How Rogue Administrative Judges Are Enabling China to Hija..ck American Technology

   

Trump administration policy defied by judges in Chinese firm's tech theft  case

In a troubling development that threatens American innovation, a panel of administrative judges has openly defied the Trump administration's policy and allowed a Chinese company to continue its efforts to steal a critical American technology.

This technology is used in everything from self-driving cars to satellites, and the judges’ ruling is a dangerous blow to U.S. intellectual property protection and national security.

This decision is not just a matter of legal missteps but a broader concern about the ability of rogue bureaucrats to undermine the work being done by American innovators to stay ahead in the global race for technological leadership.

These administrative judges are not members of the judicial branch. They work in the executive branch of the U.S. government, and as such, the Trump administration had the authority to overrule their decision.

This is an opportunity that must be seized immediately to protect American workers and uphold the rule of law. President Trump’s administration had put in place critical reforms to protect American industries from unfair competition, particularly from foreign adversaries like China.

These reforms helped ensure that American intellectual property would remain protected from theft by nations that do not respect the rules of fair trade.

But now, a dangerous precedent has been set, and unless immediate action is taken to rectify this, future abuses could continue, further jeopardizing American economic security.

The administrative judges in question work for the Patent Trial and Appeal Board (PTAB), a powerful arm of the U.S. Patent and Trademark Office (USPTO).

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This board has long been criticized for its role in invalidating patents through a process that is often seen as less rigorous than traditional court proceedings.

In this specific case, PTAB sided with Innoscience, a Chinese firm that is locked in a years-long legal battle with Efficient Power Conversion, a California-based semiconductor innovator.

Efficient Power Conversion had accused Innoscience of stealing its patented technology and selling counterfeit chips. This technology, vital to industries ranging from electric vehicles to aerospace, is at the heart of the dispute.

The company took its case to the U.S. International Trade Commission (ITC), which investigates trade violations and works to protect American businesses from unfair competition.

After a thorough 16-month investigation, including trials, depositions, and expert testimony, the ITC found that Innoscience had indeed stolen the technology and that Efficient Power Conversion’s patent was valid.

The ITC took swift action, barring Innoscience from selling its counterfeit chips in the U.S. market. Following the mandatory review period, the White House allowed the ITC’s ruling to stand.

This should have been the end of the matter. However, the Chinese company sought another avenue of appeal, targeting the PTAB for a review of Efficient Power Conversion’s patent.

In a shocking decision, PTAB invalidated key claims in the patent, giving Innoscience a fresh opening to challenge the import ban and potentially flood the U.S. market with stolen technology once again.

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This decision is nothing short of an assault on American innovation. It undermines the Trump administration's efforts to crack down on intellectual property theft, particularly by China, which has long been a major source of concern for American businesses.

The ruling also exposes the vulnerabilities in the current system, where unelected bureaucrats can make decisions that have a profound impact on American companies and workers.

Worse still, PTAB should never have taken this case in the first place. Under the first Trump administration, clear guidance was issued that barred PTAB from reviewing patents that were already being litigated in parallel forums like the ITC.

This policy was designed to protect smaller American companies from being overwhelmed by duplicative litigation across multiple venues. Patent disputes should be handled in one of three forums: the courts, the ITC, or PTAB. But not all three.

This rule was sensible and aimed at providing fair and efficient avenues for resolving patent disputes without allowing companies to be dragged into endless legal battles.

The situation took a dramatic turn in 2022 when the Biden administration reversed this policy, allowing PTAB to review patents that were already being litigated elsewhere.

This change in policy gave Innoscience an opportunity to request a review of Efficient Power Conversion’s patent at PTAB in 2023. Despite the ongoing ITC investigation, PTAB accepted the case and proceeded with a review in 2024.

This move not only violated the Trump administration’s guidance but also undermined the thorough and exhaustive process conducted by the ITC. In March 2025, PTAB issued its ruling, invalidating critical claims of Efficient Power Conversion’s patent.

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This ruling was issued just weeks after the second Trump administration reversed Biden’s policy and reinstated the original rules, which should have blocked PTAB from acting in the first place.

