[Congressional Record Volume 156, Number 148 (Monday, November 15, 2010)]
[House]
[Pages H7410-H7411]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         RECOGNIZING THE 30TH ANNIVERSARY OF THE BAYH-DOLE ACT

  Mr. CONYERS. Mr. Speaker, I move to suspend the rules and agree to 
the concurrent resolution (H. Con. Res. 328) expressing the sense of 
the Congress regarding the successful and substantial contributions of 
the amendments to the patent and trademark laws that were initially 
enacted in 1960 by Public Law 96-517 (commonly referred to as the 
``Bayh-Dole Act'') on the occasion of the 30th anniversary of its 
enactment.
  The Clerk read the title of the concurrent resolution.
  The text of the concurrent resolution is as follows:

                            H. Con. Res. 328

       Whereas Article I, Section 8, Clause 8, of the United 
     States Constitution provides that Congress shall have Power 
     ``to promote the Progress of Science and useful Arts, by 
     securing for limited Times to Authors and Inventors the 
     exclusive Right to their respective Writings and 
     Discoveries'';
       Whereas the United States Government is one of the largest 
     funders of research in the world, but that research does not 
     fully benefit American taxpayers unless it contributes new 
     products and processes to the marketplace, thereby creating 
     new companies and jobs, and solving societal problems;
       Whereas the commercial development of discoveries and 
     inventions falls upon private sector entrepreneurs, often 
     requiring millions of dollars in development funding over 
     many years, and even then commercial success is uncertain at 
     best;
       Whereas by enacting Public Law 96-517 (commonly referred to 
     as the ``Bayh-Dole Act'') in 1980, Congress determined that a 
     fundamental change was needed to implement a uniform Federal 
     patent policy, restoring the intended incentives of Article 
     I, Section 8, Clause 8 of the United States Constitution as 
     it relates to federally funded research;
       Whereas before the enactment of that Act, few inventions 
     arising from the billions of taxpayer dollars granted each 
     year to American research universities, nonprofit 
     organizations, and Federal laboratories were being translated 
     into commercial products of benefit to the public and the 
     United States economy;
       Whereas a critical factor in developing federally funded 
     inventions into commercial products is the continued 
     involvement of the inventor in the process, and Government 
     patent policies before the enactment of the Bayh-Dole Act 
     chilled the intended incentives of the patent system in this 
     regard;
       Whereas the ability to obtain a reliable patent license for 
     commercial development is needed to justify private sector 
     investments, and Government patent policies before the 
     enactment of the Bayh-Dole Act made negotiating and obtaining 
     such licenses difficult, if not impossible;
       Whereas patent ownership of potentially important 
     inventions is crucial in the formation of many start-up 
     companies, which form vital parts of an innovation economy, 
     and ownership rights were discouraged by Government patent 
     policies before the enactment of the Bayh-Dole Act;
       Whereas in 1984 Congress built upon the firm foundation of 
     the Bayh-Dole Act by permitting, in Public Law 98-620, 
     nonprofit organizations and universities to grant licenses 
     during the entire patent term and also to provide uniform 
     treatment under the Bayh-Dole Act of inventions produced by 
     nonprofit organizations that operate Government-owned 
     laboratories;
       Whereas the Bayh-Dole Act has provided incentives for 
     universities, nonprofit organizations, and small businesses 
     to effectively manage inventions arising from Federal support 
     as valuable resources on behalf of United States taxpayers;
       Whereas the success of the Bayh-Dole Act became apparent 
     with the creation and dominance of the United States 
     biotechnology and information technology industries, that 
     remain largely dependent on university research;
       Whereas the Bayh-Dole Act has been widely recognized as a 
     best practice and is now being adopted by other countries 
     (both developed and developing) around the world to better 
     integrate their own research universities into their 
     economies in order to be more competitive;
       Whereas objective examples of how the Bayh-Dole Act has not 
     only benefitted the United States but has also created a 
     better world include the creation of over 150 new drugs, 
     vaccines, or in vitro devices, including the hepatitis B 
     vaccine, cisplatin, carboplatin and taxol anticancer 
     therapeutics, laser eye surgery devices, the Palmaz balloon 
     expandable stent, and many more; and
       Whereas economic activity spurred on by the Bayh-Dole Act 
     include the formation of more than 6,500 new companies from 
     the inventions created under the Act, an estimated 
     contribution of $450,000,000,000 to United States gross 
     industrial output, and the creation of 280,000 new high 
     technology jobs between 1999 and 2007: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That--
       (1) it is the sense of the Congress that--
       (A) the Bayh-Dole Act (Public Law 96-517), as amended by 
     Public Law 98-620, has made substantial contributions to the 
     advancement of scientific and technological knowledge, 
     fostered dramatic improvements in public health and safety, 
     strengthened the higher education system, led to the 
     development of new domestic industries and hundreds of 
     thousands of new private sector jobs, and benefitted the 
     economic and trade policies of the United States; and
       (B) that Act remains critical to the future well being of 
     the United States;
       (2) the Congress reaffirms both its support for this 
     landmark legislation and the critical role that innovation, 
     entrepreneurship, and job creation hold for the future of the 
     United States, and its commitment to the policies and 
     objectives of that Act; and
       (3) the Congress shows its gratitude for the bipartisan 
     leadership shown by Senators Birch Bayh and Robert Dole and 
     Representatives Peter Rodino, Hamilton Fish, Robert 
     Kastenmeier, Tom Railsback, Don Fuqua, and former Chairman 
     and Ranking Minority members of the Senate Judiciary 
     Committee, Edward Kennedy, and Strom Thurmond for securing 
     the enactment of the Bayh-Dole Act, for strengthening it in 
     1984, and for providing unwavering support for the policies 
     underlying that Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Conyers) and the gentleman from Texas (Mr. Poe) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. CONYERS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and include 
extraneous material.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CONYERS. I yield myself as much time as I may consume.
  Mr. Speaker, this resolution recognizes the 30th anniversary of the 
Bayh-Dole Act, a landmark piece of legislation that reshaped the 
landscape of technological innovation in the United States by 
clarifying intellectual property rights in government-funded 
inventions.
  What that means is that, prior to this act, our country was stuck in 
a form of economic malaise, and innovation was, frankly, stifled. The 
stiff international competition we faced at the time wasn't just a 
matter of Europe and Japan getting back on their feet. It was also a 
matter of them, frankly, outpacing us in technological development.
  We knew we had to better harness all our innovation capacity, 
particularly the work being done at our research universities. At the 
time, policies mandated Federal Government ownership of patent rights 
for any research done with Federal funding. Since most university 
research had some sort of Federal funding, the universities had no say, 
and no stake, in the patent rights of their own research.
  Then there were the rules in licensing what patents existed which 
were considered cumbersome and discouraged use by the private sector. 
The situation literally led to technologies being left on the shelf to 
gather dust, and we were falling behind in this area.
  This bill of 30 years ago also revolutionized the way patent rights 
in university inventions were to be dealt with. The Bayh-Dole Act 
allowed universities to own patents, license them out to the private 
sector, and split royalties earned with professors and students who 
worked on the invention.
  With the barriers to obtaining patent licenses removed, private 
investors could easily partner with federally funded research 
institutions and begin

