Latest news with #PatentTrialandAppealBoard
Yahoo
a day ago
- Business
- Yahoo
Opinion - Why are administrative judges trying to help China steal American technology?
A panel of judges is openly defying Trump administration policy — and effectively allowing a Chinese firm to keep stealing an American semiconductor technology used in everything from self-driving cars to satellites. These judges are not members of the judicial branch. They are executive branch employees, and the Trump administration has the authority to overrule their dangerous decision. It should do so immediately to protect American workers and uphold the rule of law. But the administration will also need to implement broader reforms — and work with Congress to codify them — to prevent rogue administrative judges from helping Chinese companies pilfer U.S. intellectual property in the future. The administrative patent judges in question work for the Patent Trial and Appeal Board, a powerful part of the U.S. Patent and Trademark Office. They just sided with Innoscience, a Chinese firm locked in a years-long legal battle with Efficient Power Conversion, a California-based semiconductor innovator. Efficient Power Conversion accused the Chinese firm of stealing its patented technology and selling knockoff chips. It took its case to the U.S. International Trade Commission, which investigates trade violations and protects American industries from unfair competition. After a 16-month investigation — including a trial, depositions, and expert testimony — the commission found that Innoscience had indeed stolen the technology and that Efficient Power Conversion's patent was valid. As a result, the commission barred the Chinese firm from selling the infringing chips in the U.S. And after its mandatory review period, the White House allowed the ruling to stand. That should have settled the matter. But separately, Innoscience challenged Efficient Power Conversion's patent at the Patent Trial and Appeal Board, which ultimately invalidated key claims in the patent. This ruling handed Innoscience fresh ammunition to challenge the import ban and try to resume flooding the U.S. market with stolen technology. This is a direct assault on American innovation and the Trump administration's efforts to crack down on Chinese intellectual property theft. Worse still, the Patent Trial and Appeal Board should never have taken the case. The first Trump administration issued guidance barring the Patent Trial and Appeal Board from reviewing patents already being litigated in parallel forums. This policy was designed to protect smaller American companies from being overwhelmed by duplicative litigation across multiple venues. Put simply, patent disputes should be handled in court, or at the International Trade Commission, or at the Patent Trial and Appeal Board — but not all three. That changed in 2022 when the Biden administration reversed the policy. This gave Innoscience an opening to request a Patent Trial and Appeal Board review in 2023. The Patent Trial and Appeal Board accepted — and in 2024, proceeded with a review of Efficient Power Conversion's patent, even though the International Trade Commission had already completed its exhaustive trial and was days away from issuing its final decision. The Patent Trial and Appeal Board, applying lower evidentiary standards than a court, invalidated the patent. It issued its ruling on March 18, 2025 — weeks after the second Trump administration had reversed Biden's policy and reinstated the original rules, which on its own should have blocked the Patent Trial and Appeal Board from acting. The director of the U.S. Patent and Trademark Office can reverse this decision. That should happen immediately. Overturning the Patent Trial and Appeal Board 's ruling would align with the commission and block the theft of a vital American technology. But righting this one wrong isn't enough. The system that allowed this must be reformed to prevent future abuses. That means putting the new Patent Trial and Appeal Board guidance through the formal rulemaking process, thus making it harder for a future administration to reverse it arbitrarily. Even more important: Congress must act. Bipartisan legislation like the PREVAIL Act would bar duplicative Patent Trial and Appeal Board challenges and hold it to the same evidentiary standards as federal courts. As a member of the Select Committee on the Chinese Communist Party, I know how important it is to protect our innovation from theft by our most determined adversary. Passing this law would reaffirm America's commitment to its inventors, send a clear message to China, and stop unelected bureaucrats from hijacking trade enforcement. America's economic security depends on innovation. We can't afford to let the Chinese Communist Party and other foreign adversaries sabotage our innovators. Nathaniel Moran represents the 1st District of Texas and is a member of the House Select Committee on the Chinese Communist Party. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
a day ago
- Business
- The Hill
Why are administrative judges trying to help China steal American technology?
