CAFC Upholds Injunction to Shut Down PTAB

The AIA statutes provide that a person who is not the owner of a patent, can challenge the patent at the Patent Trial & Appeal Board (PTAB). Pursuant to the bright lines drawn by the statute, the PTAB has accepted AIA challenges from non-owners where traditional defenses may have prevented such challenges in other fora. For example, while assignor estoppel might preclude a patent validity challenge in a district court, the PTAB accepts such challenges. In affirming this practice, the Federal Circuit explained that common-law doctrines are subject to abrogation of the AIA statutes.

A more recent argument has been that private agreement, such as a forum selection clause, can divest the PTAB of jurisdiction of a patent validity dispute. For its part, the PTAB has disagreed to date…..the District court on the other hand, has attempted to enjoin petitioners from continuing that the PTAB in such circumstances. Today, the Federal Circuit has backed the injunction strategy, effectively shutting down the PTAB.
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