Mar, 39 2010 29:15AM P2 PHONE NO, 1 7361152 oR: seen be TONS Bos : ~— Repablc ate Biipines, Gangress of the Philippines + Holo Savile Houctersth Goegersa Seb Ropar Session Begun’ and held in Metro Manila, on Monday, the iwenty-sevanth ‘day of July, two thousand nine. * . Scare {Rervauic AcrNo. 10055}, ‘AN ACT PROVIDING THE FRAMEWORK AND SUPPORT SYSTEM FOR THE OWNERSHIP, MANAGENENT. USE, AND COMMERCIALIZATION OF INTELLECTUAL, PROPERTY GENERATED FROM RESEARCH AND ix DEVELOPMENT FUNDED BY GOVERNMENT AND. “cx FOR OTHER PURPOSES * the Philippines in Congress assembled: ARTICLEL ‘True, Dectanavion oF PoLicy Axo OnzecnvE, Score ‘AND OTHER “GENERAL, PROVISIONSNor, 33 2210 0s: 15er PS HOME NO. : 7551152 1s PLO : : cee esas SECTION 1. Short Title. ~ This Act shall be knows © eshnolgy ond Imawage senting fom RAD te iy the #8 the “Philippine Technology Transfer Act af 2009", boven for the ones ‘of national economy and ‘taxpayers, ‘Aer, SEC. Definition of Terms. — For purposos of thie ce * symbole, names, images and designs ised in commer, righ rengeued and eee phe PRY have. sae and protected tn Republic Ace Ne, Sa ashecvise Town ae the “Inichecteat Ben Sao oe Philippines (© “Potential IPRs" refer to iniellectual property, or the proves of creation and research that form the eroiek mealies Sf TPRo, but which are not yet protecad by (he status fant of IP rights. ©) “IE Code” refers to Republic Act No, 8293, otherwise Known go the “Intellectual Property Code of the Philinser @ “Intellectual Property Rights Managesnont” refers to fhe principles, mechaniams and proceacen'inveived ie De Kentiicttion, assessment, pretation, utilisation snd enkvmee of intollectual property right, SBC. 3. Objective. — This Act aims to promote and : (© {Government Funding Agency (GFA) zeler te any facilitate the tranafér, dissemination, and effective coe Sovernment agency or instrumentality, or goveramentewned management, and comrmercislization of intellectual property ‘anitor controlled corporation that provides “eecarch grate eeecl ai: niaterial support, fom goveromneat ue and resources aad those sourced. fron rament-menaged Official Development Aasistance (ODA) . 3B 2a10 29: 160" PA financial contribution, shall be deemed except as may otherwise be specifically Mar, 0 Research and Development Institute or Institution DY" refers to a public or private organization, eacociation {Gof tha copied of hich ia owned by mack 2 dows a a covernd by interational bilateral or multilateral agreements. m san ), "Research Funding Agreement” refers to a contract PHONE NOL? 7361452 G9 “Research Agmement” refers to a contract entered into by RDIs and researchers, induding the agreements between the RDI and collaborating RDIs. ) “Researcher” refers to a natural person who ia engaged Rom: PLO "Spinoff fea ébimpary” rela ati that ia tn independent business technology taker with ‘°° separate legal personality from the GPA, RDI and researcher created through the initinive of the researeher-omployee who renerated the technology. 40) “Technology” refers to knowledge and know-how, skills, Products, processes, andor practices. (©) “Technology transfer” refers to the procesa by which one party systemabally transfers to snother party. the ‘nowledgo for the manufacture of a product, the application of a process, or rendering of a service, which may involve the tranefer, assignment or licensing of IPRs. ). *Corimersializatioa” refers to the prowess of deriving ‘income or profit from’a technology, such as the eroalion of a spin-off company, or trough liceneing, ar the eale of the ‘sechnalogy andfor IPRs. * 7 (@) -“Revenne” refers to ali morietary and non-monetary benefite derived as a result of the development. production tranofer, ‘use aud/or