In a derivation proceeding, what method may the parties use to resolve issues?

In a derivation proceeding, the parties may use binding arbitration to resolve issues related to the derivation of a claimed invention. This approach provides a structured environment where both parties present their cases to an arbitrator, who then issues a decision that is typically final and enforceable. Binding arbitration is particularly suitable in this context as it ensures that the parties cannot revisit the issues in court, therefore creating a definitive resolution to disputes over intellectual property rights.

The other methods, while they may involve negotiation or potential resolution of disputes outside of a formal trial, do not carry the same binding effect. For instance, negotiation and mediation focus on facilitating discussions between the parties but do not lead to a definitive resolution unless an agreement is reached. A settlement agreement, while it can resolve disputes, is typically the outcome of negotiation or mediation and does not represent a procedural resolution mechanism like binding arbitration does. Thus, binding arbitration is specifically designed to address the complexities of patent disputes in a manner that is efficient and conclusive, making it the appropriate method for resolving issues in derivation proceedings.