Department of Energy Needs Better Oversight on Technology Licensing Policy, Says GAO Report
The Department of Energy (DoE), one of the largest Federal research funding agencies, recently underwent scrutiny in a new report by the Government Accountability Office (GAO). The report reveals that DoE needs to better understand the implications of a recent policy change designed to protect U.S.-funded technologies from foreign acquisition.
Policy Change and Concerns
In 2021, DoE implemented a policy change on the licensing of technologies funded by its research. The aim was to ensure that more technologies were subjected to U.S. manufacturing requirements. However, GAO points out that the DoE lacks a strategy to evaluate whether this policy is effective or if it has "unintended consequences."
Candice Wright, who led the research for the report, explained, “We talked with all 17 national labs and about 20 universities and heard a variety of concerns. Particularly, the worry that this policy change could deter third-party companies from seeking to license DoE-funded technologies.” This could, in turn, make the labs and universities less likely to patent these inventions if there is no incentive for companies to license them.
Steps Taken by Labs and Universities
Despite concerns, the national labs and universities are taking measures to safeguard DoE-funded inventions from foreign acquisition. For instance, they require that licensees periodically report any changes in company ownership or management.
However, the GAO report highlights that these measures are inconsistent and not always thorough. For example, the labs and universities do not consistently monitor whether foreign acquisition of the companies has occurred post-licensing.
Consistent Risk Management Practices Needed
“**Without consistent risk management practices, DoE cannot ensure that inventions it funds are sufficiently protected from the risk of foreign control,**” the report emphasizes. This is particularly crucial for critical and emerging technologies like renewable energy generation and storage.
GAO Recommendations
The GAO made six recommendations to address these issues, including:
- Evaluating DoE’s U.S. manufacturing policy
- Reviewing licensing practices at universities
- Providing guidance to labs and universities about managing the risk of foreign ownership of licensees
The DoE has agreed with all of the recommendations laid out by GAO.
By addressing these recommendations, the Department of Energy can better safeguard U.S.-funded technologies from foreign acquisition, ensuring they benefit the U.S. economy and innovation landscape.
