ARTICLE VII
USE BY GOVERNMENT, COMPULSORY LICENSING
AND ASSUMPTION OF POTENTIAL IPRs
SEC. 15. Use by Government or Third Person Authorized by Government and/or Compulsory Licensing. – This Act shall adopt the grounds, terms and conditions for the use by government or third person authorized by government, andlor compulsory licensing as stated in the IP Code of all IPRs generated under this Act.
SEC. 16. Assumption of Ownership of Potential IPRs. – The GFA and/or the parent agency may assume ownership of any potential IPRs in cases of national emergency or other circumstance’s of extreme urgency, or where the public interest requires, and in particular concerns for national security, nutrition, health, or the development of other vital sectors of the national economy, as determined by the head of the parent agency. Such determination shall be made within thirty (30) days after the receipt of the recommendation of the Head of the GFA. Such recommendation shall be made within thirty (30) days upon the discovery of the potential IPR by the GFA or the disclosure of the same by the RDI pursuant to Section 8(c) of this Act, or upon written notice or petition by other government agencies, or other interested persons. In cases where the parent agency itself is acting as the GFA, the Head of the parent agency may make such determination motu propio, or upon written notice or petition by other government agencies or other interested parties. The right to the potential IPR shall be assumed by the GFA upon written order, declaration or determination by the Department Secretary or Head of the parent agency. The department or the agency that has functional jurisdiction over the technology or IPRs shall be, deemed as the parent agency.
The determination by the Secretary or the Head of the parent agency of cases falling under the first paragraph of the right to, the potential IPR to be vested to the GFA and/or parent agency shall be subject to the following conditions:
(a) The determination must be accompanied by an analysis and justification of such reason(s);
(b) The RDI may file with the Secretary or Head of the parent agency an opposition to such determination within fifteen (15) calendar days from notice or publication of the written determination;
(c) The assumption of the rights to the potential IPR by the GFA shall carry with it the obligation to equitably share with the RDI or other funding agencies any profits generated from the IPR; and
(d) The rights to the potential IPR shall revert to the RBI upon the cessation of the existence of the cases under this section as determined by the Secretary or Head of the parent agency motu proprio or by petition of the RDI.
SEC. 17. Except where otherwise provided by the IP Code, in all cases arising from the implementation of this article, no court, except the Supreme Court of the Philippines, shall issue any temporary restraining order or preliminary injunction or such other provisional remedies that will prevent its immediate execution.
ARTICLE VIII
USE OF INCOME AND ESTABLISHMENT AND MAINTENANCE
OF REVOLVING FUND FOR R&D AND TECHNOLOGY TRANSFER
SEC. 18. Use of Income and Revolving Fund. – Public RDIs undertaking technology transfer shall be vested with the authority to use its share of the revenues derived from commercialization of IP generated from R&D funded by GFAs. All income generated from commercialization of IPs and/or IPRs from R&D funded by public funds shall be constituted as a revolving fund for use of the RDI undertaking technology transfer, deposited in an authorized government depository bank subject to accounting and auditing rules and regulations: Provided, That said income shall be used,to defray intellectual property management costs and expenses and to fund R&D, science and technology capability building, and technology transfer activities, including operation of technology licensing offices: Provided, further, That no amount of said income shall be used for payment of salaries and other allowances.
In case the income after payment of all costs and expenses for IPR management, including the payment of royalties to other parties, shall exceed ten percent (10%) of the annual budget of the RDI, a minimum of seventy percent (70%) of the excess income shall be remitted to the Bureau of Treasury: Provided, That this shall apply only if the GFA has solely funded the research: Provided, finally, That this paragraph shall not apply to state universities and colleges and government-owned and controlled corporations, which enjoy fiscal autonomy under their respective charters or other applicable laws.
ARTICLE IX
INSTITUTIONAL MECHANISM
SEC. 19. Establishment of Technology Information Access Facility and Public Access Policy. – The DOST shall establish a system for the cost~effective sharing of and access to teclmologies and knowledge generated from government funded R&D by developing appropriate policies and procedures on public access which shall be made known to the public. These policies and procedures shall be aimed at promoting the advancement of R&D, boosting its quality and enabling cross disciplinary collaboration, and thereby, increasing the returns from public investment in R&D and contribute to the betterment of society. 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 R&D; (b) coordinate and rationalize the R&D agenda; and (c) harmonize all R&D agenda and prioritles.
