Know Your Business Webinar: Trademarks, Patents, and IP

IP Protection in Flux

The intellectual property landscape in the United States has shifted markedly entering 2026, driven by leadership changes at the United States Patent and Trademark Office (USPTO) following the second Trump administration. New Director John Squires has pushed guidance and precedential decisions that signal greater openness to patenting innovations in artificial intelligence, software, and related fields. A November 2025 memorandum and subsequent actions, including an appeals review panel ruling, instruct examiners to avoid categorical rejections of AI claims under Section 101 if they demonstrate practical technological improvements, such as better machine learning model training or functioning.

This pivot contrasts with prior years' stricter eligibility standards that often blocked software and AI patents as abstract ideas. The changes aim to bolster American competitiveness in AI by making protection more accessible, but they introduce uncertainty as the framework stabilizes. Patent filings dropped sharply in 2025—the first decline in years—partly due to backlogs, economic caution, and strategic shifts toward trade secrets in fast-evolving areas.

On the trademark side, recent USPTO updates, including the December 2025 Trademark Manual of Examining Procedure revision, tighten requirements around domicile addresses, specimen submissions, and fraud detection. These follow 2025 fee hikes that consolidated application types into a higher base rate and added surcharges for complex or delayed filings. Businesses, especially smaller ones or international applicants, now confront higher upfront costs—often hundreds of dollars per class—and greater risk of office actions or refusals if applications lack precision.

The stakes are tangible: unprotected innovations can be copied freely, eroding market advantage in competitive sectors like tech and biotech. Infringement litigation may rise as stronger patents encourage enforcement, while weak protection invites challenges. Non-obvious trade-offs include the balance between broad eligibility that spurs innovation and the potential for patent thickets that hinder it, alongside trademark rules that curb abusive filings but raise barriers for legitimate entrepreneurs.

AI's dual role amplifies these dynamics. While USPTO policy now treats AI strictly as a tool requiring human inventorship, eliminating separate standards, this clarity helps applicants but narrows paths for purely AI-generated outputs. Companies must document human contributions meticulously to secure rights, amid ongoing debates over whether these shifts favor incumbents or truly democratize protection.