NSF Extends Comments on New Intellectual Property Options for Funded Inventions
Published Date: 1/24/2025
Notice
Summary
The National Science Foundation (NSF) wants your thoughts on new ideas for handling inventions and patents in projects they fund with private companies. They’ve extended the deadline to February 21, 2025, so everyone has more time to share their opinions. These changes aim to make partnerships between researchers and businesses smoother and fairer, helping cool new inventions get out into the world faster.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
Research License with Commercial Option
For NSF direct public‑private awards, partners get a non‑exclusive, royalty‑free research license to Project IP for 18 months from disclosure. During the first 12 months any partner may declare a Right of First Negotiation (ROFN) to try to secure an exclusive commercial license in the following 6‑month Negotiation/Option Period; if one partner secures an exclusive commercial license, all other partners’ rights convert to a perpetual, non‑exclusive, royalty‑free research‑only license.
Convertible Commercial License Option
For NSF direct partnerships, partners receive a non‑exclusive, royalty‑free license to Project IP for both research and commercial purposes for 18 months from disclosure. The 18 months are split into a 12‑month Notice Period to exercise a Right of First Negotiation and a 6‑month Negotiation/Option Period; if one partner secures an exclusive commercial license during that time, other partners’ rights convert to a perpetual research‑only license.
Research‑Only License Option
Under the Research‑Only option for NSF direct partnerships, all partners receive a non‑exclusive, royalty‑free license to Project IP limited to research purposes only (no commercial rights). This license applies to Project IP and NSPF retains rights described under applicable law.
NSF/Government Reserved License (Bayh‑Dole)
Under these IP options, and pursuant to the Bayh‑Dole Act, NSF (the U.S. Government) is entitled to a non‑exclusive, irrevocable, paid‑up license worldwide to use Project IP that directly results from NSF‑funded activities. That government license persists under all three options.
Scope: Only Direct NSF‑Industry Partnerships
NSF's IP options apply only to awards that come from direct partnerships between NSF and industry partners agreed before the grant is issued; NSF says these awards are a small percentage of its portfolio. These options do not apply to downstream partnerships developed later by awardees, and NSF maintains that it does not claim or retain IP rights for awards including SBIR/STTR.
NSF Will Not Mediate IP Negotiations
NSF states it shall neither enforce nor participate in negotiations between awardees and industry partners over IP. Parties must handle negotiations themselves for direct NSF‑industry partnership awards.
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