Invalidating a competitor’s patent: too easy?

Very few people have heard of it, but a case currently in front of the Supreme Court of the United States may have a significant impact on how patents are reviewed after they are granted.

In Cuozzo Speed Technologies v. Lee, the nation’s highest court is weighing arguments over whether the United States Patent and Trademark Office can use a different standard than the one used by federal courts to determine the validity of a patent that is being challenged. More than that, writes Forbes contributor David Pridham, the court is questioning the “bizarre” Inter Partes Review system because nearly nine of every 10 challenges brought to the Patent and Trial Appeal Board ended with the cancellation of one or more patent claims. More than two-thirds of those challenges, he writes, were brought by defendants facing patent infringement suits.

“Whatever else you call this ‘bizarre’ system—BusinessWeek last week called it a ‘patent death squad’—it’s clearly a great way for infringers to escape the court’s justice,” writes Pridham. “It has also proved to be a lucrative get-rich-quick scheme for financial speculators, who short the stock of a company owning a valuable patent, then file an IPR against that company and watch the stock drop as investors react to being put in the crosshairs of the ‘patent death squad’.”

Read the full article here.