John Manchester
Director, IP Policy, Global Innovation Policy Center (GIPC), U.S. Chamber of Commerce
Published
January 30, 2025
In 2024, the Biden Administration threatened to confiscate property by misusing march-in-rights under the Bayh-Dole Act, will undermine the intellectual property (IP) protections that have driven American innovation for decades. Using IP confiscation mechanisms like march-in rights for purposes of price controls will disrupt the delicate balance of public-private partnerships and hinder progress in critical industries.
What Are March-in Rights: March-in rights allow the government to relicense patents from federally funded research under certain specific, limited conditions. Because of the negative impact property confiscation would have on innovation, these rights have never been used. As a result, the Bayh-Dole Act has successfully enabled public-private collaborations that bring transformative innovations to market and changed millions of lives for the better.
The research speaks for itself: Throughout 2024, the Chamber regularly highlighted how the misuse of march-in rights for purposes of price controls could devastate critical technologies and industries and diminish America’s role as the global innovation leader. Just a few examples include:
- Quantum Computing in Jeopardy: Quantum computing, a field with the potential to revolutionize industries, depends on strong IP protections to attract private investment. Misapplying march-in rights could slow advancements in this $1.3 trillion industry. Read more in “March-In Rights Proposal Could Derail Quantum Computing Progress.”
- Risks to Semiconductor Leadership: The CHIPS and Science Act, which allocates $53 billion to semiconductor R&D, relies on private-sector participation to succeed. The march-in rights proposal could discourage this involvement, undermining national security and technological progress. Dig deeper here: “Biden’s March-In Rights Proposal Risks CHIPS Investments.”
- Broader Threats to Innovation: Startups and small businesses, which are the backbone of job creation and economic growth, rely on stable IP protections to secure funding. The uncertainty caused by march-in rights could stifle entrepreneurship, leaving groundbreaking innovations unrealized and setting a dangerous precedent for government overreach. Learn more here: “Will America’s Startup Engine Stall Under a Biden Administration Proposal?”
The Path Forward
Protecting IP rights ensures that transformative technologies can flourish. The Trump Administration can undo the harm caused by the outgoing Biden Administration and make clear that march-in rights will not be misused as a form of price controls. Doing so will ensure America’s innovation ecosystem will continue to drive economic growth and technological leadership.
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