Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

Second Regular Session

House BillNo.__ 5254

Introduced by Hon. Delphine Gan Lee

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 can play a
significant role in the development of new consumer and industrial products, of new
industrial processes, and in the enhancement of the productivity and competitiveness of
business involved in the production of existing products.

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.

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.

GAN LEE
RI Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City
SIXTEENTH CONGRESS

Second Regular Session

House BillNo,__ 9254

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Introduced by Hon, Delphine Gan Lee

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AN ACT
CREATING THE INTELLECTUAL PROPERTY
ASSET MANAGEMENT COUNCIL

Be it enacted by the Senate and 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 2014.”

SECTION 2. Declaration of Policy. ~ \t 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. Definition 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 Intellectual Property Code of the Philippines, but are not yet the

subject of an issued patent.


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(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.

(D) “President” means the President of the Republic of the Philippines.

SECTION 4. The Intellectual Property Asset Management Advisory 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) Two (2) shall be a representative of State colleges and universities.

2) Two (2) shall be a representative of private colleges and universities.

(F) Three (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


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secrets law of the Governments; international patent law including patent cooperation

treaties; or university technology transfer and commercialization.

SECTION 5. Terms of Office. ~ 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 service on the

Council be deemed incompatible or in conflict with such office or employment.

SECTION 6. Provision for Actual and Necessary 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. ~
(A) 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:
(1) Whether all, none, or some of the rights arising out of the creation of

intellectual property should be dedicated to the public domain.


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(2) The manner why which the Government should maximize the protection of

intellectual property that it owns,

(3) 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.

(4) 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.

(5) The actions that are being taken by Government agencies, authorities,
boards, and commissions to manage Government-owned intellectual
property.

(6) The manner by which ownership rights should be determined when
intellectual property is created by Government employees in the course of
their Government employment.

(B) The Council shall also submit reports to the President providing guidance on
how to:

(1) Promote the utilization of intellectual property arising from Government-
supported contracts, grants, and agreements.

(2) Encourage maximum participation of small-business firms in licensing
Government-owned intellectual property.

(3) Promote collaboration between commercial concerns and Government
entities in commercializing Government-owned intellectual property.

(4) 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

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against nonuse or unreasonable use of such intellectual property.

SECTION 9. Separability Clause. — If 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 10, Repeating Clause. ~ Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary to, or
inconsistent with the provisions of this Act is hereby repealed, modified or amended

accordingly.

SECTION 11, Effectivity Clause. ~ This Act shall take effect fifteen (15) days after

its publication in at least two (2) newspapers of general circulation.

Approved,