rates.
3. How the PMAC Will Reshape the Future of Patent Litigation
The operationalisation of the PMAC is expected to fundamentally alter patent litigation tactics both in Europe and globally.
① The Rise of Parallel “Hybrid” Litigation and ADR Strategies
The most notable tactical shift will be the simultaneous deployment of substantive UPC litigation (infringement and revocation actions) alongside PMAC mediation or arbitration. For instance, parties can aggressively litigate technical and legal issues—such as patent infringement and validity—before the UPC, while concurrently utilising the PMAC’s confidential proceedings to reasonably resolve specific FRAND royalty rates and commercial payment terms.
② Early Mitigation of Injunction Risks
To avoid the catastrophic business impact of a powerful, pan-European injunction from the UPC, implementers are expected to proactively initiate mediation before the PMAC. This allows companies to secure a procedural safety net and pursue a settlement before facing critical commercial disruptions.
4. Key Practical Considerations for SEP Holders and Implementers
With the proliferation of 5G, IoT, connected vehicles, and next-generation video codecs (such as HEVC and VVC), SEP disputes continue to intensify. In light of the PMAC’s launch, both patent holders and licensees must recalibrate their legal playbooks.
4-1. Strategic Considerations for SEP Holders (Patent Holders)
- Evidence of Willingness to License: Proposing PMAC mediation or arbitration to an implementer serves as robust evidence that the patent holder is acting in good faith and honouring its FRAND commitments. This can be leveraged favourably in court and is an effective tool to expose unwilling licensees (hold-outs).
- Accelerated Royalty Recovery: PMAC arbitration aims for a final award within nine months. This offers a predictable path to securing certain license revenues, avoiding the financial attrition associated with multi-year court battles.
- Procedural Caveat: Because PMAC proceedings are strictly confidential, patent holders cannot leverage a public ruling to create a deterrent effect or set a public precedent for other market players.
4-2. Strategic Considerations for Implementers (Licensees/Manufacturers)
- Mitigating the Risk of Being Labeled “Unwilling”: European case law (e.g., Sisvel v. Haier) and global precedents place significant weight on whether an implementer qualifies as a “willing licensee” when determining injunctive relief. Rejecting a patent holder’s proposal to transition to the PMAC without a rational justification carries the severe risk of being deemed “unwilling,” which could lead to an immediate UPC injunction. Corporate legal departments must establish clear playbooks to respond constructively if encouraged by a judge to utilise ADR.
- A Forum for Global Portfolio Negotiations: Unlikely the UPC, which remains constrained by territorial limitations, the PMAC allows parties to mutually agree to determine a uniform, worldwide FRAND rate—encompassing patents in non-UPC jurisdictions such as the US, the UK, and China—within a confidential forum. This approach effectively mitigates royalty-stacking risks and ensures predictable cost management.
5. Conclusion: The Strategic Imperative of the PMAC from 2026 Onward
Inaugurated on 2 June 2026, the PMAC is poised to transcend its role as a mere ancillary court institution, evolving instead into a central arena for global FRAND and SEP dispute resolution.
The weight of the PMAC as a forum for mediation and arbitration is profoundly enhanced by the formidable enforcement mechanism of the UPC itself, namely the threat of pan-European injunctions. Moving forward, any enterprise operating in the European market must proactively evaluate how to integrate the PMAC into its intellectual property strategy as a core option when managing patent litigation risks.
Reference List
To ensure technical accuracy and reliability, this article references official announcements and specialised legal reports published between May and June 2026:
- Unified Patent Court (UPC) Official Website – PMAC Overview URL: https://www.unifiedpatentcourt.org/en/court/patent-mediation-and-arbitration-centre Description: Official landing page outlining the institutional structure, seats (Ljubljana and Lisbon), and Rules of Operation of the Patent Mediation and Arbitration Centre.
- EPLAW (European Patent Lawyers Association) Official Announcement (2 June 2026) URL: https://www.eplaw.org/blog/detail/upc-patent-mediation-and-arbitration-centre-officially-inaugurated/ Description: Flash report on the official inauguration ceremony of the PMAC in Ljubljana, highlighting its dedicated FRAND/SEP framework.
- Hoffmann Eitle Patent Law News (13 May 2026) URL: https://www.hoffmanneitle.com/en/news/2026-05-13-launch-upc-pmac Description: Expert commentary on the adoption of the Rules of Operation in April 2026, the activation of the Case Management System (CMS) in May, and the phased rollout of services.
- Boult Bulletin Legal Report (26 May 2026) URL: https://www.boult.com/bulletin/the-launch-of-the-upcs-pmac-a-new-route-for-resolving-patent-disputes/ Description: Practical analysis of the speed and confidentiality benefits offered by the PMAC, as well as the strategic potential of parallel hybrid litigation.
- DLA Piper – Insights (PMAC Foundations and Benefits) URL: https://www.dlapiper.com/insights/publications/2025/07/fast-and-confidential-patent-dispute-resolution-under-the-upc Description: Legal background on the nature of mediation and arbitration under the PMAC and its enforcement mechanism under the UPC framework.
This text has been translated by a large language model (LLM).