The Federal Circuit denied en banc rehearing in the case of Kroy IP Holdings, LLC v. Groupon, Inc., which upholds a February 2025 panel decision. The ruling significantly limits the collateral estoppel effect of unpatentability determinations made by the Patent Trial and Appeal Board (PTAB). The denial was characterized by differing opinions from Chief Judge Moore and Judge Dyk, indicating a division on the implications of the ruling within the court itself. This decision alters how PTAB rulings may influence future patent litigation outcomes.
The Federal Circuit's decision in Kroy IP Holdings, LLC v. Groupon, Inc. restricts the applicability of collateral estoppel when it comes to PTAB unpatentability rulings, asserting that previous findings do not necessarily bind future cases.
The ruling presents a notable shift in how unpatentability decisions by the PTAB will interact with subsequent litigation, allowing for potentially different outcomes in later cases even when PTAB's determinations are involved.
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