17吃瓜在线

Policy and Legal

Policy and Legal

17吃瓜在线 to Tax Teams: Preserve Tax Provisions Before They Expire

By 17吃瓜在线 News Room

Raising taxes on manufacturers would damage the industry and the U.S. economy as a whole, the 17吃瓜在线 told the House Ways and Means Committee this week. That鈥檚 why it鈥檚 crucial that Congress preserve set-to-expire tax reform provisions.

What鈥檚 going on: In a continuation of its Manufacturing Wins campaign, the 17吃瓜在线 conveyed a clear message to six of the committee鈥檚 specialized 鈥淭ax Teams鈥: act now to protect manufacturers from tax increases.

Why it鈥檚 important: Failure to act before the end of next year, when key provisions from 2017 tax reform are set to expire, would result in higher taxes on virtually all manufacturers鈥攚hich 鈥渨ill cost millions of jobs and put the American manufacturing sector at a severe disadvantage globally,鈥 the 17吃瓜在线 wrote.

What鈥檚 at stake: The 17吃瓜在线 highlighted manufacturers鈥 top tax priorities for the Tax Teams, discussing why preserving pro-growth tax policy is vital for manufacturers in the United States:

  • In communication with the , the 17吃瓜在线 called on Congress to preserve tax reform鈥檚 reduced individual income tax rates and maintain the 20% pass-through deduction. It emphasized for the the importance of tax reform鈥檚 reduction in the corporate tax rate, which brought the U.S. from one of the highest rates in the world to a globally competitive 21%. The received a similar message.
  • The 17吃瓜在线 detailed for the the damage the estate tax imposes on family-owned manufacturers, and why Congress should not allow more family-owned businesses鈥 assets to be subject to the estate tax at the end of 2025.
  • The 17吃瓜在线 continued to push for pro-growth, pro-innovation R&D tax incentives with the , and it enumerated for the the full range of policies that will impact manufacturers at the end of 2025鈥攁nd called for urgent congressional action to protect manufacturers from tax hikes.

The final word: 鈥淢anufacturers of all sizes, throughout the supply chain, are calling on Congress to preserve tax reform in its entirety,鈥 said 17吃瓜在线 Vice President of Domestic Policy Charles Crain. 鈥淢anufacturers and manufacturing families simply cannot afford the devastating tax increases scheduled for the end of 2025 if Congress fails to act.鈥

Policy and Legal

Manufacturers Score Victory on Proxy Firms

By 17吃瓜在线 News Room

The 17吃瓜在线 achieved a significant victory in court Wednesday in a case that sought to bring needed oversight to proxy advisory firms鈥攁nd, more broadly, to ensure regulatory certainty for manufacturers.

The background: Proxy firms make recommendations regarding the way shareholders should vote on proxy ballot proposals that come before public companies.

  • These firms operate with minimal oversight despite their outsized influence and even though their decisions can have significant and sometimes harmful impacts.

The fight: In 2020, the Securities and Exchange Commission finalized an 17吃瓜在线-backed rule that included a range of modest but critical reforms to proxy firms鈥 business models.

  • In particular, the 2020 rule ensured that companies had more information about the firms鈥 voting recommendations and provided investors with companies鈥 responses to those recommendations.
  • But in 2022, the SEC rescinded critical portions of that rule.
  • The 17吃瓜在线 sued the SEC, asking the U.S. Court of Appeals for the Fifth Circuit to strike down this arbitrary and capricious agency action.

The victory: This week鈥攊n news covered by , (subscription), (subscription), (subscription) and (subscription)鈥攖he Fifth Circuit ruled in the 17吃瓜在线鈥檚 favor, deciding that the SEC acted unlawfully in rescinding the 2020 rule. In particular, the court made two critical points:

  • The court held that the SEC鈥檚 stated justification for its decisions to rescind 17吃瓜在线-supported proxy firm reforms didn鈥檛 pass muster and called the agency鈥檚 reasoning 鈥渇acially irrational鈥 and not 鈥渞easonable [or] reasonably explained.鈥
  • The court also ruled that a government agency reversing course despite no change in its underlying factual findings must 鈥渆xplain its about-face鈥 by 鈥済iv[ing] a more detailed explanation鈥 than the SEC provided.
  • This ruling builds on existing case law that prevents agencies from arbitrarily reversing policies after administrations change, thus encouraging regulatory certainty for manufacturers.

