Federal Circuit Rules in Favor of Kramer Levin Client Centripetal, Blocking Challenge by Palo Alto Networks on Constitutionality of PTAB Refusal to Have Denials Reviewed by the Director

On Aug. 16, 2022, the Federal Circuit ruled in favor of Kramer Levin client Centripetal Networks Inc., blocking a challenge by Palo Alto Networks on the constitutionality of the USPTO’s refusal to have its director review Patent Trial and Appeal Board rejections of patent challenges. The court ruled that since Congress had granted the director the right to institute reviews, who in turn delegated it to the board, the director thereby had final authority on decisions by the PTAB, and not allowing review requests is not a constitutional violation.

Palo Alto had sought to have the PTAB review two of the patents involved in Centripetal’s infringement suit, but was denied by the USPTO director who said that only final decisions were accepted for review.