BT Americas v. Palo Alto Networks — Federal Circuit affirmed that all 25 network-security patent claims were unpatentable

Case
BT Americas, Inc. v. Palo Alto Networks, Inc.
Court
U.S. Court of Appeals for the Federal Circuit
Judge
Chen; Stoll; Stark
Date Decided
October 29, 2026
Docket No.
25-1572
Topics
Patent Law; Inter Partes Review; Obviousness; Expired Patents
Source
Read the full opinion

Background

U.S. Patent No. 7,895,641 concerns dynamic network-intrusion monitoring, detection, and response. The disputed claims included a system that could dynamically modify a probe’s analytical capability during operation based on feedback, as well as a multi-stage analysis involving analysis at both the probe and a secure operations center.

In an inter partes review brought by BT Americas, the Patent Trial and Appeal Board held claims 1–25 unpatentable under 35 U.S.C. § 103. Among other grounds, the Board concluded that claims 1–7 and 15–17 would have been obvious over Duvall and Chu. BT Americas appealed, challenging the Board’s findings concerning dynamic modification, multi-stage analysis at a secure operations center, motivation to combine the references, and the Board’s authority to review an expired patent.

The Court’s Holding

The Federal Circuit affirmed in a nonprecedential opinion. Substantial evidence supported the Board’s finding that Duvall’s filter database could be edited online and that an update to the database would dynamically alter the probe’s analytical capability during operation. The court also upheld the finding that implementing such modification would have involved known, routine database-editing techniques, and it found substantial evidence supporting the motivation to combine Duvall and Chu.

The court rejected BT Americas’ challenge concerning the claimed analysis at a secure operations center. It explained that the petition relied on two distinct analyst systems: one at a secure remote site that participated in identifying residue data, and another at the probe that received information about the residue data and later modified the filter database. The court also rejected the jurisdictional argument, holding that its precedent in Apple Inc. v. Gesture Technology Partners foreclosed the contention that the Board lacks authority to conduct inter partes review of an expired patent.

Key Takeaways

  • Updating an operational filter database can constitute dynamically modifying a probe’s analytical capability when the probe uses the updated database during analysis.
  • Expert testimony about routine database-editing techniques and industry practices supplied substantial evidence for the Board’s obviousness findings.
  • The PTAB may conduct inter partes review of an expired patent under binding Federal Circuit precedent.

Why It Matters

The decision illustrates how a reference’s ordinary operational capabilities, supported by expert testimony about routine implementation, may satisfy a dynamic-modification limitation even if the reference does not use the claim’s precise terminology. It also underscores the importance of tracking distinct components in an obviousness mapping when a claim requires analysis at multiple locations.

For challenges to expired patents, the panel treated the Federal Circuit’s Gesture Technology decision as controlling, leaving no room for a panel to accept the argument that expiration removes the patent from the PTAB’s inter partes review authority.

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