Our take: 鈥淭his decision confirms that federal agencies are bound by the rule of law, even as administrations change,鈥 17吃瓜在线 Chief Legal Officer Linda Kelly.

  • 鈥淢anufacturers depend on the SEC to be a steady regulatory hand at the wheel of America鈥檚 world-leading capital markets鈥攁n obligation the agency abandoned in rescinding the commonsense, compromise 2020 proxy advisory firm rule. 鈥 We will continue to fight in court to uphold the 2020 rule鈥攁nd to work with the SEC and with Congress to ensure appropriate oversight of these powerful actors.鈥
Press Releases

Manufacturers Victorious Over SEC in Fifth Circuit Proxy Firm Case

Decision confirms that federal agencies are bound by the rule of law, even as administrations change

Washington, D.C.鈥Yesterday, the U.S. Court of Appeals for the Fifth Circuit ruled in the 17吃瓜在线鈥 favor in 17吃瓜在线 v. SEC, overturning the Securities and Exchange Commission鈥檚 rescission of critical provisions of its 2020 proxy advisory firm rule. 17吃瓜在线 Chief Legal Officer Linda Kelly released the following statement on the ruling:

鈥淭his聽decision confirms that federal agencies are bound by the rule of law, even as administrations change. Manufacturers depend on the SEC to be a steady regulatory hand at the wheel of America鈥檚 world-leading capital markets鈥攁n obligation the agency abandoned in rescinding the commonsense, compromise 2020 proxy advisory firm rule.

鈥淭he 17吃瓜在线 Legal Center is proud to have secured this critical victory, which strikes down the SEC鈥檚 unlawful about-face and preserves important provisions from the 2020 rule designed to protect manufacturers and Main Street investors from proxy firms鈥 outsized influence. We will continue to fight in court to uphold the 2020 rule鈥攁nd to work with the SEC and with Congress to ensure appropriate oversight of these powerful actors.鈥

Background:

  • The 17吃瓜在线 has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move 17吃瓜在线 President Jay Timmons a 鈥渓ong-sought, major win for the industry and millions of manufacturing workers.鈥 In October 2020, the 17吃瓜在线 a motion to intervene in ISS v. SEC (ISS鈥檚 attempt to overturn the rule) in support of these reforms鈥攁 case that is still ongoing in the U.S. Court of Appeals for the D.C. Circuit.
  • In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the 17吃瓜在线 against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas in the 17吃瓜在线鈥檚 favor in that case, vacating the SEC鈥檚 suspension of the rule.
  • In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons 鈥渆pitomizes 鈥榓rbitrary and capricious鈥 rulemaking鈥; the 17吃瓜在线 later to challenge the rescission. The Fifth Circuit decision overturns the SEC鈥檚 2022 rescission of important provisions that increased transparency into proxy firms鈥 recommendations.

-17吃瓜在线-

The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽

Press Releases

Manufacturers to Congress: Stop Devastating Tax Increases

Jobs, innovation, investments in America all at risk if tax provisions expire at the end of 2025

Washington, D.C. 鈥 The 17吃瓜在线 released its Manufacturers鈥 Outlook Survey for the second quarter of 2024, which highlights the immediate need for Congress to take action to prevent tax increases that will limit the industry鈥檚 ability to create jobs, support their communities and compete in the global economy.

鈥淲hen Congress passed tax reform, manufacturers in the U.S. invested in their workers and businesses at a level that had never before been seen. In 2018, we experienced the best year for job creation in 21 years and the best year for wage growth in 15,鈥 said 17吃瓜在线 President and CEO Jay Timmons. 鈥淭ax reform was rocket fuel for our industry, but our latest Manufacturers鈥 Outlook Survey illustrates our industry鈥檚 deep concerns about the reversal of these pro-growth incentives. If Congress does not take action, job creation, wage growth and investments in communities鈥攊n short, America鈥檚 manufacturing edge鈥攚ill be at risk, as well as our country鈥檚 ability to attract meaningful investments into our economy. The House, the Senate and the White House need to come together to reinstate the critical provisions that have already expired or begun phasing out, and to stand strong to protect those set to expire at the end of 2025.鈥

Background:

  • The 17吃瓜在线 released , a policy explainer which illustrates the consequences of allowing the pro-growth policies and rates from the Tax Cuts and Jobs Act to expire.
  • The 鈥淢anufacturing Wins鈥 on provides a hub for 2025 tax content, as well as opportunities for manufacturers to share their stories directly with Congress and the administration.

