USPTO Director Reverses IPR Institution, Denies Carbyne's Challenge to CentralSquare's U.S. Patent No. RE50,016 in Full, Citing Inconsistent Claim Constructions

FOR IMMEDIATE RELEASE
February 13, 2026

WASHINGTON, DC–Finnegan is pleased to announce a significant victory for client CentralSquare Technologies, LLC (CentralSquare) at the United States Patent and Trademark Office (USPTO).

On February 19, 2026, in Inter Partes Review (IPR) proceeding No. IPR2025-00959 by Carbyne, Inc., USPTO Director John A. Squires granted CentralSquare's request for Director Review, vacating the Patent Trial and Appeal Board's (PTAB) prior decision granting institution of the IPR, and denied institution of the IPR in its entirety.

The IPR was initiated by Carbyne to challenge the validity of CentralSquare’s U.S. Patent No. RE50,016, titled "SMS Communication During Emergencies." In his detailed order, Director Squires emphasized Carbyne's failure to adequately explain inconsistent claim construction positions advanced in the IPR petition compared to those asserted in the parallel district court litigation, CentralSquare Technologies, LLC v. Carbyne, Inc., No. 1:24-cv-01497-ADA (W.D. Tex.). Specifically, in the district court, Carbyne argued that certain "module" claim terms should be construed as means-plus-function terms under 35 U.S.C. § 112, rendering them indefinite due to a lack of corresponding structure in the specification. In stark contrast, Carbyne's IPR petition posited that these same terms required no further construction and should be given their plain and ordinary meaning, accepting the patent owner's prior representations during reissue proceedings that the terms refer to computer program modules executed by processors.

Director Squires concluded that such unexplained inconsistencies undermine the USPTO's objectives of providing greater predictability and certainty in the patent system. The Director rejected Carbyne's arguments that its positions were not truly inconsistent and that it had provided sufficient justification, noting that merely adopting the patent owner's prosecution statements in the IPR did not explain the divergence from its district court stance.

Importantly, this ruling is expected to have a substantial impact on the parallel litigation pending in the Western District of Texas. By denying institution in full and highlighting Carbyne’s inconsistent claim construction positions, the Director’s decision strengthens CentralSquare’s position in the district court and places significant pressure on Carbyne’s invalidity theories. The order reinforces the need for consistency across forums and signals that strategic divergence between PTAB and district court positions carries real consequences.

Lionel M. Lavenue, counsel for CentralSquare notes, "The Director's decision not only halts this IPR challenge entirely but also compels Carbyne to rethink its overall strategy in the ongoing district court litigation and beyond. We are proud to have secured this outcome for CentralSquare, allowing the company to continue focusing on delivering mission-critical public safety solutions without unwarranted disruption."

Contacts
 
Terra Liddell, Chief Marketing Officer
terra.liddell@finnegan.com

Angela Robinson, Director of Branding and Communications
angela.robinson@finnegan.com

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