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” I hope it continues to be as strong and supported as it has been in the past.” – Laura Peter, former USPTO Deputy Director/ UNC Charlotte
From left: Margo Monroe; Becky Kaufman; Laura Peter; Patricia Stepp
Becky Kaufman, Associate Vice President and Senior Associate General Counsel Ohio State University, Office of Legal Affairs; Laura Peter, former Deputy Director at the U.S. Patent and Trademark Office (USPTO) and now Executive Director, Office of Research Commercialization and Partnerships, UNC Charlotte; and Patricia Stepp, Assistant Vice President of Technology Transfer at Rice University joined moderator Margo Monroe, Senior Associate at Choate, Hall & Stewart LLP to discuss the challenges they face in their respective offices with respect to commercialization of federally-funded inventions and how the march-in framework would impact their day to day.
The Biden Administration proposed expanding the scope of the march-in rights provision under the Bayh-Dole Act in December 2023. The Since then, it has been rumored several times that the framework would be finalized and published, but those rumors never materialized.
Under the proposed framework, an agency may consider “
t what price and on what terms has the product utilizing the subject invention been sold or offered for sale in the U.S.” and whether “the contractor or licensee [a] made the product available only to a narrow set of consumers or customers because of high pricing or other extenuating factors”.[has]The panelists expressed frustration that the publicly stated impetus for the proposal is chiefly to lower drug prices when it has been widely reported that a very small percentage of drugs would actually be subject to the rule. However, the disincentive for companies would apply to innovation across the board, they explained.
“Bayh-Dole applies much more broadly than drug pricing and life sciences,” said Peter. “I hope it continues to be as strong and supported as it has been in the past.” She noted that the recent Supreme Court decision in Loper Bright Enterprises v. Raimondo has changed the game with respective to agency deference, having overruled the Court’s 1984 ruling in Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., and that she is therefore more “hopeful for the survival of our respective offices.”
Kaufman agreed, noting that NIST received thousands of comments in opposition. ” I I hope the sheer volume will resonate with them and reasonable minds will prevail.”
Stepp noted that, even at her private university, more than 68% of research funding comes from federal grants, so the march-in proposal is likely to have a significant impact even outside of public institutions.
From left: Jennifer Burdman; Sarah Fashena; Erin Wills; Jennifer Kuhn
Another panelist, Jennifer Kuhn, Assistant General Counsel at Tricentis, said what keeps her up at night is the changes to R&D salary deductions under the 2017 Tax Cuts & Jobs Act (TCJA), which “removed an option that previously existed under Section 174 between fully deducting many R&D expenses in the year they were incurred and amortizing them over a 60-month period,” according to an article published on IPWatchdog by John Rogitz last year. Ku ”
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