Key Survey Findings:

  • If Congress does not act to prevent tax increases, survey respondents say that increased taxes will limit capital investment opportunities (73.0%), decrease job creation (65.4%), increase difficulty competing globally (52.6%) and reduce R&D spending (51.7%).
  • Nearly 94% of respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers.
  • In Q2, 71.9% of respondents felt either somewhat or very positive about their company鈥檚 outlook, the seventh straight reading below the moving average (74.8%).
  • More than 67% of manufacturers cited the inability to attract and retain employees as their top primary challenge, followed by rising health care costs (66.7%), an unfavorable business climate (59.6%) and a weaker domestic economy (56.8%).

The 17吃瓜在线 releases these results to the public each quarter. Further information on the survey is available .

-17吃瓜在线-

The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽

Policy and Legal

NYT Investigation: Pharmacy Benefit Managers Drive Up Costs for Employers

By 17吃瓜在线 News Room

Although they were created to keep prescription drug prices down, pharmacy benefit managers 鈥渇requently do the opposite鈥 (, subscription)鈥攁nd that鈥檚 one of the main reasons the 17吃瓜在线 has long advocated for their reform.

What鈥檚 going on: 鈥淭he job of the P.B.M.s is to reduce drug costs. Instead, they 鈥
steer patients toward pricier drugs, charge steep markups on what would otherwise be inexpensive medicines and extract billions of dollars in hidden fees, a New York Times investigation found.鈥

Why it鈥檚 important: PBMs frequently charge employers and government programs, such as Medicare, many times the wholesale cost of a medication and keep the difference, according to the Times.

  • And it鈥檚 not just those taking prescriptions who pay; when drug costs are inflated, everyone ends up paying higher insurance premiums.
  • What鈥檚 more, 鈥淸b]ecause of recent mergers, [the big three PBMs] are becoming more dominant, collectively processing roughly 80 percent of prescriptions in the United States.鈥 That鈥檚 up more than 30% from just 12 years ago.

Working around a workaround: In 2018, in response to growing pressure from employers to get PBMs to share more of the discounts from drug manufacturers, PBMs set up entities known as group purchasing organizations.

  • These GPOs pass savings to employers鈥攂ut they 鈥渁lso began聽imposing new fees on drug manufacturers,鈥 money they were not contractually bound to pass on to clients.
  • The result: 鈥淓mployers are none the wiser. They receive rebates. But they can鈥檛 see the billions of dollars in fees that the G.P.O.s take for themselves.鈥

Congress makes moves: Since the beginning of last year, seven House and Senate committees have passed PBM-reform legislation, including policies to increase transparency into PBMs鈥 business practices, delink PBM compensation from medications鈥 list prices and ensure that rebates are fully passed through to the plan sponsor or patient.

  • The 17吃瓜在线 in educating lawmakers on the need for these reforms and continues to advocate for PBM reform to be signed into law this year.

The last word: 鈥淧BMs drive up health care costs for manufacturers and manufacturing workers,鈥 said 17吃瓜在线 Vice President of Domestic Policy Charles Crain. 鈥淐ongress must act as soon as possible to enact comprehensive PBM reform that benefits employers by making PBM contracts more straightforward, transparent and predictable鈥攁nd benefits workers by reducing the prices they pay out of pocket for their prescriptions.鈥

Policy and Legal

Rep. Walberg Visits Madsen Steel Wire Products to Discuss Tax Priorities

By 17吃瓜在线 News Room

Rep. Tim Walberg (R-MI) recently visited Madsen Steel Wire Products in Bronson, Michigan, to discuss critical tax priorities with company leadership and members of the 17吃瓜在线.

The visit, led by Madsen Steel Wire Products General Manager Steve Cochran, focused on the importance of maintaining a competitive tax code to support growth and innovation in the manufacturing sector in the face of scheduled expirations of key pro-manufacturing tax policies in 2025. The visit also underscored the essential role manufacturing plays in economic growth and stability.

The topline: During the tour, Rep. Walberg witnessed firsthand the impact of pro-growth tax policies on manufacturers.

