PublishedApril 16, 2025

Following Fintiv Reinstatement, the ITC Should Emphasize Patent Validity Review

In recent weeks the USPTO has continued to undermine its own review processes at the Patent Trial and Appeal Board (PTAB)––from voiding former Director Kathi Vidal’s guidance that limited the Fintiv framework to introducing a non-statutory, “bifurcated” process that will result in more discretionary denials of petitions, irrespective of their merit. While much of the attention has focused on the Acting Director inserting herself into the petition review process—and rightly so, as it is illegal, arbitrary, and counterproductive—it should not be lost that the reinstated Fintiv guidance is just as problematic. 

Petitions for PTAB review will now be subject to many more discretionary denials, even in cases where they present “compelling evidence” of unpatentability. And requests for review once again being denied in light of parallel proceedings at the International Trade Commission (ITC) will create more opportunities for patent owners to game the system and avoid stringent scrutiny. As the Acting Director is flexing her own discretion, the ITC should do the same and prioritize patent validity assessments when its Section 337 investigations are used to justify PTAB denials.  

The USPTO deferring to the ITC on issues of patent validity is nonsensical.  Deference to the courts, while inappropriate given the statutory scheme Congress created, at least defers to the Article III court system that ultimately reviews PTAB decisions. But the ITC is another executive branch agency, one with no ability to invalidate or bar enforcement of a patent outside of a single case. As the agency responsible for issuing patents, the USPTO has the unique expertise to most reliably and effectively evaluate patent validity challenges. That’s exactly why the PTAB was created—to expedite the process for making validity determinations and do so more accurately and at a lower cost compared to other jurisdictions. 

The ITC’s role, in the context of intellectual property disputes, meanwhile, is to determine if accusations of patent infringement constitute unfair trade practices. If the ITC finds infringement of “a valid and enforceable United States patent” it is empowered to issue an exclusion order, barring an infringing product’s entry into the United States. 

As it stands, Section 337 investigations consider an array of factors, of which the underlying validity of an allegedly-infringed patent is just one. The structure of Section 337 investigations––including the more condensed timeline and greater number of issues to consider––means that validity assessments do not get the same attention and focus they receive in PTAB trials. The ITC’s validity rulings are also not binding on other jurisdictions.

While it is far from ideal that the ITC become a primary forum for assessing patent validity, the USPTO has now abdicated much of its responsibility to do so. For as long as the USPTO is adhering to the Fintiv factors and using ITC investigations to justify discretionary denials, the ITC must reprioritize validity analysis––providing additional trial time dedicated to invalidity and employing technically trained adjunct staff as it contemplates potential exclusion orders. The ITC should also use its discretion to adopt the PTAB’s “preponderance of the evidence” standard instead of the ITC’s “clear and convincing” standard in deciding invalidity. This would give Section 337 investigation respondents a process closer to what they are being denied by the USPTO. And while the ITC has consistently refused to give its public interest factors proper weight, including applying the eBay standard that those factors embody, with the failure of USPTO to abide by its own statutory responsibilities it is all the more important that the ITC engage with its own and refuse to issue exclusion orders absent irreparable harm, lack of adequate legal remedies, a balancing of the equities, and an examination of the public interest.

This is because the ITC has become increasingly popular among non-practicing entities (NPEs)—and it has become so precisely because its exclusion order remedy is so powerful, with NPEs leveraging the threat of exclusion for financial gain. The USPTO’s recent changes will provide a larger incentive for NPEs wielding questionable patents to allege infringement at the ITC, both hoping for a lucrative settlement and now blocking their patents from getting thorough review at the PTAB

In order to protect the integrity of its own investigations, the ITC has to double down on patent validity determinations until the USPTO once again holds up its end of the bargain. 

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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