Commerce Department Threatens To Take Ownership Of Harvard Patents

The federal government is looking into Harvard University’s patent rights, Commerce Secretary Howard Lutnick said in an Aug. 8 letter to Harvard President Alan Garber.

The Department of Commerce is initiating a “march-in” process under the Bayh-Dole Act, a federal patent policy allowing recipients of federal funds to retain patent rights over their inventions made with federal funding.

The Act’s “march-in” rights, however, give the federal government the authority to grant licenses of such patents to third parties under certain conditions where federally funded inventions are not being adequately developed or utilized for the public good.

In the letter, Lutnick said that Harvard has “failed to live up to its obligations to the American taxpayer and is in breach of the statutory, regulatory, and contractual requirements tied to Harvard’s federally funded research programs and intellectual property arising therefrom, including patents.”

As a result, Naveen Athrappully reports for The Epoch Times that the Department of Commerce is initiating a comprehensive review of the institution’s non-compliance, and will initiate the Bayh-Dole Act “march-in” process through which Harvard’s federally-funded patents could be taken over by the government.

Lutnick said that the federal government intends to license Harvard’s patents to third parties.

March-in rights under the Bayh-Dole Act have not been exercised by any federal agency in the 40 years since its enactment.

In an emailed statement to The Epoch Times, a Harvard spokesperson said, “This unprecedented action is yet another retaliatory effort targeting Harvard for defending its rights and freedom. Technologies and patents developed at Harvard are life-saving and industry-redefining.

“We are fully committed to complying with the Bayh-Dole Act and ensuring that the public is able to access and benefit from the many innovations that arise out of federally funded research at Harvard.”

This is the latest escalation in a series of government actions taken against Harvard since Trump took office. The federal government has accused Harvard of anti-Semitism, non-disclosure related to foreign funding, and race-based discrimination.

According to Harvard’s website, the university held over 5,800 patents as of July 1, 2024, and had more than 900 active technology licenses with 650-plus industry partners.

The administration values the groundbreaking scientific advancements that come from the federal government’s partnership with institutions like Harvard, which are funded by “significant taxpayer dollars,” said the letter.

“However, this privilege carries with it critical responsibility for Harvard to ensure that intellectual property derived from federal funding aligns with the Bayh-Dole Act, its associated regulations, and our contractual agreements, thereby maximizing the benefits to the American public,” it said.

With regards to patents, Harvard has failed to comply with disclosure and ownership requirements under the Act; has not taken effective steps to achieve practical applications for inventions; and is not in compliance with a requirement to give preference to the U.S. domestic industry, the letter added.

The Commerce Department’s actions are aimed at addressing these failures, Lutnick wrote.

The letter asked Harvard to provide a comprehensive list of all patents it received from federally funded research grants by no later than Sept. 5. The university must also provide sufficient information to prove that it was in compliance with the Bayh-Dole Act.

“Taxpayers deserve the benefit of the bargain. If Harvard won’t honor the Bayh-Dole Act, then we will find someone who will,” Lutnick said in an Aug. 8 X post, sharing the letter.

Trump-Harvard Tensions

Thus far, the federal government has canceled over $2.6 billion in federal funding to Harvard, including a cancellation of $2.2 billion in federal grants after the government accused the university of failing to combat anti-Semitism on campus.

“Harvard’s leadership has created an unsafe campus environment by permitting anti-American, pro-terrorist agitators to harass and physically assault individuals, including many Jewish students, and otherwise obstruct its once-venerable learning environment. Many of these agitators are foreign students,” the Department of Homeland Security (DHS) said in a May 22 statement.

Harvard had sued the federal government on May 23 over the funding freeze, with both facing off in court in a July 21 hearing. The case is ongoing.

The university argued in the lawsuit that the funding freeze was a “blatant violation” of the Due Process Clause, First Amendment, and the Administrative Procedure Act.

“It is the latest act by the government in clear retaliation for Harvard exercising its First Amendment rights to reject the government’s demands to control Harvard’s governance, curriculum, and the ‘ideology’ of its faculty and students,” the lawsuit said.

Harvard also highlighted that it has taken steps to combat anti-Semitism. It admitted that members of Jewish and Israeli communities have reported “vicious and reprehensible” treatment following the Oct. 7, 2023, Hamas attack against Israel.

“Harvard made substantial changes aimed at ensuring its campus is safe, fair, and welcoming to Jewish and Israeli students,” said the complaint.

“Harvard has adopted new accountability procedures and clarified policies; imposed meaningful discipline for those who have violated applicable policies; enhanced programs designed to address bias and promote ideological diversity and civil discourse; hired staff to support these programs and impacted students; and enhanced safety and security measures.”

Meanwhile, the university is showing signs that it may be aligning with the federal government’s demands.

On July 29, Harvard said that it would hand over employment forms of thousands of its staff members following a request from the DHS.

The form, Employment Eligibility Verification, is used to verify the identity and employment authorization of an individual who is hired to work in the United States. The processing of the form is managed by the DHS’s Citizenship and Immigration Services.