Law Summary
Definition of Terms
- Defines key terms including Intellectual Property (IP), Intellectual Property Rights (IPRs), Potential IPRs, and Protection of IPs.
- Clarifies entities such as Government Funding Agencies (GFAs), Parent Agencies, Research and Development Institutes or Institutions (RDIs), Researchers, Spin-off firms, Technology, Technology transfer, Commercialization, Revenue, and Research and Development (R&D).
Ownership of Intellectual Property
- Generally, ownership of IP and IPRs derived from government-funded R&D vests in the RDI that performed the research.
- Exceptions include written agreements limiting RDI rights, failure by RDI to disclose or protect IP, or if the RDI ceases to be a Filipino corporation.
- Collaborative research results in joint ownership unless otherwise agreed.
- Employment-related IP rights of RDI employees remain governed by the Intellectual Property Code and other laws.
Rights and Responsibilities of Government Funding Agencies (GFAs)
- GFAs must protect government interests via appropriate provisions in funding agreements.
- Authorized to withhold information related to IPRs temporarily to allow protection efforts.
- Monitor RDI performance in IP protection and commercialization, offering assistance if needed.
- Ensure freedom for further research and disclosure consistent with policy.
- Can negotiate commercialization agreements under specified processes including recommendations and fairness reports.
Rights and Responsibilities of Research and Development Institutes (RDIs)
- Identify, protect, manage, and commercialize IPs from government-funded R&D.
- Notify GFAs timely about IP applications, licenses, and assignments.
- Report annually on IP commercialization progress and revenue.
- Provide incentives to researchers and maintain confidentiality over potential IPRs.
- Establish spin-off companies for commercialization when necessary.
- Must disclose agreements related to government-funded research to GFAs; failure to do so renders agreements invalid against GFAs.
Management of Government RDIs Using Own Budget
- Public RDIs funding R&D from their own budgets must submit annual IP management reports to their parent agencies.
- Parent agencies monitor the effectiveness of IP protection and commercialization.
Revenue Sharing
- Revenues from commercialization accrue to the RDI unless otherwise agreed, with GFA shares never exceeding those of the RDI.
- In joint funding scenarios, revenue sharing with other funding entities is allowed.
- Revenue sharing between RDI and researchers governed by employer-employee contracts and relevant laws.
Commercialization by Researchers and Spin-off Companies
- Researcher-employees may commercialize IPs by creating or joining spin-off companies, subject to conditions including leave of absence.
- Leaves of absence do not affect retirement benefits but pause leave credit accrual.
- Guidelines to manage conflicts of interest are required, including accountability for research integrity and formal agreements.
Use by Government and Compulsory Licensing
- Adoption of IP Code provisions on government use and compulsory licensing for IPRs generated under government-funded R&D.
Assumption of Ownership of Potential IPRs
- GFAs or parent agencies may assume ownership of potential IPRs during emergencies or public interest cases like national security or health.
- Determinations require justifications and may be opposed by RDIs within set timelines.
- Obligated to share profits equitably and revert rights when conditions no longer exist.
- Supreme Court has exclusive jurisdiction over related legal remedies.
Use of Income and Establishment of Revolving Fund
- Public RDIs conducting technology transfer can use income from commercialization to fund IP management, R&D, capacity building, and transfer activities.
- Income not used for salaries or allowances.
- Excess income (over 10% of annual budget) partially remitted to the Bureau of Treasury, except for autonomous entities.
Institutional Mechanisms
- Department of Science and Technology (DOST) to establish technology information access facilities and public access policies.
- Regular national conferences for coordination and prioritization among GFAs and RDIs.
- RDIs encouraged to establish Technology Licensing Offices (TLOs) and adopt internal IP policies.
- DOST, Department of Trade and Industry (DTI), and Intellectual Property Office (IPO) to build capacity and issue commercialization guidelines.
Dispute Resolution
- Administrative procedures for resolving disputes on government ownership to be provided through Implementing Rules and Regulations (IRR).
Liability
- Failure by GFAs or RDIs to comply with the law or its provisions renders the persons liable to administrative, criminal, or civil penalties under applicable laws.
Oversight and Funding
- Creation of a Congressional Oversight Committee for effective implementation.
- Funding to come from budgets and incomes of GFAs and public RDIs with oversight by the Commission on Audit (COA).
Implementing Rules and Regulations
- DOST and IPO to formulate IRR within 120 days of effectivity of Act.
- IRR to ensure consistency with IP Code, including copyright provisions.
- IPO to issue rules on disclosure requirements.
Applicability, Repealing, Separability, and Effectivity
- Act applies to IP created under existing laws, including plant variety protection.
- Conflicting laws and regulations repealed or modified accordingly.
- Invalidity of any provision does not affect others.
- Effectivity 15 days after complete publication in newspapers of general circulation.