The U.S. Patent and Trademark Office’s Patent Trial and Appeal Board (PTAB) rejected Micron Technology’s arguments that national security and foreign policy concerns should prevent a Chinese memory manufacturer from challenging an American patent, highlighting current limitations on the Board’s discretionary authority.
Central Dispute Over Chinese Government Involvement
In a June 10, 2025 decision, the PTAB granted Yangtze Memory Technologies Co., Ltd. (YMTC) petition challenging Micron’s U.S. Patent No. 8,945,996 B2, despite Micron’s extensive arguments about YMTC’s ties to the Chinese government. Micron argued that YMTC is fundamentally a Chinese state-owned entity, describing it as “China’s State-Owned NAND Memory Company” and alleging that “the Chinese government is in privity with YMTC and is using YMTC as a proxy to challenge U.S. patents that impede its significant investments in YMTC and strategic objectives in the semiconductor industry.” The patent owner warned that “instituting review would set a dangerous precedent, enabling any foreign government to challenge U.S. patents through proxies and thereby threaten the economic and strategic interests of the United States.”
Board’s Hands Tied on Foreign Policy Considerations
Despite acknowledging these concerns, the PTAB ruled it was powerless to consider such arguments under current USPTO guidance. The Board stated definitively: “To date, the Director has not provided any guidance as to when a panel should deny institution based on foreign policy or national security implications, applicable to the facts presented here.” More significantly, the Board noted that current USPTO policy explicitly prohibits such considerations, explaining that “the USPTO has expressly determined that Board panels, in considering discretionary denial sought in a Preliminary Response filed on or before March 26, 2025, may not consider such factors.” The Board cited official USPTO guidance stating that “The panel will not address any new factors outlined in the Process Memorandum,” effectively ruling that foreign policy and national security implications are off-limits for PTAB panels when deciding whether to institute patent reviews.