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Proceed with Caution or You Just Might Inspire the Government to “March In”

The use of federal funds for creating inventions is hardly a new phenomenon. In fact, this practice is so commonplace there are regulations allowing contractors to own these “subject inventions” but also preserve certain rights to the invention for the Government. One right reserved for the Government is its right to “march-in”. March-in rights ensure the Government can intervene when a contractor is not doing enough to achieve practical application of the subject invention. Recently, agencies that fund subject inventions in vital pharmaceuticals were encouraged to exercise their march-in rights to manage pricing. While they have not exercised their march-in rights to date, that does not mean that will always be the case. In fact, a new interagency working group is creating a rubric to help guide agencies through their march-in determinations. Learn more about this issue here.

"The Biden-Harris Administration is committed to increasing access to health care and lowering costs. And march-in authority is a powerful tool designed to ensure that the benefits of the American taxpayer's investment in research and development are reasonably accessible to the public." HHS Secretary Xavier Becerra