Why it Matters

The United States Patent and Trademark Office (USPTO) has faced a series of abrupt policy reversals and transparency questions in 2026. USPTO Director John Squires informed Patent Trial and Appeal Board (PTAB) judges in September 2026 that he would relinquish decision-making authority over which patent challenges to institute, returning that authority to PTAB panels and reversing a centralization move he had made in October 2025. The Senate Judiciary Subcommittee on Intellectual Property has scheduled "Oversight Hearings To Examine The United States Patent And Trademark Office" for September 29, with Sen. Thom Tillis (R-NC) as Chair and Sen. Adam Schiff (D-CA) as Ranking Member.

Broader Context

USPTO's fee-setting authority, granted under the Securing United States Intellectual Property Act (SUCCESS Act), was set to expire September 16, but Congress passed a short-term continuing resolution extending it only through December 11. The House Judiciary Subcommittee held a hearing on the fee authority question on September 2, with Rep. Darrell Issa (R-CA-48) expressing hesitation about a full renewal given ongoing PTAB controversies. Earlier in 2026, the USPTO drew bipartisan scrutiny after applying for federal trademarks on behalf of President Donald Trump's "Board of Peace" organization, ultimately abandoning those applications in early July.

A USPTO economic study released ahead of the hearing found that IP-intensive industries employ one-third of the total U.S. workforce and account for 44 percent of U.S. gross domestic product.

Several organizations have filed lobbying disclosures on patent and trademark issues. STIIIZY Inc. reported $250,000 on patent and trademark issues, including relief related to a patent infringement exclusion order, in the first quarter of 2026. The Council for Innovation Promotion reported $50,000 per quarter on intellectual property issues across the third quarter of 2025 through the second quarter of 2026. Colossal Biosciences Inc. reported $50,000 in the second quarter of 2026 on issues related to the U.S. Patent Office, federal grants, and synthetic biology regulation. ParkerVision Inc. reported $25,000 in the fourth quarter of 2025 on patent protection for small businesses and independent innovators, the regulatory power of the U.S. Patent and Trademark Office, and offshoring of communications technology.

The Bottom Line

The December 11 expiration of USPTO fee-setting authority gives Congress a concrete deadline to press for PTAB reforms before year's end. The PTAB institution-control reversal, the abandoned trademark applications, and ongoing litigation over the USPTO's internal Sensitive Application Warning System (SAWS) program collectively place the agency's independence and consistency at the center of the September 29 hearing.

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