In October 2025, the United States Patent and Trademark Office (USPTO) issued a significant policy directive—the Director formally instructed all administrative patent judges to require full disclosure of the "real party-in-interest" in all future patent invalidation proceedings. According to the USPTO, this measure aims to "safeguard the stability of the U.S. intellectual property system against opaque investment structures used by foreign entities."
Although the new rule does not explicitly target any specific country or company, it aligns with the USPTO's ongoing efforts to integrate "national security" considerations into patent examination standards. This shift is already impacting Chinese tech companies—particularly leading players in semiconductors, artificial intelligence, and other critical fields—who now face unprecedented challenges in patent enforcement.
While the "real party-in-interest" disclosure appears to be a procedural transparency measure, it may, in practice, create a hidden barrier for Chinese companies pursuing patent rights. For instance, if a Chinese company files a patent invalidation action through an overseas subsidiary, it must fully disclose its ultimate controlling stakeholders. Such disclosure could trigger a "national security review" by U.S. authorities and, in extreme cases, lead to dismissal of the petition—halting enforcement efforts altogether.
Nevertheless, China is not without recourse in adapting to these evolving patent rules. The country already possesses foundational strengths to respond effectively, reflected in two key areas:
1. Strong Patent Reserves
China has maintained its position as the global leader in patent applications for several consecutive years. It has accumulated a substantial portfolio of high-value core patents in emerging fields such as 5G communications, AI, and new energy—providing a solid technological foundation to navigate regulatory changes.
2. Growing Influence in Technical Standards
Chinese enterprises are playing an increasingly central role in shaping international standards, particularly in key sectors like 5G networks and electric vehicles.
In the realm of patent regulation, there are no absolute winners. The contest over rulemaking authority will profoundly shape the future trajectory of global technology industries. In response to the U.S. disclosure requirements, China should engage openly in global intellectual property governance, reinforcing the fundamental role of patents: to serve as a bridge connecting innovation and technological progress, rather than as tactical instruments in industrial competition.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Views expressed are based on policy analysis and do not represent any official stance. For specific legal matters, consultation with qualified professionals is recommended.
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