Susan D. Villanueva Senior Partner, CVCLAW Philippines 13 November 2011

Filings by Philippine Inventors Invention Patent filings by local inventors or entities have not increased –3,224 out of 3,391 (about 95%) patent applications filed in the Philippines in 2010 were filed by foreign industrial property owners. Only 5% were filed by local inventors or entities (data from Intellectual Property Philippines Annual Report 2010, page 76.) –Philippine filings accounted for 20 PCT International Phase filings worldwide in out of 2,828 PCT National Phase entries in 2008 (data from 2009 PCT International Patent System Yearly Review [ 09.pdf] visited on 25 October 2011)

Filings by Philippine Inventors However, utility model and industrial design filings by local inventors are higher than filings by foreign inventors and designers. (Statistical Report [ viewed on 24 October 2011.)

Government is still the driver of Philippine R & D 75% of R & D funding comes from government while only 25% come from the private sector.

a.knowledge centers: research is intrinsic part of academic life b.center of R & D activity i. Government channels R & D funds to state universities and research institutes ii. As of 2002, R & D expenditures by universities, both public and private, amounted to P762.5 million Philippine Universities are IP generators:

c.have human resource with specialized knowledge i. 4,096 R & D Personnel in Universities (2002 DOST Data) as compared to 242 in the private sector ii. 3,516 scientists and engineers in Universities as compared to 131 in the private sector (2002 DOST Data) iii. Of the 66 Ph.d holders in physics in the Philippines, 52 are with the academe [Dr. Cesar Saloma, Physics in the Philippines Today, at 4 p17p20.pdf visited on March 7, 2008] Philippine Universities are IP generators:

 34 state funded universities and 77 state colleges  1,349 private universities and colleges  However, only a few have strong R & D Centers: University of the Philippines, UST, Ateneo, De La Salle, TUP, MIT, Mariano Marcos Memorial State University, Mariano Marcos State University, Bulacan State University, Mindanao- State-Iligan Institute of Technology, Leyte State University, San Carlos University, PUP, Adamson University [Tansinsin, Lydia G., Development of University-Industry Partnerships for the Promotion of Innovation and Transfer of Technology: Philippines] Philippine Universities and Colleges

a.DOST data does not measure income from University R & D: it only measures expenditures and personnel b. Few industry-university linkages c.No commercialization of university funded research One Measure: Number of patents applied for by Universities remains unsubstantial. The non- utilization of the patent system by universities makes it appear that innovation is not occurring in the Philippine academe The Universities’ Contribution to Development

patents are registered and approved under the university while 32 inventions and 5 utility models are pending registration patent applications were filed patent applications were filed patent applications were filed patent applications were filed with Phil IPO (including PCT applications) [Tansinsin, Lydia G., Development of University-Industry Partnerships for the Promotion of Innovation and Transfer of Technology: Philippines]

a.National Research Council of the Philippines has a portfolio of basic R & D outputs that are waiting to be transformed into marketable products i. Antidiarrhea capsule made from lagundi extracts ii. Antitumor medicine from bataw seed lectin iii. Improved artificial insemination process to increase swine production iv. Cross breeding technique to improve the breed of Philippine Carabao v. Software for grassland ecosystem management [R.P. Scientists: Support “lab to market” Scheme at visited on March 7, 2008] Innovations Are Happening But Commercialization is Wanting

Reorientation Recognizing that IP is an asset which should be maximized to benefit the university or institute Basic research as against applied research Different incentives: From “publish or perish” to “publish and/or patent or perish” No exposure to IP: increased awareness Lack of infrastructure to pursue IP protection and commercialization Lack of policy: relationship between university and professors, inventors, researchers, students, research assistants

Addressing the Challenges Establishing an IP policy to establish transparent and predictable rules to establish incentives, govern relationship between the stakeholders, and to streamline decision making Setting up infrastructure/services that would allow the university or institute and other stakeholders to protect and commercialize R & D

Technology Transfer Act of 2009 Makes Government Funding Agencies and R&D Institutions partners in promoting innovation Provides incentives to R&D Institutions –Own the IP rights –Share in the revenue Provides incentives to researchers –Share in the revenue depending on contract –Active participation in the commercialization of the IPRs, e.g., Spin-off firms

Making the Patent System Accessible IPO Programs –Free Basic IP Courses –Patent Drafting Seminars –Patent Agent Qualifying Exam (PAQE) administered in cooperation with the European Patent Office (EPO) –Innovation & Technology Support Offices (ITSO) Project DOST Programs –The Technology Application and Promotion Institute (TAPI) created by virtue of Executive Order No. 128 on 30 January 1987, is one of DOST's service agencies whose primary responsibility is to promote the commercialization of technologies and market the services of other operating units of the Department. –On 28 April 1992, TAPI's function was expanded by virtue of RA 7459 otherwise known as the "Inventors and Invention Incentives Act of the Philippines". Among others, TAPI administers the Invention Development Assistance Fund for the initial experiments and prototype development and other invention-development related activities.

