Guthrie decided that commercial production would be the most efficient way to manufacture 400,000 test kits, so he approached the Ames Company, a division of
Miles Laboratories, which manufactured the older PKU tests. Ames said it would only manufacture the kits if a patent was issued, so Guthrie filed a patent application in 1962 and signed an exclusive licensing agreement with Miles, under which he would receive no royalties and 5% of the proceeds would be divided among the National Association for Retarded Children Research Fund, the Association for Aid of Crippled Children, and the University of Buffalo Foundation. Miles couldn't produce the kits fast enough, so Guthrie produced his own kits for 500 tests at a cost of $6 each. But in 1963, he found out that Ames planned to charge $262 for the same kit. Guthrie was appalled, but Ames wouldn't lower their price. Guthrie appealed to the U.S. Children's Bureau, which sponsored the field trial, and the Children's Bureau recommended that Miles not be granted exclusive commercial rights. Most of the funding to develop the tests had come from the Children's Bureau ($742,0000) and the Public Health Service ($251,700). The surgeon general determined that the invention belonged to the United States and abrogated the exclusive licensing agreement. The dispute was the subject of a May, 1965 hearing by the Monopoly Subcommittee of the Select Committee on Small Business of the U.S. Senate. Committee chair Russell B. Long (D-LA) denounced the award of private patent rights on federally funded research, and said, "when the desire to make monopoly profits at the public's expense can adversely affect the health of our children, it is time to call a halt to this immoral and evil practice." One of the defenders of Ames was Senator Birch Bayh (D-IN), who, with Senator Robert Dole (R-KS), in 1980 introduced the
Bayh–Dole Act which allowed universities and small businesses to retain ownership of inventions developed with federal funding. == Legacy ==