This act empowers the universities and small businesses to control their inventions and other. If a university such as emory chooses to take ownership of the invention, the university assumes the responsibility and. The bayh dole act of 1980 started out with the best of intentions. Together with amendments in 1984 and augmentation in 1986, this.
The bayhdole act of 1980 bayhdole, as amended, applies to inventions that a federal contractor conceives or first reduces to practice during the performance of a funding agreement with a federal agency. Before the 1980 passage of bayhdole, university discoveries were rarely commercialized for the publics benefit. Patents, profits, and the american people the bayhdole. Bayh dole act the bayh dole act of 1980 deals with intellectual properties developed out of a federal government funded research. Having grown by approximately onethird between 1969 and 1974, the number of patents issued to u. Senate passed the university and small business patent procedures act, now known as the bayh dole act, a seemingly obscure act that allowed universities to claim title to inventions that had been made with federal funding. This chapter is popularly known as the bayhdole act. Ks sponsored the university and small business patent procedures act that is commonly known by their namesthe bayh.
One of these rights is known as the marchin authority, which allows federal agencies to. It is unlikely that many present that day realized what a dramatic impact. Patents, profits, and the american people the bayhdole act. This chapter argues that the bayhdole act of 1980, which allows small businesses and nonprofit organizationsespecially universitiesto take ownership of inventions funded with government support, is a prime example of public sector entrepreneurship. Changes to bayhdole act regulations impacting ownership. Recent initiatives by a number of oecd governments suggest considerable interest in emulating the bayh dole act of 1980, a piece of legislation that is widely credited with stimulating significant growth in universityindustry technology transfer and research collaboration in theus.
The bayhdole act, passed in 1980,1 requires federal agencies to adopt uniform practices with regard to federal government procurement of patentable inventions made with federal support at universities, nonprofits, and small businesses. For a good while it seemed the bayh dole act produced only positive consequences for academia and the private sector. The bayh dole act changed the way these government funded patents were handled and there was an explosion of university patenting following 1980. Prior to 1980, only 5% of government owned patents were ever used in the private sector although a portion of the. On 12 december 1980, in the waning days of the lame duck session of the 96th congress, the u. Even those most critical of bayhdole admit that the act offers a single and uniform policy which government agencies and contractors must abide by. With control of the patents, universities could then either license. Compliance with new bayhdole act regulations becomes. Code chapter 18 patent rights in inventions made with federal assistance it is the policy and objective of the congress to use the patent system to promote the utilization of inventions arising from federally supported research or development. This 1980 legislation awards title to inventions that government. The bayh dole act encourages the process of technology transfer. The bayh dole act is as fully viable today as it was when passed in 1980. The bayhdole act of 1980 and universityindustry technology. This action occurs when a university employee with a patent makes the technology available to a larger body of people andor groups.
Even those most critical of bayh dole admit that the act offers a single and uniform policy which government agencies and contractors must abide by. Senators birch bayh and bob dole, a democrat and a republican, sponsored this piece of legislation as an amendment to the patent and trademark act in 1980. Recent initiatives by a number of oecd governments suggest considerable interest in emulating the bayhdole act of 1980, a piece of legislation that is widely credited with stimulating significant growth in universityindustry technology transfer and research collaboration in theus. In 2002, the economist magazine said, possibly the most inspired piece of legislation to be enacted in america over the past halfcentury was the bayhdole act of 1980. Be it enacted by the senate and house of representatives of the. It is the policy and objective of the congress to use the patent system to promote the utilization of inventions arising from federally supported research or development. Whether it be the bayhdole act or other legislation, one does. Notes on the bayhdole act of 1980 knowledge ecology. The united states bayhdole act and its effect on university technology.
The bayhdole act office of technology transfer syracuse. Global competitiveness before the passage of the university and small business patent procedures act commonly referred to as bayhdole in 1980, there was no clear and coordinated patent ownership or exclusive licensing policy across federal agencies. The bayhdole act of 1980 deals with intellectual properties developed out of a federal government funded research. As a result of this law, universities retain ownership to inventions made under federally funded research. Opinion innovations golden goose technology quarterly. In 1980, the bayhdole act pl 96517, patent and trademark act amendments of 1980 created a uniform patent policy among the many federal agencies funding research. Origins of the bayhdole act the bayhdole patent and trademark amendments act of 1980 provided blanket. However, especially recently, there have been some issues raised about the. Before the bayhdole act, inventions developed with federal government funding e. And this is american congress at its very best moment. The patent and trademark law amendments act of 1980, better known as the bayh dole act, facilitates the commercialization of federally funded research and development by small businesses and nonprofit organizations such as universities, by providing reliable patent rights to these entities. Marchin rights under the bayhdole act congressional research service summary congress approved the bayhdole act, p.
