Legal Definitions - Patent and Trademark Law Amendments Act

The Patent and Trademark Law Amendments Act, more commonly known as the Bayh-Dole Act, is a United States federal law enacted in 1980. Its primary purpose is to promote the commercialization and public availability of inventions developed with federal government funding. Before this act, the government often retained ownership of such inventions, leading to many federally funded discoveries remaining undeveloped.

The Bayh-Dole Act changed this by allowing universities, small businesses, and non-profit organizations to elect to retain title to inventions made during federally funded research. In return, these institutions commit to seeking patent protection for the invention and making reasonable efforts to commercialize it, often by licensing the technology to private companies. This framework encourages the transfer of technology from research institutions to the marketplace, fostering innovation, economic growth, and public benefit.

Here are some examples illustrating the application of the Bayh-Dole Act:

• University Medical Breakthrough: A research team at a public university receives a substantial grant from the National Institutes of Health (NIH) to study a rare neurological disorder. Through their federally funded research, they identify a novel drug compound that shows significant promise in treating the condition. Under the Bayh-Dole Act, the university can choose to patent this new compound. They can then license the patent to a pharmaceutical company, which will invest in further development, clinical trials, and eventual manufacturing, bringing the potential treatment to patients. This process ensures that the public benefits from the federally funded research through a marketable product.

• Small Business Green Technology: A small startup company specializing in renewable energy receives a grant from the Department of Energy to develop more efficient battery technology for electric vehicles. The company successfully invents a new battery chemistry that offers a significantly longer range and faster charging times. Thanks to the Bayh-Dole Act, the startup can secure a patent for this innovative technology. This patent protection is crucial for attracting private investors, protecting their intellectual property from competitors, and ultimately bringing their advanced batteries to market, thereby contributing to sustainable transportation solutions.

• Non-Profit Agricultural Innovation: A non-profit agricultural research institute receives federal funding from the U.S. Department of Agriculture to develop new crop varieties resistant to specific pests. The institute successfully engineers a new strain of wheat that is naturally immune to a common destructive fungus. The Bayh-Dole Act allows the non-profit to patent this new wheat strain. They can then license it to seed companies, ensuring that farmers gain access to more resilient crops, which helps improve food security and reduce reliance on chemical pesticides, directly benefiting consumers and the environment.