The United States Patent and Trademark Office (USPTO) continues to find companies with certain foreign-government ownership interests ineligible to pursue inter partes review (IPR), Knobbe Martens reports.

On October 23, USPTO Director John Squires issued a decision explaining his denial of a petition for IPR filed by Meishan CRRC Fastening System Co., Ltd. challenging a patent owned by Howmet Aerospace Inc. 

Meishan’s petition challenged Howmet’s U.S. Patent No. 11,885,358, (the ’358 patent) entitled “BLIND FASTENER AND METHOD OF INSTALLATION THEREOF.” 

Squire’s denial was based on Meishan’s ties to the Chinese government rather than on the merits of Meishan’s prior art, Law360 reports.

In a motion, Howmet pointed to evidence that Meishan’s parent is affiliated with CRRC Corporation Limited, which is majority owned by CRRC Group, which in turn is wholly owned by the Chinese government.

Companies involved in patent disputes should consider the ownership structure of an IPR petitioner, particularly where the petitioner may be owned or controlled, directly or indirectly, by a foreign government.