Shifting Tides in PTAB Practice: Director Review Strengthens Patent Owner Position in Fintiv Analysis in Motorola v. Stellar

In a significant ruling dated March 28, 2025, the Acting Director of the USPTO, Coke Morgan Stewart, granted Director Review in four related Inter Partes Review (IPR) proceedings between Motorola Solutions, Inc. and Stellar, LLC. The decision not only vacated the Patent Trial and Appeal Board's (PTAB) institution decision but also denied institution entirely, signaling an important shift in how the USPTO evaluates the interplay between district court litigation and PTAB proceedings.

Importantly, the Acting Director changed the calculus regarding Fintiv factors 3 and 4. The opinion rejected the notion that the general burden of patent litigation on district courts should be a factor weighing against discretionary denial. Instead, the focus should be on the specific investment already made in the particular case at hand. 

Further, the opinion devalues Soltera stipulations. Overall, the opinion is good for patentees as we can expect fewer IPRs to be instituted.