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

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.