A dispute over whether government entities are persons that can challenge patents in Patent and Trademark Office administrative proceedings is set for oral arguments at the U.S. Supreme Court Feb. 19.

The high court will determine whether the U.S. Postal Service can use a special procedure established under the America Invents Act, known as covered business method, to challenge a patent it’s accused of infringing. Return Mail Inc., an automated mail service provider, sued the USPS for infringement of a...