""The proposed royalty grab is one of those rare ideas which harms all parties involved. It's a mistake the White House would be wise to avoid." Commerce Secretary Howard Lutnick is urging the White House to turn a proposal he floated into an Executive Order that would weaken the economy and cost the government tens of billions of dollars in foregone tax revenue. It's bad policy, and even worse politically. The Trump Administration would be wise to reject it."
"Before 1980, the "problem" that worries Lutnick didn't exist. That's because few new products resulted from the billions of dollars that the government invested annually in academic research. The reason was simple. The government took the patent rights on discoveries, destroying the incentives needed for commercialization. As a result, nearly 27,000 inventions gathered dust in Washington and not a single new drug was developed."
A proposal would require the government to seize 50% of the royalties universities receive from patents developed with federal grants. The change would redirect revenue away from universities and the small companies that license and commercialize discoveries. Prior to Bayh-Dole, government ownership of patents stifled commercialization, leaving thousands of inventions unused. Bayh-Dole allowed universities, federal labs, and small businesses to own federally funded inventions and earn licensing royalties, which cover patenting, legal defenses, and technology transfer activities. Seizing royalties is projected to weaken commercialization incentives, reduce economic growth, and cost the government tens of billions in foregone tax revenue.
Read at IPWatchdog.com | Patents & Intellectual Property Law
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