How Bayh-Dole supporters made a successful goal line stand
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“With the introduction of the guidelines, our backs were against the goalline. We held on because we discovered that there were more people than we thought who were willing and able to stand up. The Biden-Harris Administration, despite intense pressure from its progressive allies, never finalized the pending march in guidelines.
The draft guidelines, which issued late last year, were an attempt to misuse the landmark Bayh-Dole Act so the government could micro-manage the price of products based on federally-funded inventions. The Bayh-Dole critics have been trying to change the law for 20 years, which was designed to decentralize the technology management from Washington to those who create inventions in public research institutions and private companies, so that Washington could regulate the prices. They were touted by the White House as an important tool for controlling drug prices.
Turning Tide
Yet, something the Administration didn’t expect happened during the public comment period. The supporters of the plan flooded the system, as expected, with copies of their letters, saying “we want cheaper medications.” This was not surprising. The Administration was not prepared for other reactions. Generic drug makers have to pay for research as well. They realized that anyone could petition for a government-funded invention license if they could make it more affordable than the original developer. This would be a double-edged sword that would also apply against them in a race-to-the-bottom. The Congressional opposition pointed out that these guidelines were not based on any law and would have a devastating effect on American innovation. This would cause serious damage to the economy. The voters ranked the economy as the #1 issue in the election. Thus, even if the misguided effort went forward, it could never lower drug prices.
Warren and Sanders replied that the government should seize privately funded patents as well. This was too much for an Administration that is fighting for its very existence. But they never did. We don’t really know why. But here’s an educated guess: Someone in the White House realized that this was a bad idea. There’s still the possibility that the guidelines will be released before the Biden-Harris Administration leaves in January. In the words of Lincoln, it would be “the last shriek before the retreat.”
A big win
This past year, we were forced to defend Bayh-Dole against attempts to weaken it. We found ourselves facing the goal line with the guidelines. But we held because we found out that there are a lot more of us than we knew who were willing to stand up and push back.
Because of that success, we now have the opportunity to present a positive message to the new Administration and Congress touting the benefits to the economy and public well-being because of our unique, decentralized system of public/private sector R&D alliances.
This is a big win. Savor it.
Image Source: Deposit Photos
Author: rudyumans
Image ID: 112485370
Joseph Allen
Joe Allen served as a member of the U.S. Senate Judiciary Committee on behalf of Senator Birch Bayh, D-IN. He was instrumental in securing the Bayh-Dole Act, which encouraged R&D partnerships between U.S. universities and industry. The
