Howard Lutnick, the Commerce Secretary, suggested that the U.S. government might pursue a portion of the proceeds from patents created at leading universities with federal funding.
White House Eyes University Patents For Federal Profits
Lutnick, in a conversation with Mike Allen on “The Axios Show,” proposed that the Trump administration could seek a share of the profits from patents developed at major universities using federal funding, reported Axios.
He mentioned that the U.S. government has already secured a stake in Intel (NASDAQ:INTC) and a portion of Nvidia‘s (NASDAQ:NVDA) chip sales in China. The next target could be the revenue generated from patents developed at universities with federal funding.
“The scientists get the patents, the universities get the patents and the funder of $50 billion, the U.S. government, you know what we get? Zero.” stated Lutnick.
“America should participate,” he said. “How do we not get our money back? That’s insane.” he added
He also mentioned that the administration has been pressuring colleges on various fronts, including admissions, DEI policies, and antisemitism. The next step, according to Lutnick, is to ensure that the U.S. receives a share of the profits from intellectual property developed by scientists at these schools using taxpayer dollars.
Lutnick has already written to Harvard University, requesting a list of all patents resulting from federally funded research grants. He plans to send a similar letter to the University of California system, indicating that this may mark the start of a wider agreement.
Trump’s Controversial Moves In Education Sector
The Trump administration’s move to claim a share of university patents could have significant implications for the academic and research landscape. This proposal challenges the current system established by the Bayh-Dole Act of 1980, which allows universities to retain ownership of patents achieved with federal funding.
While this proposal may generate substantial revenue for the government, it could also impact the incentives for universities to conduct research and develop new technologies.
It's important to note that not all universities gain equally from patents; a 2024 study by Joshua M. Pearce, found that most universities would earn more by focusing on grants rather than patent commercialization, due to high costs and challenges.
The administration’s move to potentially claim a share of university patents comes after a series of controversial actions in the education sector. This includes a freeze on $2.2 billion in federal grants to Harvard University, which was later struck down by a federal judge.
Senators Divided On Trump’s Intel Stake
Sen. Rand Paul (R-KY) pointed out in response to White House’s 10% stake in Intel move, that this approach could be seen as a step toward socialism and government ownership in the private sector.
On the contrary, Bernie Sanders (I-VT), who is usually critical of the Trump administration, praised this move. "If microchip companies profit from the generous grants they receive from the federal government, American taxpayers have a right to a reasonable return on that investment,” said Sanders.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
