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 legal risks for the defense industry. The court decided that legal protection under Section 1498 only applies when the government itself is the end-user, not when the public benefits, as was the case with Moderna's COVID-19 vaccine. This interpretation could expose "neoprime" defense firms, which develop dual-use technologies for both government and commercial clients, to costly patent litigation. Such legal uncertainty threatens the Pentagon's innovation strategy, which relies on these companies, and may require a legislative fix from Congress to protect the modern defense industrial base.