ENHANCING INNOVATIVE ADVANTAGE OF THE PHILIPPINES THROUGH A TECHNOLOGY TRANSFER POLICY

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ENHANCING INNOVATIVE ADVANTAGE
OF THE PHILIPPINES THROUGH
A TECHNOLOGY TRANSFER
POLICY
Second National Workshop on IP Technology
Commercialization
Manila Peninsula, Makati City I April 21, 2009
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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 RD and
  commercialization
• Lack of well defined IP regimes in RD
  institutions

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Existing Tech Transfer Framework
Government RDIs
Government Funding Agencies (GFA)
?
?
RESULTS Scant RD results commercialized Low
number of patents
RDIs and researchers have no incentives to
protect and manage IPs
RD Funds
Funder (i.e. govt) owns IPs
Universities
?
Publish or Perish mindset
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RP Patent Landscape
(2000-2007, IP Philippines)
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Three Year RP Patent Landscape
(2000-2007, IP Philippines)
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Three Year RP Patent Landscape
(2000-2007, IP Philippines)
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The National RD Funding Pattern
Govt Fund Sources P 1,826.6 M (28.87)
Total P 6,326.7 M
RD Budget of Govt RD Institutions P 370.3 M
(20.3)
SUCs RD Budget P 204.5 M (11.2)
Govt RD Grants P 1,251.8 M (68.5)
Other sources P20.1 M (0.32)
Private Fund Sources P 4,004.0 M (63.29)
Foreign Sources P 301.5 M (4.76)
PCUs P 174.4 M (2.76)
Data source DOSTs 2005 National RD Survey and
NSO Annual Survey of Phil. Business and Industry
(ASPBI)
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Where are we vis-à-vis ASEAN.
1. Technological readiness or the ability to
adopt technologies (2008-2009)
Singapore - 7th Malaysia - 34th Thailand -
66th Indonesia 88th Vietnam 79th
2. Innovation or the ability to produce brand new
technologies (2008-2009)
Singapore - 11th Malaysia - 22st Thailand -
54th Indonesia 47th Vietnam 52nd
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3. Availability of latest technologies
(2008-2009)
Singapore - 14th Malaysia - 29th Thailand -
50th Indonesia 61st Vietnam 71st Cambodia-
110th
Source Global Competitiveness Report 2008-09
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• 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 RD through IPR protection and
  increased stakeholders benefits.
• Encourage further innovation.

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Proposed Reforms in Technology Transfer
Government RDIs
Government Funding Agencies
EXPECTED RESULTS Increased -ROI from govt
-RD investments -More innovations
RDIs and universities are default owners of
IPs
Researchers share in royalties
RD Funds
Universities
GFAs ensure RDIs protect and manage IPs
Allows spin offs

• Govt enunciates primacy of tech transfer and
  not income earning
• Provides for management of conflict of interests
• Provides public (open) access policy

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HOUSE BILL 5208
AN ACT PROMOTING THE TRANSFER
OF TECHNOLOGIES AND KNOWLEDGE
FROM RESEARCH AND DEVELOPMENT
(RD) FUNDED BY GOVERNMENT
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Advocates in CONGRESS.
HOUSE BILL 5208
Rep. Joseph Emilio A. Abaya SENATE BILL 1721
Sen. Edgardo J.
Angara
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SALIENT
PROVISIONS
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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.
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REVENUE SHARING
Revenues from the technology transfer and
commercialization shall be allocated and shared
according to the research/ funding
agreement.
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For joint funding, agreement shall contain
provisions effectuating the following

• RDI or GFA shall be entitled to shares of
  revenues,
• unless waived by the GFA in writing

• RDI shall disclose to GFA all potential IPRs
  generated and obtain full protection for these
  potential IPRs

• RDI must share at least 40 of revenues it earns
  
• from IPRs net of IPR management-related
  expenses
• with the concerned researcher(s) from IPR

• Revenues from IPR of the RDI must be reported to
  
• the GFA and may be subject to
  confidentiality.

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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.
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ESTABLISHMENT AND MAINTENANCE OF REVOLVING FUND
FOR RD 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 RD, ST capacity building, and technology
  transfer activities
• Operation of TLOs

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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.
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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.
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INSTITUTIONAL MECHANISMS
RDIs/GFAs shall develop appropriate policies and
procedures on public access to technologies
knowledge generated from government-funded RD
All public RDIs are encouraged to establish
their own TLOs, including consortia and regional
groupings and create their own IPR management
policies.
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PUBLIC ACCESS POLICY
RDIs and GFAs shall promote and facilitate the
cost-effective sharing of and access to
technologies and knowledge generated from
government-funded RD by developing appropriate
policies and procedures on public access which
shall be made known to the public.
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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.
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WHATS IN STORE FOR THE Public?
The bill will allow faster diffusion of valuable
research outputs
Accessibility and availability to the public
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WHATS IN STORE FOR Juan de la Cruz?
The bill will encourage the creation of spin-off
companies
More job opportunities for Filipinos.
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WHATS IN STORE FOR Researchers?
The bill will create a financially-rewarding
environment for researchers.
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WHATS IN STORE FOR RD Institutions?

• Increased licensing and royalty revenues

• More RD activities and greater cross-
• fertilization between entrepreneurial faculty
  
• and industry.

• Better quality research with closer interaction
• between public and private sector.

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WHATS IN STORE FOR RPs 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.

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Maraming Salamat!
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Rep. JOSEPH EMILIO AGUINALDO ABAYA


1st District, Province
of Cavite
Chair, Committee on Science and
Technology House of Representatives of the
Philippines