PTAB Decision Addresses Abusion of Discretion in Patent Challenges

The U.S. Patent Trial and Appeal Board (PTAB) has issued a Director Review decision addressing concerns over its handling of patent challenges. Acting Director Coke Morgan Stewart determined that the Board had abused its discretion by allowing two separate inter partes review (IPR) petitions to challenge the same patent claims with different claim constructions.

This decision underscores the complexities inherent in trademark and intellectual property law, particularly when multiple petitioners assert overlapping grounds for review. The case at hand involved CrowdStrike challenging Patent 9,954,872 B2 through two distinct IPR petitions. The PTAB initially allowed both petitions, citing that the patent owner had not submitted arguments on claim construction. However, Stewart argued that this approach led to an undue burden on both the Board and the patent owner.

Stewart emphasized that allowing multiple challenges under different claim constructions could lead to inefficiencies and fairness issues. He suggested a more streamlined process: the PTAB should first construe the disputed claim and then decide which petition to proceed with, ensuring the patent owner has an opportunity to weigh in on the claim construction before any final determination.

Additionally, GoSecure sought permission to file supplemental briefs, referencing a recent Director Discretionary Denial decision in iRhythm Technologies v. Welch Allyn. However, this request was denied due to the absence of grounds for discretionary denial and the lack of applicability of interim management processes, which are reserved for IPR and Post-Grant Review proceedings.

This decision aligns with Stewart's trend of favoring patent owners in PTAB proceedings, aiming to streamline and clarify processes.

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