On October 2, 2024, the U.S. Patent and Trademark Office (USPTO) issued a final order to terminate proceedings for approximately 3,100 patent applications due to an unauthorized individual’s fraudulent use of a registered practitioner’s S-signature, an electronic signature format permitted by the USPTO. The scale of the fraud has drawn attention to the importance of maintaining security over practitioner credentials and ensuring compliance with patent rules. Under 37 CFR 1.4, signatures on documents filed with the USPTO must be personally signed by the named signatory. The USPTO may also request proof to verify the authenticity of signatures and act against any fraudulent filings. If documents are submitted with the intent to mislead the USPTO or circumvent regulations, sanctions may be imposed, as detailed in 37 CFR 11.18.

The issue first surfaced in October 2022 when the USPTO reached out to a registered patent practitioner whose signature appeared on many micro entity certification forms – a form commonly used to lower filing fees. Upon investigation, and with full cooperation from the practitioner, it was discovered that another individual had been fraudulently using the practitioner’s S-signature. This unauthorized individual had been submitting documents using the practitioner’s name without their knowledge or consent.

As a result of this misconduct, which violated the duty of candour and good faith required by the USPTO, the agency issued a final order that terminated all proceedings related to the affected patent applications. This may affect other patent applications, potentially causing delays for applicants or requiring them to reapply based on the status of their patents.

“The scale of this fraudulent action is a stark reminder for registered practitioners of their obligations under the USPTO Rules of Practice to take reasonable precautions to protect their credentials and alert the USPTO of any suspected fraud,” said USPTO Under Secretary of Commerce for Intellectual Property and Director Kathi Vidal in an announcement.

She further stressed its implications for applicants, adding: “It is a warning to applicants to ensure they are working with a licensed representative with authority to practice before the USPTO. Preventing fraud is an all-hands-on-deck initiative – we want all applicants to be educated on the application process, and all practitioners to safeguard their credentials.”

With a growing number of electronic applications, practitioners are urged to be vigilant in protecting their credentials by adopting best practices, such as periodically changing passwords, monitoring the usage of credentials and reporting any suspicious activity to the USPTO. The agency also provides a list of registered and disciplined practitioners to

help applicants verify the credentials of their legal representatives, along with guidelines to ensure the integrity of the application process, including tips on avoiding common scams.

- Cathy Li