Written by: Haim Ravia, Dotan Hammer
The Trump administration has launched a comprehensive review of Harvard University’s federally funded research programs and is threatening to diminish the school’s lucrative portfolio of patents. President Trump’s Commerce Secretary, Howard Lutnick, accused Harvard of breaching its legal and contractual requirements related to federally funded research and patents.
The Commerce Secretary emphasized Harvard’s “critical responsibility” to ensure that intellectual property derived from federal funding is used to maximize benefits for the American people. Harvard was requested to deliver a list of all patents stemming from federally funded research grants, detailing how these patents are used and whether any outbound licensing ensures “substantial US manufacturing”.
The Commerce Secretary’s letter relies on the Bayh-Dole Act of 1980, which governs patent rights in inventions made with Federal assistance. The primary objective is to promote the utilization and commercialization of these inventions, encourage participation from small businesses and nonprofit organizations, and ensure public availability.
Nonprofit organizations generally have the right to retain title to “subject inventions” arising from federally funded research, with certain exceptions. However, they must adhere to specific provisions, including disclosing inventions, electing to retain title, and filing patent applications within a reasonable time.
Under the Act’s “March-in rights” provisions, Federal agencies can require licensing of subject inventions under specific conditions, such as a lack of practical application or to address health/safety needs. The law also specifies preference for U.S. industry, requiring that products embodying or produced by the invention be substantially manufactured in the United States.
Click here to read Commerce Secretary Lutnick’s letter to Harvard University.
