Universities Continue to Be Targets of Federal Scrutiny

Mike Waring
Advocacy and Alliances Coordinator
AUTM



As this column is being prepared, the technology transfer world is reacting to several major Trump administration actions – each of which could have major implications.
 
Early in August, Secretary of Commerce Howard Lutnick sent a letter to Harvard University, all but suggesting that the institution may not be in compliance with its obligations under the Bayh-Dole Act as it relates to several issues:

• Failure to meet the Bayh-Dole requirement to give preference to U.S. manufacturers for the commercialization of inventions using federal funds
• Not taking the necessary steps to achieve the “practical application” of inventions developed with federal dollars
• Being in breach of certain disclosure requirements regarding federal funded research and patents

The university was told it needed to respond with a comprehensive list of all patents derived from federal funding by September 5. The letter also said that the Commerce Department was beginning the “march-in” process to potentially take over Harvard’s IP if contractors failed to comply with the law.
 
This letter comes on the heels of a report in the Wall Street Journal that the Commerce Department is also considering instituting a new fee or tax of 1-5% on all patents issued by the U.S. Patent and Trademark Office. It appears this may be an attempt to help generate revenue that Commerce can pass on to the federal government for other purposes.
 
In a recent interview on Fox News, Secretary Lutnick expanded on his view of university tech transfer:
 
“We give hundreds of millions to each university. They take that money and they do research and they get patents. Do you know who keeps them? The scientists and the university. We get nothing. This has got to change.”
 
These actions – in addition to efforts to cut the overall amount of basic research done by universities nationwide – threaten to diminish the ability of your tech transfer office to bring to market the discoveries America needs to maintain its competitive edge.
 
AUTM continues to work with AAU, APLU, COGR and other higher education associations to seek ways to promote a continued effort to support a successful innovation ecosystem.  Be ready to provide examples of the great work you and your university are doing and help demonstrate the proven value of federally-funded research and the benefits it provides the American people.