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Key Provisions of the Bayh-Dole Act

  • Unless the agency informs the university at the time funding is provided that the agency will retain title to inventions derived from the projects funded because of specifically identified "exceptional circumstances" or other specified conditions, the university is entitled to retain ownership of any inventions created as a result of the funding.
     
  • The university must disclose to appropriate federal agency any invention created with the use of federal funds within 2 months of the date the inventor discloses the invention in writing to the university.
     
  • To retain ownership, the university generally must notify the agency of its election to retain title within 2 years of the date of disclosure. When publication, sale, or public use has initiated the 1-year statutory period in which valid patent protection can be obtained in the United States, the agency may shorten the period of election to not more than 60 days prior to the end of the statutory period.
     
  • The university must provide the U.S. government a nontransferable, irrevocable, paid-up, nonexclusive license ("confirmatory license") to use the invention.
     
  • The university must attempt to develop the invention. Otherwise, the government retains the right to take control of the invention. The government also may take control of the invention for other reasons, such as a need to alleviate health or safety concerns. This provision is referred to in the law as the government's "march-in" rights.
     
  • In granting licenses to use the invention, the university generally must give priority to small businesses.
     
  • When granting an exclusive license, the university must ensure that the invention will be "manufactured substantially" in the United States.
     
  • The university must share a portion of the royalties with the inventor(s).
     

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