WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Thom Tillis (R-N.C.) today introduced new legislation to improve efficiency for intellectual property developed by federal grantees, and reduce the red tape for these grantees, particularly universities, so they can focus on research and development of new ideas and inventions. Representatives Joe Neguse (D-Colo.) and Mike Flood (R-Neb.) introduced the bill in the House of Representatives last month.

The Improving Efficiency to Increase Competition Act of 2024 would require the U.S. Government Accountability Office’s (GAO) Comptroller General to conduct a study on the disclosure processes for intellectual property developed by federal grantees under the Bayh-Dole Act. The study would include information on existing barriers to efficient reporting, how these barriers have affected the development of new inventions, and opportunities to improve the current reporting system. GAO would be required to inquire how the barriers have affected grantees of various sizes, budgets, geographical locations, and specialties. This legislation will help ensure that different industries and areas of the country are represented in the study.

“As Chair of the Intellectual Property Subcommittee of the Judiciary Committee, I know how important it is to support the development of new ideas and reduce the barriers for innovators—like the University of Delaware—to bring their ideas from the lab to the assembly line,” said Senator Coons. “This bipartisan, bicameral legislation will support efforts to eliminate unnecessary red tape so that federal grantees can thrive, and their ideas can bolster national competitiveness and create new innovations and technologies.”

“This legislation directs the GAO to conduct a study on the disclosure processes of intellectual property developed by federal grantees under the Bayh-Dole Act – an act which has fostered competition, innovation, and economic growth,” said Senator Tillis. “The study would include important information on opportunities to improve the current grant reporting system and address challenges that affect the development of new inventions so that a greater number of grantees can have a seat at the innovation table.”

“Higher-education institutions are pivotal to building an innovation landscape and advanced workforce. The Improving Efficiency to Increase Competition Act will enable these institutions — including Colorado’s world-renowned colleges like the University of Colorado Boulder and Colorado State University, to retain patents and licenses on inventions, while streamlining reporting processes to help support institutions engaging in groundbreaking research and developments,” said Representative Neguse.

“America’s research universities deliver numerous innovations every year with the help of federal funding. We need to make sure grantmaking is customer-friendly for innovators, small businesses, and research institutions to work with the federal government. The Improving Efficiency to Increase Innovation Act will provide key insights into how we can streamline reporting to help researchers focus on innovating. Thank you to Senator Coons, Senator Tillis, and Congressman Neguse for helping lead this bill, and I urge my colleagues to give it quick consideration,” said Representative Flood.

Background:

In 1980, Congress enacted the bipartisan Bayh-Dole Act. This intellectual property reform legislation helped drive and support the innovation ecosystem we see today. This law allows federal grant holders to retain their patents on inventions developed with federal grant funding and to license those inventions to help engage private-sector development and commercialization of the inventions. The Bayh-Dole Act has allowed the United States, particularly American universities, to stay competitive globally.

The Bayh-Dole Act requires government grantees and contractors to report any intellectual property developed with federal funding. However, each government agency involved in grantmaking has established different methods for reporting, has established various forms of communication with grantees, and has its own standards for retaining the intellectual property from the grantee. This means grantees have to navigate the reporting system differently for each federal agency, a process that requires a substantial expenditure of time and resources.

“Universities are proven engines for innovation, producing technologies that change people’s lives for the better,” said Julius Korley, University of Delaware Associate Vice President for the Office of Economic Innovation and Partnerships. “Improvements in cross-agency regulations and reporting requirements will help accelerate our work in technology transfer, moving inventions out of the university and into the community where they can make a difference by improving lives.”

“This legislation directs an important GAO study to find out how the technology transfer process is working and how the federal government can make it work even better,” said Stephen Susalka, Association of University Technology Managers (AUTM) CEO. “We believe this study can help guide agencies toward improving their role in the effort by universities to spin off even more beneficial research for the American people.”

“This bill would provide incredibly valuable insight and evidence – which is currently lacking – into the compliance burden faced by research universities in pursuit of technology transfer,” said Kate Hudson, Association of American Universities Associate Vice President & Counsel for Government Relations and Public Policy. “The proposed GAO report will ensure policymakers have a clear-eyed understanding of the landscape of Bayh-Dole compliance, which will lead to better regulatory and legislative initiatives to promote and streamline innovation in the U.S. economy.”

The Improving Efficiency to Increase Competition Act is endorsed by the Bayh-Dole Coalition, Association of American Universities, Association of Public and Land Grant Universities, University of Delaware, University of Colorado, Colorado State University, the University of Nebraska System, the Wisconsin Alumni Research Foundation, and AUTM.

A one-pager on the bill is available here.

The full bill text is available here.

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