SEC. 20. Development of Internal IP Policies and Establishment of Technology Licensing Offices (TLOs) and/or Technology Business Development Offices. – All RDIs are encouraged to establish their own TLOs in whatever form and to adopt their own policies on IPR management and technology transfer, in accordance wlth this Act and other existing laws and in support of the policies of the Intellectual Property Office Philippines and the national policy and the mandate of their parent agency.
Sec. 21. Capacity-Building and Guidelines on IP Commercialization. – The Department of Science and Technology (DOST), the Department of Trade and Industry (DTI) and the Intellectual Property Office (IPO), in consultation with the GFAs such as the Commission on Higher Education (CHED), the Department of Agriculture (DA), the Department of Health (DOH), the Department of Energy (DOE), the Department of Environment and Natural Resources (DENR), and the Department of National Defense (DND), shall undertake activities geared towards building the capacity of the GFAs and RDls in commercializing IPs. The DOST as chair and convenor, together with the DTI and the 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. These guidelines shall be issued within one hundred twenty (120) days from the date of effectivity of this Act.
ARTICLE X
DISPUTE RESOLUTION
SEC. 22. The administrative procedure for resolving any disputes on the determination for government ownership shall be provided by the Implementing Rules and Regulations (IRR) of this Act.
ARTICLE XI
MISCELLANEOUS, TRANSITORY AND FINAL PROVISIONS
SEC. 23. Administrative, Criminal or Civil Liability. – The failure of the GFA or RDI to fulfill its responsibilities under this Act, or the violation of any provision by any person, natural or juridical, shall subject the person involved to appropriate administrative, criminal, or civil liability, under applicable laws.
SEC. 24. Congressional Oversight Committee. – For the effective implementation of this Act. there shall’ be a Congressional Oversight Committee, hereinafter referred to as the Technology Transfer OversIght Committee, to be composed of five (5) members from the Senate, which shall include the Chairpersons of the Senate Committees on Science and Technology, and Trade and Commerce, and five (5) members from the House of Representatives, which shall include the Chairpersons of the House Committees on Science and Technology and Trade and Industry. The Technology Transfer Oversight Committee shal! be jointly chaired by the Chairpersons of the Senate and House of Representatives Committees on Science and Technology. The Vice chair of the Oversight Committee shall be jointly held by the ChaIrpersons of the Senate Committee on Trade and Commerce and the House of Representatives Committee on Trade and Industry.
SEC. 25. Funding – The activities and operational expenses related to the ImplementatlOn of this Act shall be funded from the budget appropriations and other incomes of GFAs and public RDIs. The Heads of the GFAs and public RDIs shall include III the agency’s program the lmplementatlon of this Act.
The COA shall exercise its auditing authority over the funds of the GFAs and public RDIs in order to ensure transparency and accountability.
SEC. 26. Implementing Rules and Regulations. – Except where otherwise mdicated, the DOST and the IPO, with the participation of GFAs, RDIs, and other stakeholders, shall formulate the IRR for the effective implementation of this Act. The DOST Secretary shall chaIr the drafting committee. The IRR shall be issued within one hunch’ed twenty (120) days after the effectivity of this Act. CopIes of the IRR shall be submitted to the Committees on Science and Technology of both Houses of Congress within thirty (30) days after its promulgation, as well as to other appropriate agencies as may be required by law.
Nothing in the IRR shall derogate ownership of any copyright as conferred by the IP Code or other applicable laws. The IPO shall issue the necessary rules and regulations governing the ownership of copyrights as conferred by the II Code or other applicable laws: Provided, That such IRR shall consistent with the objectives of this Act. The IPO shall also issue the IRR to implement the disclosure requirements stated in Section 8.
SEC. 27. Applicability to Intellectual Property Create Under Existing Laws. – The provisions of this Act shal likewise apply to intellectual property created under existing laws, including, among others, Republic Act No. 9168 or the “Philippine Plant Variety Protection Act of 2002”.
SEC. 28. Repealing Clause. – All laws, presidential decrees, executive orders, presidential proclamations, ru1es anl regulations or part thereof which may be contrary to or inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 29. Separability Clause. – If any provision of this Act is declared unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.
SEC. 30. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication in two (2) newspaper of general circulation.