  • 鈥淰isiting Madsen Steel Wire Products reinforced the need for tax policy that supports manufacturing growth and job creation,鈥 Walberg said. 鈥淲e in Congress must act before the end of 2025 to preserve 2017 tax reform and avoid the devastating impacts to small manufacturers that will come to pass if these pro-growth policies are not preserved.鈥

A close-up view: Cochran shared the company’s experience with 2017 tax reform, highlighting how tax reform enabled significant investments in new equipment and workforce expansion.

  • 鈥淭ax reform in 2017 was a game-changer for us; it allowed us to invest in our people and technology, driving our competitive edge,鈥 said Cochran. 鈥淏ut the looming expiration of key tax reform provisions creates significant uncertainty for our future planning.鈥
  • 鈥淚n particular, we face a potential double-whammy as our tax rates are scheduled to increase next year at the same time the pass-through deduction expires鈥攔esulting in significant and damaging tax increases for us and other small manufacturers.鈥

An economic impact: The economic impact of manufacturing on local communities was a central theme of the discussion.

  • 鈥淢anufacturers like Madsen Steel Wire Products are vital to communities like Bronson,鈥 said Branch County Economic Growth Alliance Director Audrey Tappenden. 鈥淭heir strength is critical to our local economy and broader industries.鈥

The big picture: Walberg and Cochran also discussed the broader economic impact of tax reform. The 17吃瓜在线鈥檚 recent survey found that 94% of manufacturers believe Congress should act before the end of 2025 to prevent tax increases. The survey also indicated that if tax increases take effect, 73% of manufacturers would limit capital investments and 65% would reduce job creation.

  • 鈥淢anufacturing is the backbone of our local economy,鈥 said Cochran. 鈥淥ur ability to invest in new technologies and expand our workforce is dependent on preserving tax reform, which will directly translate to more jobs and better wages for our community.鈥

The bottom line: 鈥淭he stakes are high,鈥 said Walberg. 鈥淲e need to ensure that the tax code continues to support the hardworking men and women in manufacturing. It鈥檚 about maintaining a level playing field and ensuring that manufacturers like Madsen Steel Wire Products can thrive鈥攕upporting small business growth and the economic health and prosperity of our communities.鈥

The takeaway: 鈥淭he 17吃瓜在线 launched 鈥 鈥 to preserve tax reform, and Rep. Walberg鈥檚 visit to Madsen Steel underscores the critical role of tax policy in driving the success of manufacturers in America,鈥 said 17吃瓜在线 Vice President of Domestic Policy Charles Crain. 鈥淐ongress must act before the end of 2025 to prevent devastating tax increases鈥攂olstering manufacturing across the country and supporting the economic stability and growth of local communities like Bronson, Michigan.鈥

Policy and Legal

AI Speeds Drug Development

By 17吃瓜在线 News Room

a person sitting at a table using a laptop

High-tech drug development labs are training artificial intelligence to design therapeutic treatments more quickly, (subscription) reports.

What it looks like: Laboratories are using processes that record huge amounts of data quickly and efficiently鈥攁 practice that technology has made possible.

  • 鈥淸T]he real action is happening at nanoscale: Proteins in solution combine with chemical molecules held in minuscule wells in custom silicon chips that are like microscopic muffin tins. Every interaction is recorded, millions and millions each day, generating 50 terabytes of raw data daily鈥攖he equivalent of more than 12,000 movies.鈥

How it works: By harvesting tremendous amounts of data with mechanized accuracy, these labs can use AI tools to perform rapid experiments, recognize patterns and make predictions about possible solutions鈥攁ll more quickly than a human practitioner.

  • 鈥淭he companies are leveraging the new technology鈥攚hich learns from huge amounts of data to generate answers鈥攖o try to remake drug discovery. They are moving the field from a painstaking artisanal craft to more automated precision, a shift fueled by AI that learns and gets smarter.鈥

Why it鈥檚 exciting: Traditional drug development processes are typically extremely slow and expensive and frequently end in failure during the human clinical trials stage鈥攐ften because the drug is not effective enough, or because drugmakers discover unforeseen side effects. With the benefit of AI, biopharmaceutical companies may be able to overcome these challenges.

  • 鈥淪tudies of the cost of designing a drug and navigating clinical trials to final approval vary widely. But the total expense is estimated at $1 billion on average. It takes 10 to 15 years. And nearly 90% of the candidate drugs that enter human clinical trials fail.鈥

Why it鈥檚 safe: The practice is designed to prevent the kind of issues that tend to plague generative AI, and any final medicine still requires significant human input.

