Federal Circuit Issues Foundational Decision In First IPR Appeal

On February 4, 2015, in a 2–1 decision addressing two novel and foundational issues arising under the newly created inter partes review ("IPR") proceedings of the America Invents Act of 2011 ("AIA"), the Federal Circuit held that (i) institution decisions by the Patent Trial and Appeal Board ("PTAB") are almost never reviewable on appeal, and (ii) the PTAB is entitled to apply the "broadest reasonable interpretation" standard for claim constructions in IPRs. Both holdings, as well as the court's affirmance of the PTAB's decision on the merits, are a decisive victory for the United States Patent and Trademark Office, which participated as the sole party defending the PTAB's decision after the two private parties settled their dispute during the pendency of the appeal. Judge Dyk, joined by Senior Judge Clevenger, authored the majority opinion, which was the first to address a final written decision from an IPR.