This means, for example, that David Baker licenses Rosetta for free to academic and government, but commercial users have to obtain a paid commercial license. Baker (his lab, or LLC, or whomever vends Rosetta Commercial) benefits monetarialy from all the data that Rosetta includes, which is decades of structural biology funded by NIH and others.
My comment was in reply to this comment by MauranKilom:
> > Maybe I have a wrong conception of what research is supposed to achieve, but commercializing new insights is absolutely one of the intended outcomes. One would sure hope that taxpayer money isn't funneled into research to... just enable more research.
And further on your comment:
> The article is talking about Alphabet [commercializing results from public datasets without needing to pay for them] That's more akin to how it was before Bayh-Dole:
Indeed, pre Bayh-Dole, publicly funded research was public (consider it public domain, or at least "MIT licensed") and anyone could use it.
Now everything has to be licensed from university licensing departments, typically with an expensive exclusive. Which has had a distorting effect on research, not merely restricting use (have you ever tried to work with a university licensing office? They consider even the most trivial results to be Nobel prize class) but, because they are a source of revenue, bending resource allocation, tenure, etc much as sports teams do for the schools that have them.
If so, I don't think that really applies to what the article is talking about. The article is talking about Alphabet potentially using large amounts of data from other researchers, mostly academic, who were funded by the government and commercializing it. That's more akin to how it was before Bayh-Dole: a private company taking government funded research they were not involved in, adding their own privately funded research, and making something commercial.