Section 8Sec./Art. 8

Rights and Responsibilities of the RDIs. - The following are the rights and responsibilities of the RDIs that availed of research funds from GFAs:

(a)Identify, protect, and manage the IPs generated from R&D funded by the GFA and pursue commercial exploitation diligently as a required performance stipulated in the research funding agreement and as allowed by this Act and other applicable laws.

In case of commercialization by public RDIs, it shall, subject to existing laws requiring transparency and accountability, the COA Rules and Regulations and as required under Article IX, Section 20 of this Act, be allowed to directly negotiate agreements for the commercialization of IPs: Provided, That it shall obtain a written recommendation from the Secretary of the DOST and secure a fairness opinion report from an independent third party body composed of experts from the public and private sectors as may be determined by the DOST.

The fairness opinion report shall contain a statement expressing the opinion of the body as to the fairness to the RDI of the proposed transaction, particularly its financial terms. The report shall include, but must not be limited to, the provisions in Section 7(d), Paragraph 2: Provided, however, That it shall not be precluded from resorting to other modes of commercialization as allowed by all applicable laws.

The responsibility of the RDI to protect any potential IPRs shall also apply in the event that the RDI elects to recover ownership of the potential IPRs that have been vested in the GFA under Section 7 of this Act;

(b)Provide a means for addressing any shortfall of its performance in utilizing and commercializing the IP;

(c)Notify the GFA within a reasonable time of all I PR applications, licenses and assignments made. All applications for IP protection shall disclose any biodiversity and genetic resource, traditional knowledge, and indigenous knowledge, systems and practices as these terms are defined in Republic Act No. 8371 or the Indigenous Peoples Rights Act and Republic Act No. 9147 or The Wildlife Act;

(d)Report annually to the GFA on the progress of IP and/or IPR commercialization efforts and of all agreements entered and licenses granted;

(e)Keep account of revenues and payments to the GFA if required in the research funding agreement;

(f)Ensure that they have access to the skills and management capability to effectively perform their responsibilities of owning, managing, and exploiting the IP or IPRs. Smaller RDIs that may need external advice are encouraged to pool and share resources;

(g)Accord their staff with incentives consistent with existing laws to sustain efforts in identifying valuable IP and in pursuing IP commercialization;

(h)Be authorized, within a reasonable time, to keep confidential from the public any document or information relating to potential IPRs that are not yet fully protected by law;

(i)Make a confidential disclosure to the GFA, within a reasonable time, of any potential IPRs with possibilities for commercialization and/or technology transfer. In case of failure to disclose any such potential IPRs, Section 6 of this Act shall apply;

(j)Inform the GFA of any agreement pertaining to the research funded by the GFA and entered into by the RDI with any other entity or person. Failure to comply with the duty to inform shall render the agreement invalid as against the GFA, but in no case shall it prejudice any right of the GFA as provided in this Act; and

(k)When necessary, create and establish spin-off companies to pursue commercialization subject to their respective mandates as allowed by law.

ARTICLE IV

MANAGEMENT OF IPS FROM R&D PERFORMED BY GOVERNMENT RDIS THROUGH THEIR OWN BUDGET