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ARTICLE · 26 MARCH 2026

When 10% Is Enough: Director Denies IPR Over Foreign Sovereign Ownership Interest

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Discretionary denial at the PTAB continues to evolve, and a recent decision by the USPTO Director adds another important dimension.

GlobalIntellectual Property

Discretionary denial at the PTAB continues to evolve, and a recent decision by the USPTO Director adds another important dimension. In denying institution of an IPR, the Director concluded that foreign governments are not “persons” eligible to seek IPR and that even minority government ownership can raise threshold eligibility concerns. Read together with the Director's October 2025 decision restoring strict real‑party‑in‑interest disclosure requirements, the ruling underscores that access to PTAB review increasingly turns on who is behind the petition, not just the merits of the challenge.

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The decision arose from an inter partes review (IPR) petition filed by Tianma Microelectronics Co., Ltd. challenging a patent owned by LG Display Co., Ltd. LG Display sought discretionary denial based on real‑party‑in‑interest (RPI) issues, arguing that Tianma was partially owned by entities ultimately controlled by the Chinese

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