A New Era at the USPTO
The U.S. Patent and Trademark Office (USPTO) is undergoing a leadership change. On January 20, 2025, Coke Morgan Stewart was appointed as the interim Undersecretary of Commerce for Intellectual Property and the acting director of the USPTO. This transition could significantly influence the direction of patent policy in the coming years.
The Struggles Patent Holders Face
For over a decade, U.S. patent holders have encountered hurdles in maintaining their intellectual property rights. A major concern has been the role of the Patent Trial and Appeal Board (PTAB), which was created under the America Invents Act (AIA). Since its inception, the PTAB has been responsible for invalidating a substantial number of patents — reports suggest that up to 80% of patents reviewed by the PTAB are ultimately invalidated.
This high invalidation rate has alarmed inventors, entrepreneurs, and venture capitalists, who view the PTAB as an obstacle to innovation. Critics argue that the process overwhelmingly favors large corporations that can afford to challenge patents, making it difficult for startups and small businesses to safeguard their intellectual property.
How USPTO Leadership Shapes Patent Policy
Historically, USPTO leadership has had a direct impact on patent policy. Under Andrei Iancu’s tenure as USPTO director (2018–2021), the PTAB’s invalidation rate was reduced to around 60% due to the implementation of the Fintiv rule. This policy allowed the USPTO to deny PTAB proceedings when a similar case was already pending in district court, reducing unnecessary challenges.
However, after Kathi Vidal assumed the directorship in 2022, the invalidation rate increased to 71%. Her policies scaled back the Fintiv rule, making it easier for patents to be challenged before the PTAB. This shift raised concerns about the stability of patent rights, especially for startups and independent inventors.
What Stewart’s Appointment Means for Inventors
Coke Morgan Stewart has extensive experience within the USPTO and is known for her deep understanding of patent law. Her history of defending USPTO decisions in federal court suggests a strong grasp of the complexities surrounding intellectual property rights.
Given her track record, many in the patent community hope that Stewart’s leadership will bring reforms that protect smaller entities from excessive patent challenges. If she reinstates policies that curb PTAB abuse by large corporations, it could provide a more level playing field for startups and early-stage companies that rely on strong patents to attract investors and grow their businesses.
Looking Ahead
The appointment of Undersecretary Stewart comes at a critical time for U.S. innovation. Strengthening patent protections could help reverse the decline in venture investments and encourage technological advancements. If policy changes under her leadership favor inventors, startups may find it easier to secure and enforce their patents.
If you’re seeking guidance on how these changes might affect your intellectual property rights, our law firm is here to help. Book a free consultation today for expert patent assistance.