[[Page H7411]]

to develop groundbreaking innovations for commercial use.
  This bill, this law, aligned the interests of universities and 
faculty and the private sector and thereby ushered in an unprecedented 
level of collaboration between these groups. It further channeled the 
imagination of our best and brightest to help make a better future for 
all of us.
  So, in the last 30 years since Bayh-Dole, it has led to the creation 
of over 150 new pharmaceuticals and medical treatments, including a 
hepatitis B vaccine, cancer treatments, in vitro devices, the Palmaz 
balloon expandable stent, and many others.
  Estimates tell us that Bayh-Dole has added at least $450 billion to 
the United States' gross industrial output and that between 1999 and 
2007 it created probably more than 280,000 new high-tech jobs.
  The Bayh-Dole Act has been recognized around the world as a best 
practice and has served as a model for laws adopted by other Nations 
hoping to replicate the success that we had in our own country in 
building partnerships between federally funded researchers and private 
investors.
  The Economist magazine called the Bayh-Dole Act ``perhaps the most 
inspired piece of legislation to be enacted in America over the past 
half-century.''

                              {time}  1520

  For those reasons, I urge that we celebrate the 30th anniversary 
passage of this very important piece of legislation.
  I reserve the balance of my time.
  Mr. POE of Texas. Mr. Speaker, I yield myself as much time as I may 
consume.
  The purpose of H. Con. Res. 328 is to express the sense of Congress 
regarding the successful and substantial contributions of the Bayh-Dole 
Act on the occasion of the 30th anniversary of its enactment. The Act 
establishes the rules of the road governing patent rights when the 
Federal Government and private entities participate in joint research 
that produces patentable inventions. Article I, section 8, clause 8 of 
the United States Constitution provides Congress with the authority 
``to promote the Progress of Science and useful Arts, by securing for 
limited Times to Authors and Inventors the exclusive Right to their 
respective Writings and Discoveries.''
  The drafters of the Constitution, however, couldn't have predicted 
that the Federal Government would one day become a catalyst for the 
development of advanced technologies. Prior to Bayh-Dole, the Federal 
Government permitted the private sector to commercialize less than 5 
percent of the government's patent portfolio. As former Senator Robert 
Dole stated in 2005, the government's track record on promoting 
university-born technologies during the 1960s and 1970s was ``dismal.'' 
The failure to capitalize on this important research delayed 
innovations that could have improved the quality of life for millions 
of Americans. What was the government doing wrong before 1980? Simply 
put, the government was focused on something else. At the time, at 
least 26 distinct Federal agency policies controlled how the federally 
funded research and development could be used.
  Bayh-Dole fundamentally changed the government's patent policy by 
replacing helter-skelter licensing practices with a single uniform 
policy. This shift created the incentives that private industry, 
including small businesses, nonprofits, and universities, needed to 
risk their capital and develop patented inventions. Bayh-Dole has 
created a culture of cooperation and collaboration among government, 
university, and private-sector researchers. The act contributed to the 
commercial development of new industries such as biotechnology and 
nanotechnology.
  In 2003, the President's Council of Advisers on Science and 
Technology affirmed the importance of Bayh-Dole by reporting that it 
dramatically improved the Nation's ability to move ideas from research 
and development to the marketplace and into commerce. This same 
organization determined that the system for transferring technology 
from nonprofit institutions, which includes universities, hospitals and 
government laboratories, to the private sector has worked very well.
  H. Con. Res. 328 reaffirms Congress' commitment to the policies and 
objectives of Bayh-Dole. This Act has sparked 30 years of enhanced 
research and development within the United States, leading to dramatic 
improvements in public health and safety, a strengthened higher 
education system in the United States, and the development of new 
domestic industries that have created tens of thousands of highly 
skilled jobs for America's citizens. Mr. Speaker, Bayh-Dole illustrates 
how the government and private industry can work together for the good 
of the American people. I salute the authors of Bayh-Dole and reaffirm 
my commitment to this Act.
  I yield back the balance of my time.
  Mr. CONYERS. I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Conyers) that the House suspend the rules 
and agree to the concurrent resolution, H. Con. Res. 328.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. CONYERS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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