FOURTEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES)
Thkd Regular Session
)
9
HUG 26 r ,j.: 0
SENATE
COMMITTEE REPORT NO. 565
Submitted by the Committee on Trade and Commerce joint with the Committees
on Science and Technology; andFinance on
AUG Z 6 2009
.
Re: Senate Bill No.
:341S ,prepared by the Committees
Recommending its approval in substitution. of Senate Bill Nos. 1721 and 2595,
taking into consideration H.B. No. 5208
Sponsors: Senators Roxas and Al~gara
Mr. President:
The joint Committees on Trade and Commerce; Science and Technology and
on Finance to which were referred Senate Bill No. 1721, introduced by Senator
Angara, entitled:
"AN ACT
PROVIDING THE FRAMEWORK AND SUPPORT SYSTEM FOR THE
OWNERSHIP, MANAGEMENT, USE, AND COMMERCIALIZATION OF
INTELLECTUAL
PROPERTY
GENERATED
FROM
RESEARCH
AND
DEVELOPMENT FUNDEb BY GOVERNMENT",
Senate Bill No. 2595, introduced by'Senator Legarda, entitled:
"AN ACT
PROVIDING THE FRAMEWORK AND SUPPORT SYSTEM FOR THE
OWNERSHIP, MANAGEMENT, USE, AND COMMERCIALIZATION OF
INTELLECTUAL PROPERTY GENERATED FROM R&D FUNDED BY
GOVERNMENT",
taking into consideration House Bill No. 5208, introduced by Representatives Abaya,
Piarnonte, Castelo-Daza, Chavez, et.al., entitled:
"AN ACT
PROMOTING THE TRANSFER OF TECHNOLOGIES AND KNOWLEDGE
FROM
RESEARCH
AND
DEVELOPMENT
(R&D)
FUNDED
BY
GOVERNMENT"
have considered the same and have the honor to report t~~ laSk to the Senate with
the recommendation that the attached bill, S.B. No.
, prepared by the
Committees, entitled:


"AN ACT
PROVIDING THE FRAMEWORK AND SUPPORT SYSTEM FOR THE
OWNERSHIP, MANAGEMENT, USE, AND COMMERCIALIZATION OF
INTELLECTUAL
PROPERTY
GENERATED
FROM
RESEARCH
AND
DEVELOPMENT
FUNDED
BY
GOVERNMENT
AND
FOR
OTHER
PURPOSES"
be approved in substitution of S. B. Nos. 1721 and 2595, taking into consideration
I-louse Bill No. 5208 with Senators Angara, Legarda and Roxas as authors thereof.
Respectfully submitted:
Lv
//~
EDGARDO J. ANGARA
Chairman
Committee on Science and Technology
Committee on Finance
Chairman
Committee on Trade & Commerce
Member, Committee on Finance
lIiee-Chairpersons:
LOREN B. LEGARDA
Committee on Science and Technology
Membez; Committee on Finance
/~
JOKER P. ARROYO
Committee on Finance
lL9lMI.- ~ ~;,
MIRIAM DEJt:¥NSdR-S~IAGO
Committee on Finance
Member, Committee on Science
and
enology
BENIGNO 'NOYNOY" AQUINO III
Committee on Finance
Member, Committee on Trade and Commerce


=~
FRANCIS "CHIZ" G. ESCUDERO
Committee on Trade and Commerce
Members:
RODOLFO G.
ZON
Committee on Trade & Commerce
Committee on Finance
I~
. GORDON
Com
'ttee on Trade and Commerce
ommittee on Science and Technology
Committee on Finance
AlAN PETER "Compafiero"S. CAYETANO
Committee on Trade and Commerce
Committee on Finance
M.p.~mu
Committee on Finance
ANTONIO "Sonny" F. TRILlANES IV
Committee on Finance
C'~,:o
C7
MANUEL "Lito" M. LAPI~
Committee on Finance r
FRANCIS N. PANGILINAN
Committee on Trade and Commerce
Committee on Science and Technology
Committee on Finance
MANNY VILLAR
Committee on Finance
PIA S. CAYETANO
Committee on Science and
Technology
Member, Committee on Finance


Ex-Officio Members:
JING
Y EJERCITO ESTRA
.
-
MIGlm~ F. ZUBIRI
Preside] t Pro-Tempore
MajorityFloor Leader
AQUI INO Q PIMENTEL, JR.
Minority Floor Leader
HON. JUAN PONCE ENRILE
Senate President
Senate of the Philippines
Pasay City


FOURTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
9
[lUG 26
I' 6 :,;0
. SENATE
S.B.NO.
34116
(In substitution of Senate Bill Nos. 1721 and 2595, taking into consideration
House Bill No. 5208)
Prepared by the Joint Committees on Trade and Commerce, Science and
Technology and Finance with Senators Angara, Legarda and Roxas
as authors thereof.
AN ACT
PROVIDING
THE
FRAMEWORK
AND
SUPPORT
SYSTEM
FOR
THE
OWNERSHIP,
MANAGEMENT,
USE,
AND
COMMERCIALIZATION
OF
INTELLECTUAL
PROPERTY
GENERATED
FROM
RESEARCH
AND
DEVELOPMENT FUNDED BY GOVERNMENT AND FOR OTHER PURPOSES.
Be it enacted by the Senate and'House of Representatives of the Philippines in
Congress assembled:
I
ARTICLE I
2
TITLE, DECLARATION OF POLICY AND OBJECTIVE, SCOPE
3
AND OTHER GENERAL PROVISIONS
4
SECTION 1. Short Title. -
This Act shall be known as the "Philippine
5
Technology Transfer Act of2009,'~
6
SEC. 2. Declaration ofPolicies and Principles.
The State fully recognizes
7
that science, technology and innovation are essential for national development
8
and progress. It shall, therefore, give priority to research and development,
9
invention, innovation and their utilization. It shall also encourage the widest and
10
most systematic participation of all stakeholders in policy-making related to
11
science and technology, and in the generation, transfer and utilization of
12
intellectual property, especially for the benefit of the general public.


The State shall facilitate the transfer and promote the utilization of
2
intellectual property for the national benefit and shall call upon all research and
3
development institutes and/or institutions (RDls) that perform government-
4
funded research and development (R&D) to take on technology transfer as their
5
strategic mission and to effectively translate results of government-funded R&D
6
into useful products and services that will redound to the benefit of Filipinos,
7
nOlwithstanding the income generated from intellectual property rights (IPRs)
8
and technology transfer activities.
9
The State acknowledges that the successful transfer of government-funded
10
R&D
results
depend on the proper management of intellectual property,
11
development of capacity by RDIs to become self-sustaining and competitive, and
12
on enhancing interaction and cooperation with the private sector, particularly
13
small and medium enterprises through collaborative and contract research based
14
on equitable, fair access, and mutual benefit for all involved partners.
15
The State shall establish the means to ensure greater public access to
16
technologies and knowledge generated from government-funded R&D while
17
enabling,
where
appropriate,
the
management
and
protection
of related
18
intellectual property.
19
SEC. 3. Objective.
This Act aims to promote and facilitate the transfer,
20
dissemination,
and
effective
use,
management,
and
commercialization
of
21
intellectual property, technology and knowledge resulting from research and
,
22
development funded by the government for the benefit of national economy and
23
taxpayers.
24
SEC. 4. Definition ofTerms.
For purposes of this Act,
2


a.
'7ntellectual Property (IP)" is the term used to describe intangible assets
2
resulting from the creative work of an individual or organization. IP also
3
refers to creations of the mind, such as inventions, literary and artistic
4
works, and symbols, nam~s, images, and designs used in commerce;
5
b.
"Intellectual Property Rights (IPRs)" refer to those rights recognized and
6
protected in Republic Act No. 8293, otherwise known as the 'Intellectual
7
Property Code ofthe Philippines;'
8
c.
'Potential IPRs" refer to intellectual property, or the products of creation
9
and research that form the subject matter of IPRs, but which are not yet
10
protected by the statutory'grant of IP rights;
11
d.
"Protection ofIPs" refers to the statutory grant of rights upon which the
12
basis of enforcing the right rests, such as issuance of patents; registration of
13
utility
models,
industrial
designs,
and
trademarks
or
availment
of
14
protection of undisclosed information and other rights as may be provided
15
by law. "Protected IPs", therefore may refer to issued or pending patents;
16
registered utility models, industrial designs, and trademarks;
17
e.
'7P Code" refers to RepUblic Act No. 8293, otherwise known 'as the
18
'Intellectual Property Code ofthe Philippines;'
19
f.
'Tntellectual Property Rights Management" refers to the principles,
20
21
mechanisms and processes involved in the identification, assessment,
protection, utilization anq enjoyment of intellectual property rights;
22
g.
"Government FundingAgency (GFA)"refers to any government agency or
23
24
instmmentality, or government owned and/or controlled corporation that
provides research grants and other technical and material support, from
3


