Federal Awards & Patents

Received Federal Funding? Here’s What You Need to Know About Your Patent Rights.

If you’ve received an NIH, NSF, or SBIR/STTR award, you may have the right to patent inventions developed with that funding — and in many cases, the grant itself can cover the cost. But there are obligations and deadlines you need to be aware of.

You Can Keep the Patent — That’s the Law

Under the Bayh-Dole Act, if you receive federal funding and develop an invention as part of that research, you have the right to retain ownership of the patent. The government keeps a license to use the invention, but the patent — and the commercial rights — can be yours.

This applies to universities, small businesses, and non-profits. It’s the reason universities have technology transfer offices and why SBIR/STTR awardees are encouraged to file patents on their funded research.

Your Obligations

The right to keep the patent comes with responsibilities. If you don’t follow these steps, you could lose the right to retain title:

Report the invention within 2 months

Once you conceive of or develop an invention under your grant, you must report it to the funding agency within 2 months. For university researchers, this means filing an invention disclosure with your TTO.

Elect to retain title within 2 years

After disclosing the invention, you have 2 years (or 60 days before a statutory bar, whichever comes first) to formally elect to retain title.

File a patent application within 1 year

After electing to retain title, you must file a patent application within 1 year — or before a statutory bar, whichever comes first. Use ourdeadline calculatorto check your timeline.

Your Grant May Cover the Filing Cost

TABA funding: Phase II SBIR/STTR awardees can receive up to $50,000 in Technical and Business Assistance funding — on top of your award — specifically for patent filing, IP strategy, and licensing. The cost of a patent attorney may already be covered by your grant.

Many awardees don’t know TABA exists. If you’re a Phase II recipient, ask your program manager about eligibility. Even without TABA, patent filing is often an allowable cost under federal grants.

Don’t Assume Someone Else Is Watching the Clock

Federal award recipients face two clocks simultaneously: Bayh-Dole reporting deadlines and the 102(b) one-year grace period from public disclosure. If you’ve published a paper, presented at a conference, or had your award abstract posted publicly, the 102(b) clock is already ticking.

University TTOs are often understaffed and may not act on every disclosure. If your work has commercial value, check the deadline yourself — don’t assume it’s being handled.