A panel of judges is openly defying Trump administration policy — and effectively allowing a Chinese firm to keep stealing an American semiconductor technology used in everything from self-driving cars to satellites. These judges are not members of the judicial branch. They are executive branch employees, and the Trump administration has the authority to overrule their dangerous decision. It should do so immediately to protect American workers and uphold the rule of law. But the administration will also need to implement broader reforms — and work with Congress to codify them — to prevent rogue administrative judges from helping Chinese companies pilfer U.S. intellectual property in the future. The administrative patent judges in question work for the Patent Trial and Appeal Board, a powerful part of the U.S. Patent and Trademark Office. They just sided with Innoscience, a Chinese firm locked in a years-long legal battle with Efficient Power Conversion, a California-based semiconductor innovator. Efficient Power Conversion accused the Chinese firm of stealing its patented technology and selling knockoff chips. It took its case to the U.S. International Trade Commission, which investigates trade violations and protects American industries from unfair competition. After a 16-month investigation — including a trial, depositions, and expert testimony — the commission found that Innoscience had indeed stolen the technology and that Efficient Power Conversion's patent was valid. As a result, the commission barred the Chinese firm from selling the infringing chips in the U.S. And after its mandatory review period, the White House allowed the ruling to stand. That should have settled the matter. But separately, Innoscience challenged Efficient Power Conversion's patent at the Patent Trial and Appeal Board, which ultimately invalidated key claims in the patent. This ruling handed Innoscience fresh ammunition to challenge the import ban and try to resume flooding the U.S. market with stolen technology. This is a direct assault on American innovation and the Trump administration's efforts to crack down on Chinese intellectual property theft. Worse still, the Patent Trial and Appeal Board should never have taken the case. The first Trump administration issued guidance barring the Patent Trial and Appeal Board from reviewing patents already being litigated in parallel forums. This policy was designed to protect smaller American companies from being overwhelmed by duplicative litigation across multiple venues. Put simply, patent disputes should be handled in court, or at the International Trade Commission, or at the Patent Trial and Appeal Board — but not all three. That changed in 2022 when the Biden administration reversed the policy. This gave Innoscience an opening to request a Patent Trial and Appeal Board review in 2023. The Patent Trial and Appeal Board accepted — and in 2024, proceeded with a review of Efficient Power Conversion's patent, even though the International Trade Commission had already completed its exhaustive trial and was days away from issuing its final decision. The Patent Trial and Appeal Board, applying lower evidentiary standards than a court, invalidated the patent. It issued its ruling on March 18, 2025 — weeks after the second Trump administration had reversed Biden's policy and reinstated the original rules, which on its own should have blocked the Patent Trial and Appeal Board from acting. The director of the U.S. Patent and Trademark Office can reverse this decision. That should happen immediately. Overturning the Patent Trial and Appeal Board 's ruling would align with the commission and block the theft of a vital American technology. But righting this one wrong isn't enough. The system that allowed this must be reformed to prevent future abuses. That means putting the new Patent Trial and Appeal Board guidance through the formal rulemaking process, thus making it harder for a future administration to reverse it arbitrarily. Even more important: Congress must act. Bipartisan legislation like the PREVAIL Act would bar duplicative Patent Trial and Appeal Board challenges and hold it to the same evidentiary standards as federal courts. As a member of the Select Committee on the Chinese Communist Party, I know how important it is to protect our innovation from theft by our most determined adversary. Passing this law would reaffirm America's commitment to its inventors, send a clear message to China, and stop unelected bureaucrats from hijacking trade enforcement. America's economic security depends on innovation. We can't afford to let the Chinese Communist Party and other foreign adversaries sabotage our innovators. Nathaniel Moran represents the 1st District of Texas and is a member of the House Select Committee on the Chinese Communist Party.