1
government
appropriations
and
resources
and
those
sourced
from
2
government-managed Official Development Assistance (ODA) funds;
,
3
h.
"Parent Agency" refers to the Department or agency, which exercises the
4
power of control or supervision over the GFAs, RDIs or RDI acting as the
5
GFA itself. In general, where multiple GFAs are involved, the department
6
or agency, which has the .largest financial contribution, shall be deemed as
7
the parent agency, except as may otherwise be specifically provided by this
8
Act;
9
1.
"Research and Development Institute or Institution
(RDI)" refers to a
10
11
12
13
14
15
16
17
public or private organization, association, partnership, joint venture,
higher education institution or corporation that performs R&D activities
and is duly registered and/or licensed to do business in the Philippines, or
otherwise with legal personality in the Philippines. In the case of private
RDIs, they shall be owned solely by the citizens of the Philippines or
corporations or associations ar least sixty per centum of the capital ofwhich
is owned by such citizens. This does not include RDls covered by
international bilateral or IT).ultilateral agreements;
18
J.
"Research Funding Agreement" refers to a contract entered into by and
19
20
21
22
23
among the GFA and other funding agencies and the RDI. It governs
,
ownership of IP, duties and responsibilities of GFAs and RDIs, technology
disclosure,
exclusivity
of
the
license,
use
for
commercialization,
establishment of spin-off firms, technologies for research use, and sharing
of income and benefits from technology commercialization;
4


k.
''Research Agreement" refers to a contract entered into by RDls and
2
researchers, including the agreements between the RDI and collaborating
3
RDIs;
4
.
1.
"Researcher" refers to a natural person who is engaged by the RDI by
5
employment or other contract, to conduct research with or for the RDI;
6
m. "Spin-off firm
or company" refers to a juridical entity that is an
7
independent business technology taker with a separate legal personality
8
from the GFA, RDI and researcher created through the initiative of the
9
researcher-employee whogenerated the technology;
10
n.
"Technology" refers to
knowledge
and know-how,
skills,
products,
11
processes, and/or practices;
12
o.
"Technology transfer" refers
to
the
process
by which
one
party
13
14
15
systematically
transfers
to
another
party
the
knowledge
for
the
manufacture of a product, the application of a process, or rendering of a
service, which may involve the transfer, assignment or licensing of IPRs;
16
p.
"CommerciaJization"refers to the process of deriving income or profit from
17
18
a technology, such as the creation of a spin-off company, or through
licensing, or the sale of the technology and/or IPRs;
19
q.
''Revenue'' refers to all monetary and non-monetary benefits derived as a
20
21
22
result
of
the
development,
production,
transfer,
use
and/or
commercialization of IP.Rs, including income from assignments, and
royalties from licenses;
23
r.
"Researcll and Developm,ent (R&D)"refers to creative work undertaken on
24
a systematic basis in order to increase the stock of knowledge, including
5


knowledge of man, culture and society, and to use this stock of knowledge
2
to devise new applications.
3
SEC. 5. Coverage.
4
a.
All R&D activities carried out on behalf and for the interest of the
5
Philippine Government by RDIs receiving grants directly from GFAs;
6
b.
All intellectual property "rights derived from R&D activities funded by
7
government;
8
c.
All government agencIes that fund R&D activities as well as provide
9
financial, technical or material support to such R&D activities; and
10
d. All institutions that implement government funded R&D.
11
ARTICLE II
12
INTELLECTUAL PROPERTY OWNERSHIP
13
SEC.
6.
Ownership of Intellectual Property and Intellectual Property
14
Rights. The ownership of IPs and IPRs shall be governed by the following:
15
a.
In recognition of the fact that RDIs are in a better position to identify the
16
potential for economic utilization of IPs and IPRs subject to their
17
possession of the right skills and management capability, the ownership of
18
IP and IPRs derived and generated from research funded by GFA, whether
19
such funding is in whole or in part, shall, in general, be vested in the RDI
20
that actually performed the research, except in any of the following
21
circumstances:
22
1. When the RDI has entered into a public, written agreement snaring,
23
limiting, waiving or assigning its ownership of the IPs or IPRs
24
generated from its research in favor of the GFA; Provided, the same
25
may only be vohintaly executed by the RDI to protect public
6