coimmercialiéation of IPRs, induding income froin ascigmuénts aad royalties from licenses. © “Research and-Development (R&DY" rofore to seative, work: undertaken on a’systomatic besia in order to inwoase the atock of knowledge, including knowledge of man, culture and society, and to use thie stock of koowledge to devi new applications. Szo. 5. Coverage. _ (a) AU R&D activities carried out ‘on behalf and for the interest of the Philippine goverament ‘by RDIs receiving granta directly from the GFA &) All intellectual property rights derived from R&D activities funded by government; © All government agencies that fund R&D setivities ao well as provide financial, technical ar mstarial support to euch, RAD activities; andrar. 38 2810 @5:17a0 FS PHONE NO. + 73561152 ‘ pi Al institutions that imaploment government funded RAD. aRvcie nm 7 Turpngcrest: Prorsery OMENS 6, Ownership of Intellectual Property and Intellectual Property Rights. — The ownership of IPs and TeRs shall be governed by the fullowing: executed by the RDI to protect public interest, and in Particular involves national security, nutrition, health, or the development of other vital sectors: 2) In case of failure of the RDI to disdaee potential IPRs to the GFA, whereupon the GFA shall aosume the rights ts the potential IPR; (In case the RDI ceases to become a Filipine corporation as defined in Article I, Section 4()) of thie Act In case of collaborative research where two (2) or mnore RDIs conducted the research funded by the GPA. the ~ shall be mnde with ehe full knowledge of the GFA: Provided, farther, That the agreement shall strictly be in éeordance: with the provisione of thie Act. © Nothing in this Avtide shall modify, aniend; derogato ‘OF prejudice IPs that will be owned by employees of the ROIs under the IP Code and other existing laws. ARTICLE 117 RIGHTS AND RESPONSIOTLITIDS OF “1HE GoveRNMENT FUNDING. AGENCIES AND RESEARCH AND D2VSLOPMENT _ INSTITUTES oR-InsTITUTIONS Sec. 7. Rights and Responsibilities of o Government Funding Memes “nr Bie a te Ghat (b) Monitor efférte and-effectivencss of the RDI in securing EP protection and pursuing IP commercializatian, as well af provide alternative achwions and aisistance in neo of shortiall in the RDYa performance in protecting. utilising and commercializing the TP; @ "Allow shaving of revenues from IP eonimercalization in a way Ghat is not onerous to comruercialization: Provided, That when the GFA assumes commercialization of the IPs, Hf shall, eubject wo existing lave.requiring teanaparency.‘aadPHONE NOL: 7361152 Har, 32 2010 28: 17AK PS ms PLO te ition of IPe: Provided, farther, That it sh: wsdation from tio. Secretary. Department of Science:and Technology (DOST) tnd secure a." faze pinion eprom na pdeprnt thi pty by - compnoed of experte ate coctare be determined by ‘he DOST. beiies fete ‘The respensibility of the RDI to protect attypotential IPRs ‘shall’ aleo apply in the event that the RDI elects 16 sécover gnnership of the potential IPRa that have been vested in the GPA uiider Section 7 of this Act; } | (b) Provide a mesina for ads sing nny shottfoll of its [ 5 patties ae i © Notify the GPA within a réssousble time of all IPR spplications, Higensen and’ aneigasiante mnie’ All appLeatioas | SOF notes dl x tiy tlty ‘oe net rewure, iKnowletee, kaso, te hove tap ave cued tr pute | [adigenousPooplee Rights’ Act dtd | sane ; : | @ Report aniuially to'the GIA on the progiess of IP godlor IPR sonimeitialization efforts and of all, agreement ‘entered. and licenses granted: 7 : : Identity, prot, ‘and mansge the TPs geieraind trom R&D funded by the GFA and purse comuiereal exploitation’. > diligently ao a requifed jeiformance stipulated in the rpeeazch Funting agreonent anda allowed