USPTO Patent Backlog Falls to Two-Year Low Under Director Squires — Down Nearly 61,000 Applications from 2025 Peak

The United States Patent and Trademark Office (USPTO) announced on April 6, 2026, that its inventory of unexamined patent applications had fallen to 776,995 — the lowest figure in two years. The agency reached a peak of 837,928 pending applications in January 2025, and has since reduced that figure by approximately 61,000 applications. The USPTO projects that the downward trend will continue through the next two fiscal quarters.

USPTO Director John Squires framed the development as a turning point. In a statement accompanying the announcement, Squires described the milestone as “the tipping point of momentum now in favor of the applicant.” At the American Intellectual Property Law Association (AIPLA) Annual Meeting in October 2025, Squires had characterized the backlog inherited by his administration as “an absolute dumpster fire” — a reference to the sustained rise in unexamined applications that pre-dated his tenure.

Historical Context and Structural Causes

The patent application backlog stood at 576,103 in 2020, before growing sharply in the following years. The COVID-19 pandemic constrained the USPTO’s examination capacity while application volumes continued to rise, creating a persistent and compounding accumulation. Former Director Kathi Vidal similarly acknowledged having inherited a pandemic-era backlog upon taking office, underscoring that the backlog problem spans multiple administrations and cannot be attributed to any single policy period.

Squires has called the protracted growth of the backlog “a total betrayal of American inventors who deserve better.” His administration has made backlog reduction a stated priority since taking office, and the April 6 announcement represents the first concrete statistical benchmark of that effort.

Policy Measures Behind the Reduction

The USPTO attributed the improvement to several concurrent initiatives. First, the agency issued updated patent examination guidance aimed at improving consistency and efficiency in evaluating patent eligibility under 35 U.S.C. § 101. Second, the USPTO incorporated the Desjardins precedential decision — issued by the Patent Trial and Appeal Board (PTAB) — into prosecution practice, providing clearer standards for patent-eligible subject matter in software and related fields. Third, the agency launched an Eligibility Disclosure Submission program designed to streamline § 101 analysis during prosecution.

Squires noted that these measures enabled the USPTO to manage a higher volume of incoming applications while still reducing the backlog. The § 101 reforms are particularly significant: uncertainty surrounding patent-eligible subject matter has long been a source of inefficiency in examination, generating extensive back-and-forth between applicants and examiners. Clearer standards reduce that friction and allow examiners to process more applications per unit of time.

Practical Significance for Applicants

A large backlog translates into longer waits between filing and grant. For applicants in fast-moving technology sectors — artificial intelligence, semiconductors, biotechnology — delayed patent rights can erode the commercial value of a patent before it issues. Startups are particularly vulnerable: pending applications cannot be enforced, and their value as collateral for financing is limited compared to granted patents.

At the same time, critics of accelerated examination raise quality concerns. If examiners process applications more quickly, there is a risk of overlooking relevant prior art, which in turn could lead to granted patents that are vulnerable to invalidity challenges before the PTAB or in federal litigation. The USPTO has maintained that its quality metrics have held steady, but the ultimate test of examination quality will come as granted patents are tested in post-grant proceedings and litigation over the coming years.

What to Watch

The USPTO’s projection that the backlog will continue to fall through the second half of fiscal year 2026 sets a measurable benchmark against which Director Squires’ tenure can be assessed. Rising application volumes in generative AI and related fields could put that projection under pressure. The pace of inflow from these technology areas, combined with the durability of the current examination guidelines, will determine whether the agency can sustain the current trajectory or will face renewed accumulation.

The announcement was reported by IPWatchdog on April 10, 2026, and has drawn attention from patent practitioners across the U.S. IP community.