interest, and in particular involves national security, nutrition,
2
health, or the development of other vital sectors;
3
2.
In case of failure of the RDI to disclose potential IPRs to the GFA,
4
whereupon the GFA shall assume the rights to the potential IPR;
5
3.
In case of failure of the RDI to initiate the protection of potential
6
IPRs within a reasonable time from confidential disclosure to the
7
GFA, which shall ,in no case exceed three (3) months from public
8
disclosure, whereupon the GFA shall assume the rights to the
9
potential IPR; and
10
4.
In case the RDI ceases to become a Filipino corporation as defined
11
in Article I, Section 4 (i) of this Act.
12
b.
In case of collaborative research where two or more RDIs conduct&ed the
13
research funded by the GFA, the RDIs shall own the IPRs jointly or as
14
otherwise stipulated in thlO research agreement between them; Provided,
15
That any research agreeme!lt between RDIs and other funding entities shall
16
be made with the full knowledge of the GFA; Provided, fUrther, That the
17
agreement shall strictly be in accordance with the provisions of this Act.
18
c.
Nothing in this Article shall modify, amend, derogate or prejudice IPs that
19
will be owned by employees of the RDIs under the IP Code and other
20
existing laws.
21
. ARTICLE III
22
RIGHTS AND RESPONSIBILITIES OF THE
23
GOVERNMENT FUNDING AGENCIES AND
24
RESEARCH AND DEVELOPMENT INSTITUTES OR INSTITUTIONS
7


SEC. 7.
Rights and Responsibilities of a Government Funding Agency.
2
Under this Act the GFA shall:
3
a.
Protect government interest in the IP and IPRs generated from the R&D
4
that it funded
through suitable provisions in the research funding
5
agreement. The GFA is authorized to withhold from public disclosure, for a
6
reasonable time, any information relating to potential IPR of the RDI, to
7
allow the RDI to pursue full protection of such IPR;
8
b.
Monitor efforts and effectiveness of the RDI in securing IP protection and
9
pursuing IP commercialization, as well as provide alternative solutions and
10
assistance in case of shortfall in RDI's performance in protecting, utilizing
11
and commercializing the IP;
12
c.
Ensure adequate freedom t? use the IP for further research to expand the
13
knowledge frontier and requirements for publication of information as
14
appropriate in accordance with government policy or academic policy, or
IS
institutional mandate of the RDI; and
16
d.
Allow sharing of revenues from IP commercialization in a way that is not
17
onerous to commercialization; Provided, That when the GFA assumes
18
commercialization of the IPs, it shall, subject to existing laws requiring
19
transparency and accountability, the Commission on Audit (COA) Rules
20
and Regulations and as required under Article IX, Section 20, be allowed to
21
directly negotiate agreements for the commercialization of IPs; Provided,
22
further, That it shall obtain a written recommendation from the Secretary
23
of the Department of Science and Technology (DOST) and secure a fairness
24
opinion report from an independent third party body composed of experts
25
from the public and private sectors as may be determined by the DOST.
8


The fairness opinion report shall contain a statement expressing the
2
opinion of the body as to the fairness to the GFA of the proposed
3
transaction, particularly its financial terms. The report shall include, but
4
not be limited to, a review and analysis of the proposed transaction,
5
financial
statements,
industry information,
economic
conditions and
6
assumptions used therein and a comparison of similar transactions;
7
Provided, however, That it shall not be precluded from resorting to other
8
modes of commercialization as allowed by all applicable laws.
9
SEC. 8. Rights and Responsibilities ofthe RDls. The following are the rights
10
and responsibilities of the RDls that availed of research funds from GFAs:
11
a.
Identify, protect, and manage the IPs generated from R&D funded by GFA
12
13
14
15
16
17
18
19
20
21
22
23
24
25
and pursue commercial exploitation diligently as a required performance
stipulated in the research funding agreement and as allowed by this Act
and other applicable laws'.
In case of commercialization by public RDIs, it shall, subject to
existing laws requiring
tr~nsparency and accountability, the Commission
on Audit (COA) Rules and Regulations and as required under Article IX,
Section 20 of this Act, be allowed to directly negotiate agreements for the
commercialization of IPs;
Provided, That it shall obtain
a written
recommendation from the
Secretary of Department of Science and
Technology (DOST)
and secure a fairness
opinion
report from
an
independent third party body composed of experts from the public and
private sectors as may be determined by the DOST.
The fairness opinion report shall contain a statement expressing the
opinion of the body as to the fairness to the RDI of the proposed
9