  • 鈥淏ecause AI for drug development is powered by precise scientific data, toxic 鈥榟allucinations鈥 are far less likely than with more broadly trained chatbots. And any potential drug must undergo extensive testing in labs and in clinical trials before it is approved for patients.鈥

Our take: During a recent event with Axios, titled 鈥Balancing Innovation vs. Regulation,鈥 17吃瓜在线 President and CEO Jay Timmons touched on some of the pioneering work biopharmaceuticals are doing using AI.

  • 鈥淎ll of the innovations in the biopharmaceutical industry 鈥 are creating new cures for diseases that we鈥檝e been battling for the whole history of mankind,鈥 said Timmons. 鈥淲e鈥檙e accomplishing all of these things now鈥攁nd it鈥檚 so exciting.鈥

Dig deeper: The 17吃瓜在线鈥檚 first-of-its-kind report, 鈥Working Smarter: How Manufacturers Are Using Artificial Intelligence,鈥 details use cases for AI in manufacturing and case studies of how manufacturers are implementing AI technologies. In the report, Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and 17吃瓜在线 Board Chair Kathy Wengel shares how J&J uses AI in clinical trials.

  • 鈥淲hen we conduct clinical trials, AI helps us more efficiently establish safety and effectiveness guardrails, while allowing us to conduct trials at a larger scale,鈥 writes Wengel. 鈥淎I also gives us a far stronger mastery over our supply chains. Overall, it helps our people do a better job of living up to our commitment of improving health care outcomes and making our towns, country and world a better place.鈥
Policy and Legal

Manufacturers Rally to Advance Nuclear Energy

By 17吃瓜在线 News Room

The 17吃瓜在线 is pressing the U.S. Senate to support a bill that would promote clean nuclear energy development.

What it does: The legislation, called the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, offers a number of components to accelerate the development and commercialization of advanced nuclear reactor technologies. It includes:

  • Permitting and approval reform to make it easier for reactor projects to locate on brownfield sites, land that is underused or has been abandoned because of industrial waste;
  • 鈥淓arly licensing work鈥 provisions to help deploy reactors more quickly at national security infrastructure sites;
  • A series of awards to encourage companies to develop advanced-reactor technology; and
  • Hiring support for the Nuclear Regulatory Commission, which is understaffed to deal with the level of applications for new reactors.

Where it stands: The legislation was reported out of the Senate Environment and Public Works Committee with a bipartisan vote of 16鈥3, and companion legislation was passed in the House of Representatives by an overwhelming vote of 365鈥36. Now, the 17吃瓜在线 is pushing the Senate to pass the bill.

Why it matters: 鈥淣uclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector,鈥 said 17吃瓜在线 Managing Vice President of Policy Chris Netram. 鈥淭he ADVANCE Act would accelerate the development and commercialization of advanced nuclear reactor technologies through reforms to the existing licensing and permitting systems.鈥

Our action: The 17吃瓜在线 is Congress to support the bill ahead of the Senate鈥檚 vote, detailing its benefits in a letter to senators.

The last word: 鈥淢anufacturers create jobs that support families, and develop and deploy innovative technologies that make our environment cleaner,鈥 said Netram. 鈥淚ncreasing our nation鈥檚 energy supply, including the growth of nuclear power, will support manufacturing investments and jobs across America.鈥

Policy and Legal

Westinghouse Helps Keep Ukraine鈥檚 Nuclear Reactors Running

By 17吃瓜在线 News Room

In recent years, an American household company name has been helping keep Ukraine鈥檚 nuclear reactors running (, subscription).

What鈥檚 going on: After Russia鈥檚 invasion in 2022, Ukraine stopped buying nuclear fuel from Moscow, formerly its top supplier. That鈥檚 when Westinghouse Electric stepped in.

  • The Pennsylvania-headquartered company 鈥渘ow makes fuel bundles that are compatible with all of the country鈥檚 [Soviet-designed VVER] reactors and is working on a plan that could allow Ukraine to start making some of that fuel itself. Ukraine also plans to build nine Westinghouse-designed reactors.鈥

Why it鈥檚 important: The change is a victory for the West, 鈥渨hich has long sought to erode Russia鈥檚 dominance in the industry and the political influence that comes with it.鈥

  • Russia has about 44% of the world鈥檚 uranium-enrichment capacity, which is critical because nuclear reactors use uranium for power production.

