The U.S. Patent and Trademark Office has denied institution of Inter Partes Review (IPR) proceedings against two Applied Optoelectronics patents in a discretionary decision that highlights how patent age can influence administrative challenges.
In a decision dated June 27, 2025, Acting USPTO Director Coke Morgan Stewart denied Cambridge Industries USA’s petitions to institute IPR proceedings against Applied Optoelectronics patents 9,523,826 B2 and 10,042,116 B2. The denial came despite the Director’s acknowledgment that many of Applied Optoelectronics’ other arguments for discretionary denial were weak.
Key Factors in the Decision
1. Patent Age and Settled Expectations
The decisive factor was the age of the challenged patents. The Director noted that the patents in IPR2025-00433 and IPR2025-00435 “have been in force for nine and seven years, respectively,” creating stronger settled expectations for the patent owner compared to newer patents in related proceedings. As the Director explained: “Patent Owner’s settled expectations as to the patents challenged in IPR2025-00433 and IPR2025-00435 are stronger and discretionary denial is appropriate as to these proceedings.”
2.Parallel District Court Litigation
The parties are engaged in parallel litigation in the Northern District of California, though the impact was limited since there is no currently scheduled trial date and the Markman hearing has been vacated.