Bodine

Defendant United Aircraft Corporation ("United") appeals from trial court orders denying its petition to order arbitration and granting injunctions restraining United from proceeding with arbitration.

Facts

The genesis of the basic dispute between the parties is a contract, dated January 1, 1960. under which plaintiff agreed to disclose to United certain studies, engineering data, trade secrets and inventions, for an option period of six months. During that option period—later extended to nine months—United had the power to acquire certain licenses to exploit the data furnished to it. for which licenses it was to pay a royalty of $100,000 in cash, plus minimum royalties of $10,000 per month against specified percentages of sales. Concurrently with this “royalty license” agreement plaintiff executed a letter dated December 31, 1959, which extended to United a further option in the event it exercised the royalty option under January 1, 1960, agreement: United could discharge its duty to pay royalties and acquire a “paid-up license” by paying $15 million in addition to all royalties theretofore paid or accrued, or $20 million, to be computed by crediting royalties already…