In Re MOTOROLA SOLUTIONS, INC.

Court of Appeals for the Federal Circuit·Decided November 6, 2025·No. 25-134·Published

Opinion

United States Court of Appeals for the Federal Circuit

In Re MOTOROLA SOLUTIONS, INC., Petitioner

2025-134

On Petition for Writ of Mandamus to the United States Patent and Trademark Office in Nos. IPR2024-01205, IPR2024-01206, IPR2024-01207, IPR2024-01208, IPR2024-01284, IPR2024-01285, IPR2024-01313, and IPR2024-01314.

ON PETITION

MATTHEW J. SILVEIRA, Jones Day, San Francisco, CA, for petitioner Motorola Solutions, Inc. Also represented by JOHN R. BOULE, III, Los Angeles, CA; THARAN GREGORY LANIER, Palo Alto, CA; JOHN MARLOTT, Chicago, IL..

TIMOTHY EDWARD GROCHOCINSKI, Nelson Bumgardner Conroy PC, Burr Ridge, IL, for respondent Stellar, LLC. Also represented by CHARLES AUSTIN GINNINGS; TIMOTHY DEVLIN, ROBERT DEAN KIDDIE, JR., JAMES MICHAEL LENNON, NADIIA LOIZIDES, Devlin Law Firm LLC, Wilmington , DE.

FAHD H. PATEL, Office of the Solicitor, United States Patent and Trademark Office, Alexandria, VA, for respondent John A. Squires. Also represented by NICHOLAS 2 IN RE MOTOROLA SOLUTIONS, INC.

THEODORE MATICH, IV, ROBERT J. MCMANUS, PETER JOHN SAWERT; BRADLEY HINSHELWOOD, LAURA MYRON, Environment & Natural Resources Division, United States Department of Justice, Washington, DC.

Before DYK, LINN, and CUNNINGHAM, Circuit Judges.

LINN, Circuit Judge.

ORDER

At the request of Motorola Solutions, Inc., the Patent Trial and Appeal Board instituted inter partes review (IPR) of Stellar, LLC’s patents. But on review, the then-Acting Director of the United States Patent and Trademark Office (PTO) 1 deinstituted the IPRs, concluding such review would not be an efficient use of resources given the ongoing parallel district court proceedings between the parties involving the patents. Motorola now petitions this court for mandamus relief, arguing that the Acting Director violated certain procedural protections guaranteed by the Administrative Procedure Act (APA) and the Due Process Clause of the Fifth Amendment to the Constitution in doing so. We deny the petition.

I

A

In chapter 31 of Title 35 of the U.S. Code, Congress established a process for IPR of an issued patent. Given “the likelihood of parallel pending proceedings in the PTO and in the courts,” and inefficiencies that could result from both the PTO and the courts deciding overlapping issues at the same time, Apple Inc. v. Vidal, 63 F.4th 1, 8 (Fed. Cir. 2023), Congress imposed certain safeguards; among them, a petition must be filed within one year of service of an

1 John A. Squires was confirmed as PTO Director after these actions and petition were filed.

IN RE MOTOROLA SOLUTIONS, INC. 3

infringement suit brought by the patent owner or real party in interest, 35 U.S.C. § 315(b). “But Congress generally left the two branches to exercise their available discretion to address such issues.” Apple, 63 F.4th at 8.

The Director, who is tasked with determining whether to institute IPR, see 35 U.S.C. § 314(a), 2 addressed this topic in 2019 and 2020 by designating two Board decisions —NHK Spring Co. v. Intri-Plex Techs., Inc., No. IPR2018-00752, 2018 WL 4373643 (PTAB Sept. 12, 2018), and Apple Inc. v. Fintiv, Inc., No. IPR2020-00019, 2020 WL 2126495 (PTAB Mar. 20, 2020)—as precedential thereby establishing a multi-factor discretionary standard to be used by the agency for determining whether to deny institution of IPR in situations where there are pending parallel proceedings.

