Walter G. Copan
Gov’t. meddling may kill scientific research
By Walter G. Copan
Bureaucrats are debating whether to take away patent rights on Xtandi, a prostate cancer drug, from its manufacturer. Activists have complained that the medicine’s price is too high. They argue that because the molecule behind the drug originated in a research lab that received federal funding, the government has the power under the Bayh-Dole Act of 1980 to “march in” and relicense the patent to other drug companies that could create cheaper versions.
That’s not only a misreading of the law — it’s a disastrous idea that could effectively destroy the legal foundation for the public-private research partnerships that bring new products to American consumers.
The Bayh-Dole Act allows universities, research institutes and small businesses to invent, to own and license patents from their research — specifically from research supported by federal funding. Prior to Bayh Dole, the federal government held those patent rights — and bureaucrats rarely licensed any patents to companies capable of turning good inventions into tangible products.
Public-private partnerships nurtured by Bayh-Dole have led to the formation of over 15,000 startup companies and contributed almost $2 trillion to the U.S. economy. Researchers estimate that the law’s technology transfer provision supports nearly 6 million American jobs.
The law requires any company that licenses these patents to make a good-faith effort to develop them and produce real-world products. If a company licenses a patent, but then just sits on it — rather than investing what’s necessary to bring it to market — the government can “march in” and relicense the patent to a firm that’s willing to do that hard, expensive work.
But activists are now calling on the government to use those march-in rights as a de facto price control, and march in simply because they believe a product costs too much.
However, Bayh-Dole’s march-in power was never intended to be used to micromanage prices from Washington.
Many university inventions come to market through startups, involving significant personal and financial risk. However, if their property rights are not secure, entrepreneurs will eventually fail. If a firm is finally successful and then the government can just strip away their rights over a price dispute, few firms thereafter would ever take the risk of licensing university research that involved even a dime of federal funding.
This isn’t theoretical. In the late 1980s, the National Institutes of Health imposed a so-called “reasonable price clause” for all public-private collaboration agreements. As soon as the rule went into force, the bottom fell out of these partnerships.
The effects of the rule were so disastrous that NIH Director Harold Varmus scrapped the policy in 1995, saying that it had “driven industry away from potentially beneficial scientific collaborations.” The year after this “government price control” provision was repealed, the number of public-private cooperative agreements more than doubled.
We shouldn’t repeat the same mistake, especially on the heels of a pandemic that demonstrated the crucial role that technology transfer plays in developing vaccines and therapeutics as fast as humanly possible. If the Biden administration fails to protect the Bayh-Dole Act, it could spell disaster for American consumers and workers alike.
Walter G. Copan, PhD, is the former director of the National Institute of Standards and Technology. He currently serves as vice president for research and technology transfer at Colorado School of Mines as well as Senior Advisor & Co-Founder at the Renewing American Innovation Project at CSIS. This piece originally ran in the Denver Post.
Local News
Sorry, we couldn't find any posts. Please try a different search.
Neighbors
Swanson scores, assists in Red Stars’ win over Reign
Spread the loveThe Red Stars improved to 3-1-1 by beating the Seattle Reign, 2-1, on the road on April 21. Mallory Swanson had an assist on an Ali Schlegel goal in the fourth minute and added a goal of her own in the 31st minute. Swanson missed last season after sustaining a knee injury on…
Red Stars’ Tatumn Milazzo has top Save of the Week
Spread the loveBy Jeff Vorva Correspondent Tatumn Milazzo called her achievement “funny.” The Chicago Red Stars defender and Orland Park native was awarded the NWSL’s Save of the Week after chasing down a ball in a loss to Angel City on April 13. The Save of the Week usually goes to a goalie. Milazzo laughed…
Men’s College Volleyball | Saint Xavier captures fifth straight conference tourney title
Spread the loveBy Jeff Vorva Correspondent The SXU men’s volleyball team won its fifth straight Chicagoland Christian Athletic Conference tournament championship after a 25-16, 25-17, 25-22 sweep of Calumet College of St. Joseph on April 20 at the Shannon Center. Jan Lopuch had 10 kills and nine digs for the Cougars. With the win, the…
College Baseball | Saint Xavier upsets Eastern Illinois
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier baseball team picked up a win that its players are going to remember for a long time. The Cougars stunned Eastern Illinois, 4-2, on April 17 in Charleston. It was the Cougars’ first win over the Panthers, a Division I program, since 2005. Lyons grad Troy…
St. Laurence hoops teams top honor roll
Spread the loveBy Jeff Vorva Correspondent Area basketball teams proved to be strong on the court and in the classroom this season, and St. Laurence was the leader of the pack. The Illinois Basketball Coaches Association compiled a list of the top academic teams, and the area did well. In Division 3 girls, St. Laurence…
Chicago Bears recognize St. Rita senior with All-Star award
Spread the loveBy Jeff Vorva Correspondent Chances are good that few outside of St. Rita football circles know who David Lyle is. With good reason. Lyle missed his senior season for the Mustangs last fall after sustaining a serious knee injury. He even postponed having knee surgery so that he could take care of his…
Pols want 63rd St. armory for new police HQ
Spread the love. Porfirio, Guerrero-Cuellar push plan in Springfield . By Tim Hadac Any plans the Chicago Department of Aviation may have had for the vacant Army National Guard Midway Armory, 5400 W. 63rd St., may be grounded, at least for now. Several elected officials are eyeing the parcel as the headquarters of a new…
Her back against the wall, Stacy needs help
Spread the love. By Tim Hadac Editor Clear-Ridge Reporter & NewsHound (708)-496-0265 . Clearing and Garfield Ridge have earned a reputation as a place where people look out for each other—and that sometimes means caring for each other in times of need. Today, I want to talk about one such person, who sure could use…