The Biden administration recently published draft guidance to allow federal government agencies to invalidate patent licensing agreements. Officials claim the guidance, if finalized, will give them a new tool to reduce drug prices. However, the plan is much more far-reaching than the insidious effect it will have on Big Pharma. In fact, the impact will be quite severe for small businesses across a variety of industry sectors that require certainty to raise capital to bring their innovations to the marketplace. Specifically, the proposed guidance involves the Bayh-Dole Act, a 1980 law that empowers universities, small businesses and nonprofits to retain and leverage patent rights for discoveries that have been seeded or helped through federal grant dollars. Through Bayh-Dole, research institutions working with innovators and entrepreneurs can license the patents for further development.