THIRTEENTH CONGRESS OF THE FS3PUBLIC ) 
) 
6 
AUG 28 ? : I. 
OF THE PHEIPPINES 
Third Regular Session 
1 
SENATE 
S.B.NO. 2449 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The intellectual property generated by Government-funded research 
represents a great opportunity to return social and economic value to taxpayers in 
return for public investment in research. The public interest in research outcomes 
needs to be protected both by the Government and by the beneficiaries of such 
awards, including research bodies that are the grant recipients. The application and 
utilization of the results of research grants cap play a significant role in the 
development of new consumer and industrial products, of new industrial processes, 
and 
the enhancement of the productivity and competitiveness of business 
involved in the production of existing products. 
in 
It is believed that the Government needs to manage its intellectual property 
effectively so that it is best utilized for the benefit of the Government, the taxpayers, 
and the private sector. It is submitted that agency and public authority policies should 
be appropriately formed and upheld in practice to ensure all participants in research 
and in commercialization of research discoveries understand their obligations and 
responsibilities. 
1 
This bill seeks to create an Intellectual Property Asset Management Advisory 
Council to recommend to the President how the Government should treat 
Government-owned intellectual property created under Government contracts, grants, 
and agreements in order to maximize their social and economic value to taxpayers. 


THIRTEENTH CONGRESS OF THE REpuBLrc ) 
OF THE PHILIPPINES 
) 
Third Regular Session 
1 
6 A& 28 
i ’ g i  :* L 
- 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING THE INTELLECTUAL PROPERTY ASSET 
MANAGEMENT COUNCIL 
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 “Intellectual 
Property Asset Management Act of 2006.” 
SECTION 2. Declaration of Policy. - It is the policy of the State to promote 
the general welfare of the people. Pursuant to this policy, the State shall create an 
Intellectual Property Asset Management Advisory Council to recommend to the 
President the manner by which the Government should treat Government-owned 
intellectual property created under Government contracts, grants, and agreements in 
order to maximize their social and economic value to taxpayers. 
SECTION 3. Defjnition of Terms. -As used in this Act, the term: 
(A) “Patentable inventions” means inventions that fall within the scope of 
patentable subject matter under the tntellectual Property Code of the Philippines, but 
are not yet the subject of an issued patent. 
(B) “Patented inventions” means those rights reflected in subsisting patents 
issued by Philippine Government, as well as the governments of those countries who 
are signatories to treaties regarding intellectual property which have ratified by the 
Philippines. 


(C) “Government-owned intellectual property rights” means any and all 
intellectual property that is owned by the government, including all trademarks and 
service marks, collective marks and certification marks, all copyrights, all trade 
secrets, all patentable inventions, and all patented inventions. 
@) “President” means the President of the Republic of the Philippines. 
SECTION 4. The Intellectual Property Asset Management Advisoy Council. 
- There is hereby created the Intellectual Property Asset Management Advisory 
Council to develop recommendations to the President on how the Government should 
treat Government-owned intellectual property created under Government contracts, 
grants, and agreements. 
The Council shall consist of ten (10) members to be appointed as follows: 
(A) One (1) shall be the Secretary of Trade and Industry, who shall also be the 
Chairperson of the Council. 
(B) One (1) shall be the Secretary of Science and Technology. 
(C) One (1) shall be the Chairman of the National Economic Development 
Authority; 
(D) One (2) shall be a representative of State colleges and universities. 
(E) One (2) shall be a representative of private colleges and universities. 
(F) One (3) shall be representative of the private sector. 
The representatives educational and private sector shall be individuals with 
outstanding knowledge and leadership in one of the following fields: high-risk 
venture investments in new scientific or technological businesses or new scientific or 
technological product development; professional and business services with more 
than ten years of experience in the licensing of intellectual property; patent, 
trademark, copyright, and trade secrets law of the Governments; international 
patent law including patent cooperation treaties; or university technology transfer and 
commercialization. 


SECTION 5. Terms of Ofice. - All members of the advisory Council shall 
serve for a term of two (2) years or until such time as the Council has completed its 
recommendations to the President. 
Notwithstanding any inconsistent provision of any general, special or local 
law, ordinance, resolution or charter, no officer, member or employee of the 
Government or of any public corporation shall forfeit his or her office or employment 
by reason of his or her acceptance of appointment as a Member of the Advisory 
Council, nor shall sewice on the Council be deemed incompatible or in conflict with 
such office or employment. 
SECTION 6. Provision for Actual and Necessaiy Expenses. - The members 
of the advisory council shall receive no compensation for their services, but shall be 
reimbursed for the actual and necessary expenses incurred by them in the performance 
of their duties under this Act. 
SECTION 7. Meetings. - The Advisory Council shall meet regularly and at 
least four times per year. Special meetings may be called by the Chairperson of the 
Council and shall be called by him or her at the request of any of its members. 
SECTION 8. Recommendations to and Reports for the President. - The 
advisory council shall submit its recommendations in writing to the President within 
six (6) months after the first meeting of all ten members. The Council’s 
recommendations shall include, but not be limited to, the following: 
(A)Whether all, none, or some of the rights arising out of the creation of 
intellectual property should be dedicated to the public domain. 
@) The manner why which the Gdvemment should maximize the protection 
of intellectual property that it owns. 


(C) The manner by which Government employees and officials should be 
made aware of the obligations, restrictions, requirements, and opportunities regarding 
the protection and management of Government-owned intellectual property. 
(D) The manner by which Government employees and officials should be 
informed on disclosure and whether a uniform system of disclosure should be 
developed and implemented. 
(E) The actions that are being taken by Government agencies, authorities, 
boards, and commissions to manage Government-owned intellectual property. 
(F) The manner by which ownership rights should be determined when 
intellectual property is created by Government employees in the course of their 
Government employment. 
The Council shall also submit reports to the President providing guidance on 
how to: 
(A) Promote the utilization of intellectual property arising from Govemment- 
supported contracts, grants, and agreements. 
(B) Encourage maximum participation of small-business firms in licensing 
Government-owned intellectual property. 
(C) Promote collaboration between commercial concerns and Government 
entities in commercializing Government-owned intellectual property. 
@) Ensure that there are mechanisms in place that allow the Government to 
obtain certain minimal rights in Government-supported intellectual property to meet 
the needs of the Government and protect the public against nonuse or unreasonable 
use of such intellectual property. 
SECTION 9. Separability Clause. - If any provision or part thereof, is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 


SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rnle or regulation contrary 
to, or inconsistent with the provisions of this Act is hereby repealed, modified or 
amended accordingly. 
SECTION 11. Eff.ctctivi@ Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
/rgs