US turning socialist: After taking stake in Intel and share of chip sales to China, Trump admin to take up to 50% share of patent income generated by universities
In steps that indicate a socialist turn, the Donald Trump administration has now demanded a share of income generated by universities from state-funded researches. This comes after the US govt acquitted a 10% stake in Intel, and allowed NVIDIA and AMD to sell their chips to China in exchange of 15% of the revenue. On 10th September, Commerce Secretary Howard Lutnick announced the initiative forcing universities to give a share of their income, potentially 50%, to the federal government. In an interview with Axios for the inaugural episode of “The Axios Show,” Lutnick revealed plans to target the lucrative patent portfolios of major universities, particularly those developed with federal funding. He made the revelation when asked about what other steps the administration is considering to raise revenues. He said, “I think universities, who are getting all this money. The scientists get the patents, the universities get the patents and the funder of $50 billion, the U.S. government, you know what we get? Zero.” He then added that if the govt is funding the research, the govt should get a share of the income generated by the result of the research. He demanded a 50% share of the income. Lutnick said, “if I gave them 100% of their money, I would get half the profits, with the scientists. So I think if we fund it and they invent a patent, the United States of America taxpayer should get half the benefit.” Notably, he sent a letter to Harvard University last month, demanding a comprehensive list of all patents stemming from federally funded research grants, and plans to extend similar demands to the University of California system. Lutnick claims that sharing patent profits could secure enough revenue to fund the Social Security system and reduce federal deficits. Taxpayers deserve the benefit of the bargain. If Harvard won’t honor the Bayh-Dole Act, then we will find someone who will. pic.twitter.com/8U7yJtYacS— Howard Lutnick (@howardlutnick) August 8, 2025 He stated, “If we are paying for the research, if we’re paying for the lab, if it’s our money, the American taxpayer’s money, the American taxpayer should be a partner in the upside.” The proposal hinges on the Bayh-Dole Act of 1980, which allows universities to retain ownership of patents developed with federal funds to encourage commercialization. American Universities develop many cutting edge technologies, and they earn substantial income from businesses by licencing those technologies. This move comes amid heightened tensions with Harvard, where Lutnick has already initiated a review of the university’s compliance with the Bayh-Dole Act. In a letter to Harvard President Alan Garber, he accused the institution of failing to meet disclosure and manufacturing requirements, threatening to exercise “march-in rights” to seize patents or grant third-party licenses if non-compliance is found. Harvard, holding over 5,800 patents and 900 technology licenses as of July 2024, called the action “retaliatory,” citing its ongoing legal battles with the administration over other issues, including federal funding and international student policies. The latest move comes amid a series of actions against universities by the Trump administration. First, several universities were widely criticised for massive antisemitism displayed on the campuses, and faced the wrath of the new govt. The administration froze billions of dollars in research grants across elite universities like Harvard, Columbia, Princeton, Cornell, Northwestern, and others. Trump has also issued sweeping executive orders aiming to dismantle DEI programs, curb “gender ideology” and participation of trans in sports in universities. While these measures are in line of the ideology of the Republicans, the proposal to take share of income of universities go against it. Earlier in August, the U.S. government acquired a 9.9% equity stake in Intel, investing $8.9 billion to convert unused grant funds from the CHIPS and Science Act and the Secure Enclave program into capital support. Therefore, US govt got the stake without paying for it, as already committed grant was converted to equity share. This passive investment, as it lacks board representation, also includes a five-year warrant to acquire an additional 5% if Intel ever loses control of its foundry division. In the same month, the administration struck a controversial deal allowing Nvidia and AMD to sale their chips to China in exchange of 15% of their revenue. This deal allowed the advanced AI chips like Nvidia’s H20 and AMD’s MI308 to China, which was earlier banned. Ironically, China has now said that it does not need American chips, as they have developed their own AI chips after US banned sale of the same to the country.
In steps that indicate a socialist turn, the Donald Trump administration has now demanded a share of income generated by universities from state-funded researches. This comes after the US govt acquitted a 10% stake in Intel, and allowed NVIDIA and AMD to sell their chips to China in exchange of 15% of the revenue.
On 10th September, Commerce Secretary Howard Lutnick announced the initiative forcing universities to give a share of their income, potentially 50%, to the federal government. In an interview with Axios for the inaugural episode of “The Axios Show,” Lutnick revealed plans to target the lucrative patent portfolios of major universities, particularly those developed with federal funding. He made the revelation when asked about what other steps the administration is considering to raise revenues.
He said, “I think universities, who are getting all this money. The scientists get the patents, the universities get the patents and the funder of $50 billion, the U.S. government, you know what we get? Zero.” He then added that if the govt is funding the research, the govt should get a share of the income generated by the result of the research. He demanded a 50% share of the income.
Lutnick said, “if I gave them 100% of their money, I would get half the profits, with the scientists. So I think if we fund it and they invent a patent, the United States of America taxpayer should get half the benefit.”
Notably, he sent a letter to Harvard University last month, demanding a comprehensive list of all patents stemming from federally funded research grants, and plans to extend similar demands to the University of California system. Lutnick claims that sharing patent profits could secure enough revenue to fund the Social Security system and reduce federal deficits.
Taxpayers deserve the benefit of the bargain. If Harvard won’t honor the Bayh-Dole Act, then we will find someone who will. pic.twitter.com/8U7yJtYacS
— Howard Lutnick (@howardlutnick) August 8, 2025
He stated, “If we are paying for the research, if we’re paying for the lab, if it’s our money, the American taxpayer’s money, the American taxpayer should be a partner in the upside.”
The proposal hinges on the Bayh-Dole Act of 1980, which allows universities to retain ownership of patents developed with federal funds to encourage commercialization. American Universities develop many cutting edge technologies, and they earn substantial income from businesses by licencing those technologies.
This move comes amid heightened tensions with Harvard, where Lutnick has already initiated a review of the university’s compliance with the Bayh-Dole Act. In a letter to Harvard President Alan Garber, he accused the institution of failing to meet disclosure and manufacturing requirements, threatening to exercise “march-in rights” to seize patents or grant third-party licenses if non-compliance is found.
Harvard, holding over 5,800 patents and 900 technology licenses as of July 2024, called the action “retaliatory,” citing its ongoing legal battles with the administration over other issues, including federal funding and international student policies.
The latest move comes amid a series of actions against universities by the Trump administration. First, several universities were widely criticised for massive antisemitism displayed on the campuses, and faced the wrath of the new govt. The administration froze billions of dollars in research grants across elite universities like Harvard, Columbia, Princeton, Cornell, Northwestern, and others.
Trump has also issued sweeping executive orders aiming to dismantle DEI programs, curb “gender ideology” and participation of trans in sports in universities. While these measures are in line of the ideology of the Republicans, the proposal to take share of income of universities go against it.
Earlier in August, the U.S. government acquired a 9.9% equity stake in Intel, investing $8.9 billion to convert unused grant funds from the CHIPS and Science Act and the Secure Enclave program into capital support. Therefore, US govt got the stake without paying for it, as already committed grant was converted to equity share. This passive investment, as it lacks board representation, also includes a five-year warrant to acquire an additional 5% if Intel ever loses control of its foundry division.
In the same month, the administration struck a controversial deal allowing Nvidia and AMD to sale their chips to China in exchange of 15% of their revenue. This deal allowed the advanced AI chips like Nvidia’s H20 and AMD’s MI308 to China, which was earlier banned. Ironically, China has now said that it does not need American chips, as they have developed their own AI chips after US banned sale of the same to the country.
