Rate this response:
MIT policy should be changed to make all intellectual property developed by anyone at MIT the sole property of the inventor(s). The primary reason for this is that the current process slows down innovation tremendously. A secondary reason is that MIT would almost certainly make far more money from alumni gift increases than the lost royalty revenues. A third reason is that it would again prove MIT to be a leader of the world in much the same way MIT demonstrated leadership in committing to open course content online. MIT could get involved to help inventors upon their request, on a fee for service basis, or an investment by MIT basis.
In 2012 tech transfer royalties to MIT were $54.09M. This is roughly 1000 times less than the revenues of companies founded by MIT alumni. It seems likely that future MIT alumni grateful for future IP freedom would contribute at least 1% of their wealth to MIT in thanks. This would exceed current royalties many fold. More importantly, it would remove the current slow and labor intensive process, replacing it with the speed of entrepreneurial commerce. It would demonstrate MIT's leadership in the world in a very unique way. Many other institutions might follow MIT's lead, resulting in a revolutionary advance in entrepreneurship in the world.