arbitrating license agreements

I represent the producer of a film who brought me a distribution license drafted by the distributor. It provides for termination by either party following notice of a material breach and failure to cure within 14 days. The agreement provides for binding arbitration of disputes arising under the agreement.

The movie is made. My client has nothing left to do (except indemnify infringement claims). The only way I can imagine a dispute ripening is on the distributor's breach, followed by a denial of the breach and disregard of the termination notice, which give rise to a copyright infringement claim. It strikes me that the only thing helpful at that point is a preliminary injunction on a showing that the producer is likely to prevail the copyright infringement claim. Otherwise the distribution rights are locked up for 3-4 years of litigation.

So my question: Can arbitrators issue preliminary injunctions that federal courts will enforce?

I don't know whether I'm going to be more surprised to find out that arbitrators can issue preliminary injunctions, or that leaving an arbitration clause in a copyright license might be legal malpractice. Am I missing something here?

John Noble Received on Mon Jun 19 2006 - 23:55:46 GMT