PTAB is the only affordable way to challenge invalid patents
Mullin 23 [Joe; June 2; Policy Analyst on Electronic Frontier Foundation's intellectual property team, works on patent reform, copyright issues, and free speech online; Electronic Frontier Foundation; “Our Right To Challenge Junk Patents Is Under Threat”; https://www.eff.org/deeplinks/2023/06/our-right-challenge-junk-patents-under-threat]
The Patent Trial and Appeal Board, or PTAB, is one of the only places in the nation where patent trolls can be held to account for the outrageous and harmful claims they make in their patents. Congress created the “inter partes review” (IPR) process, which is overseen by specialized PTAB judges, more than a decade ago. “Inter partes” simply means “between the parties,” and the IPR process allows members of the public to challenge patents that never should have been granted in the first place.
The IPR process is one of two main ways to challenge patents, along with challenging them in district court. The big difference is that the IPR process, while not simple or cheap, is much faster and cheaper than going to trial in federal court. Invalidating a patent in court can cost millions of dollars, while even a complicated IPR process costs a fraction of that.
Through IPR, thousands of patents have been thrown out. The patent challengers who have kicked out some of these wrongly-granted monopolies have protected not just themselves, but countless other hobbyists, software developers, small businesses, and nonprofits, who could no longer be threatened with some of the worst patents to slip through the cracks.
A patent troll called WordLogic tried to shake down Wikipedia for $30,000. Once PTAB gave its initial ruling—that WordLogic’s patent was likely invalid—WordLogic got smart and settled the case. The lawsuits WordLogic was pushing against Wikipedia, and many other organizations, were dropped.
A patent troll called SportBrain Holdings sued more than 80 companies on a patent they said covered getting user data, then sharing it over a network and providing feedback. The patent did not hold up to serious analysis. When a panel of PTAB judges looked at it, they canceled all claims. SportBrain was challenged by Unified Patents, a membership-based for-profit company that will be explicitly banned if the USPTO enacts these troll-friendly rules.
Shipping and Transit LLC (formerly Arrivalstar) filed for bankruptcy in 2018 after more than a decade of litigation and 500 patent lawsuits. Shipping and Transit sued a vast array of retailers and shippers, claiming its patents covered almost any type of delivery notification. In its court filings, it valued its own portfolio of 34 U.S. patents at $1. IPR filings against Shipping and Transit, together with court fee orders, were a critical part of ending this onslaught against small business.
The IPR process hasn’t eliminated patent trolling. But it’s been so effective that patent trolls and their pro-patent protectors absolutely hate the process. That’s why they are pushed so hard for these proposed rules, and are celebrating their arrival.