transaction, particularly its financial terms. The report shall include, but
2
must not be limited to, ,the provisions in Section 7(e), Paragraph 2;
3
Provided, however, That it shall not be precluded from resorting to other
4
modes of commercializati?n as allowed by all applicable laws.
5
The responsibility of the RDI to protect any potential IPRs shall also
6
apply in the event that the RDI elects to recover ownership of the potential
7
IPRs that have been vested in the GFA under Section 7 of this Act;
8
b,
Provide a means for addressing any shortfall of its performance in utilizing
9
and commercializing the IP;
10
c,
Notify the GFA within a reasonable time of all IPR applications, licenses
11
and assignments made, All applications for IP protection shall disclose any
12
biodiversity and genetic resource, traditional knowledge, and indigenous
13
knowledge, systems and practices as these terms are defined in Republic
14
Act No. 8371 or Indigenous Peoples Rights Act and Republic Act No. 9147
15
or The Wildlife Act,
16
d,
Report
annually
to
the
GFA
on
the
progress
of IP
and/or IPR
17
commercialization efforts and of all agreements entered and licenses
18
granted;
19
e.
Keep account of revenues 'and payments to the GFA if required in the
20
research funding agreement;
21
f.
Ensure that they have aC,cess to the skills and management capability to
22
effectively
perform
their
responsibilities
of owning,
managing,
and
23
exploiting the IP or IPRs. Smaller RDIs that may need external advice are
24
encouraged to pool and share resources;
10


g,
Accord their staff with incentives consistent with existing laws to sustain
2
efforts in identifying valu~ble IP and in pursuing IP commercialization;
3
h.
Be authorized, within a reasonable time, to keep confidential from the
4
public any document or information relating to potential IPRs that are not
5
yet fully protected by law;
6
i.
Make a confidential disclosure to the GFA, within a reasonable time, of any
7
potential IPRs with possibilities for commercialization and/or technology
8
transfer. In case of failure to disclose any such potential IPRs, Section 6 of
9
this Act shall apply;
10
j.
Inform the GFA of any agreement pertaining to the research funded by the
11
GFA and entered into by the RDI with any other entity or person. Failure
12
to comply with the duty to inform shall render the agreement invalid as
13
against the GFA, but in no case shall it prejudice any right of the GFA as
14
provided in this Act; and .
15
k. When necessaTy,
create and establish spin-off companies to pursue
16
commercialization subject 'to their respective mandates as allowed by law.
17
,ARTICLE IV
18
MANAGEMENT OF IPs FROM R&D PERFORMED BY
19
GOVERNMENT Rl?Is THROUGH THEIR OWN BUDGET
20
SEC. 9. Responsibilities ofRDIs Performing R&D with their Own Budget.
21
All government RDIs performing R&D through an annual budget provided by the
22
government shall submit intellectual propeTty management reports annually to
23
the national goveTnment agencies where they are attached. The repOTt shall
24
contain plans for securing protection on IPs with commercial promis\"
the
25
technology transfer approaches. to be pursued, and the progress of ongoing
11


commercialization of technologies derived from R&D funded from their own
2
budget.
3
SEC.
10.
Responsibilities of the Concerned National Government
4
Agencies. Concerned Governmen,t and/or Parent Agencies shall monitor efforts
5
and effectiveness of their RDIs in securing IP protection and pursuing IP
6
commercialization, based on the annual IP management reports submitted by the
7
RDIs.
8
ARTICLE V
9
REVENUE SHARING
10
SEC. 11. Revenue Sharing. All revenues from the commercialization onps
11
and IPRs from R&D funded by GFA(s) shall accrue to the RDI, unless there is a
12
revenue sharing provision in the research funding agreement; Provided, That in
13
no case will the total share of the GFA(s) be greater than the share of the RDI;
14
Provided, rurther, That in case of joint funding, where research is funded by a
15
GFA in part, and by other entity or entities in part, the RDI may enter into
16
contractual agreements with the other entity or entities providing funding.
17
Sharing of revenues betw~en RDI and researcher shall be governed by an
18
employer-employee contract or other related agreements, without prejudice to the
19
rights of researchers granted under Republic Act No. 8439 or the "Magna Carta for
20
Scientists, Engineers, Researchers, and other S&TPersonnelin Government".
21
ARTICLE VI
22
COMMERCIALIZATION BY THE RESEARCHER AND
23
ESTABLISHMENT OF SPIN-OFF FIRMS
24
SEC. 12. Commercialization by Researchers. In meritorious cases and to
25
help ensure successful commercialization, an RDI shall allow its researcher-
12


