Senator Elizabeth Warren’s latest push to seize private-sector patents using march-in rights is a clear threat to American innovation. This is a misguided attempt to lower drug prices. It is also a full-on assault on the American patent system, which is critical for both innovation and keeping the US competitive globally.
The Bayh-Dole Act was originally designed to spur innovation by allowing universities and small businesses to retain patents on products developed with federal funding. This law led to significant technological breakthroughs, from cancer drugs like Taxol to next-gen firefighting drones. But Warren and her allies want to twist this law into a weapon of government overreach. As Stephen Kent of Return points out, “The Biden administration is under pressure from Democratic lawmakers to use march-in rights to lower pharmaceutical drug prices,” which sets a dangerous precedent.
Warren’s plan wouldn’t just harm the pharmaceutical industry. Tech companies like AMD, Intel, and Nvidia, which rely on federal funding for research, could see their patents snatched away if they don’t play nice with big government agendas. As Kent warns, “This power exists but has never been used before, despite several petitions for the government to do so in recent decades.” The moment march-in rights are used, it will send shockwaves through every sector that depends on innovation.
We’ve seen what happens when government meddling creates uncertainty. When the FCC introduced regulatory confusion in the broadband sector, private investment dropped by 10%, leading to reduced network coverage and reliability. Imagine the same impact on AI, microchips, and cloud computing if the government starts wielding march-in rights.
America became a global leader because of the risks and rewards that drive innovation in a free market. If Warren’s power grab succeeds, we risk losing the edge that made us great. Kent sarcastically asks, “What could go wrong? (Everything.)”
