Bayh Dole Act 1980

In 1980, the Bayh-Dole Act (PL 96-517, Patent and Trademark Act Amendments of 1980) created a uniform patent policy among the many federal agencies funding research. As a result of this law, universities retain ownership to inventions made under federally funded research. In return, universities are expected to file for patent protection and to ensure commercialization upon licensing. The royalties from such ventures are shared with the inventors; a portion is provided to the University and department/college; and the remainder is used to support the technology transfer process.

From a historical perspective, there was a need for reliable technology transfer mechanisms and for a uniform set of federal rules to make the process work. It was tough for the federal government to transfer technologies for which it had assumed ownership. In 1980, the federal government had approximately 30,000 patents of which only 5% led to new or improved products. Many patents were not being used as the government did not have the resources to develop and market the inventions. Thus, Bayh-Dole gave universities control of their inventions.

Prior to Bayh-Dole, fewer than 250 patents were issued to universities per year. In FY 2000, there were over 330 U.S. and Canadian institutions and universities engaged in technology transfer. Technology transfer has helped to spawn new businesses, create industries and open new markets. In fact, core technologies, likely to spark new industries, often result from university patents. University-industry collaborations have helped to move new discoveries from the lab to the marketplace faster and more efficiently than ever before -- ensuring that products and services based on federally funded research reach the public.

The reason that the Bayh-Dole act is so instrumental to university technology transfer is that it speeds up the commercialization process of federally funded university research and helps new industries to develop quicker.