Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1211

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO ESTABLISH A PROGRAM TO AWARD INNOVATION PRIZES TO
INDIVIDUALS AND ENTITIES FOR RESEARCHING AND DEVELOPING
INNOVATIVE TECHNOLOGIES, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The Constitution, Article 2, Section 20 provides that:

SEC. 20. The State recognizes the indispensable role of the private
sector, encourages private enterprise, and provides incentives to
needed investments.

Aside from being a country rich in cultural heritage and abundant natural
resources, the Philippines has also been blessed with innovative human
resources. All over the world, countless Filipinos have won and have continually
been recognized for their ingenuity. But sad to say, we are not giving due
Tecognition to our country’s bright minds due to lack of a solid program to
recognize their achievements in the field of research and development here in
our country. This has forced our inventors and innovators to look elsewhere to
gain recognition resulting in our inventions being claimed by the foreign countries
which recognized them.

There is an urgent need, therefore, to establish a sustainable recognition
program that will encourage our inventors and innovators to develop new
products and technologies that can be produced and exported all over the world.


This not only translates in helping our ailing economy, but would once again give
our local minds their due for their countless achievements in the field of research
and development.

This proposed measure seeks to mandate the Department of Trade and
Industry to establish a National Innovation Prizes Board which shall spearhead a
program to solicit participation from various sectors of our country, encourage a
competitive research and development drive and recognize and reward the best
new inventions and innovations which we can truly call authentic Filipino.

Due to the foregoing reasons, the immediate passage into law of this
measure is earnestly requested

DIOSDADO aul AL ARROYO GLO wh kee ‘ARROYO
Second District, Camarines Sur nd District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS,
First Regular Session

on 1211

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO ESTABLISH A PROGRAM TO AWARD INNOVATION PRIZES TO
INDIVIDUALS AND ENTITIES FOR RESEARCHING AND DEVELOPING
INNOVATIVE TECHNOLOGIES, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Pinoy
Innoventor Act of 2010."
SECTION 2. Definitions. The purposes of this Act the term:

A, ADMINISTERING ENTITY — means an entity with which the Secretary
enters into an agreement under Section 11

B. COMPETITION — means a competition for an innovation prize under
the program described in Section 5.

C. INNOVATION PRIZE — means a prize awarded to a participant who
wins a competition.

D. PARTICIPANT — means an individual or entity that participates in a
competition.

E. SECRETARY — means the Secretary of Trade and Industry.


SECTION 3. National Innovation Prizes Board. — The Secretary shall
establish in the Department of Trade and Industry a National Innovation Prizes
Board (referred to in this Act as the “Board"). The Board shall be composed of
noted individuals, appointed by the Secretary, from both public and private sector
whose qualification shall be determined by the Secretary to carry out the
purposes of this Act. The term of each member shall be no more than three
years.

SECTION 4. Purposes. — The purposes of the Board are as follows:
A. To develop and administer the program described in Section 5.
B. To select the research topics for competitions.

C. To establish the rules of the competitions and the criteria for winning
innovation prizes.

D. To determine the amount of the innovation prize for each competition.

E. To certify the winners of the competitions.

F. To determine the annual funding requirement for each competition.

SECTION 5. Innovation Prizes Program. - The board shall carry out a
program of competitions to award innovation prizes to eligible individuals and

entities to advance the research, development, and commercial application of
innovative technologies.

SECTION 6. Eligible Individuals or Entities. — An “eligible individual or
entity" is an individual, a university, or a small or large business that complies
with the requirements of paragraph (2).

SECTION 7. Minimum Requirements for Eligibility. — An eligible individual
or entity:

A. shall have complied with such eligibility requirements for participation in
a competition as the Board may establish;

B. in the case of a private entity, shall be incorporated in and maintain a
primary place of business in the Philippines;

C. in the case of an individual, whether participating in the program singly
or in a group, shall be a citizen of, 01 an alien lawfully admitted for
permanent residence in, the Philippines; and

D. may not be-


1. a government entity, such as a government funded research and
development center or a government-owned, contractor-operated
laboratory;

2. an entity in which a member of the board has interest in;

3. a relative of the member of the board within fourth degree of
consanguinity;

4. a public official or employee acting within the scope of his office
or employment; or

5. a public official or employee of a national laboratory acting within
the scope of his office or employment.

SECTION 8. Development of the Program. — Not later than 120 days after
the date of the enactment of this Act, the Secretary shall prepare and submit to
the appropriate committees in the Senate and the House of Representatives a
plan for implementing the program described in Section 5 that includes:

A. a description of how the research topics for competitions and the
criteria for awarding the innovation prizes will be determined;

B, the terms and conditions of the competitions;
C. the time frame for the award of innovation prizes; and

D. a description of the plans of the Secretary to partner with nonprofit
organizations or government agencies to sponsor competitions or to
outsource administration of competitions to nonprofit organizations under
Section 11.

