Making Licensing Harder Doesn't Boost U.S. Manufacturing

"While it's appropriate to lament the lack of bipartisan cooperation in Washington, just because something's bipartisan doesn't mean it's a good idea. Exhibit A could be Senator Tammy Baldwin (D-WI) and Senator J.D. Vance's (R-OH) "Invent It Here, Make It Here" bill. Despite the name and its good intentions, it condemns promising federally funded inventions to waste away without doing a thing to build our domestic manufacturing base. It's scheduled to be considered this Thursday in the Senate Commerce, Science and Transportation Committee."

"The Senators seek to address a serious national problem-too many times it's not possible to find a domestic manufacturer to make a product incorporating a federally funded invention. Unfortunately, the Baldwin/ Vance proposal makes the problem worse by defining domestic manufacturing in a way that makes it even harder while introducing more bureaucracy into the process."

"The Bayh-Dole Act of 1980 was one of the first to emphasize domestic manufacturing. It stipulates that whenever a federally funded invention is being exclusively licensed in the U.S. market it should be "substantially manufactured" here, if at all possible. When that's not possible, the patent owner (typically an academic institution) can file a waiver with the agency funding the research showing that good faith efforts have been made but were unsuccessful. In crafting the law it was felt that it was better to have a product made abroad if that was the only feasible option, than to not make it at all. That way the product could be used by the public and economic benefits go to the licensee from making sales and the university from royalties that fund more research."

The Baldwin/Vance "Invent It Here, Make It Here" bill seeks to require domestic manufacturing for federally funded inventions but defines domestic manufacturing in restrictive ways that could worsen commercialization outcomes. The proposal risks penalizing patent-holders and academic institutions when no feasible U.S. manufacturer exists, potentially leaving inventions unused. The Bayh-Dole framework permits waivers after good-faith efforts to find domestic manufacturers, prioritizing product availability and continued commercialization. Global supply chains and limited domestic capacity mean punitive rules can be counterproductive. Policy should focus on expanding manufacturing capability rather than imposing burdens that stifle licensing and innovation.

Read at IPWatchdog.com | Patents & Intellectual Property Law