North Charlotte Today

WASHINGTON, D.C. - Senators Thom Tillis (R-NC) and Chris Coons (D-DE) have introduced the Improving Efficiency to Increase Competition Act, a bipartisan legislation aimed at improving efficiency for intellectual property developed by federal grantees and reducing red tape for these grantees, particularly universities. The bill seeks to enable grantees to focus more on research and development of new ideas and inventions.

Senator Tillis explained that the legislation directs the Government Accountability Office (GAO) to conduct a study on the disclosure processes of intellectual property developed by federal grantees under the Bayh-Dole Act. He emphasized that the Bayh-Dole Act has fostered competition, innovation, and economic growth and that the study would provide valuable information on opportunities to improve the current grant reporting system and address challenges that affect the development of new inventions.

As Chair of the Intellectual Property Subcommittee of the Judiciary Committee, Senator Coons expressed his understanding of the importance of supporting the development of new ideas and reducing barriers for innovators. He specifically mentioned the University of Delaware and highlighted the need to eliminate unnecessary red tape so that federal grantees can thrive and their ideas can contribute to national competitiveness and create new innovations and technologies.

The Bayh-Dole Act, enacted by Congress in 1980, is a bipartisan intellectual property reform legislation that has played a crucial role in driving and supporting the current innovation ecosystem. This law allows federal grant holders to retain patents on inventions developed with federal grant funding and to license those inventions for private sector development and commercialization. It has kept the United States, especially American universities, competitive globally.

However, the Bayh-Dole Act requires government grantees and contractors to report any intellectual property developed with federal funding. Currently, each government agency involved in grantmaking has different reporting methods, forms of communication with grantees, and standards for retaining intellectual property. This discrepancy creates a burdensome process for grantees, who have to navigate the reporting system differently for each federal agency, resulting in a significant expenditure of time and resources.

To address these challenges, the Improving Efficiency to Increase Competition Act of 2024 would require the Government Accountability Office's Comptroller General to conduct a study on the disclosure processes for intellectual property developed by federal grantees under the Bayh-Dole Act. The study would focus on existing barriers to efficient reporting, how these barriers have affected the development of new inventions, and opportunities to improve the current reporting system. The study would also consider the impact of these barriers on grantees of various sizes, budgets, geographical locations, and specialties, ensuring representation from different industries and areas of the country.

The bill has garnered support from various organizations, including the Bayh-Dole Coalition, Association of American Universities, Association of Public and Land Grant Universities, University of Delaware, University of Colorado, Colorado State University, the University of Nebraska System, the Wisconsin Alumni Research Foundation, and AUTM.

The Improving Efficiency to Increase Competition Act aims to streamline the reporting process for intellectual property developed by federal grantees, allowing them to focus more on research and development. By addressing the current barriers and improving the reporting system, this legislation seeks to foster greater innovation, competition, and economic growth in the United States.