Since they first became available in September 2012, inter partes review proceedings continue to gain popularity as a means of challenging the validity of patents. While IPRs have had the most impact on patents in the electrical and computer fields, their influence on biotechnology patents is on the rise. IPR petitions challenging biotech/pharma patents in fiscal 2015 have more than tripled from the same period last year. In fact, there have been more IPR petitions in fiscal 2015 for biotech/pharma patents (73 as of March 26) than the combined total from September 2012 through April 2014 (59 as of April 10, 2014).

This trend is particularly alarming given the importance of patents to the biotech industry and the frequency with which the Patent Trial and Appeal Board (PTAB) invalidates patents. In just the month of February 2015, 93 percent of the claims from all industries that reached a final decision were invalidated.

IPRs are being used to challenge the validity of important biotech inventions—spanning the gamut from life-saving medical therapies to gene sequencing technology. The petitioners challenging those patents predictably include defendants in patent litigation, but they aren't limited to that group.

New Players Make Waves

Nonpracticing entities now use IPRs to target biotech companies. Unlike patent litigation in district court, standing is not needed to file an IPR petition. This means that anyone can attempt to institute an IPR of any patent as long as they pay the required fee to the U.S. Patent and Trademark Office. So nonpracticing entities hoping to score a quick settlement at the mere threat of filing an IPR petition for a biotech company's key product have been jumping in.