employee to commercialize or pursue commercialization of the IP and/or IPRs
2
generated from R&D funded by GFA by creating, owning, controlling, or
3
managing a company or spin-offfirm undertaking commercialization, or accepting
4
employment as an officer, employee, or consultant in a spin-off firm undertaking
5
such commercialization; Provided, That the concerned researcher- employee takes
6
a leave of absence, whenever applicable, for a period of one year and renewable
7
for another year, for a total period not exceeding two years, from the time the
8
researcher signifies in writing that he/she-desires to create or participate in a spin-
9
off company; Provided, however, That the researcher-employee may still be
10
allowed access to the RDIs' laboratory facilities, subject to reasonable fees and
11
reghlations which the RDIs may impose_
12
The leave of absence shall be included in computing the length of service
13
for retirement but not for the commutation of leave credits earned in the public
14
RDI. The researcher shall not earn leave credits in the public RDI during such
15
period of leave of absence. Such leave of absence shall not likewise affect the
16
researcher-employee's security of tenure or result in the loss of one's seniority
17
rights.
18
Sec. 13. Detail or Secondment to the Private Sector. In case where the
19
researcher of a public RDI would be employed by an existing company, which will
20
pursue the commercialization, the applicable provisions of Republic Act No. 8439
21
or the "Magna Carta for Scientists, Engineers, Researchers and other Science and
22
Technology Personnelin Government"shall prevail.
23
Sec. 14. ild"anagemen't of Conflict of Interest. The RDIs shall properly
24
manage any possible conflict of interest by adopting appropriate guidelines for its
13


researcher-employee. The guidelines for handling of such conflicts shall include,
2
but are not limited, to the following:
3
a.
RDls shall ensure that its researchers are made fully accountable for their
4
research and that commercial objectives do not divert them from carrying
5
out the RDI's core research program;
6
b.
Heads of RDI should ensure that where researchers have any direct or
7
indirect financial interest in a spin-off company; they shall not act on
8
behalf of the RDI in transactions with that company;
9
c.
Where researchers of RDI 'are nominated as non-executive directors to the
10
Board of a spin-off company or existing company in which the same RDI
11
holds an equity stake, they should have a clear duty to ensure that the
12
RDI's interests are not compromised by their role; and
13
d.
RDIs should take steps to ensure that collaborative undertaking with a
14
spin-off or existing company is governed by a formal written public
15
agreement.
16
ARTICLE VII
17
USE BY GOVERNMENT, COMPULSORY LICENSING
18
AND ASSUMPTION OF POTENTIAL IPRs
19
SEC. 15. Use by Government or third person authorized by government
20
and/or Compulsory Licensing. This Act shall adopt the grounds, terms and
21
conditions for the use by goveniment or third person authorized by government,
22
and/or compulsory licensing as stated in the IP Code of all IPRs generated under
23
this Act.
24
SEC. 16. Assumption ofGwnership ofPotential IPRs. The GFA and/or the
25
Parent Agency may assume ownership of any potential IPRs in cases of national
14


emergency or other circumstances of extreme urgency, or where the public
2
interest requires, and in particular concerns for national security, nutrition,
3
health, or the development of other vital sectors of the national economy, as
4
determined by the head of the Parent Agency. Such determination shall be made
5
within thirty (30) days after the receipt of the recommendation of the head of the
6
GFA. Such recommendation shall be made within thirty (30) days upon the
7
discovery of the potential IPR by the GFA or the disclosure of the same by the
8
RDI pursuant to Section 8 (c) of this Act, or upon written notice or petition by
9
other government agencies, or other interested persons. In cases where the Parent
10
Agency itself is acting as the GFA, the head of the Parent Agency may make such
11
determination motu proprio, pr upon written notice or petition by other
12
government agencies or other int~rested parties. The right to the potential IPR
13
shall be assumed by the GFA upon written order, declaration or determination by
14
the Department SecretalY or Head of the Parent Agency. The department or the
IS
agency that has functional jurisdiction over the technology or IPRs shall be
16
deemed as the Parent Agency.
17
The determination by the Secretary or the head of the Parent Agency of cases
18
falling under the first paragraph .of the right to the potential IPR to be vested to
19
the GFA and/or Parent Agency shall be subject to the following conditions:
20
1.
The determination must be accompanied by an analysis and justification of
21
such reason(s);
22
ii.
The RDI may file with the Secretary or Head of the Parent Agency an
23
24
opposition to such determination within fifteen (15) calendar days from
notice or publication of the written determination;
15


