by Dennis Crouch
The Federal Circuit on November 3, 2025 denied a mandamus petition from Aylo Holdings (Pornhub's parent company) seeking to compel the Eastern District of Texas to stay patent litigation pending completion of an ex parte reexamination (EPR). In re Aylo Holdings S.à r.l., No. 26-103 (Fed. Cir. Nov. 3, 2025). The decision is noteworthy not for breaking new ground, but for what it signals about institutional deference in an era of declining stay rates and evolving post-grant practice. Aylo challenged Judge Gilstrap's "universal practice" of categorically disfavoring EPR stays as an abuse of discretion that substitutes rigid rules for individualized analysis. The Federal Circuit's refusal to second-guess that approach may preview how the court will respond to challenges against the USPTO's recent shift toward categorical, parametric frameworks for denying IPR institution under 35 U.S.C. § 314(a).
WellcomeMat LLC sued Aylo in 2023 for infringing U.S. Patent No. 8,307,286, which covers a system for applying chapters to online videos. The PTAB cancelled several of the claims via IPR. Aylo then requested ex parte reexamination of these surviving claims. On August 22, 2025, the USPTO issued a final office action rejecting all eight remaining asserted claims. Aylo immediately moved to stay the litigation pending completion of the EPR. The district court denied the motion, and Aylo sought mandamus relief. With trial set for November 17, 2025, the Federal Circuit denied the petition, citing "the proximity to the trial date and the substantial investment of resources by the court and the parties," along with the fact that "ex parte reexamination proceedings over the claims at issue are not yet final."
As patent prosecutors know, a "final" rejection is not really final. Although reexamination has some streamlining, there is still time for a PTAB appeal or other office maneuvering.