QuestionsQuestions (Republic Act No. 10055)
In general, ownership is vested in the Research and Development Institute/Institution (RDI) that actually performed the research, subject to specific exceptions under Section 6.
The GFA may assume rights when: (1) the RDI has entered into a written agreement waiving/assigning/sharing ownership in favor of the GFA to protect public interest (and involving specified vital sectors or national security, nutrition, health, etc.); (2) the RDI fails to disclose potential IPRs to the GFA; (3) the RDI fails to initiate protection within a reasonable time from confidential disclosure to the GFA, not exceeding three (3) months from public disclosure; or (4) the RDI ceases to become a Filipino corporation as defined in the Act.
The RDIs shall own the IPRs jointly or as otherwise stipulated in the research agreement between them, provided that any research agreement between RDIs and other funding entities is made with full knowledge of the GFA and strictly in accordance with the Act.
No. Section 6 explicitly states that nothing in the Article modifies, amends, derogates, or prejudices IPs that will be owned by employees of the RDIs under the Intellectual Property Code and other existing laws.
The GFA must: protect its interest via the research funding agreement; may withhold information for a reasonable time to allow protection; monitors the RDI’s efforts in securing IP protection and commercialization; ensures freedom to use IP for further research and appropriate publication; and allows revenue sharing in a non-onerous way, including conditions and processes (e.g., DOST recommendation and fairness opinion) when the GFA assumes commercialization.
It is to allow the RDI to pursue full protection of the potential IPRs, preventing premature public disclosure that could harm patentability or other forms of IP protection.
RDIs must identify, protect, and manage IPs; address shortfalls; notify the GFA of IP applications/licenses/assignments; disclose biodiversity and genetic resource, traditional knowledge, and indigenous knowledge in IP applications; report annually; keep accounts of revenues if required; ensure capability; provide incentives; allow confidentiality for not-yet-protected potential IPRs; make confidential disclosure to the GFA of potential IPRs; inform the GFA of agreements with other entities, with failure rendering the agreement invalid as against the GFA (without prejudicing the GFA’s rights under the Act); and create spin-off companies when necessary.
Under Section 6, failure to disclose potential IPRs to the GFA allows the GFA to assume the rights to the potential IPR.
If the RDI fails to initiate protection within a reasonable time from confidential disclosure to the GFA, and in no case beyond three (3) months from public disclosure, the GFA assumes rights to the potential IPR (Section 6).
All revenues generally accrue to the RDI unless the research funding agreement provides revenue sharing; however, the GFA’s total share cannot exceed the RDI’s share. If research is jointly funded, the RDI may contract regarding revenue sharing with other funding entities. Revenue sharing between RDI and researcher is governed by employment/related agreements without prejudice to rights under RA 8439.
One (1) year leave of absence renewable for another year, for a total period not exceeding two (2) years from the time the researcher signifies in writing the desire to create or participate in a spin-off company (Section 12).
RDIs must adopt guidelines, including: researchers must be accountable and commercial objectives must not divert them from core research; heads of RDIs must ensure that if researchers have direct/indirect financial interests in a spin-off, they should not act on behalf of the RDI in transactions with that company; researchers nominated as non-executive directors should ensure the RDI’s interests aren’t compromised; and collaborative undertakings with spin-offs/existing companies must be governed by formal written public agreements (Section 14).
Section 15 adopts the grounds, terms, and conditions for government use/third-party authorized use and compulsory licensing as stated in the IP Code (RA 8293), applicable to IPRs generated under RA 10055.
It may assume ownership in cases of national emergency or extreme urgency, or where public interest requires—particularly national security, nutrition, health, or vital sectors of the economy—subject to determination by the head of the parent agency within specified timelines. The decision must include analysis/justification; the RDI may oppose within 15 calendar days; there must be equitable sharing of profits with the RDI/other funding agencies; and rights revert to the RDI when the circumstances cease.
Public RDIs undertaking technology transfer may use their share of revenues; income from commercialization of IPs/ IPRs from R&D funded by public funds must be constituted as a revolving fund for use in defraying IP management costs and expenses; funding R&D; S&T capability building; and technology transfer activities including technology licensing offices. No amount may be used for payment of salaries and other allowances.
If income after paying all IPR management costs (including royalties to other parties) exceeds 10% of the RDI’s annual budget—and only if the GFA solely funded the research—then at least 70% of the excess income must be remitted to the Bureau of the Treasury. State universities and colleges and GOCCs with fiscal autonomy are exempt under their charters or applicable laws.
DOST must establish a Technology Information Access Facility and develop policies/procedures for public access (Section 19), call a regular national conference of GFAs and RDIs, and, with DTI and IPO, issue guidelines on IP valuation, commercialization, and information sharing (Section 21). RDIs are encouraged to establish TLOs/technology business development offices and internal IP policies (Section 20).
Section 22 provides that the administrative procedure for resolving disputes on the determination for government ownership shall be provided by the Implementing Rules and Regulations (IRR) of the Act.