These “Fintiv factors” include: (1) “whether the court granted a stay or evidence exists that one may be granted if a proceeding is instituted”; (2) “proximity of the court’s trial date to the Board’s projected statutory deadline for a final written decision”; (3) “investment in the parallel proceeding by the court and the parties”; (4) “overlap between issues raised in the petition and in the parallel proceeding”; (5) “whether the petitioner and the defendant in the

2 In the past, the Director has generally delegated the responsibility of deciding whether to institute IPR to the Board. See 37 C.F.R. § 42.4; Ethicon Endo-Surgery, Inc. v. Covidien LP, 812 F.3d 1023, 1028 (Fed. Cir. 2016). On October 17, 2025, however, the Director announced— without any change to 37 C.F.R. § 42.4—that he, in consultation with at least three Board judges, will determine whether to institute IPR. John A. Squires, Open Letter from America’s Innovation Agency and Memorandum (Oct. 17, 2025), https://www.uspto.gov/sites/default/files/documents /open-letter-and-memo_20251017.pdf (last visited Oct. 22, 2025).

4 IN RE MOTOROLA SOLUTIONS, INC.

parallel proceeding are the same party”; and (6) “other circumstances that impact the Board’s exercise of discretion, including the merits.” 2020 WL 2126495, at *2.

On June 21, 2022, then-Director, Katherine K. Vidal, issued a memorandum announcing interim guidance to the Board on how to apply the Fintiv factors while the agency explored potential rulemaking (“Vidal Memorandum”). Under that guidance, the Board would not “discretionarily deny institution in view of parallel district court litigation where a petition presents” a so-called Sotera stipulation: “a stipulation not to pursue in a parallel proceeding the same grounds or any grounds that could have reasonably been raised before the [Board].” Appx100–01. That guidance was to “remain in place until further notice.” Appx107.

Then, on February 28, 2025, following a change in Presidential administrations, the Acting Director rescinded the Vidal Memorandum. In his March 24, 2025 guidance to the Board on how to implement the recission, Chief Administrative Patent Judge Boalick explained that the recission to the Vidal Memorandum was made because the agency ultimately decided not to propose a rule. Appx110. He further instructed: (1) that the rescission “applies to any case in which the Board has not issued an institution decision, or where a request for rehearing or Director Review of an institution decision was filed and remains pending”; (2) that the Board not consider a Sotera stipulation as “dispositive” but rather as “highly relevant”; and (3) that the Board “consider timely requests for additional briefing on the application of the Interim Procedure’s recission on a case-by-case basis.” Appx111–12. On March 26, 2025, the Acting Director additionally implemented certain processes related to institution decisions, including instructing the Board to permit parties to address all relevant considerations. Appx114.

IN RE MOTOROLA SOLUTIONS, INC. 5

B

In August 2023, Stellar filed suit against Motorola in district court alleging infringement of claims of eight patents . While that court case was pending, Motorola filed a first set of petitions asking to institute IPR in July 2024 and a second set of petitions in August 2024. Motorola filed a Sotera stipulation stating that should IPR be instituted it would not pursue, in the parallel civil litigation, any ground for unpatentability that it raised or reasonably could have raised in the IPRs. Appx116–18; Appx120–21.

The Board initially instituted IPRs on both sets of petitions , prompting Stellar to seek Director Review. In response to the request for such review of the first set of petitions, Motorola argued that institution was consistent with Board precedent. Appx123. But on March 28, 2025, the Acting Director deinstituted the first set of IPRs based on the Fintiv factors, concluding that the “Board did not give enough weight to the investment in the parallel proceedings and gave too much weight to Petitioner’s Sotera stipulation.” Appx17. Motorola then moved for reconsideration , arguing that the Acting Director’s actions “amount[ed] to improper rulemaking or a change in policy” and the “retroactive[]” application of the recission violated “the APA and [Motorola’s] due-process rights.” Appx144.

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