This situation is nothing less than a direct attack on American businesses and a clear example of how bureaucratic overreach can jeopardize U.S. economic interests.

President Trump’s administration recognized the dangers of intellectual property theft long before the current debate. As a businessman, Trump understood that innovation is the lifeblood of the American economy.

Under his leadership, the U.S. took significant steps to protect intellectual property, particularly against foreign adversaries like China. The U.S. had seen its technological edge erode as Chinese firms, backed by state-sponsored efforts, stole trade secrets and intellectual property from American companies.

Trump's administration took a hardline stance against these practices, using tariffs and other trade tools to push back against unfair practices. The administration also implemented policies to crack down on intellectual property theft through better enforcement mechanisms and stronger protections for American firms.

Unfortunately, the Biden administration’s reversal of these policies has allowed rogue administrative judges to undermine this progress. The PTAB’s ruling is just one example of how the new administration has failed to protect American innovators from foreign threats.

The Biden administration’s decision to reverse the Trump-era policy and allow PTAB to review patents that are already being litigated in other forums has created a dangerous precedent.

It has opened the door for Chinese firms to challenge U.S. patents in a forum that is known for its lenient standards, often invalidating patents that have already been thoroughly vetted in other legal venues.

This not only hurts American businesses but also sends a message to China and other foreign adversaries that intellectual property theft will go unpunished.

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The Trump administration’s original policy on patent reviews was designed to prevent this exact scenario. By barring PTAB from reviewing patents that were already being litigated in parallel forums, the administration ensured that patent disputes would be handled in a fair and consistent manner.

This policy provided American businesses with the certainty they needed to invest in research and development without fear of their intellectual property being stolen by foreign competitors.

The Biden administration’s reversal of this policy has opened the floodgates for abuse and has made it easier for foreign companies to challenge U.S. patents in ways that undermine American innovation.

Now, it is up to the Trump administration to step in and reverse PTAB’s ruling. The director of the USPTO has the authority to override PTAB’s decision, and this should happen immediately.

Overturning PTAB’s ruling would align with the ITC’s findings and prevent the theft of a crucial American technology. But simply overturning this ruling is not enough.

To ensure that such abuses do not occur again in the future, comprehensive reforms must be implemented. The first step is to ensure that the Trump-era guidance on patent reviews is made permanent through the formal rulemaking process.

This will make it harder for future administrations to reverse the policy arbitrarily and will provide much-needed certainty to American businesses.

More importantly, Congress must act. Bipartisan legislation like the PREVAIL Act would codify these reforms and ensure that PTAB is held to the same evidentiary standards as federal courts.

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This legislation would also prevent duplicative challenges to patents, protecting American businesses from endless litigation and giving them the confidence to innovate without fear of their intellectual property being stolen.

As a member of the Select Committee on the Chinese Communist Party, I know how crucial it is to protect American innovation from theft by our most determined adversary.

Passing this law would send a clear message to China that the U.S. is committed to defending its intellectual property and its innovators. It would also ensure that unelected bureaucrats cannot hijack trade enforcement and undermine the interests of American businesses.

America’s economic security depends on its ability to innovate. The country cannot afford to allow foreign adversaries like the Chinese Communist Party to steal its technological edge.

Intellectual property theft is not just an economic issue; it is a national security issue. By allowing foreign companies to steal American technology, we are giving them the tools they need to challenge U.S. dominance in critical industries like semiconductor manufacturing, aerospace, and defense.

We cannot let this happen. The Trump administration laid the groundwork for protecting American intellectual property, and it is up to the GOP to continue fighting for policies that prioritize American innovation and secure our technological future.

The time to act is now. The Trump administration must step in and reverse PTAB’s ruling, but it cannot stop there. We must ensure that future administrations cannot undermine the protection of American intellectual property.

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It is time for Congress to pass the PREVAIL Act and provide the legal safeguards necessary to protect U.S. innovation from foreign theft. Only then can we ensure that America remains the global leader in technology and innovation, safe from the threat of intellectual property theft from China and other foreign adversaries.