THE TECHNOLOGY

TRANSFER ACT
OF THE PHILIPPINES

PNHRS Week 2009

13 August 2009
Davao City
 Rationale

Current Scenario

 Lack of well-defined and unifying policy on

technology transfer in the Philippines

 Insufficient investment in technology transfer and

commercialization
 Weak private-public collaboration in R&D and
commercialization
Current Scenario

 Lack of well defined IP regimes in R&D institutions

 Inspired by the success of Bayh Dole Act in the US.

“More than any other policy measure, this legislation spawned
the biotechnology revolution and revitalized US industrial
innovation xxx (and the) bill (addressed) the failure to transfer
technological breakthroughs from university laboratories to the
market place” (Bayh Dole at 25, pp43-44)
 Existing Tech Transfer Framework

Government
RDIs
RESULTS:
RDIs and
Government Scant R&D
Funding
R&D researchers
Funder have no results
Agencies Funds commercialized;
(i.e. gov’t) incentives
(GFA)
owns IPs to protect Low number of
and patents
Universities manage
IPs

“Publish or Perish” mindset

 Three Year RP Patent Landscape

2005
210 local patent applications out of 7.1%
total of 2972 applications
15 local patent granted out of a total of 0.9% ***
1653 granted
On patents granted - No Universities,
1 RDI (IRRI)*

2006
223 local patent applications out of 6.8%
total of 3261 applications

24 local patent granted out of a total of 2%

1215 granted
On patents granted - No Universities,
1 RDI (PCHRD-DOST)*
(IP Philippines, 2000-2007)
 Three Year RP Patent Landscape

2007
Only 225 local patent applications out 6.5%
of total of 3473 applications
Only 28 local patent granted out of a 1.5%
total of 1814 granted
On patents granted – No Universities,
1 RDI (ITDI-DOST)
(IP Philippines, 2000-2007)
Where are we vis-à-vis ASEAN….

1. Technological readiness or the ability to

adopt technologies (2008-2009)*
Singapore - 7th
Malaysia - 34th
Thailand - 66th Philippines – 70th
Indonesia – 88th
Vietnam – 79th
2. Innovation or the ability to produce brand new
technologies (2008-2009)*
Singapore - 11th
Malaysia - 22st Philippines - 76th
Thailand - 54th
Indonesia – 47th
Vietnam – 52nd
3. Availability of latest technologies (2008-2009)

Singapore - 14th
Malaysia - 29th
Thailand - 50th Philippines – 52nd
Indonesia – 61st
Vietnam – 71st
Cambodia- 110th

Source: Global Competitiveness Report, 2008-2009*

 The Challenge

 Provide an enabling environment to move fruits

of research and creative efforts from
laboratories to market.

 Harness the potentials and create wealth from

government-funded R&D through IPR protection and
increased stakeholders’ benefits.

 Encourage further innovation.

 Proposed Reforms in Technology Transfer

EXPECTED
Government
RDIs and Researchers RESULTS:
RDIs
universities share in
are “default” royalties Increased
Government R&D owners of IPs -ROI from
Funding Funds gov’t
Agencies
-R&D
investments;
Universities -More
GFAs ensure innovations
RDIs protect Allows
and manage spin offs
IPs

• Gov’t enunciates primacy of tech transfer and not income earning

• Provides for management of conflict of interests
• Provides public (open) access policy
 “TECHNOLOGY TRANSFER ACT”

AN ACT PROMOTING THE TRANSFER

OF TECHNOLOGIES AND
KNOWLEDGE FROM RESEARCH AND
DEVELOPMENT (R&D) FUNDED BY
GOVERNMENT
SALIENT PROVISIONS
SCOPE

All R&D activities funded by government in part or in

whole that are undertaken by RDIs for and in behalf of
the Philippine government, IPs derived from
government funded R&D, and all government agencies
that fund R&D and provide support for IP generation.
OBJECTIVES

To promote and facilitate the transfer, dissemination,

effective use, management and commercialization of
IPs, technology and knowledge resulting from
government funded R&D .
INTELLECTUAL PROPERTY RIGHTS
OWNERSHIP

Ownership of IPRs derived from research funded in

whole or in part by GFA shall be assigned to the RDI
that actually implemented the research.

In case of collaborative research where two or more

RDIs conducted the research funded by the GFA, the
RDIs shall own the IPRs jointly or as otherwise
stipulated in the research agreement between them.
 REVENUE SHARING

All revenues from the commercialization of IPs and IPRs

shall accrue to the RDI, unless there is a revenue sharing
provision in the research funding agreement.

In no case will the total share of the GFA(s) be greater than

the share of the RDI.

In case of joint funding, where research is funded by a GFA

in part, and by other entity or entities in part, the RDI may
enter into contractual agreements with the other entity or
entities providing funding.
 
