The Bayh-Dole Act of 1980 transformed how universities, small businesses, and nonprofit organizations bring federally funded research to the public. Before Bayh-Dole, the federal government often retained ownership of patents arising from funded research, and many promising discoveries never left the lab. The Act gave research institutions the ability to retain ownership of intellectual property they create with federal support — with the expectation that those innovations will be actively developed into products and services that benefit the public.
How Bayh-Dole Works
Under Bayh-Dole, universities that receive federal research funding:
- Disclose inventions made with federal support to the funding agency.
- Elect title (formally claim ownership) within a set timeframe.
- Commercialize by licensing technology to companies or creating startups to bring innovations to market.
- Give preference to U.S. manufacturing for products made under exclusive licenses.
- Share royalties with inventors and reinvest licensing revenue into research and education.
The federal government retains certain rights, including march-in rights, the ability to require licensing of an invention to others if it’s not being made available to the public on reasonable terms.
The University of Utah’s Role
As Utah’s flagship research institution, the University of Utah manages Bayh-Dole compliance through its Technology Licensing Office (TLO). This means:
- Faculty, post-docs, and graduate students disclose inventions promptly.
- The TLO evaluates inventions for commercial potential and works with inventors to protect intellectual property.
- Licenses are structured to encourage public benefit, with a preference for U.S.-based manufacturing.
- Compliance procedures ensure reporting requirements to federal agencies are met.
These practices help ensure that taxpayer-funded discoveries lead to products, services, and companies that improve lives, create jobs, and strengthen Utah’s economy.
Why It Matters Now
Bayh-Dole has fueled the growth of university-driven innovation for more than four decades. Recent national discussions — including federal reviews of how institutions comply with the Act, underscore its ongoing importance. For the University of Utah, the commitment to both innovation and compliance ensures that our research continues to make a difference locally, nationally, and globally.
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