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**DISTRICT COURT ERRED IN OMITTING EXPLANATION OF DETERMINATION OF NO EXCEPTIONALITY
AGI Suretrack LLC v. Farmers Edge Inc., 24-1730, 24-1830 — Yesterday in an opinion by Judge MAYER, the Federal Circuit vacated and remanded a district court determination that Farmers Edge had not established AGI’s patent infringement claims were exceptional for the purpose of a fee award under 35 U.S.C. § 285. Farmer’s Edge argued the court erred in entering judgment sua sponte without explaining its decision and affording Farmers Edge an opportunity to respond.
The Federal Circuit agreed. Only some cases required a court to explain its reasoning for finding a case was not exceptional, but here the district court’s “terse no exceptionality ruling” did not permit appropriate appellate review. The decision also prevented Farmers Edge from filing a motion to seek attorney’s fees within the 14 days required under Federal Rule of Civil Procedure (FRCP) 54(d)(2)(B). However, an Advisory Committee Note to the FRCP explained that a new filing period would be triggered automatically by a new judgment entered after a reversal or remand by an appellate court.
(1 to 4 stars rate impact of opinion on patent & trademark law)
TRUMP SIGNS EXECUTIVE ORDER ON AI AND CYBERSECURITY
Yesterday President TRUMP signed an executive order directing federal agencies to integrate artificial intelligence into cybersecurity operations and establishing a voluntary framework for private sector collaboration on advanced AI model deployment.
The order creates a voluntary AI cybersecurity clearinghouse to coordinate vulnerability scanning and patch distribution with industry and critical infrastructure operators. AI developers may voluntarily engage with the government to determine whether a model qualifies as a “covered frontier model” and provide up to 30 days of early access prior to broader release, subject to confidentiality and IP protections for participating developers. The order explicitly prohibits mandatory licensing, preclearance, or permitting requirements for AI development or release.
TRUMP NOMINATES THREE TO U.S. INTERNATIONAL TRADE COMMISSION
On June 1 President TRUMP sent nominations to fill three seats on the U.S. International Trade Commission (ITC), which adjudicates intellectual property disputes under Section 337, to the Senate. PETER-ANTHONY PAPPAS was nominated for the remainder of the term expiring June 16, 2026, as well as a full term expiring June 16, 2035; BARTHOLOMEW THANHAUSER for a term expiring December 16, 2027; and SAMUEL NEGATU for a term expiring June 16, 2029.
Pappas has served as Director of Intellectual Property Policy for the Senate Judiciary Committee under Sen. THOM TILLIS (R-NC) and previously as a detailee to USPTO Director ANDREI IANCU. Thanhauser most recently served as Deputy Assistant U.S. Trade Representative for Southeast Asia and the Pacific; he worked on trade policy and enforcement matters at USTR for nearly a decade. Negatu is currently Director of Government Affairs at the Consumer Technology Association (CTA); he previously served as Director of Congressional Affairs to the U.S. Trade Representative and as a staffer in the House of Representatives.
The ITC is headed by six commissioners nominated by the President and confirmed by the Senate. IPO has long supported a fully staffed ITC, which is critical to the timely and effective resolution of Section 337 investigations. The nominations are pending Senate confirmation; the process will begin with consideration by the Senate Finance Committee.
USPTO LAUNCHES PILOT PROGRAM LINKING STANDARDS PARTICIPATION TO EXPEDITED PATENT EXAMINATION
Today the U.S. Patent and Trademark Office published a Federal Register notice launching the Standards Participation and Representation Kudos (SPARK) pilot program, an initiative aimed at strengthening U.S. leadership in voluntary technical standards development. The program will allow certain U.S.-domiciled small and medium-sized businesses, universities, and nonprofit organizations to receive expedited patent examination and accelerated PTAB appeals if they have meaningfully participated in standards development organizations (SDOs), regardless of whether the underlying application relates to that participation. The SPARK pilot seeks to lower barriers to participation for smaller U.S. entities and encourage them to contribute to standards-setting processes.