The U.S. Patent and Trademark Office (USPTO) just made a move that will protect bad patents at the expense of everyone else. In a memo released February 28, the USPTO further restricted access to inter partes review, or IPR—the process Congress created to let the public challenge invalid patents without having to wage million-dollar court battles.

If left unchecked, this decision will shield bad patents from scrutiny, embolden patent trolls, and make it even easier for hedge funds and large corporations to weaponize weak patents against small businesses and developers.

IPR Exists Because the Patent Office Makes Mistakes

The USPTO grants over 300,000 patents a year, but many of them should not have been issued in the first place. Patent examiners spend, on average, around 20 hours per patent, often missing key prior art or granting patents that are overly broad or vague. That’s how bogus patents on basic ideas—like podcasting, online shopping carts, or watching ads online—have ended up in court.

Congress created IPR in 2012 to fix this problem. IPR allows anyone to challenge a patent’s validity based on prior art, and it’s done before specialized judges at the USPTO, where experts can re-evaluate whether a patent was properly granted. It’s faster, cheaper, and often fairer than fighting it out in federal court.

The USPTO is Blocking Patent Challenges—Again

Instead of defending IPR, the USPTO is working to sabotage it. The February 28 memo reinstates a rule that allows for widespread use of “discretionary denials.” That’s when the Patent Trial and Appeal Board (PTAB) refuses to hear an IPR case for procedural reasons—even if the patent is likely invalid. 

The February 28 memo reinstates widespread use of the Apple v. Fintiv rule, under which the USPTO often rejected IPR petitions whenever there’s an ongoing district court case about the same patent. This is backwards. If anything, an active lawsuit is proof that a patent’s validity needs to be reviewed—not an excuse to dodge the issue.

In 2022, former USPTO Director Kathi Vidal issued a memo making clear that the PTAB should hear patent challenges when “a petition presents compelling evidence of unpatentability,” even if there is parallel court litigation. 

That 2022 guidance essentially saved the IPR system. Once PTAB judges were told to consider all petitions that showed “compelling evidence,” the procedural denials dropped to almost nothing. This February 28 memo signals that the USPTO will once again use discretionary denials to sharply limit access to IPR—effectively making patent challenges harder across the board.  

Discretionary Denials Let Patent Trolls Rig the System

The top beneficiary of this decision will be patent trolls, shell companies formed expressly for the purpose of filing patent lawsuits. Often patent trolls seek to extract a quick settlement before a patent can be challenged. With IPR becoming increasingly unavailable, that will be easier than ever. 

Patent owners know that discretionary denials will block IPRs if they file a lawsuit first. That’s why trolls flock to specific courts, like the Western District of Texas, where judges move cases quickly and rarely rule against patent owners.

By filing lawsuits in these troll-friendly courts, patent owners can game the system—forcing companies to pay up rather than risk millions in litigation costs.

The recent USPTO memo makes this problem even worse. Instead of stopping the abuse of discretionary denials, the USPTO is doubling down—undermining one of the most effective ways businesses, developers, and consumers can fight back against bad patents.

Congress Created IPR to Protect the Public—Not Just Patent Owners

The USPTO doesn’t get to rewrite the law. Congress passed IPR to ensure that weak patents don’t become weapons for extortionary lawsuits. By reinforcing discretionary denials with minimal restrictions, and, as a result, blocking access to IPRs, the USPTO is directly undermining what Congress intended.

Leaders at the USPTO should immediately revoke the February 28 memo. If they refuse, as we pointed out the last time IPR denials spiraled out of control, it’s time for Congress to step in and fix this. They must ensure that IPR remains a fast, affordable way to challenge bad patents—not just a tool for the largest corporations. Patent quality matters—because when bad patents stand, we all pay the price.