ARTICLE IV
MANAGEMENT OF IPs FROM R&D PERFORMED BY
GOVERNMENT RDIs THROUGH THEIR OWN BUDGET
SEC. 9, Responsibilities of RDIs Performing R&D with their Own Budget. – All government RDIs performing R&D through an annual budget provided by the government shall submit intellectual property manag-emeht reports annually to the national government agencies where they are attached. The report shall contain plans for securing protection on IPs with commercial promise, the technology transfer approaches to be pursued, and the progress of ongoing commercialization of technologies derived from R&D funded from their own budget.
SEC. 10. Responsibilities of the Concerned National, Government Agencies. – Concerned govemment and/or parent agencies shall monitor efforts and effectiveness of their RDIs in securing IP protection and pursuing IP commercialization, based on the annual IP management reports submitted by the RDIs.
ARTICLE V
REVENUE SHARING
SEC. 11. Revenue Sharing. – All revenues from the commercialization of IPs and IPRs from R&D funded by GF As shall accrue to the, RDI, unless there is a revenue sharing provision in the research funding agreement: Provided, That in no case will the total share of the GFAs be greater than the share of the RDI: Provided, further, That 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 eriter into contractual agreements with the other entity or entities providing funding.
Sharing of revenues between RDI and researcher shall be governed by an employer-employee contract or other related agreements, without prejudice to the rights of researchers granted under Republic Act No. 8439 or the “Magna Carta for Scientists, Engineers, Researchers, and other S&T Personnel in the Government”.
ARTICLE VI
COMMERCIALIZATION BY THE RESEARCHER AND
ESTABLISHEMENT OF THE SPIN-OFF FIRMS
SEC. 12. Commercialization by Researchers. In meritorious cases and to help ensure successful commercialization, an RDI shall allow its researcher-employee to commercialize or pursue commercialization of the IP and/or IPRs generated from R&D funded by the GFA by creating, owning, controlling, or managing a company or spin-off firm undertaking commercialization, or accepting employment as an officer, employee, or consultant In a spin- off firm undertaking such commercialization: Provided, That the concerned researcher-employee takes a leave of absence, whenever applicable, for a period of one (1) year and renewable for another year, for a total period not exceeding two (2) years, from the time the researcher signifies in writing that he/she desires to create or participate in a spin-off company: Provided, however, That the researcher-employee may still be allowed access to the RDIs’ laboratory facilities, subject to reasonable fees and regulations which the RDIs may impose.
The leave of absence shall be included in computing the length of service for retirement but not for the commutation of leave credits earned in the public RDI. The researcber shall not earn leave credits in the public RDI during such period of leave of absence, Such leave of absence shall not likewise affect the researcher-employee’s security of tenure or result in the loss of one’s seniority rights.
SEC. 13. Detail or Secondment to the Private Sector. – In case where the researcher of a public RDI would be employed by an existing company, which will pursue the commercialization, the applicable provision of Republic Act No. 8439 or the “Magna Carta for Scientists, Engineers, Researchers and other S&T Personnel in the Government” shall prevail.
SEC. 14. Management of Conflict of Interest,- The RDIs shall properly manage any possible conflict of interest by adopting appropriate guidelines for its researcher;employee, ‘ The guidelines for handling of such conflicts shall include, but are not limited to, the following:
(a) RDIs shall ensure that its researchers are made fully accountable for their research and that Commercial objectives do not divert them from carrying out the RDI’s, core research program;
(b) Heads of RDIs should ensure that where researchers have any direct or indirect financial interest in a spin-of company; they shall not act on behalf of the RDI in transactions with that company;
(c) 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 clear duty to ensure that the RDI’s interests are not compromised by their role; and
(d) RDls should take steps to ensure that collaborative undertaking with a spin-off or existing company is governed by a formal written public agreement.
