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Patent ‘March-In’ Policy Shift Will Likely Drive Uncertainty More Than Price Drops

 
• By Brenda Sandburg

Biden administration’s new framework will consider whether a product’s price is reasonable in deciding whether to exercise march-in rights. Numerous other factors could limit provision’s impact, but industry is concerned it will discourage firms from licensing government-funded inventions.

Marching in
New policy on march-in rights to license patents directs government agencies to consider product pricing • Source: Shutterstock

While the Biden Administration is advising federal agencies to consider product pricing in determining whether to invoke march-in rights to license a company’s patents, the directive may not change the status quo given all the other factors to be considered in taking such action. But industry is concerned that the new policy will be detrimental to government collaboration and product development.

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