Section 18Sec./Art. 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