PTAB IPR Institution Rate Plummets Under New Director-Led Regime
Centralized authority and expanded discretionary denials at the Patent Trial and Appeal Board have cut IPR institution rates by nearly half, forcing patent challengers to reconsider litigation strategy.
Since early 2025, the USPTO Director has consolidated authority over instituting inter partes review (IPR) proceedings, creating a more restrictive and unpredictable environment at the Patent Trial and Appeal Board (PTAB). This shift has caused IPR institution rates to plummet from over 60% in late 2024 to below 40% by mid-2026. For major-firm clients, particularly in the life sciences, this trend strengthens existing patent portfolios by making them harder to challenge. The Director is now the sole decision-maker on institution and is using expanded discretionary grounds for denial, such as revived Fintiv factors and new "settled expectations" for older patents. These decisions are often issued as summary orders, limiting transparency and grounds for appeal. The Director has also intervened late-stage to vacate instituted proceedings, increasing uncertainty for all parties. Counsel should advise clients that as IPRs become less viable, patent challengers are shifting to other forums like ex parte reexaminations, and the scope of the Director's authority is now being challenged before the Federal Circuit.