SECTION 9. Awards. - The Board shall determine the amount of each
innovation prize for each competition and may elect to award only a first place
prize or to award first, second, and third place prizes.

SECTION 10. Advertising. - The Board shall advertise each competition
widely to encourage broad participation in each competition, including by
individuals, universities, and large and small businesses (including businesses
owned or controlled by socially and economically disadvantaged persons). The
advertisements shall include, among other information, the subject of the
competition, the duration of the competition, the eligibility requirements for
participation in the Competition, the process for participants to register for the
competition, the amount of the innovation prize, and the criteria for awarding the
innovation prize.


SECTION 11. Administering Competitions. — The Board may enter into an
agreement with a private, nonprofit organization to administer competitions. The
duties of the administering entity under the agreement shall include:

A. advertising competitions and the results of competitions;

B. raising funds from private entities and individuals to pay for
administrative costs of competitions and to contribute to cash innovation
prizes;

C. working with the Board to develop the criteria for selecting winners in
competitions, based on goals provided by the Secretary:

D. determining, in consultation with the Board, the appropriate amount of
each innovation prize to be awarded;

E. selecting judges for competitions using criteria developed in
consultation with the Board; and

F. preventing the unauthorized we or disclosure of the intellectual
property, trade secrets, and confidential business information of
participants.

SECTION 12. Funding. — Innovation prizes awarded under the program
described in subsection (a) shall consist of:

A. funds authorized to be appropriated under section 20; and
B. any funds raised by the administering entity under Section 11(B).

C. any other funds which may be accepted by the Secretary from other
government agencies for innovation prizes.

SECTION 13. Funds from Other Entities. - The Board is authorized to
enter into agreements with other entities, including corporations, nonprofit
organizations, and other government agencies, to offer joint innovation prizes if:

A. the joint innovation prize supports the purposes of this Act;

B. the entity offering additional funds agrees to deposit the funds into a
designated escrow account; and

C. the Board retains full authority over the competition and the awarding of
the cash innovation prizes.


SECTION 14. Prohibition on Special Consideration. — The Secretary may
not give any special consideration to any private sector entity or individual in
return for a donation to the administering entity to fund a competition.

SECTION 15. Announcement of Prizes Contingent on Funding. - The
Secretary may not advertise or publish any prize until all the funds necessary to
pay the innovation prize have been appropriated or committed in writing

SECTION 16. Waiver of Liability. The Secretary may require participants
to waive claims against the government and the administering entity (except
claims for willful misconduct) for any injury, death, damage, or loss of property,
revenue, or profits arising from participation in a competition.

The Secretary may not require a participant to waive claims against the
administering entity arising out of the unauthorized use or disclosure by the
administering entity of the intellectual property, trade secrets, or confidential
business information of the participant.

SECTION 17. Insurance. — The Secretary may require liability insurance
or demonstrate financial responsibility, in amounts determined by the Secretary,
for claims by:

A. a third party for death, bodily injury, or property damage or loss
resulting from an activity carried out in connection with participation in a
competition; and

B. the government for damage or loss to government property resulting
from participation in a competition.

SECTION 18. Intellectual Property. — The intellectual property of
participants in the competitions shall be protected. The Board shalll provide for
assistance in securing the intellectual property rights for qualified participants.
The Board shall also provide for a convenient way for participants to ascertain

whether there are any preexisting intellectual property rights that conflict with
theirs.

SECTION 19. Report. — Not later than one year after the date of the
enactment of this Act, and annually thereafter, the Secretary shall submit to the
appropriate committees in the Senate and the House of Representatives a report
describing the activities of the program described in Section 5, including

A. a description of the methods used to select the research topics of
competitions and the amounts of the innovation prizes;


B. a discussion of the features of competitions that contribute to the
success or lack of success of the competitions;

C. the number of participants involved in the competitions;

D. the amount of private funds contributed to the program and the sources
of such funds;

E. the effect of the program on public awareness of innovation; and

F. the effect of the program on the public image of the Department of
Trade and Industry.

SECTION 20. Appropriations. — To carry out the provisions of this Act,
such amount as hereby necessary is hereby authorized to be appropriated from
the National Treasury.

SECTION 21. Separability Clause. — \f any provision or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting.

SECTION 22. Repealing Clause. - Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to or is inconsistent with the provision of this Act is hereby
repealed, modified, or amended accordingly.

SECTION 23. Effectivity Clause. — This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation

Approved,