In a significant policy shift, U.S. Patent and Trademark Office (USPTO) Director John Squires has reclaimed the authority to decide on the institution of proceedings under the America Invents Act (AIA), a role previously delegated to the Patent Trial and Appeal Board (PTAB). This change, effective October 20, 2025, aims to address concerns about the PTAB’s high institution rates and to restore the statutory framework intended by Congress. ([mofo.com](https://www.mofo.com/resources/insights/251020-the-director-decides-aia-institution-authority?utm_source=openai))
Director Squires articulated that the delegation of institution authority to the PTAB had led to “structural, perceptual, and procedural concerns inconsistent with the AIA’s design, clear language, and intent.” He highlighted that PTAB panels had been granting review at “extraordinarily high institution rates,” at times exceeding 95% for referred cases. ([mofo.com](https://www.mofo.com/resources/insights/251020-the-director-decides-aia-institution-authority?utm_source=openai))
This policy adjustment follows a trend of decreasing institution rates. In the third quarter of 2025, the PTAB instituted trial in just 35% of AIA review petitions, a significant drop from 72% in the same quarter the previous year. This decline is largely attributed to changes in discretionary denial practices implemented by then-Acting Director Coke Morgan Stewart. ([rpxcorp.com](https://www.rpxcorp.com/data-byte/institution-rates-dropped-further-as-stewart-continued-discretionary-denial-expansion/?utm_source=openai))
In his confirmation hearing, Director Squires emphasized the need for patents to be “born strong,” citing a 68% defect rate in inter partes reviews (IPRs) as evidence of quality issues in the patent system. He suggested that improving patent quality at the outset would alleviate many concerns about the PTAB’s role. ([ipwatchdog.com](https://ipwatchdog.com/2025/05/21/squires-calls-born-strong-patents-light-usptos-dire-defective-patent-rate/id%3D189070/?utm_source=openai))
In his first Director Review decision, Squires vacated a PTAB ruling that had invalidated all challenged claims of U.S. Patent No. 11,488,451. He found that the Board had improperly credited unreliable expert testimony, leading to the termination of the proceeding without a final written decision. ([finnegan.com](https://www.finnegan.com/en/insights/blogs/at-the-ptab-blog/cut-to-blackhawk-director-squires-terminates-ipr-with-no-final-written-decision-in-debut-ruling.html?utm_source=openai))
Additionally, the USPTO under Squires has placed extra scrutiny on PTAB rejections of artificial intelligence-related patent claims based on § 101 subject matter eligibility. In a recent Appeals Review Panel decision, the USPTO vacated a PTAB § 101 rejection of a Google AI-related patent application, signaling a shift in the agency’s approach to emerging technologies. ([cooley.com](https://www.cooley.com/news/insight/2025/2025-10-06-ex-parte-desjardins-squires-helmed-uspto-looks-to-train-ptab-on-101-eligibility-of-ai-related-patent-claims?utm_source=openai))
These developments indicate a concerted effort by Director Squires to recalibrate the balance between patent quality and the efficiency of post-grant proceedings, with the goal of fostering a more predictable and respected patent system.