The Potential Economic Costs to the US Government of Discretionary Denial of Inter Partes Review Based on Criteria such as the NHK‑Fintiv Rules | The Perryman Group

The Potential Economic Costs to the US Government of Discretionary Denial of Inter Partes Review Based on Criteria such as the NHK‑Fintiv Rules

Published on August 25, 2023
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Recently proposed rulemaking and legislation would increase discretionary denial of institution of inter partes review (IPR) matters based on the criteria set forth in the Apple, Inc. v Fintiv, Inc. (Fintiv) matter and similar provisions. The Fintiv guidelines and related restrictions can make it difficult for claims to be fully considered even in cases where there is a substantial probability of success for the petitioner. If the proposed guidelines were implemented, the result would be a reduction in IPR proceedings even for cases that are otherwise meritorious. As a consequence, the economic efficiency benefits associated with the IPR process would be substantially diminished.

An additional issue with reducing IPR is that it will lead to higher costs of procurement for the US government. The Perryman Group estimates that the direct increased costs to the federal government associated with federal spending over the 2023-32 period would be -$106.4 million.

When summed with the estimated tax effects previously described, the total cost to the federal government was found to be almost -$202.9 million.

For more details please refer to the full report.