USPTO Director John Squires Reclaims Authority Over Patent Review Decisions from PTAB

John Squires, the recently appointed director of the U.S. Patent and Trademark Office (USPTO), issued an open letter on Friday announcing that he is reclaiming the authority to decide whether to grant inter partes reviews (IPRs) and post-grant reviews (PGRs). This authority had previously been exercised by the Patent Trial and Appeal Board (PTAB).

The PTAB, a specialized tribunal within the USPTO, has traditionally held the power to determine whether to institute these reviews, which allow third parties to challenge the validity of issued patents. By shifting this decision-making power back to the USPTO director, Squires is centralizing control over the review process.

This policy change could have far-reaching implications for patent holders and challengers alike. According to defendant-appellant counsel Wesley Johnson of Cross-Border Counselor, the move raises concerns about the validity of thousands of cases and default judgments that were decided under the prior PTAB authority.

The USPTO’s inter partes and post-grant review processes are critical mechanisms for ensuring patent quality and resolving disputes efficiently. Inter partes reviews allow third parties to challenge patents based on prior art, while post-grant reviews enable challenges on broader grounds within nine months of patent issuance.

Squires’ decision signals a strategic shift in how the USPTO manages patent challenges, potentially affecting the volume and outcomes of these proceedings. It also underscores the evolving role of the USPTO director in overseeing patent policy and enforcement.

This announcement comes amid ongoing debates over patent standing, litigation strategies, and the scope of patent rights in various industries, including life sciences and technology sectors.

For example, recent litigation involving Tesla and Charge Fusion highlights the complexities of patent claims related to software and system functionalities, while disputes over data center cooling technologies illustrate the competitive stakes in emerging tech markets.

The USPTO’s renewed control over review institution decisions may influence how these and other patent disputes are adjudicated moving forward.

Legal practitioners and patent stakeholders should monitor how this policy change affects the PTAB’s caseload and the broader patent litigation landscape.

The USPTO has not yet detailed the procedural changes or criteria that will guide the director’s exercise of this authority, leaving open questions about the future administration of inter partes and post-grant reviews.

This development reflects the agency’s ongoing efforts to refine patent quality controls and balance the interests of patent owners and challengers.

As the USPTO implements this shift, affected parties may need to adjust their patent prosecution and litigation strategies accordingly.

Further updates from the USPTO are anticipated as the agency clarifies the operational impact of this decision.