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Guest view: Patent proposals kill innovation

Guest view: Patent proposals kill innovation

 


Saul Anuzis

Written by Saul Anuzis

Like many of my predecessors, I grew up in an era when TVs were boxy and pixelated. They broadcast in black and white. Checking the news means watching one of the three networks' nightly shows.

So sometimes we take a moment to stop and marvel at how far modern technology has come. Smart TVs now broadcast in the most vivid colors imaginable. All kinds of news, entertainment, and political leanings are just a Google search away.

This technological advancement did not happen by chance. Much of that is a direct result of his 1980 law, which sparked a high-tech revolution across dozens of industries.

Unfortunately, the Biden administration is attempting to water down that law, with dire consequences for innovators and ultimately American consumers.

In 1980, the two parties worked together to pass the Bayh-Dole Act, which allowed universities, nonprofit organizations, and small businesses that received government research grants to retain patent and license rights to their discoveries. did. The research institute could then license those patents to private companies for development, and a portion of the royalties could be returned to the university to invest in further research.

Prior to this law, the government held patents on ideas and inventions that resulted from research grants. And they rarely licensed their patents to companies who wanted to turn those ideas into better real-world products.

This reform was based on two beautifully simple insights. First, governments are not the most efficient enforcers, especially outside of the lengthy patent licensing process. And second, research institutions are more likely to understand their inventions and, as a result, are more likely to find companies who want to commercialize them.

Bayh-Dole encouraged and fostered innovation by decentralizing the development of federally funded discoveries. Between 1996 and 2000, technology transfer enabled by this law generated $1 trillion in economic output, supported 6.5 million jobs, and fostered the development of more than 17,000 new businesses. Ta.

In addition to television and smartphone technology and Google's first search algorithm, technology transfer facilitated by the Bayh-Dole Act helped bring more than 200 medicines and vaccines to American consumers.

President Biden doesn't seem to care much about why these innovations exist today. And even if the Commerce Department finalizes a new proposal, future miracle innovations may never exist.

This framework fundamentally reinterprets the provisions of the Bayh-Dole Act. It suggests that bureaucrats can step in and force patents to be relicensed at any time if they decide the product is too expensive for a government-funded invention.

By distorting its interpretation of the march-in clause, the Biden administration is undermining the credibility and predictability of the Bayh-Dole system. If licensees knew that bureaucrats could relicense patents whenever they didn't like the price of the product, they would be reluctant to license university research in the first place. Universities may avoid receiving government funding. And innovations that improve the lives of older people will slow.

In short, the proposed plan would be dire for seniors and even worse for the economy. We will never go back to boxy TVs that end with the national anthem and cut to still images in the early hours of the morning. But decades from now, people will look back and identify this moment and this proposal as the moment when American innovation slowed dramatically.

Saul Anuzis is the president of 60 Plus, the American Association on Aging. This article originally appeared in The Detroit News.

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2/ https://www.oaoa.com/opinion/guest-views/guest-view-patent-proposal-will-make-innovation-disappear/

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