INTELLECTUAL PROPERTY RIGHTS AND THE TRANSFER OF TECHNOLOGY

INTELLECTUAL PROPERTY RIGHTS AND THE TRANSFER OF TECHNOLOGY FROM RESEARCH ORGANIZATIONS TO INDUSTRY Maripaz L. Perez Department of Science and Technology

WINDS OF CHANGE 1. Approval of the National Science and Technology Plan (NSTP) CY 2004 -2010 2. Paradigm shift towards development of critical mass of commercially oriented R&D expertise 3. Expanded programs of assistance for SMEs on technology upgrading / technical assistance for increased productivity and thus competitiveness both in local and foreign markets Department of Science and Technology

NSTP STRATEGIC PROGRAMS 1. Small Enterprises Technology Upgrading Program (SET-UP) 2. Technology Incubation Program (TECHNICOM) for Commercialization 3. e-LGU Department of Science and Technology

SET-UP provides packages of assistance to facilitate technology assessment, acquisition and application by SMEs Presupposes that commercially profitable technologies (both local and foreign) are available and accessible Paradigm shift towards commercially oriented R&D expertise Department of Science and Technology

TECHNICOM is a comprehensive and unified strategy to enhance technology development FOR commercialization Focus on priority sectors with high comparative advantage and chance to establish niche for SMEs IPR concerns on inventorship • Licensing / Tech Trans Agreements • Performance Contracts Department of Science and Technology

PRODUCTIVITY CONSULTANCY SERVICES • send experts to work directly with SMEs in the production floor • facilitated direct contract research efforts with industry • very favorable feedback from SMEs Department of Science and Technology

CASE STUDY 1 Transfer of Technology on Herbal Medicine to Local Pharmaceutical Companies • Products: • Lagundi tablet as cough remedy and control for asthma • Sambong tablet as diuretic and for urolithiasis • Yerba Buena tablet as an analgesic • Tsaang gubat tablet for treatment of gastro-intestinal / biliary colic Department of Science and Technology

CASE STUDY 1 Transfer of Technology on Herbal Medicine to Local Pharmaceutical Companies • Researchers: • National Integrated Research Program on Medicinal Plants (NIRPROMP) • consortium of leading scientists and researchers from UP Manila, UP Diliman and UP Los Baños • Chair: • started 1977 Dr. Nelia Cortes-Maramba Department of Pharmacology College of Medicine UP Manila Department of Science and Technology

CASE STUDY 1 Transfer of Technology on Herbal Medicine to Local Pharmaceutical Companies • Funding Institution: • • DOST - PCHRD Historical Experience: • In 1979, PCHRD passed on for free the technologies to the Department of Health – Traditional Medicine Unit’s four (4) herbal processing plants • In 1995, three (3) pharmaceutical companies • To date only one (1) aggressively penetrated the market Department of Science and Technology

CASE STUDY 1 Transfer of Technology on Herbal Medicine to Local Pharmaceutical Companies • Terms: • Five (5) years • Technology Transfer Fee Ph. P 70, 000 for domestic market Ph. P 100, 000 for export market Royalty Two percent (2%) of Gross Domestic Sales Three percent (3%) of Export Domestic Sales Pascual Lab. shall be responsible for the selection, registration and maintenance of all trademarks and trade names • • • Updates: Licensing Agreement renewed for another five (5) years starting 28 December 2000 Department of Science and Technology

CASE STUDY 2 Transfer of Canned Laing to Local Food Processor • Technology: Development of Instant Mixes for Philippine Ethnic Foods • Researchers: • FNRI / DOST • Funding Institutions: • • • PCIERD • FNRI • TAPI IP Protection: None Licensee: Moonbake Department of Science and Technology

CASE STUDY 2 Transfer of Canned Laing to Local Food Processor • • Historical Experience: • Launched in 1999 during the First Asian Ethnic Food Festival • Currently exported to the Middle East, Canada, Taiwan, Australia, Japan and the United States • Developed new variants already Terms: • Three (3) years • Technology transfer fee (Ph. P 40, 000) • Royalty • 3% of gross sales Department of Science and Technology

CASE STUDY 3 Transfer of CNSL-based Chemical Products to Local Trader • • Products: • CNSL-based phenolic adhesive for wood products • CNSL-based resin varnish Researchers: • FPRDI / DOST • Funding Institutions: • • • PCIERD • FPRDI • DOST IP Protection: Patent Pending Licensee: Chiko Lim Department of Science and Technology

CASE STUDY 4 Transfer of Hydrogel to ACTA Internatural Laboratories • Technology: Semi-commercial Production of PVP-Carageenan Hydrogels • Researcher: • • PNRI Funding Institutions: • • • PCASTRD PNRI DOST • IP Protection: Patent Pending • Licensee: ACTA Internatural Laboratories Department of Science and Technology

CASE STUDY 4 Transfer of Hydrogel to ACTA Internatural Laboratories • Terms: • ACTA Internatural Laboratories funded animal testing and BFAD registration • License fee currently being negotiated Department of Science and Technology

IP RELATED ISSUES 1. Low awareness / appreciation of IPR by both the researchers and the private sector • Question on IP protection for government funded researches • Breakdown on negotiations • Ownership of inventions Department of Science and Technology

IP RELATED ISSUES 2. Minimal utilization of IP assets as a tool for technology development and to establish a competitive edge in the global market • DOST IP assets 29, 8 of which obtained only between 2000 -2002 • During the same period, patent applications totaled 30 out of 98 filed since 1988 Department of Science and Technology

IP RELATED ISSUES 3. Absence / lack of appropriate mechanisms to enhance the utilization and commercialization of publicly funded researches 4. Weak / inadequate policies for IP protection and utilization of benefits preventing a more vigorous transfer of technologies from government research organizations Department of Science and Technology

ENABLING POLICIES 1. R. A. 8439 – Magna Carta for Scientists • • • passed 1997 royalty payments consultancy assignment 2. R. A. 7459 – Inventors and Inventiveness Act of the Philippines • • • passed 1993 financial packages (low interest rate) prototyping assistance 3. IPR Protection Assistance Program Department of Science and Technology

ENABLING POLICIES 4. Scientific Career System • patents as part of performance 5. National Science and Technology Plan • • approved 2003 financial incentives for technology acquisition / development 6. Intellectual Property and Technology Transfer Mechanism (IPTM) • • adopted 2002 limited in-house capability Department of Science and Technology

Thank You Department of Science and Technology