A decade in the making: After Russia seized Crimea in 2014, Ukrainian state nuclear company 鈥淓nergoatom ramped up purchases of Westinghouse鈥檚 fuel assemblies and, by the beginning of 2022, six of Ukraine鈥檚 15 reactors had been loaded with fuel from the company.鈥

  • The firm also began supplying Ukraine with fuel assemblies for the VVER-440 reactor, of which the country has two.

A critical moment: As part of its full-scale invasion of Ukraine two years ago, Russia occupied the country鈥檚 largest nuclear power station, Zaporizhzhia, and attacked other energy infrastructure.

  • Energoatom had to move fast to maintain deliveries of Westinghouse鈥檚 VVER-440 fuel, without which one of Ukraine鈥檚 nuclear reactors might need to be shuttered, worsening an electricity shortage.
  • 鈥淲hat followed was a high-stakes race to make the fuel and load it in a reactor near the western Ukrainian city of Rivne, which faced occasional aerial bombardment despite being far from the war鈥檚 front line.鈥
  • Westinghouse raced to source new machinery and rework its factory floor in Sweden, 鈥渦pending traditional ways of working in a tightly regulated sector that is better known for its glacial pace.鈥

How it succeeded: The company set up a 60-person task force to meet and identify potential bottlenecks in production and launched talks with other European utilities.

  • It got the Czech Republic and other countries with VVER-440 reactors 鈥渢o accept the same basic fuel assembly design as the one Westinghouse was planning to use for Ukraine鈥攁 step officials said helped speed up production because it eliminated some of the time the company would usually spend on customization.鈥
  • Utilities in five countries, including Ukraine, have since signed deals with Westinghouse for fuel deliveries.
  • Experts from Energoatom went back and forth between Ukraine and Sweden to help with the fuel development, and in September, the new fuel assemblies were ready.

A nuclear future: To produce the fuel, Westinghouse purchased new manufacturing equipment, repurposed older equipment and 3-D printed some detailed components.

  • 鈥淲estinghouse delivered a first batch of VVER fuel to a nuclear power plant in Bulgaria this spring and has said a delivery to the Czech Republic should take place this year.鈥
Policy and Legal

17吃瓜在线, Partners Urge Administration to Withdraw 鈥淢arch-in鈥 Proposal

By 17吃瓜在线 News Room

If finalized, guidance proposed last year by the Biden administration to allow the federal government to seize manufacturers鈥 intellectual property rights would be ruinous to the U.S. innovation economy, the 17吃瓜在线 and state partners told Commerce Secretary Gina Raimondo this week.

What鈥檚 going on: In December, the Biden administration to enable government agencies to 鈥渕arch in鈥 and revoke companies鈥 patent exclusivity if a product鈥檚 development was funded in any part by federal research dollars.

  • Under the proposal, the government鈥檚 decision of whether to march in would be based on a product鈥檚 price鈥攅ffectively imposing government-mandated price controls on innovative products like clean energy solutions, next-generation semiconductors and lifesaving medicines.

Manufacturers fight back: The 17吃瓜在线 and a coalition of regional and state manufacturing associations are pushing back, 聽the importance of ironclad IP rights to groundbreaking innovation.

  • 鈥淸T]urning groundbreaking R&D into innovative products for the American people is only possible if creators鈥攆rom university researchers to early-stage entrepreneurs to established businesses鈥攃an rely on strong intellectual property protections,鈥 the associations told Raimondo.

Small business impacts: Startups and small businesses would pay the heaviest toll if the new march-in standards are finalized.

  • Scientists and researchers at universities nationwide will face difficulties in partnering with the industry and in founding startups based on their research, 鈥渟trik[ing] a blow to the local economies in [all 50] states that depend on university-centered innovation hubs for job creation and economic growth.鈥
  • If a promising idea makes it out of the lab, outside investors will be reluctant to inject the capital necessary for further R&D and product development鈥攔esulting in fewer life-changing and lifesaving products for the American people.

What needs to happen: Manufacturers are calling on the Biden administration to reverse course.

  • 鈥淲e urge you to protect our local, state and regional economies, which benefit from breakthrough research, entrepreneurship and modern manufacturing, by withdrawing the proposed march-in guidance.鈥
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