Bayh-Dole Act March-in Rights

This 1980 legislation awards title to inventions made with federal government support if the contractor consists of a small business, a university, or other nonprofit institution. The government retains a “nonexclusive, nontransferable, irrevocable, paid-up license” for its own benefit. The Bayh-Dole Act also provides federal agencies with “march-in rights,” codified at 35 U.S.C. §203. March-in rights allow the government, in specified circumstances, to require the contractor or successors in title to the patent to grant a “nonexclusive, partially exclusive, or exclusive license” to a “responsible applicant or applicants.” If the patent owner refuses to do so, the government may grant the license itself. The circumstances include: (1) the contractor or assignee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the subject invention; (2) to alleviate health or safety needs which are not reasonably satisfied by the contractor; (3) to meet requirements for public use specified by Federal regulations and not reasonably satisfied by the contractor; or (4) the agreement required that patented products be manufactured substantially in the United States unless domestic manufacture is not commercially feasible. As of 2024, these "march-in" rights have never been exercised.

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