 REVENUE SHARING

  Sharing of revenues between RDI and researcher shall be

governed by an employer-employee contract or other
related agreements; Provided, that nothing in this law,
research funding agreement or research agreement shall
diminish the 40 percent share in royalties of scientists,
engineers, and researchers under Section 7 (b) of RA 8439
or the “Magna Carta for Scientists, Engineers,
Researchers, and other S&T Personnel in Government”.
COMMERCIALIZATION OF IPRs
BY THE RESEARCHER

An RDI may allow its researcher-employee to create/join

(detail/secondment) a spin-off company, provided that
the researcher-employee takes a leave of absence
without pay for a period of one year, renewable for
another year.
USE BY GOVERNMENT AND
COMPULSORY LICENSING

The grounds, terms and conditions of the use by

government and/or compulsory licensing stated in the IP
Code shall be adopted for all IPRs generated under this
law.

The GFA and/or Parent Agency may assume ownership

of any potential IPR in cases of national emergency or
other circumstances of extreme urgency.
ESTABLISHMENT AND MAINTENANCE OF
REVOLVING FUND FOR R&D AND TECH
TRANSFER

All revenues from IPR commercialization shall accrue to a

revolving fund established by the public RDI, provided,
that a portion of it shall be remitted to the Bureau of
Treasury and according to a schedule of remittance to be
established.
ESTABLISHMENT AND MAINTENANCE OF
REVOLVING FUND FOR R&D AND TECH
TRANSFER

Public RDIs shall be allowed to use revenues derived

from transfer of IPRs for but not limited to the following:
• Defray IP management costs/expenses
• Fund R&D, S&T capacity building, and technology
transfer activities
• Operation of TLOs
In case the revenues after payment of all costs and
expenses for IPR management, including the payment of
royalties to other parties, shall exceed 10% of the annual
budget of the RDI, then a minimum of 70% of the excess
revenues shall be remitted to the Bureau of Treasury,
provided, that the GFA has solely funded the research.

However, this shall not apply to SUCs by virtue of their

fiscal autonomy.
INSTITUTIONAL MECHANISMS

DOST shall establish and all RDIs and GFAs shall promote
and facilitate the cost-effective sharing of and access to
technologies and knowledge by developing appropriate
public access policies and procedures which shall be made
known to the public.
INSTITUTIONAL MECHANISMS

All RDIs and GFAs shall develop and maintain archival

facilities for their IPRs in connection with the
implementation of their public access policy.
The DOST shall call for a regular national conference of all
GFAs and RDIs in order to: (a) promote multi-disciplinary,
joint and cross collaboration in research and development;
(b) coordinate and rationalize the research and
development agenda; and (c) harmonize all research and
development agenda and priorities.
INSTITUTIONAL MECHANISMS

All RDIs are encouraged to establish their own TLOs in

whatever form, including consortia and regional groupings
they may deem appropriate, and to adopt their own
policies on IPR management and technology transfer, in
accordance with existing laws and in support of the
policies of the IPO and the national policy and the
mandate of their Parent Agency.
INSTITUTIONAL MECHANISMS

The DOST, DTI and IPO, in consultation with GFAs such

as CHED, DA, DOH, DOE, DENR, and DND, shall
undertake activities geared towards building the capacity
of GFAs and RDIs in commercializing IPs.
The DOST, DTI and IPO shall jointly issue the necessary
guidelines on IP valuation, commercialization, and
information sharing, which may include, but not be
limited to, the following considerations: public benefit
and national interest, market size, cost and income
DISPUTE RESOLUTION

The IRR shall provide for the administrative procedure for

resolving any disputes on the determination for
government ownership.

To protect the integrity of the IPRs, confidentiality of the

process of determination and dispute resolution shall be
maintained, insofar as it does not prejudice the rights of
the RDI or researcher to due process.
WHAT’S IN STORE FOR THE Public?

The bill will

Accessibility
allow faster
diffusion of and availability
valuable to the public
research outputs
WHAT’S IN STORE FOR Juan de la Cruz?

The bill will

encourage More job
the creation opportunities
of spin-off for Filipinos.
companies
WHAT’S IN STORE FOR Researchers?
The bill will create a financially-rewarding
environment for researchers.

R&D workers would stick More researchers would

to their careers venture to S&T/research

Reversing the trend of More technological

R&D workers migrating innovations and
or shifting to non-R&D jobs breakthroughs
WHAT’S IN STORE FOR R&D Institutions?

 Increased licensing and royalty revenues

 More R&D activities and greater cross-

fertilization between entrepreneurial faculty
and industry.

 Better quality research with closer interaction

between public and private sector.
WHAT’S IN STORE FOR RP’s EMINENT AND
TRADITIONAL Resources?

 Ensure the protection of IPR assets from

biodiversity and genetic resources, traditional
knowledge, and indigenous knowledge systems
and practices as defined in the Indigenous
Peoples Rights Act and the Wildlife Act, through
Disclosure during application for IPR protection.
CURRENT UPDATES:

• Passed on third and final reading at the Lower House of

Congress late last year.

• Currently under deliberations at the Senate. A multi-

sectoral review panel has revised Senate version.

• Advocacy and IEC campaigns are still on-going.

• Expected to be passed into law before the closing of

the 14th Congress next year.
 FORTUNATO DELA PENA
Undersecretary for S&T Services

Department of Science and Technology

Republic of the Philippines

ftdp@dost.gov.ph