A FUNDAMENTAL reform of the law of arbitration was introduced in Germany with effect from 1 January 1998.1 It is aimed at promoting the Federal Republic of Germany as a seat of international arbitration.2 The basis for the change is the incorporation of provisions from the UNCITRAL Model Law on International Commercial Arbitration3 into German law, but it is to apply to all arbitrations which take place in Germany whether international or domestic.4 It has been hailed as ‘creating one of the most modern and up-to-date arbitral legislations in Europe’.5 The Model Law provides that the existing rules on arbitrability of the receiving state are to remain unaffected.6 However, the German reform nonetheless changed the German position on arbitrability. It will be shown that this was done in an unfortunate manner which could cause confusion internationally with respect to patent disputes. The pre-reform arbitrability test was whether a dispute was capable of being privately settled by the parties.7 Under the old legislation it was well established that there were no special barriers, subject to the normal limits set by contract law and ordre public , to the arbitrability of disputes dealing with intellectual property rights existing independently of registration.8 Those rights conferred on the owner exclusively by registration were treated differently.9 Of particular interest are patent rights, which this article will focus on. The matter was the subject of much high-level debate.10 The prevailing opinion and practice was that those measures that the registered owner of a patent could undertake of his own volition, such as declaring that no rights will be asserted, or indeed applying to the Patent Office to have the patent removed from the register, could be granted by an arbitral tribunal, if properly mandated.11 The …