How does the Bayh-Dole Act affect government rights in federally funded inventions?

This page is an FAQ based on guidance from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only: it is not legal advice.

The Bayh-Dole Act, as implemented in 37 CFR Part 401, significantly affects government rights in federally funded inventions:

• It allows contractors (including small businesses and nonprofit organizations) to retain title to inventions made under federally funded research and development contracts.
• The government receives a nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention.
• The Act encourages the commercialization of federally funded inventions while protecting the government’s interests.

As stated in the MPEP: ‘The Bayh-Dole Act… provides, in essence, that nonprofit organizations and small business firms may retain title to inventions made under federally funded research and development contracts.’

For more information on Bayh-Dole Act, visit: Bayh-Dole Act.