The Pentagon Wants Dual-Use Innovation. Patent Law Might Punish It.

A recent federal court ruling has narrowed the scope of patent infringement immunity for government contractors, creating potential litigation risks for modern defense firms. The decision in a case involving Moderna's COVID-19 vaccine held that legal protection only applies when a product is made for the government's own use, not for public distribution, even if government-funded. This interpretation poses a direct threat to "neoprime" defense companies that develop dual-use technologies for both military and commercial markets. The new legal uncertainty could punish the very innovation model the Pentagon seeks to encourage, prompting calls for Congress to amend the century-old statute to protect these contractors.