The Center for Innovation and Free Enterprise opposes unprecedented attempts by the government to impose price controls 

The Center for Innovation and Free Enterprise would like to raise concerns and comment regarding the recently proposed Draft Interagency Guidance Framework for Considering the Exercise of March-In Rights, introduced by the Biden Administration for the National Institutes of Health (NIH) in December.

Our organization is deeply committed to fostering innovation, economic growth, and protecting the rights of inventors, recognizing their crucial role in driving advancements across various sectors. While we acknowledge the government’s responsibility to ensure that federally funded innovations benefit the public interest, we believe that the proposed framework raises significant issues that warrant careful consideration.

The policy’s unprecedented attempt to broaden the government’s ability to “march-in” and seize patent rights is a cause for concern. The potential infringement on the property rights of innovators poses a threat to the core principles of the innovation economy. Patents are essential for incentivizing research and development. They provide inventors with the assurance that their efforts will be protected, further encouraging investment in groundbreaking technologies.

The proposal’s intention to set the price of products developed through federal funding introduces an element of government intervention that could adversely impact market dynamics. Imposing price controls on patented innovations may have unintended consequences, hindering the ability of inventors and businesses to realize the full value of their contributions. Such interventions can stifle competition, discourage investment, and ultimately undermine the innovation ecosystem.

The regulatory proposal, if implemented, has the potential to undermine the rights of inventors and negatively impact innovation across various industries, from biopharma to high tech. The uncertainty surrounding the government’s ability to exercise march-in rights may discourage private-sector investment in research and development, leading to a slowdown in the pace of technological advancements.

The Center for Innovation and Free Enterprise supports innovation and free enterprise, which is why we encourage the withdraw of the proposed framework and reconsideration of the significant harms that result from undermining a law that currently benefits both American innovators and consumer. Instead of adopting measures that may hinder the innovation ecosystem, we recommend a collaborative approach that balances the need for public access to federally funded innovations while preserving inventor rights and private-sector investment.