Lou Berneman
Don’t kill the goose laying golden eggs
By Lou Berneman
For years, China has stolen hundreds of billions of dollars’ worth of American companies’ intellectual property — everything from patented software code and computer chips to prescription drug formulas and weapons systems.
Thankfully, the Biden administration is making a concerted effort to curtail this theft. Federal investigators now open a new counterintelligence case against Chinese actors every twelve hours on average.
But while administration officials fight China’s high-tech piracy with one hand, they’re threatening Americans’ intellectual property with the other hand. They are threatening to undermine a 42-year-old law that has enabled universities to effectively move research discoveries from the laboratory to the marketplace. This academic-to-industry “tech transfer” process is a foundation of pharmaceutical and high-tech innovation — and upending it would kill the goose that has been laying golden eggs for four decades.
That law, commonly known as the Bayh-Dole Act, allows universities to patent discoveries made, in part, with federal research funds and license those patents to startups and established companies capable of turning the discoveries into real-world products.
Before Congress passed that transformative bipartisan legislation in 1980 — with the support of then-Senator Joe Biden — the federal government retained ownership of patents resulting from taxpayer-funded research. Not unexpectedly, it did a poor job of licensing those patents to the private sector. Of 28,000 patents held by the federal government before Bayh-Dole passed, fewer than 5% were licensed for development.
One study estimates that by putting universities in charge of this “technology transfer” process, Bayh-Dole spurred the creation of some 15,000 startup companies and brought nearly 6.5 million jobs to our economy — boosting economic output by $1.9 trillion overall.
Despite this overwhelming success, dozens of U.S. lawmakers now want to use a provision of the Bayh-Dole Act, its so-called “march-in” rights, to upend the incentive system the law created.
Their goal is to reduce the price of certain medicines that originated from discoveries in university labs. Their intentions may be admirable, but their methods are misguided.
They claim that if startup and established drug companies have licensed patents from universities that benefited from federal grants, the government forever retains the legal authority under Bayh-Dole to “march in” and revoke those licenses if officials decide the medicines that result are unreasonably expensive. The government could then re-license the patents to other drug companies that promise to sell the medicines more cheaply.
As Senators Birch Bayh and Bob Dole themselves attested in 2002, the Bayh-Dole Act doesn’t allow the government to “march-in” and relicense patents merely because officials don’t like the price of a commercially available product.
Giving government officials such sweeping authority would defeat the purpose of the law — which was to spur innovation by putting universities, rather than bureaucrats, in charge of the technology transfer process. Allowing the government to rescind patent licenses by marching in will curtail investments in startup and established companies. The chilling effect on high-tech R&D, public and private, would extend well beyond pharmaceuticals. It would undermine the United States as the global leader in academic-to-industry technology transfer and the development of new technologies.
The Biden administration is wise to combat IP theft by the Chinese and others. Now, the administration needs to stand up to its allies in Congress seeking to undermine American innovators that transform university research into real-world inventions.
Lou Berneman is founding partner emeritus of Osage University Partners. He served as managing director of UPenn CTT, and president of AUTM.
Local News
Sorry, we couldn't find any posts. Please try a different search.
Neighbors
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…
Oak Lawn trustee says village needs state grocery tax
Spread the loveBy Joe Boyle An Oak Lawn trustee said that Gov. J.B. Pritzker’s proposal to eliminate the state’s grocery tax will be costly for the village. Trustee William “Bud” Stalker (5th), accompanied by Mayor Terry Vorderer, recently returned from a fact-finding trip to Springfield where they learned more about the governor’s proposal to eliminate…
Palos Heights recognizes volunteers
Spread the loveBy Nuha Abdessalam Palos Heights handed out awards last week recognizing the services provided by volunteers through the years. The proclamations, which were read aloud during the city council meeting April 16, were a testament to the city’s volunteers and were handed out as part of Volunteer Recognition Week. Volunteers were cited for…
Boys Volleyball | Richards weathering struggles after run of success
Spread the loveBy Xavier Sanchez Correspondent After a tough weekend at the Smack Attack tournament, Richards got back into the win column with a two-set victory over Eisenhower in a South Suburban Red match. The Bulldogs made quick work of the Cardinals, winning 25-16, 25-15 on April 23 in Oak Lawn to snap a five-match…
SD218 puts on annual Arts Extravaganza
Spread the loveBy Kelly White The arts have become a major portion of the curriculum Community High School District 218. Showcasing those many talents, the Friends of CHSD 218’s Education Foundation proudly hosted its 15th annual Arts Extravaganza on April 5 at Eisenhower High School in Blue Island. “The Arts Extravaganza is a great event…
Gaming licenses to be tougher to get in Orland Park
Spread the loveBy Jeff Vorva It’s going to take longer to receive gaming licenses in Orland Park. The village board passed an ordinance April 15 that would allow table service businesses open at least 36 consecutive months to apply rather than the previous 18 months, and extended the probationary period to 18 months instead of…
Palos Park passes $16 million budget
Spread the loveBy Jeff Vorva The Palos Park Village Council approved the 2024-25 budget, which totals a little more than $16.3 million at the April 22 village council meeting. According to village documents, it represented an increase of a shade over $603,000 from last year. The village is expecting $13.4 million in revenue and $1.86…
Fire damages Al Bahaar Restaurant in Orland Park
Spread the loveFrom staff reports Orland Fire Protection District firefighters responded to a fire Monday evening at the Al Bahaar Restaurant, 39 Orland Square Dr. At first, restaurant owners suspected the fire alarm was triggered by a malfunction, but as firefighters inspected the restaurant to reset the fire alarm, they detected a burning smell. “What…