Levi’s Dealings With JAMS Scrutinized in Patent Licensing Appeal

A dispute over whether arbitrators sided with Levi Strauss & Co. in a patent licensing dispute because of its prior relationship with the arbitration provider seemed to divide a Federal Circuit panel at oral argument Friday.

Patent owner Aqua Dynamics Systems Inc. sought over $15 million in unpaid royalties from Levi’s under an agreement to license its patents on denim-dying methods.

Aqua argued that Levi’s seven prior interactions with JAMS—formerly Judicial Arbitration and Mediation Services Inc.—and the financial stake some arbitrators have in the organization biased the arbitrators to rule in favor of Levi’s. It appealed a ruling from the ...