Federal Circuit to Hear VLSI’s Appeal in Dispute Over PTAB’s Procedural Grounds

VLSI Technology LLC is vehemently seeking a renewed opportunity to defend its patent against OpenSky Industries LLC. The matter has escalated to the U.S. Court of Appeals for the Federal Circuit, with VLSI asserting that OpenSky’s inter partes review (IPR) initiation was endorsed based on guidance that has now been rescinded. The [initial report](https://www.law360.com/ip/articles/2383256?utm_source=rss&utm_medium=rss&utm_campaign=section), published on September 2, 2025, highlights VLSI’s argument that the Patent Trial and Appeal Board (PTAB) currently lacks the grounds to proceed with the challenge.

This legal battle comes in the wake of OpenSky Industries facing sanctions, yet still managing to challenge VLSI’s patent. The case underscores broader concerns within the patent litigation community about the procedural dynamics at the PTAB. The guidance initially permitted the PTAB to move forward with reviews even under questionable circumstances, yet its recent withdrawal adds layers of complexity to ongoing cases.

VLSI’s struggle is part of a larger narrative around how patent trials are managed post-instituting decisions, especially with parties accused of misconduct. Legal practitioners are closely monitoring how this case will influence future guidance on handling such issues. Notably, the withdrawal of the procedural directive raises questions about the continuity and predictability of the PTAB’s decision-making framework.

The case’s implications extend beyond just the parties involved. It comes at a time when many are critiquing the PTAB’s typical stance towards overwhelming challenges filed by entities not directly practicing the inventions they contest. As this case progresses, it may prompt legislative attention to refine the boundaries and operational practices of the PTAB, ultimately ensuring a fairer patent litigation landscape.

While VLSI awaits the Federal Circuit’s decision, the industry continues to grapple with the ramifications of rapidly evolving PTAB procedures. Legal experts predict that the court’s forthcoming judgment may offer significant insight into the future of patent dispute arbitrations and provide much-needed clarity on the role regulatory guidance plays in these complex legal frameworks.