This opinion piece argues against a proposal by Commerce Secretary Howard Lutnick to tax 50% of patent royalties earned by universities from federally funded research. The author contends that this tax would be counterproductive, undermining the highly successful Bayh-Dole Act of 1980 which allows universities to retain ownership and license their research. This act has spurred innovation, created startups, generated trillions in economic output, and supported millions of jobs – all benefiting taxpayers far more than a royalty tax would. The author emphasizes that the current system already provides a substantial return on investment through economic growth and tax revenue, and that government intervention would stifle innovation and waste valuable research.
