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Proposal for university technology licensing reform named ‘breakthrough idea’

A concept to create an open, competitive licensing system for university innovators — the brainchild of researchers at the Ewing Marion Kauffman Foundation in Kansas City, MO — is one of Harvard Business Review‘s “Ten Breakthrough Ideas for 2010.” Current restrictions imposed on the commercialization of federally funded discoveries in the U.S. slow the diffusion of new technologies, according to an HBR article by Robert E. Litan, vice president for research and policy at the Kauffman Foundation, and Lesa Mitchell, vice president for innovation. Such limitations are detrimental to the U.S. economy and to the universities, they argue. “We know that there are many vital innovations and discoveries languishing in university labs because of a suboptimal licensing system at many universities,” Litan says. “One simple amendment to the Bayh-Dole Act would allow faculty members to choose their own licensing agents/experts and bring these discoveries to market quickly.” Mitchell and Litan argue that if faculty members could choose their own licensing agents, increased competition would speed up the commercialization of new technologies while allowing universities to collect the same royalties as under the current system.

Source: TD Ameritrade

Posted December 22nd, 2009 under Tech Transfer


Read the Comments

Comment from Mike December 30, 2009, 4:01 pm

I think that this brief is premised on some incorrect assumptions about both the marketplace and the law. First, bestowing the right on inventors to select their TTO would probably not be a simple amendment. Bayh-Dole applies to more than just universities and professors. It applies to entities receiving federal funds.

Second, inventors do not usually make the best business people or decision makers. Complicating the transfer process by introducing more choices does not seem like the road to efficiency.

Third, decentralizing a university’s control over federally-funded inventions seems ripe for dispute. Joint inventorship, equity reviews, co-mingling of funds, and other “difficult” endeavors would only be more complicated.

Finally, I think it would remain to be seen whether a choice of TTOs would work at all. Under what circumstances must a TTO take a disclosure? If most disclosures are a value-losing proposition for TTOs, then such a system would only be accessible by the “best” invention disclosures which are the same disclosures that would likely see success even at the worst of TTOs. But the result is that internal TTOs would have fewer funds to pick up the less-than-the-best disclosures.

Comment from Henric Rhedin December 24, 2009, 1:25 am

In Sweden we have the professors privilege which means that the university inventors own their inventions and has the responsibility for commercialization. This is by far the best way to prevent commercialization of inventions. In my opinion the suggested change would probably add very little to technology transfer as is suggested by the Swedish example.

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