Pratik Shah of Akin Gump Strauss Hauer & Feld. Photo: Diego M. Radzinschi/ALM

The U.S. Court of Appeals for the Federal Circuit has given its unconditional blessing to the U.S. Patent and Trademark Office director's unfettered discretion to reject administrative patent validity challenges.

The decision darkens the outlook for technology companies that argue the PTO is improperly limiting access to America Invents Act procedures known as IPRs, and instead forcing many cases to proceed in federal district court.