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Understanding the Bayh-Dole Act

The Bayh-Dole Act, formally known as the University and Small Business Patent Procedures Act of 1980, revolutionized the management of federally funded inventions. Before the enactment of this law, intellectual property generated from federally funded research typically belonged to the federal government. The Bayh-Dole Act changed this dynamic by allowing universities, small businesses, and non-profits to retain ownership rights of inventions made with federal funding. The primary purpose of the Act is to encourage the commercialization of research to benefit the public. By enabling research institutions to own and license their inventions, the Act fosters innovation, stimulates economic growth, and enhances collaboration between universities and industry. Our goal is to help you, the researchers and employees of the University of Pennsylvania, understand and navigate the complexities of this landmark legislation.

What You Will Find Here

This website is your comprehensive guide to understanding the Bayh-Dole Act and your responsibilities as a researcher utilizing federal funding.  Whether you are a seasoned inventor or new to the world of patents and licensing, here you will find all the resources needed to ensure compliance with the Act, including:

  • Detailed Guides: Step-by-step instructions on how to comply with the Act’s requirements.
  • Resources and Tools: Access to sample documents, disclosure forms, and important links.
  • Expert Advice: Insights from our Penn Center for Innovation to help you manage your inventions.
  • Contacts: Who to contact with questions.

Why Bayh-Dole Matters

The Bayh-Dole Act enables universities to own and commercialize inventions arising from federal funding.  Commercialization is the path by which inventions generated in an academic setting move into the commercial economy, to the benefit of society.  The Act requires that the revenue generated from commercialization be shared with inventors and the remainder be re-invested in scientific research and education. In direct consequence of the Act, some of our research results have the potential for a broader impact on society than can be achieved through academic publication alone.   Here at Penn, we are committed to fostering an environment where academic innovation thrives.

Explore and Learn

We invite you to explore the various sections of our site to learn more about the Bayh-Dole Act:

  1. About the Bayh-Dole Act: Dive deep into the history and key provisions of the Act.
  2. Navigating the Bayh-Dole Act: Understand your rights and responsibilities under the Act, ensuring that your inventions reach their full potential.
  3. Compliance Requirements: Understand your responsibilities and the steps needed for compliance.
  4. Resources and Tools: Access practical resources to aid in managing your inventions.
  5. Common Misconceptions: Review common misconceptions about the Act to ensure clarity and compliance.

Get Started

Begin your journey by exploring more about the Bayh-Dole Act to learn about the foundational elements of the legislation. If you have any questions or need assistance, don’t hesitate to Contact PCI at ip-compliance@upenn.edu.

Related FAQs

What is the Bayh-Dole Act?

The Bayh-Dole Act is the federal legislation that allows universities, small businesses, and non-profits to own inventions made with federal funding. It aims to promote the commercialization of these inventions to benefit the

Who needs to comply with the Bayh-Dole Act?

Any organization that receives federal funding for research and development must comply with the Bayh-Dole Act. This includes universities, government-funded laboratories, and businesses.

How does the university handle royalties from inventions?

Royalties from inventions are distributed according to the Penn Patent Policy, which includes shares for the inventor(s), further research in the inventor(s)’ labs, schools and reinvestment in further research and technology development at the University.

What are the key requirements of the Bayh-Dole Act?

The key requirements include disclosing inventions, electing whether to retain title to the inventions, filing for patent protection, regular reporting to the funding agency and ensuring that the products developed from these inventions are manufactured in the United States when possible.

What happens if I do not disclose an invention?

Failure to disclose an invention can result in the loss of patent rights (under general patent laws) and other severe consequences, including financial penalties for non-compliance with Bayh-Dole regulations. Timely disclosure is critical to protecting your rights and the university’s interests.

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