Changes to bayhdole act regulations impacting ownership of. A key milestone was the bayh dole act of 1980 formally, the patent and trademark law amendments act, which gave universities in the us the right to patent and commercialize innovations emerging. The bayh dole act of 1980 bayh dole, as amended, applies to inventions that a federal contractor conceives or first reduces to practice during the performance of a funding agreement with a federal agency. The patent and trademark law amendments act of 1980, better known as the bayhdole act, facilitates the commercialization of federally funded research and development by small businesses and nonprofit organizations such as universities, by providing reliable patent rights to these entities. Possibly the most inspired piece of legislation to be enacted in america over the past halfcentury was the bayhdole act of. Prior to 1980, the technology transfer from federally funded research at american universities had been chronically slow, prompting complaints that government bureaucracy was stifling. The bayhdole act, passed by congress in 1980 to stimulate investment in and commercialization of scientific inventions, allows universities to elect ownership of inventions made at their institutions using federal funding. Public law 96517 96th congress an act office of nih history. The bayhdole act is contemporaneous with a sharp increase in u. Pdf on 12 december 1980, in the waning days of the lame duck session of the 96th congress, the u. We examine the effects of bayhdole on universityindustry collaboration and technology. Origins of the bayh dole act the bayh dole patent and trademark amendments act of 1980 provided blanket. Bayhdole that in 2002 the economist dubbed it as innovations golden goose n, oting that the act had helped to reverse americas precipitous slide into industrial irrelevance 1.
The belief is that the bayh dole act, combined with further amendments in 1984 and 1986, helped reverse the decline of american industrial innovation. The university and small business patent procedures act of 1980 commonly referred to as. Lifesciences innovation system misusing the marchin right provision of the bayhdole act could negatively impact u. After the enactment of the bayhdole act, funding recipients, or contractors, were finally able to take advantage of and monetize such patent. The united states bayhdole act and its effect on university. By clearing away the thicket of conflicting rules and regulations at various federal agencies, it set out to encourage universities to patent and license results of federally financed research. Key takeaways the bayhdole act, signed into law in 1980, gives universities rights to. Issues in patent policy and the commercialization of technology congressional research service 2 p. R 404 for licensing of inventions owned by the federal government.
As used in this part a the term funding agreement means any contract, grant, or cooperative agreement entered into between any federal agency, other than the tennessee valley authority, and any contractor for the performance of experimental, developmental, or research work funded in whole or in part by the federal government. The bayh dole act in 1980, the bayh dole act pl 96517, patent and trademark act amendments of 1980 created a uniform patent policy among the many federal agencies funding research. It delivered through legislature and transformed the pace of innovation by providing a fluidic system that. Bayhdole permits universities that receive federal funding, such as the university of wisconsinmadison, businesses, or nonprofit organizations to elect to pursue ownership of an. The bayhdole act, passed in 1980, allows recipients of federal research funds the option to retain patents on any inventions they create using those funds. The act is as much an effect as a cause of expanded patenting and licensing by u. The building of biotech 25 years later, 1980 bayhdole act honored for me, bayhdole act is the most important business legislature of the last century in the united states. This act is officially known as the university and small business patent procedures act. Sep 02, 2009 the bayh dole act or university and small business patent procedures act was originally enacted in 1980 as public law 96517, and was amended in 1984 by public law 98620. Among other things, the bayh dole act was designed to facilitate the patenting of u. The bayhdole act is as fully viable today as it was when passed in 1980. The bayhdole act of 1980 permitted scientists, universities, and businesses to patent and profit from discoveries made through federally funded research. Marchin rights under the bayh dole act congressional research service summary congress approved the bayh dole act, p.
The bayhdole act, faculty choice, and innovation gerald. Congress in 1980 and became effective on july 1, 1981 see the council on government relations, 1993. Previous researchers have questioned whether the bayhdole act affected university patenting by estimating a model with a predefined structural break at 1980 or even at 1981 to account for a lag. Senate passed the university and small business patent procedures act, now known as the bayhdole act, a seemingly obscure act that allowed universities to claim title to inventions that had been made with federal funding. Under bayh dole, the federal contractor may elect to retain the patent rights for a federally funded invention. Bayhdole act enacted on december 12, 1980, the bayhdole act p. Bayhdole permits universities that receive federal funding, such as the university of wisconsinmadison, businesses, or nonprofit. Bayhdole act law and legal definition uslegal, inc.
At the same time, the act provides the government with rights intended to ensure that the public benefits from these federal research investments. T he bayhdole act of 1980 allows universities to patent and exclusively license federally funded inventions hn11. Sponsored by two senators, birch bayh of indiana and bob dole of kansas, the act was adopted in 1980, is codified at 94 stat. Under bayhdole, the federal contractor may elect to retain the patent rights for a federally funded invention. The bayhdole act turns 30 science translational medicine. Impact of bayhdole act on scientific research enago academy. The bayhdole act changed the way these government funded patents were handled and there was an explosion of university patenting following 1980. A key milestone was the bayhdole act of 1980 formally, the patent and trademark law amendments act, which gave universities in the us the right to patent and commercialize innovations emerging. After presenting a description of the acts legislative history, the chapter turns to a discussion of the implications of the act for. The bayhdole act or patent and trademark law amendments act pub. The technology transfer process has been refined over time and the professionals who work in the field continue to respond to new markets and market forces. The bayhdole act of 1980 is arguably one of the most influential pieces of legislation to impact the field of intellectual property law in the. For a good while it seemed the bayhdole act produced only positive consequences for academia and the private sector.
521 664 513 663 1553 767 458 1375 1315 363 480 682 770 975 1461 389 1114 674 59 860 1445 1336 1492 1077 1224 1380 1264 486 1022 728 708 327 750 980 804 613