Title
Tech Transfer and Export Industry Modernization
Law
Letter Of Instructions No. 891
Decision Date
Jul 23, 1979
To enhance the competitiveness of Philippine firms in the international market, the law establishes Technology Utilization Service Teams to facilitate the transfer and exploitation of available technologies, while also granting licenses and royalties for the utilization of government technologies.

Questions (LETTER OF INSTRUCTIONS NO. 891)

To strengthen the effective transfer, delivery, and exploitation of available local and foreign technologies by creating mechanisms—especially through the Technology Resource Center (TRC)—to modernize production technologies of firms so they become competitive internationally.

TRC is mandated to develop and implement an Export Industry Modernization Project and to act as an information and licensing hub for “Government Technologies,” including linking R&D sources with private firms.

TRC is directed to form TUSTs in the fields of specialization of government entities responsible for generating Government Technologies. These teams create direct linkage between R&D centers and firms availing of Government Technologies.

TUSTs shall be composed of marketing, managerial, and technical personnel from TRC and government entities engaged in R&D.

They must provide, through TRC, consultancy services to firms so that government technical expertise may be availed of by the private sector.

TUST members are entitled to reasonable honoraria from TRC, but such honoraria must be derived solely from consultancy service fees paid by client firms to TRC.

They must “link-up” with TRC as the information center for utilization of Government Technologies, and TRC will issue guidelines on transmitting and retrieving technical information.

The technical information must be made available to private industry users, subject to terms and conditions to be determined by TRC.

Yes. TRC is empowered to grant third parties, whether public or private, licenses to utilize Government Technologies subject to terms and conditions—including payment of royalties—determined by TRC.

Sixty percent (60%) of royalties accrue to the government R&D agency responsible for generating the technology licensed; the remaining balance accrues to a Technology Development Fund administered by TRC for marketing Government Technologies and building up TRC’s technology data bank.

They are owned by government and include Service Technologies, Dependent Technologies, and Other Technologies. Service Technologies are innovations developed by persons under government employment/consultancy contract for research work; Dependent Technologies are those developed by persons under such contract but without obligation to exercise inventive activity, using data or means made available through employment/consultancy; Other Technologies are those developed by government R&D centers, universities, colleges, technical schools, and other agencies.

Service Technologies involve developing innovations as part of performance of research work under government employment/consultancy. Dependent Technologies are developed by persons under similar contracts but without obligation to do inventive activity, relying on data/means available due to their employment/consultancy.

No. Technologies developed in cooperation where the resulting technologies are declared outside the ownership of any entity, public or private are excluded from the coverage of Government Technologies.

The Ministry of Budget shall release a lump sum of Five Million Pesos (P5,000,000.00) for 1979 for operation and maintenance of the EIMP.

Upon TRC’s request, government R&D centers, universities, colleges, technical schools, and similar agencies must make available their facilities to enable TRC to carry out its responsibilities under the directive.

All orders, issuances, memoranda, rules, and regulations inconsistent with LOI No. 891 are repealed or modified accordingly.

It mandates dissemination of information to private firms to facilitate technology utilization and modernization, but availability is subject to terms and conditions determined by TRC.


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