Trump Appointees Are Hijacking the Patent System
3 minute readPublished: Friday, May 16, 2025 at 3:34 pm
**Cronyism Threatens US Patent System and Innovation**
The US patent system, designed to foster innovation, is under siege, potentially stifling progress and harming consumers. The Patent Trial and Appeal Board (PTAB), established to ensure patent quality and weed out low-quality patents, is being undermined by administrative actions and proposed legislation. This shift favors large corporations, hedge funds, and politically connected individuals, at the expense of competition and the public good.
Key figures like former USPTO Director Andrei Iancu and current Acting Director Coke Morgan Stewart are accused of centralizing power and weakening the PTAB's oversight. This has led to the issuance of questionable patents, often benefiting big pharmaceutical companies and patent trolls. Proposed legislation, such as the Patent Eligibility Restoration Act (PERA) and the PREVAIL Act, threatens to codify these abuses, further exacerbating the problem. PERA could allow patents on natural products and abstract ideas, while PREVAIL could limit challenges to questionable patents.
The consequences are significant. Weakening the PTAB allows companies to extend monopolies, inflate drug prices, and stifle competition. The case of Ozempic, a blockbuster drug, exemplifies this, where a patent was potentially extended due to administrative actions. Hedge funds and patent assertion entities also benefit, as they can exploit weak patents to extract money from legitimate businesses.
The situation is further complicated by conflicts of interest. Individuals who have held high-ranking positions within the USPTO are now profiting from the very system they helped shape. This revolving-door phenomenon raises serious ethical concerns and undermines public trust. The claim that discretionary denials increase efficiency is refuted by examples where the PTAB's original rulings were overturned due to procedural issues, leading to wasted resources and prolonged monopolies.
The potential nomination of John Squires as USPTO director raises further concerns. Squires' ties to Fortress Investment Group, a major player in patent litigation, could create conflicts of interest and further entrench the current abuses. The future of American innovation hinges on the ability to restore the PTAB's independence, enforce accountability, and prevent cronyism from undermining the patent system.
BNN's Perspective: The issues raised are concerning, and the potential for cronyism to stifle innovation is a legitimate worry. While the article presents a strong case against the current trends, it's important to acknowledge that patent law is complex, and reforms often have unintended consequences. A balanced approach is needed, one that protects innovation while also ensuring fairness and preventing abuse.
Keywords: Patent System, USPTO, PTAB, Patent Reform, Innovation, Cronyism, PERA, PREVAIL, Patent Trolls, Big Pharma, Monopolies, Patent Litigation, Andrei Iancu, Coke Morgan Stewart, John Squires, Patent Quality, Competition, Drug Prices, Patent Abuse, Patent Eligibility, Patent Challenges.