by tha Ac ood other applicable laws. (©) Keep account of revenues and payments fo the GEA ifrequired in the research funding agreement . ; Ee eae x 1 faimese iepott ‘rom an independent third party body composed of experts fom {Be public and private sectors an may be determined by.the | { | «ean Aceon their staff with incentives. consistent with ° wwe to sustain efforts in identifying valuable [P and IP commerdalizalion: i : Je authorized, within’ a feasonable timé, to Keep confidential frora the public any document or informationPHONE NO, = 7361152 Mar. 30 2010 @8:1eRH P7 PLO 10 relating to potential IPRs that are ant yet fully protected hy law; @ Make @ confidential disclosure to the GFA, within a reasonable time, of any. potential IPRs with poesibiitios for ‘commercialization andlor technology tranafer. In case’ of failure te dco any such potential IP, Section 6 of thie Act shall Fale with fo inform shall render the ogecemont Sewahd an againee the GEA, but in Ho case shall it prejatice any sight of the OPA as provided in this, Act ‘acd ) Wheit “secessary, “create and establish ‘epin-off companies to pursue copiigortialization subject to their respective mayidates as allowed by lav. ARTICLE TV MaTAGEMENT OF IPe FROM R&D-PeRroRMED By lovee BPs amp oom Own Bocas in’securing IP protection and pursing IP opmcreiaization, ‘used on th, anmial IP management reprieubaitted by the _ sdcesments, without prejudice to ‘ARTICLE V- RovENUE SHARING ‘SBC. 11. Revenue-Sharing. = All. revenues from the ~°*" comsnarcilization of IPp and IPRs from R&D funded.by GFAS shal accrue fo the RD nies there i « revenue tharing the a Sharing, of rovénsige hetween RDI and-ivsrarcher'shall be carr yan aloes uated under Republic: Act No. -8439 or the’ fake SAT Penoened in the Govetiment eee bueHt ARTICLE YL ° COupmeROLALIZATION BY tHE RESUARCHER AND: _ BSTARLISHMENT. OF. Seny-oFF FregsMar. 30 2010 esti9HH PE PHONE NG. T36LA52 mt PLLO ‘aftece the reseercher- employee's security of tenure or reault in, the Joss of one's seniority rights. shall prevail Suc. tk Mangement of Conflict sf Interest. — The RDIo shail properly manage any possible conflict of interest by adopting appropriate guidelines for ita resednchor-employoe ‘the gudelnes for handling of such conficts shall include, bat are not limited (3, the following: zi @ HDi shail’ ensure’ that ite resenrchere are made fally accountable for-theiz reseatch and that commercial objectives do sat divert them from carrying out the RDM's core research program; ©). Heads of RDI should enpure that where researchers have any direct ‘or iidirect financial interest in 2 spin-off company; they shall. nct act on transactions with that company; (© Where researchers of RDI are nominated. as non- executive directors to the Board of a spin-off company or existing company in which the same RDI holds an equity stake, they should have a clesr duty to ensure that the RDI's interests, are not compromised hy their role; and @_RDIs shoul tak steps to ensure that collaborative undertaking with a epitall or existing company is governed by a forimal written public agreement. ARTICLE.VOE Use BY Govatanamer, COMPULSORY LICENSING. AND ASSUMPTION OP POTENTIAL IPRs Se0. 