W.D. Texas Vacates PI in Yue v. Reaction Labs After USPTO Rejects All Claims in Reexam

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11

Why it matters

On April 20, 2026, the U.S. District Court for the Western District of Texas vacated a preliminary injunction in Yue v. Reaction Labs, LLC, finding that a USPTO rejection of all 18 claims in U.S. Patent No. 11,972,881 constituted a changed circumstance that undermined the patent owner's likelihood of success on the merits. The court ruled that the non-final office action raising substantial questions of patent validity was enough to overturn its earlier decision granting the injunction to Lup, the patent owner, against counter-defendants Reaction Labs and Yue.

The USPTO reexamination was triggered by Reaction Labs after the district court initially granted Lup's injunction motion. The agency's early-stage rejection of all claims remains non-final, meaning the proceeding is still developing. The court's reasoning leaves open the possibility that Lup could seek renewed injunctive relief if the USPTO ultimately confirms the validity of the claims during the reexamination process.

Patent litigators should treat parallel USPTO proceedings as material to preliminary injunction strategy. This decision signals that district courts will weigh non-final USPTO rejections heavily when assessing validity questions, even at early litigation stages. Defendants facing infringement suits now have a clearer roadmap: triggering reexamination can be an effective tool to derail preliminary injunctions, making it essential for patent owners to anticipate and prepare for dual-forum challenges to claim validity before seeking court relief.

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