10 Sep Bayh-Dole Coalition Releases Statement on Secretary Lutnick’s Patent Profit Sharing Proposal
WASHINGTON, D.C. (September 10, 2025) — Today, the Bayh-Dole Coalition released a statement responding to Department of Commerce Secretary Howard Lutnick’s concern that taxpayers receive little return on university research investments and so the federal government should receive a share of the revenue from successful inventions:
“Secretary Lutnick proposed that the federal government should take a substantial share of royalties on licensed university patents that it helps fund to increase the public return on investment of federally supported academic R&D.
Unknown to most, this was an idea Congress considered, but ultimately rejected, when passing the Bayh-Dole Act. The original bill included a payback provision for federal agencies that would be triggered when a successful invention hit certain revenue thresholds. However, it was removed at the request of the agencies, which correctly concluded that taxpayers would get a better return on their investment from maximizing the number of research breakthroughs that actually come to market — and that such a revenue-sharing requirement would deter licensing and commercialization.
While taking a share of university royalties might seem like a good idea, it would undermine the foundation of our innovation system established by the Bayh-Dole Act, which for 45 years has successfully helped turn federally supported research breakthroughs into real-world products that save lives, drive economic growth, and strengthen U.S. competitiveness.
Taxpayers already benefit greatly under the current system. Since 1996, the academic technology transfer enabled by the Bayh-Dole Act has generated nearly $2 trillion in economic output, supported 6.5 million jobs, and helped launch more than 19,000 start-ups. Over 770 new products were created in 2024 alone.
The suggestion that universities disproportionately benefit from these partnerships through royalties is not correct. Academic institutions pay for patenting and many other costs of licensing their federally funded inventions out of their own pockets. Bayh-Dole also restricts how universities can use their royalties. After expenses related to managing the invention, universities must share a percentage with the inventor, and use the remaining royalties to support research and education at the institution.
Federal agencies, universities, innovators, and private industry together make up our innovation system that ensures discoveries move from the lab to the marketplace — precisely as Congress intended under Bayh-Dole. Altering this model would deter future breakthroughs, jeopardize America’s leadership in science and technology, and undermine our national security.”