Cut bait

The specter of Kyle Bass using postgrant patent review procedures to manipulate stock prices has spotlighted an obscure corner of intellectual property law, and stirred up a backlash that could prompt Congress to institute reforms.

Bass, founder and chief investment officer of hedge fund Hayman Capital Management L.P., has been using the inter partes review (IPR) process to challenge drug patents that he says should not have been granted and have allowed drug companies to exercise "abusive patent monopolies."...