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Strategic Considerations for Inter Partes Re-examination

By Adam D. Sheehan
August 01, 2005

The cost of patent litigation is enormous, and continues to increase. According to the 2003 AIPLA survey, the median cost for a patent litigation with less than $25 million at stake was close to $2 million. Furthermore, many large companies are increasingly coming under attack from small patent holders or patent holding companies. Because of these developments, the inter partes re-examination procedure is becoming an increasingly attractive alternative for patent defendants. However, the inter partes re-examination procedure carries its own risks. As discussed further below, the advantages and disadvantages should be carefully weighed prior to instigating an inter partes re-examination.

Brief Overview

Inter partes re-examination may be best understood in contrast to ex parte re-examination. In the ex parte re-examination process, a patentee or a patent challenger may seek re-examination of a patent by submitting patents or printed publications to the U.S. Patent and Trademark Office (“PTO”). The requesting party, whether the patentee or the challenger, submits a request for re-examination to the PTO. The PTO determines whether the submitted art presents a substantial new question of patentability. If the PTO determines that there is no substantial new question of patentability, the rejection of the request is final and unappealable.

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