LEADERS of the science community in the Philippines, led by the Department of Science and Technology (DOST), lauded the recent signing of the Philippine Technology Transfer Act of 2009, saying the new law would hasten the process of technology commercialization and broaden the scope of protection of intellectual-property rights in government research-and-development institutions (RDIs).

“We are optimistic that this new law, a landmark policy on technology transfer, will revolutionize the commercialization of technologies generated by researches funded by taxpayers’ money,” Science Secretary Estrella Alabastro said.

“The whole science community is overwhelmed with this development,” Alabastro added.

President Arroyo signed Republic Act 10055 (An Act Providing the Framework and Support System for the Ownership, Management, Use, and Commercialization of Intellectual Property Generated from Research and Development Funded by Government and for Other Purposes), or simply the Philippine Technology Transfer Act of 2009, on March 23 at the Malacañang Palace.

The bill seeks to commercialize technologies generated by government-funded researches.

A DOST document said the initiative was deemed necessary because the current system of technology transfer is characterized by a lack of well-defined and unifying policy on technology transfer; insufficient investment in technology transfer and commercialization; weak private-public collaboration in R&D and commercialization; and lack of well-defined IP regimes in R&D institutions.

Such conditions have resulted in a low rate of patent application in the country. Despite the enactment of the IP Code in 1998, RDIs still lack well-defined IP policies and support systems for protecting and utilizing their IPs.

At present, the number of technologies developed by local researchers and protected under the patent system is alarmingly low, the DOST said.

IP Philippines data showed that of the 2,972 total patent applications in 2005, only 210 were by local researchers. From this number, only 15 local patents were granted, and only one patent was granted for an RDI, courtesy of the International Rice Research Institute, the document said.

In 2006, of the 1,215 patents granted, only 24 were local patents, with only one patent from RDIs on the sambong herbs of DOST. The same trend was seen in 2007 wherein of 1,814 patents granted, 28 were made by local researcher-applicants, with only one from an RDI of DOST.

This situation resulted in a relatively slow pace of introduction of locally developed innovations to the market, as seen in the 2009-2010 results of the Global Competitiveness Surveys where the Philippines ranked the lowest at 87 compared with Singapore (3), Malaysia (24), Thailand (36), Indonesia (54) and Vietnam (75) in the global competitiveness ranking.

The law was a brainchild of Secretary Alabastro, who expressed optimism on its merit in taking technologies to the market, as well as preventing brain drain and the outmigration of science-and-technology professionals, and encouraging students to pursue R&D studies.

A key provision in the law provides incentives to researchers by according them a share in the royalties, as well as allowing them put up their own start-up companies.

“It has been my advocacy to have a technology-transfer law that will harmonize and integrate all efforts in technology transfer in the country. I believe that this is the best way to facilitate the transfer of our technologies from the laboratories to the market. In fact, the Medium-Term Philippine Development Plan recognizes the need for a facilitating mechanism to improve access to technologies,” she said.

Alabastro recognized the need for a national backbone and framework that would push technology generation and application to its maximum potential through efficient and coordinated transfer capability and intellectual-property assertions around the country, similar to the Bayh-Dole Act in the US.

She thanked President Arroyo and Congress for taking into account such a much-needed legislation for the science and technology sector.

“For the longest time, we relied mostly on breakthroughs from outside, while our local technologies generated through public funds remain untapped or being archived in laboratories around the country. Hence, this is a significant break for us to roll them out to the market and be availed by the public,” she added.

Once in place, the new law is expected to provide the mechanism to allow important technologies to be commercialized and be made available to the public.

View related article:
New law to grant incentives to R&D

View SEARCA BIC Press Release:
New tech-transfer law may hasten biotech commercialization in the Philippines