Ill.
The assumption of the rights to the potential IPR by the GFA shaIl carry
2
with it the obligation to equitably share with the RDI or other funding
3
agencies any profits generated from the IPR; and
4
IV.
The rights to the potentialIPR shaIl revert to the RDI upon the cessation of
5
the existence ofthe cases under this Section as determined by the Secretary
6
or Head of the Parent Agency motuproprio or by petition of the RDI.
7
SEC. 17. Except where otherwise provided by the IP Code, in all cases arising
8
from the implementation of this Article, no court, except the Supreme Court of
9
the Philippines, shall issue any temporary restraining order or preliminary
10
injunction or such other provision,al remedies that will prevent its immediate
11
execution.
12
ARTICLE VIII
13
USE OF INCOME AND ESTABLISHMENT AND MAINTENANCE OF
]4
REVOLVING FUND FOR R&D AND TECHNOLOGY TRANSFER
15
SEC. 18. Use of Income 'and Revolving Fund.
Public RDIs undertaking
16
technology transfer shall be
vest~d with the authority to use its share of the
17
revenues derived from commercialization of IP generated from R&D funded by
18
GFAs. AIl income generated from commercialization ofIPs and/or IPRs from R&D
19
funded by public funds shaIl be constituted as a revolving fund for use of the RDI
20
undertaking
technology
transfer,
deposited
in
an
authorized
government
21
depository bank subject to accounting and auditing rules and regulations;
22
Provided,
That said income shall be used to
defray intellectual property
23
management costs and expenses and to fund research and development, science
24
and technology capability building, and technology transfer activities, including
.
16


operation of technology licensing offices; Provided, mrther, That no amount of
2
said income shall be used for payment of salaries and other allowances.
3
In case the income after. payment of all costs and expenses for IPR
4
management, including the paYI1).ent of royalties to other parties, shall exceed ten
5
percent 10% of the annual budget of the RDI, a minimum of seventy percent
6
(70%) of the excess income shall be remitted to the Bureau of Treasury; Provided,
7
That this shall apply only if the GFA has solely funded the research; Provided,
8
finaJly, That this paragraph shall not apply to State Universities and Colleges and
9
Government Owned and Controlled Corporations, which enjoy fiscal autonomy
10
under their respective charters or other applicable laws.
11
ARTICLE IX
12
INSTITUTIONAL MECHANISM
13
SEC. 19. Establishment of Technology Information Access Facility and
14
Public Access Policy. The Department of Science and Technology (DOST) shall
15
establish a system for the cost-effective sharing of and access to technologies and
16
knowledge generated from government-funded R&D by developing appropriate
17
policies and procedures on public access which shall be made known to the public.
18
These policies and procedures shall be aimed at promoting the advancement of
19
R&D, boosting its quality and. enabling cross-disciplinary collaboration, and
20
thereby, increasing the returns from public investment in R&D and contribute to
21
the betterment of society. The DOST shall call for a regular national conference of
22
all GFAs and RDIs in order to:. (a) promote multi-disciplinary, joint, and cross
23
collaboration in research and development; (b) coordinate and rationalize the
24
research
and
development
agenda;
and
(c)
harmonize
all
research
and
25
development agenda and priorities.
17


2
3
4
5
6
7
8
9
10
II
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SEC. 20. Development of Internal IP Policies and Establishment of
Technology Licensing Offices (!LOs) and/or Technology Business Development
Offices. - All RDIs are encouraged to establish their own TLOs in whatever form
and to adopt their own policies on IPR management and technology transfer, in
accordance with this Act and other existing laws and in support of the policies of
the Intellectual Property Office. Philippines and the national policy and the
mandate of their Parent Agency.
SEC. 21. Capacity-Building and Guidelines on IP Commercialization. The
Department of Science and Technology (DOST), Department of Trade and
Industry (DTI) and Intellectual Property Office (IPO), in consultation with GFAs
such as Commission on Higher Education (CHED), Department of Agriculture
(DA), Department of Health (DOH), Department of Energy (DOE), Department of
Environment and Natural Resources (DENR), and Department ofNational Defense
(DND), shall undertake activities geared towards building the capacity of GFAs
and RDIs in commercializing IPs. The DOST as chair and convenor, together with
DTI and IPO shall jointly issue the necessary guidelines on IP valuation,
commercialization, and information sharing, which may include, but not be
limited lo, the following considerations: public benefit and national interest,
market size, cost and income. Tb,ese guidelines shall be issued within one hundred
twenty (120) days from the date of effectivity of this Act.
ARTICLE X
DISPUTE RESOLUTION
SEC. 22. The administrative procedure for resolving any disputes on the
determination for government ownership shall be provided by the Implem~nting
Rules and Regulations of this Act
18


ARTICLE XI
2
MISCELLANEOUS, TRANSITORY, AND FINAL PROVISIONS
3
SEC. 23.
Administrative, Criminal or Civil Liability. The failure of the
4
GFA or RDI to fulfill its responsibilities under this Act, or the violation of any
5
provision by any person, natural or juridical, shall subject the person involved to
6
appropriate administrative, crimi.nal, or civil liability, under applicable laws.
7
SEC.
24.
Congressional
Oversight
Committee.
For
the
effective
8
implementation of this Act, there shall be a Congressional Oversight Committee,
9
herein after referred to as the Technology Transfer Oversight Committee, to be
10
composed of five
(5)
members from the Senate, which shall include the
II
Chairpersons of the Senate Committees on Science and Technology, and Trade and
12
Commerce, and five (5) members from the House of Representatives, which shall
13
include the Chairpersons of the House Committees on Science and Technology
14
and Trade and Commerce. The Technology Transfer Oversight Committee shall be
15
jointly chaired by the chairpersons of the Senate and House of Representatives
16
Committees on Science and Technology. The Vice-Chair of the Oversight
17
Committee shall be jointly held by the Chairpersons of the Senate Committee on
18
Trade and Commerce and the House of Representatives Committee on Trade and
19
Industry.
20
SEC. 25. Funding. The activities and operational expenses related to the
21
implementation of this Act shall ,be funded from the budget appropriations and
22
other incomes of GFAs and public RDIs. The Heads of the GFAs and public RDIs
23
shall include in the agency's program the implementation of this Act.
24
The COA shall exercise its, auditing authority over the funds of the GFAs
25
and public RDIs in order to ensure transparency and accountability.
19


SEC. 26. Implementing Rules and Regulations.
Except where otherwise
2
indicated, the DOST and the IPO, with the participation of GFAs, RDIs, and other
3
stakeholders, shall formulate the Implementing Rules and Regulations for the
4
effective implementation of this Act. The DOST Secretary shall chair the drafting
5
committee. The Implementing Rules and Regulations shall be issued within one
6
hundred twenty (120) days after the effectivity of this Act. Copies of the IRR shall
7
be submitted to the Committees· bn Science and Technology of both Houses of
8
Congress within thirty (30) days after its promulgation, as well as to other
9
appropriate agencies as may be required by law.
10
Nothing in the Implementing Rules and Regulations shall derogate
11
ownership of any copyright as conferred by the IP Code or other applicable laws.
12
The IPO shall issue the necessary rules and regulations governing the ownership
13
of copyrights as conferred by the IP Code or other applicable laws; Provided, That
14
such Implementing Rules and Regulations are consistent with the objectives of
IS
this Act. The IPO shall also issue the Implementing Rules and Regulations to
16
implement the disclosure requirements stated in Section 8.
17
SEC. 27. Applicability to Intellectual Property Created Under Existing
18
Laws. The provisions of this Act shall likewise apply to intellectual property
19
created under existing laws, including, among others, Republic Act No. 9168 or
20
the 'Philippine Plant Variety Protection Act of2002.'
21
SEC. 28. Repealing Clause. All laws, presidential decrees, executive orders,
22
presidential proclamations, rules and regulations, or part thereof which may be
23
contrary to or inconsistent with this Act are hereby repealed or modified
24
accordingly.
20


SEC. 29. Separability Clause.
If any provision of this Act is declared
2
unconstitutional, the same shall not affect the validity and effectivity of the other
3
provisions hereof.
4
SEC. 30. Effectivity.
This Act shall take effect fifteen (15) days after its
5
complete publication in two (2) newspapers of general circulation.
Approved,
21