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.
technology utilization
service teams
government technologies

Legal basis and related directives

  • The issuance is grounded on the President’s powers vested in the Constitution.
  • The letter references a Presidential Memorandum dated 22 December 1978 that mandates the Technology Resource Center (TRC) to develop and implement an Export Industry Modernization Project.
  • The issuance implements and links its instructions to the directive under the Presidential Memorandum dated 22 December 1978 (including budgeting for the project).

Policy, purpose, and intent

  • The letter directs government action to solve the critical national technological need for effective transfer, delivery and exploitation of available local and foreign technologies to upgrade products and production processes.
  • The letter requires that applied research—under the broader program framework—be market oriented and directly related to firm-level production processes.
  • The letter emphasizes strengthening existing mechanisms for transfer and delivery of available technologies to individual firms.

Technology utilization teams and linkages

  • The Technology Resource Center (TRC) must form Technology Utilization Service Teams (“TUST”) in the fields of specialization of government entities responsible for generating the Government Technologies.
  • Each TUST must be composed of marketing, managerial and technical personnel drawn from TRC and government entities engaged in research and development.
  • TUSTs must provide direct linkage between research and development centers and firms that avail of Government Technologies.
  • TUSTs, through TRC, must provide consultancy services to firms so that government technical expertise may be availed of by the private sector.
  • TUST members must be entitled to reasonable honoraria from TRC, limited to honoraria derived solely from consultancy service fees paid by client firms to TRC.

TRC linkage with other government agencies

  • Government research and development centers, universities, colleges, technical schools, and similar agencies must link up with TRC as the information center for the utilization of Government Technologies.
  • The TRC must issue guidelines governing how technical information is transmitted to TRC and how it is retrieved from TRC by participating agencies.
  • Technical information generated through the link-up must be made available to private industry users, under terms and conditions determined by TRC.

Licensing of Government Technologies

  • TRC must grant third parties, whether public or private, licenses to utilize Government Technologies.
  • Licensing is subject to terms and conditions, including payment of royalties, to be determined by TRC.
  • Sixty percent (60%) of royalties from such licenses must accrue to the government research and development agency responsible for generating the licensed technology.
  • The remaining royalty share must accrue to a Technology Development Fund administered by TRC.
  • The Technology Development Fund must be used for developing the market for Government Technologies and for building up TRC’s technology data bank.

What qualifies as “Government Technologies”

  • Government Technologies owned by government are defined as technologies developed and classified into the following categories:
    • Service technologies: innovations, inventions, processes, utility models, industrial designs, secret formulas and similar technologies, whether patentable or not, developed by persons under an employment or consultancy contract/relationship with the government or any of its agencies for the performance of research work.
    • Dependent technologies: innovations, inventions, processes, utility models, industrial designs, secret formulas and similar technologies, whether patentable or not, developed by persons under an employment or consultancy contract/relationship with the government or any of its agencies, where those persons have no obligation to exercise an inventive activity but use data or means available to them by reason of such employment or consultancy to develop the technology.
    • Other technologies: innovations, processes, utility models, industrial designs, secret formulas and similar technologies, whether patentable or not, developed by government research and development centers, universities, colleges, technical schools, and other agencies.
  • Coverage excludes technologies developed by the government or its agencies in cooperation with foreign governments or international/regional organizations where the resulting technologies are declared to be outside the ownership of any entity, public or private.

Budget release and agency assistance

  • The Ministry of Budget must release a lump sum of FIVE MILLION PESOS (P5,000,000.00) for 1979 for the operation and maintenance of the EIMP (Export Industry Modernization Project).
  • Upon the request of TRC, government research and development centers, universities, colleges, technical schools, and similar agencies must make their facilities available to TRC.
  • The facility assistance enables TRC to carry out the directive and responsibilities relating to the technology utilization and licensing framework.

Repealing clause and modifications

  • All orders, issuances, memoranda, rules and regulations that are inconsistent with the directive are repealed or modified accordingly.

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