PublishedNovember 19, 2024

PERA and PREVAIL Markup Delayed, Again

During a Senate Judiciary Committee executive business meeting on November 14th, cosponsors of two controversial bills – the Patent Eligibility Restoration Act (PERA) and the Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act – delayed the legislation yet again, citing skepticism from other members of the committee.  In his remarks about the PREVAIL Act, Senator Chris Coons alleged “significant misrepresentation … about what happens at PTAB.”  Historically, however, it has been the PREVAIL Act’s advocates who frequently misrepresent key data points about the PTAB to advance their agenda. 

Proponents of the PREVAIL Act often call the PTAB a “death squad” for property rights—borrowing a phrase first used by a Federal Circuit judge (who stepped down over an ethics violation) more than a decade ago—when they argue that PREVAIL is needed to ensure the PTAB protects small inventors and innovators. PREVAIL’s supporters cherry-pick figures in an attempt to paint a picture of excessive PTAB patent invalidations. 

But a holistic look at the data reveals a different story. In the Board’s entire history, only 10% of challenged patents have been fully invalidated. In FY23, just 30% of challenged patent claims and 51% of instituted claims were found unpatentable. PTAB critics often, conveniently, omit that in recent years the PTAB declined to hear between 33% and 44% of all petitions presented to them. Invalidation rate metrics that limit data to instituted petitions are distortedly high because those cases have already surpassed a key legal and evidentiary threshold. What’s more, when appealed to the Federal Circuit, PTAB patent validity determinations are affirmed at a higher rate and reversed at a lower rate than district court decisions. In fact, the Federal Circuit is three times as likely to reverse a district court’s determination of invalidity as a PTAB determination.  This is hardly evidence of a biased “death squad.”

Senator Coons also insinuated that the PTAB favors “Big Tech” companies over smaller entities. This is again not the case. High-tech companies face more patent litigation than all other industries combined.  And non-practicing entities (NPEs) bring 87% of district court litigation against high-tech companies, often asserting weak and invalid patents.  Given this, it’s unsurprising that high-tech companies are frequent users of the PTAB. The PTAB does not pick favorites based on a company’s size or industry. Rather, when one set of companies is disproportionately targeted with meritless lawsuits, it is only natural that those same companies also avail themselves of the PTAB.  

Data surrounding the PTAB has certainly been misrepresented, but not in the way that the PREVAIL Act’s advocates suggest. The decision to delay these bills is a positive step, but Congress should go further and discard them altogether. 

What’s more, policymakers and advocates who oppose the PTAB—including Senator Coons—need to stop misrepresenting what the data tells us about PTAB operations.  The dedicated and impartial Administrative Patent Judges who spend their days reaching the correct results in these proceedings deserve better.

Josh Landau

Patent Counsel, CCIA

Joshua Landau is the Patent Counsel at the Computer & Communications Industry Association (CCIA), where he represents and advises the association regarding patent issues.  Mr. Landau joined CCIA from WilmerHale in 2017, where he represented clients in patent litigation, counseling, and prosecution, including trials in both district courts and before the PTAB.

Prior to his time at WilmerHale, Mr. Landau was a Legal Fellow on Senator Al Franken’s Judiciary staff, focusing on privacy and technology issues.  Mr. Landau received his J.D. from Georgetown University Law Center and his B.S.E.E. from the University of Michigan.  Before law school, he spent several years as an automotive engineer, during which time he co-invented technology leading to U.S. Patent No. 6,934,140.

Follow @PatentJosh on Twitter.

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