Bayh-Dole Bulletin: Edition 17

Welcome to the Bayh-Dole Bulletin, a monthly newsletter from the Bayh-Dole Coalition. The Bayh-Dole Coalition is a diverse group of innovation-oriented organizations and individuals committed to celebrating and protecting the Bayh-Dole Act, as well as informing policymakers and the public of its many benefits.

About the Bayh-Dole Coalition

A Word From Our Executive Director

It will come as no surprise to our members that the Bayh-Dole system is under attack, most recently by the suggestion, that the government receives “zero” return on its investment in academic research, so it should seize 50% of the resulting patent royalties. But every crisis presents an opportunity, and this one is no exception. We have been flooded with media calls and inquiries from Capitol Hill and have explained that the government receives exactly what it’s been paying for — more knowledge through supporting basic research and solutions to government mission needs. Because of the Bayh-Dole Act, universities are assuming the expense and risk of licensing resulting inventions, and the only means they have of recovering their costs is through resulting royalties, which often take decades to realize. Additionally, they are obligated to reward their inventors and use any remaining money for conducting additional research.

Thus, at no additional cost, the government receives significant taxes on the new products, jobs, businesses, and even new industries created through the Bayh-Dole system. That’s worth a lot more than the estimated $1.35 billion it would get from taking half of academic patent royalties. Additionally, Congress removed the “payback” provision to the government in the original Bayh-Dole bill after federal agencies argued that it would cost them more to track academic agreements than they would receive from a royalty share. They determined that the best return for funding university and small business research under the law would be through having new products created from federal R&D, which was not happening before Bayh-Dole. So, the idea of the government taking even a small percentage of academic royalties was explicitly rejected by Congress and would be a direct violation of Bayh-Dole.

The Bayh-Dole Coalition recently announced a webinar on this topic. We also ask our members to fill out the survey we sent around so we can document the unintended consequences of the royalty confiscation idea. Our arguments are resonating, and it’s dawning on those looking at the issue that having the government taking academic royalties is counterproductive on every level that it’s examined.

This fight is far from over. We need to stand together as never before. But don’t be discouraged; it’s never been more evident that we’re making our presence felt!

September Coalition Highlights

• Op-ed: Joseph P. Allen, Wall Street Journal, “Lutnick Wants a Tax That Would Kill Innovation” (9/22)
• Article: Law360, “Call For Gov’t Cut Of University Patent Cash Spurs Concern” (9/19)
• Article: MLex, “Patent proposal by Lutnick could cost universities $1.8 billion, expert warns” (9/18)
• Letter: Bayh-Dole Coalition Letter to Senate & House Small Business Committees RE: SBIR/STTR Extension (9/11)
• Article: IPWatchdog, “Government Taking a Cut of University Royalties Would Threaten Bayh-Dole’s ROI” (9/11)
• Statement: Bayh-Dole Coalition Releases Statement on Secretary Lutnick’s Patent Profit Sharing Proposal (9/10)
• Article: Inside UNC Charlotte, “Alumna Jennifer Pagán authored opinion piece…” (9/8)
• Op-ed: Dr. Jennifer Pagán, The News & Observer, “I devoted years to making water cleaner. Now, American innovation like ours is at risk” (9/5)
• Video: 2025 Faces of American Innovation Event Highlight Reel (9/3)
• Article: Reason Magazine, “Federal Funding for Universities Comes With Strings. Now Trump Is Pulling Them.” (8/28)

Upcoming Events & Coalition Priorities

On Thursday, October 9, from 11:00 AM – 12:00 PM ET, the Bayh-Dole Coalition will host a timely webinar examining a critical question: Does the government receive an ROI for academic inventions?

Moderated by Bayh-Dole Coalition Executive Director Joseph P. Allen, the conversation will feature a panel of distinguished experts:

• Walter G. Copan— Vice President for Research and Technology Transfer at the Colorado School of Mines & former Under Secretary of Commerce for Standards and Technology and 16th Director of the National Institute of Standards and Technology
• Teri F. Willey— Managing Director and Officer of Pathway to Cures
• Brian Darmody— Chief Strategy Officer of the Association of University Research Parks

The discussion follows recent remarks by Department of Commerce Secretary Howard Lutnick, who proposed the federal government should take a substantial share of patent royalties from university inventions it helps fund. While it may sound appealing at first glance, the idea risks undermining the innovation pipeline that has led to thousands of life-saving products and powered U.S. competitiveness for 45 years under the Bayh-Dole Act.

Unknown to most, Congress considered this idea before passing Bayh-Dole in 1980. However, Congress ultimately removed the provision at the request of federal agencies, who concluded taxpayers would get a better return on their investment from maximizing the number of research breakthroughs that actually come to market.

Is it time to revisit the idea? Do taxpayers really receive “zero” return on investment as Sec. Lutnick claims? Or would altering America’s carefully balanced innovation system deter future breakthroughs and leave the nation worse off?

Join us as we explore how the public benefits under the current system and how supporting university research — that then becomes real-world products that create companies, jobs, economic development, and more — remains one of the smartest policy decisions the United States has ever made.

Member Corner

• Indiana Life Sciences Association
• Marshall, Gerstein & Borun LLP
• MNSBIR, Inc.
• UCLA Technology Development Group
• West Virginia University Office of Innovation and Commercialization
• Andrew Fineberg, Managing Director at Armentum Partners
• John Puziss, Technology Transfer Professor
• Ryan C. Smith, Partner at Duane Morris LLP

Member Events

• From October 19-22, Licensing Executives Society (LES) US & Canada will host its 2025 Annual Meeting in Boston, MA! The program will feature keynotes, panel discussions, round tables, and workshops for anyone involved in IP and licensing — with a special emphasis on creating and using strategic partnerships for IP development and market growth.
• From October 27-29, IPWatchdog will host its fourth-annual Life Sciences Masters™ 2025 program! The event will focus on the intersection of intellectual property law and the biopharmaceutical industry, exploring the law, politics, and business of the life sciences.
• From November 17-19, Biotechnology Innovation Organization (BIO) will host its IP Conference in Palm Springs, CA! The event will be focused specifically on IP in biotechnology, featuring the latest insights from biotech IP experts, as well as networking events designed to promote discussion and foster relationships among industry colleagues.

If you are interested in becoming a member, please apply here! If you are a member and your organization has an upcoming event, submit the information here to be featured in our newsletter and events calendar.

Member Spotlight

Our September member spotlight is the Small Business & Entrepreneurship Council! Since 1994, SBE Council has been a leading voice for America’s entrepreneurs and small business owners, with a network of more than 100,000 members and supporters. Through advocacy, research, and education, SBE Council has advanced policies that expand access to capital, encourage innovation, and strengthen U.S. competitiveness. The Bayh-Dole Coalition is proud to count SBE Council as a member dedicated to empowering entrepreneurs and driving innovation forward.

“As an advocate of America’s entrepreneurs and small businesses for nearly three decades, I know firsthand how essential Bayh-Dole has been in transforming groundbreaking research into real-world products that benefit consumers, patients, and communities. By enabling universities and national labs to partner with small businesses or launch a new startup, Bayh-Dole ensures breakthrough ideas actually have a chance to reach the marketplace. That’s why it’s so important we protect Bayh-Dole from attempts to undermine it; eroding this system would jeopardize the pipeline of innovation that small businesses depend on. The SBE Council is proud to be part of this coalition, and we remain committed to protecting the policies that bolster innovation and the entrepreneurial spirit.” — Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council