ITSO Project 31 Host Institutions including 26 Universities and 6 Support Institutions in various regions nationwide Access to patent libraries ITSO personnel are being trained by the IPO to facilitate access to global patent information and to promote home-grown innovations –Patent searching skills –Patent drafting and prosecution skills Provide support for IP management and commercialization

TAPI Programs Academe/Industry Prototype Development Assistance Program - provides financial support for the fabrication and testing of commercial prototypes in order to shorten the interval between the development stage and actual use of available technologies. DOST Expositions and Fairs Program - serves as an excellent platform for the multisectoral dissemination, sharing and exchange of scientific and technological ideas and information including recognition for exhibits and exhibit materials such as product/technology displays, publications, and other promotional items. Investors’ Forum Program - seeks to convert technology-based opportunities into actual business investments by bringing together technology generators and potential investors to discuss possible new business ventures. DOST Technology Training Center (DTTC) Program - is envisioned to expedite technology transfer in the country by providing financial assistance in the preparation and conduct of technology training courses, development of training modules and production of self-learning videos on specific DOST technologies for the benefit of entrepreneurs, technical personnel from industries, inventors, educators and trainers.

TAPI Programs Intellectual Property Rights (IPR) Assistance Program - provides assistance to Filipino inventors in securing intellectual property protection for their inventions and utility models. The assistance covers advisory/consultancy services and funding support for fees attendant to the preparation, filing and prosecution of applications for patent and utility model registration. Industry-based Invention Development (IBID) Program - funds inventions that have industrial application. It is implemented through a partnership between the inventor and a private enterprise. In this collaboration, the private firm finances the fabrication of one prototype of the invention that will undergo testing, debugging, and refining while it is being run in an actual industrial environment. Invention Testing and Analysis Assistance Program - grants up to 50,000-peso fund to technologists, inventors and researchers to cover cost of laboratory services, analyses and performance testing available at the DOST, its R&D Institutes and regional offices, as well as other government agencies equipped with laboratory and testing facilities. National Invention Contest and Exhibits (NICE) - provides support to Filipino Inventors by bringing their inventions/innovations for public and potential investors’ appreciation and possible commercialization prospects. It serves as venue to stimulate and encourage inventiveness and ingenuity of the Filipino youth and other interested sectors of society. The main feature of the celebration is the National Invention Contest wherein talented Filipinos compete for awards and prizes in the six categories – the Outstanding Invention (Tuklas Award), Outstanding Utility Model, Outstanding Industrial Design, Outstanding Creative Research (Likha Award); and Outstanding Student Creative Research (Sibol Award) for High School and College Levels.

TAPI Programs Invention Guarantee Fund (IGF) - is another program for Filipino inventors who need help in jump-starting the commercial production of their patented inventions. IGF guarantees the loans of inventors provided by the government bank. The fund is now deposited at the Land Bank of the Philippines. Inventors’ Forum and the Inventors’ Consultation Program - are two avenues by which inventors can interact with other experts on various aspects of their inventions. –One is through the Forum, wherein technology experts from DOST, government agencies, private sector and fellow inventors are invited to become panelists who shall evaluate, share ideas, or clarify some issues or problems that the inventors raise regarding their invention. This exchange provides a platform for product development and collaboration among the forum participants. –The Consultation Program on the other hand, serves as a feedback mechanism for TAPI to know the various issues affecting inventors nationwide. The program carries out regional consultations, often dealing with industry problems; likely collaboration with the industry, academe and government organizations; and nature, procedure and range of assistance which can be extended to the inventors. Inventors Training and Invent School Programs –The Inventors’ Training program subsidizes costs for training that are designed to strengthen inventors’ competence in the areas of Intellectual Property Protection, business policies and operations, Manufacturing, Research and Development (R&D), and Information Technology. –The Invent School Program (ISP) designed mainly for the youth, creates awareness on Intellectual Property Protection and encourages creativity and innovation among students in public and private.

SUSAN D. VILLANUEVA Senior Partner CVCLAW CENTER 11 th Avenue corner 39 th Street Bonifacio Global City 1634 Taguig City, Metro Manila, Philippines Tel. No.: Fax No.: Mobile No.: