WHY IS THERE A NEED FOR A TECHNOLOGY TRANSFER LAW?
- To improve the country’s readiness to adopt new technologies that is at par with other countries in the region.
- To unify and coordinate the technology transfer activities in the country.
- To provide the framework and enabling mechanism for successful transfer of public funded research and development (R&D) results through proper management of intellectual property rights (IPRs), capacity development of research and development institutions (RDIs), and universities to become self-sustaining, competitive, and business-oriented; and to generate technologies that meet the clients’ needs.
- To ensure greater public access to technologies and knowledge generated from public funded R&D while enabling, where appropriate, the management and protection of related IP.
WHAT IS THE TECHNOLOGY TRANSFER BILL?
- The Technology Transfer Bill or Tech Transfer Bill is the popular term for House Bill (HB) 5208 and Senate Bill (SB) 1721, officially known as “An Act Promoting the Transfer of Technologies and Knowledge from Research and Development (R&D) Funded by Government” or the Technology Transfer Act of 2008.
The principal sponsors of HB 5208 and SB 1721 are Rep. Joseph Emilio A. Abaya (1st District, Cavite) and Sen. Edgardo J. Angara, respectively.
WHAT IS THE OBJECTIVE OF THE BILL?
- The bill aims to promote and facilitate the transfer, dissemination, and use of technologies and knowledge resulting from public funded R&D.
WHAT IS THE SCOPE OF THE BILL?
- All R&D activities carried out by RDIs with government funds.
- All IPRs such as patents, copyrights, and licenses resulting from such activities.
- All government agencies that contribute resources or expertise to such activities.
- All RDIs including state universities and colleges (SUCs) that implement such activities.
WHAT ARE THE SALIENT PROVISIONS OF THE BILL?
- It covers the rights, duties, benefits, and limitations of the parties involved in the process of technology generation and transfer.
- It decides the ownership of IPRs over the research output.
- It provides competitive advantage and benefits to researchers, RDIs, and government funding agencies (GFAs).
- It contains a provision on revenue sharing and use of income from commercialization of IP assets.
- It encourages the creation of spin-off companies.
- It covers the funding and institutional mechanisms for technology transfer such as the establishment of technology information access facilities/technology licensing offices (TLOs) and public access policies.
WHO WILL OWN THE IPRS FROM THE RESEARCH FUNDED BY GFAS?
- IPRs derived from GFA funded research, whether in whole or in part, shall in general be assigned to the RDIs that conducted the research.
- As an exception, IPRs cannot be assigned to RDIs when the researcher as employee of the RDI becomes the owner of patentable inventions and copyrights; when the RDI waived its claim in favor of the GFA; in cases of national emergency or where public interest is at stake; in cases of non-disclosure of potential IPRs to GFAs; and RDIs’ failure to initiate protection of the IPRs.
HOW WILL THE REVENUES FROM TECHNOLOGY COMMERCIALIZATION BE SHARED?
- All revenues from transfer or commercialization of IPRs from public funded R&D shall be allocated and shared according to the provisions of the research funding agreement or research agreement.
- The RDI must share at least forty percent (40%) of revenues it earns from IPRs net of IPR management-related expenses with the researcher(s) concerned based on a scheduled revenue sharing.
- All revenues from IPR commercialization shall be deposited in a revolving fund established by the public RDI, while a portion of such revenues shall be remitted to the Bureau of Treasury according to a schedule of remittance. This shall not apply to SUCs by virtue of their fiscal autonomy.
HOW WILL THE REVENUES FROM TECHNOLOGY COMMERCIALIZATION BE UTILIZED?
- Revenues from commercialization shall be used to defray IP management costs and expenses and fund R&D, S&T capability building, and technology transfer activities including the establishment and management of technology licensing offices (TLOs).
WHAT IS A SPIN-OFF COMPANY?
- It refers to a juridical entity with a separate legal personality from the GFA, RDI, and researcher that is created through the initiative of the researcher-employee or RDIs that generated the technology. It is also known as start-up company.
HOW DOES A SPIN-OFF COMPANY ENSURE COMMERCIALIZATION OF IPRS?
- The spin-off or start-up company will provide the mechanism to manage and commercialize the IPR into profitable venture. The employee-researcher can own, manage, control, or work as consultant or employee in the spin-off company undertaking the commercialization without formally leaving the RDI.
WHAT IS A TECHNOLOGY INFORMATION ACCESS FACILITY?
- It refers to a common access facility for technologies generated from public funded R&D.
WHAT IS THE IMPORTANCE OF TLOS?
- TLOs or business development offices are specialized offices that oversee and facilitate IPR protection, management, and commercialization processes in RDIs.
WHAT IS A PUBLIC ACCESS POLICY?
- It refers to policies and procedures of RDIs and GFAs, which shall promote and facilitate the cost-effective sharing of and access to technologies and knowledge generated from public funded R&D while protecting its IPRs.
The original Bill filed by Rep. Joseph Emilio A. Abaya was HB 3270. Following amendments and revisions in the approved House committee version, it was re-filed as HB 5208. For more information about the Bill, visit www.pcarrd.dost.gov.ph