Current intellectual property issues in nanotechnology

To the extent that the USPTO issues a proliferation of broad and potentially overlapping nanotechnology patents, the development of a nanotechnology patent thicket could impede the licensing process required for further innovation. If the contractor refuses the federal agency’s request, the agency can grant a license to the applicant itself if “the contractor or assignee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the subject invention in such field of use” or if “action is necessary to meet requirements for public use specified by Federal regulations and such requirements are not reasonably satisfied by the contractor, assignee, or licensees.” Theoretically, the march-in right demonstrates the power of the government to prevent the nonuse of patents in the context of patent hoarding or blocking patents used to stifle competition. These university-based nanotechnology research centers are in a prime position to secure bids for significant shares of the new funding from the Nanotechnology Act; ultimately, they should have an augmented government license defense in order to carry out incremental and innovative research effectively without becoming unduly encumbered by a nanotechnology patent thicket.