15. Use ty ‘Government or Third Person Authorised by Government and/or Compulsory ‘Licensing, — Thio Act -shill-adopt the grounda, terns and conditions for the use by Rovernment or third pereon-authorized by ‘government, and/or compulooey licensing a stated in the TP Code of all: IPRs genoroted xnder this Act. bbe" deemed: aa the parent agency. ‘The determination by'the Secrétaly or the Head of the arent agerigy of case Cling under the fit paragraph ofthe Fight-to-the potontial IPR. to be vested:to the GFA and/or parent agency chall be subject to the following conditions:Mar, 32 2010 eg:zaeN PS 2 7361182 PHONE ND, + PLO 16 ‘existing lawa and i Property Office Philippines and the national-paliey and the mandate of their See. 21. Capacity-Building and Guidelines on IP Commerciatizuiious ~ ‘The Department of Science and “Technology (DOSD, the Department of Trade and Industey (DTD and the Intellectual Property Office (PO), in consultation with the GPAs suex as the Commission on Higher Edueation ARTICLE X Dispute, Resousnion SBC. 22, The administrative procedure for resolving any” disputes on the detarmination for government ownership shall beproviged bythe mplementing Hulos and Hegulations GRR) of this ARTICLE XT MISCELLANEOUS, TRANSITORY AND FINAL PROVISIONS S8C. 28, Administrative, Criminal or Civil Liability. — ‘The failure of the GFA or RDI to fulfil its responsibilities under this Act, or Ge violation af sry provision by any person, natural or juridical, ehall: subject the person involved appropriate adminstrative, criminal, or civil Kability, under applicable laws. rt ofthe pelicin of tho Intellactund SEC. 24. Congressional Cversight Committes.— gflsctive: implementation of thie Act, theve shall Generessional Oversight Commits, hereinafter refereed hoclogy Tvanafee. Overnight Committee, to be con of ‘earatora from the Senate, which shall ete the and Industry, The ‘Technology ‘Ieansfer hall be jointly chaired by the te and House of Representatives Sec. 25. Funding. ~ ‘the activities and operational cxpentes related to the implementation of this Act sball be funded from the budget appropriations and other incomes of GFAs and public RDis. The Heads of the GRAs and public BPI gM elude in the agency/s program the implementation of thie The COA shall exercise its auditing authority over the fonds of the GFAs and public ROIs in onder to enoure transparency end aconcntabilty. ql Src, 26. Implementing Rules and Regulations. — Broept where otherwise indicated, the DOST aud the [PO, with the participation of GP's, RDis, and other stakeholders, Nothing in the LER stall derngate onnorship, of any copyright a8 conformed Code or other applicable ‘The IPO shall isouo. the neccesary rules andl regulationsier, 30 2010 osr2ieN Pig * PHONE NO, + 7361152 a . . : Feveening the owsiership of copyrights as éoired by the: LP Code or eter applicable lawn: Provided, ‘That tach IRR ies ‘onsiatent with the cbjectives of thie Act. The IPO shall afeo issue the IRR to implement the disclosure requirements stated in Section 8, =,S€6. 27. Applicability to Intellectual Property Created Under Existing Laws. - The provisions of this Act shall likewise apply to intollectual property created under existing laws, including, among others, Republic Act No. 9168 or the “Philippine Plant Variety Protection Act of 2002”. Seo. 28. Repeoling Clause. — All laws, presidential + decrees, executive orders, prosidantial proclamations, rule seat reeulations or part thereat which may be contrary to or inconsistent with this Act are hereby repealed or aod: tied saccordingty. ‘Ske. 29. Separabitity Clouse. ~ If any provision of thie Act is declared umeonstitutional, the eame hall nat affect the validity and effectivity of the other provisions hereof, SEC. 20. Bfectvity. - Thio Ack ahall take effect fiteen 425) days after its complete publication in two (2) hewspapers of general circulation. (oan natin enact ea ree ‘This Act which is a’smnéolitation’of ‘Senate Bill Ne and House'BiM. No, 6208 was finally passed by the Se and the House of Representatives on December 1; 2008 ana December 16, 2009, respectively ccretary Seerete ‘the: House of Representatives eee ne Approved: MAR 23 700. oh GLOWAA MACAPA@AL ARROYO ssiclens of the ‘Philippines > © ae rntgen + SBEET