Bayh-Dole Coalition Shares Member Survey Responses on Secretary Lutnick’s Royalty-Sharing Proposal

Bayh-Dole Coalition Shares Member Survey Responses on Secretary Lutnick’s Royalty-Sharing Proposal

WASHINGTON, D.C. (October 8, 2025) — Today, the Bayh-Dole Coalition released survey results showing near-unanimous opposition to Secretary Lutnick’s royalty-sharing proposal. Respondents warned the proposal would undermine the innovation system that has powered U.S. leadership in science and technology for 45 years.

The survey captures the perspectives of Bayh-Dole Coalition members from across academia, trade and advocacy associations, industry, and investment communities, who offered detailed insights into the likely consequences of requiring universities to remit a portion of patent royalties from federally-funded R&D to the federal government.

“The Bayh-Dole Coalition’s greatest strength is the real-world expertise of our members, and their perspectives make clear that taking even a portion of university royalties would undermine innovation, discourage investment, and shortchange the taxpayers the system was designed to benefit,” said Joseph P. Allen, executive director of the Bayh-Dole Coalition.

All respondents stated that government royalty-sharing would not generate more taxpayer revenue than the current system, which has generated more than $1 trillion in U.S. GDP, 6.5 million jobs, 19,000 startups, and over 200 new medicines since 1996. One member warned, “Government royalty-sharing is likely to chill the technology transfer industry and have chilling effects on the broader economy.”

Other key findings include:

  • 94% of respondents said universities would struggle to maintain current licensing levels;
  • 33% already have difficulty covering technology transfer costs under Bayh-Dole.

Opposition to royalty sharing in any form was widespread, and members warned that it would erode trust between universities and the government and deter private investment. One respondent described the royalty tax as “the death knell” for early-stage investment.

For 45 years, Bayh-Dole has ensured that taxpayer-funded discoveries reach the public, spawning breakthroughs ranging from mRNA vaccines and CAR T-cell therapy to the algorithm behind Google. As one member stressed, “The proposed imposition on university licensing revenue would swiftly destroy the technological leadership we enjoy in the United States.”

“Bayh-Dole is built on trust,” another respondent said, warning that undermining the law would jeopardize the partnerships and incentive structure that turn research into real-world progress. Members across the board emphasized that upholding Bayh-Dole is essential to sustaining U.S. innovation and global leadership.

About the Bayh-Dole Coalition: The Bayh-Dole Coalition is a 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.

 

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