Intellectual Property and Commercialization Transfer

Importance of Intellectual Property

Engr. Gladdy Compasan shared to us the importance of Intellectual Property, as well as show us how to utilize it for our startup project.

Innovation is the key driver to country’s economic competence and performance. The Philippines was named one of the top climbers of the decade following the release of the global innovation index of 2023, in which it placed 56 out of 132 economies according to the World Intellectual Property Organization.

The origin of patents dates back to ancient Greece around 500 BC. In the Greek city of Sybaris during 500 BCE, a system was established that offered incentives to individuals discovering new refinements in luxury. Inventors were granted patents for one year, ensuring they enjoyed the profits from their creations. In Europe, Congress passed laws in 1790 to protect new inventions and creative works. These laws granted creators exclusive rights for a limited period, aiming to incentivize innovation in "the useful arts." The intention was to benefit society at large by fostering the development of new technologies and ideas.

The rationale for issuing a patent is to “simulate the inventive genius and entrepreneurial energy of the common man.”

Philosophy of the Value of IP Rights involve the Bargain Theory, where the society give the inventor the exclusive rights to his invention for a limited time; and the Natural Rights Theory where the government’s enforcement of the inventor’s exclusive intellectual property rights for is invention for a limited time.

Republic Act 8293 or the Intellectual Property Code of the Philippines is an act that provides protection and enforcement of the intellectual property. The intellectual property refers to the creations of one’s mind that is used in commerce, this includes one’s ideas, information, and knowledge.

The Intellectual Property System plays a crucial role in harmonizing the interests of innovators with the broader public interest. It creates an environment that fosters the flourishing of creativity and invention for the collective benefit. This equilibrium ensures a balance between the public and the interests of individuals or companies, fostering innovation, creativity, and safeguarding integrity and product positioning.

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Intellectual properties encompass the products of creative thought, including inventions like literary and artistic works, designs, symbols, names, images, and various elements used in commerce. Intellectual property rights pertain to the legal rights connected with tangible assets such as patents, utility models, trade secrets, copyright, industrial and layout designs, trademarks, service marks, and more. Intellectual property represents an asset that individuals can possess, sell, or license, contributing to the enhancement of human well-being.

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An example given is the Coca-Cola product, where the trade secret is the “secret to make soda”, the industrial design like its bottle shape, and the trademark name.

The objective of intellectual property rights is to safeguard, acquire, and manage control over the product

Fundamental principles of Intellectual Property include Territoriality, where IP rights are safeguarded solely within the jurisdiction of registration; Exclusivity, granting patent holders the right to prevent others from making, using, selling, and offering to sell; Limited Rights, as patents have a finite duration and come with certain restrictions; Conditional, where patent rights hinge on meeting specific conditions or criteria during and after registration; and First-to-file, acknowledging the initial applicant as recognized by the law.

RA 8293 Section 35 introduces the Quid Pro Quo Principle, wherein the state provides protection in return for the disclosure of technology, processes, or products to the government. This exchange allows others to use and enhance the knowledge, contributing significantly to progress and development.

According to RA 8293 Article 30, Limited Rights represent exceptions to patent conferred rights. Member states may establish limited exceptions, ensuring they do not unreasonably conflict with the patent's normal exploitation or prejudice the legitimate interests of the patent owner. These exceptions encompass private and non-commercial uses, experimental uses, prior uses, pharmaceutical use, foreign vessel use, government use, regulatory approval, national exhaustion, and (special) compulsory licenses. If you have further questions or need clarification, feel free to ask!

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Intellectual property may be owned either solely by one individual or jointly through partnerships or group ownership arrangements. Examples of the latter include co-inventorship, relationships between inventors and investors, employer-employee connections, and engagements with independent contractors.

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The promises of Intellectual property are the exclusive rights, strong market position, creation of revenue streams, opportunity to license and sell the intellectual property, increase in negotiating power, and boost corporate’s image.

Intellectual Property spurs economic activity by attracting investment, market access of local products to global market, creating new job opportunities and promotion of competitiveness, and facilitate the transfer of technology.

Main findings of Intellectual Property Ownership is that 60% of the large companies own Intellectual Property Rights; the companies have 20% higher revenue per employee, and pay wages 19% higher than other firms.

Strong Intellectual Property Protection and Enforcement are essential to creating jobs and promoting economic prosperity, opening new markets for goods and services, and fostering investment in innovation and development.

Intellectual Property Intensive Industries account for 38% of GDP, 52% of merchandise exports, 27.9 million jobs, and 46% of premium wages.

How do patents drive the industry? By capturing the knowledge component of a product and permit value extraction; this drives patents as a force to encourage innovation. Companies and individuals are motivated to invest time and resources in research and development when they know they can protect and profit from their inventions through patents. This, in turn, fosters a culture of continuous improvement and advancement in various industries.

Business strategy must drive IP Strategy. Intellectual Property Strategy and Business Strategy should be integrated, so that IP reinforces the Business. Intellectual property should be a window into your business future.

Familiarize yourself with your technology and business. Even if you lack a deep understanding of the competitive environment, it's essential to grasp the inner workings of your product and have a clear strategy for generating revenue.

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It is important to know what Intellectual Property is; you get to know your rights as the creator of the intellectual property and protect against infringement; you also get to know the right of others on their Intellectual Property and to build a Culture of Respect on it; you also get to be a part of the whole-of-society approach in creating a stronger and effective IP system in the Philippines.

According to Marshall Phelps of Microsoft, few if any companies today can hold all the pieces of their own product technology… they simply must collaborate with others if they want to survive and prosper… Intellectual Property has become much more of a bridge to collaboration.

If you've recently started utilizing your Intellectual Property, consider these initial strategies for Intellectual Property Protection:

Collaborate with an IP Agent or Expert – Many new businesses lack in-house expertise in managing Intellectual Property.
Identify your IP – Locate every potential asset within your company that you may want to protect.
Research your IP – Check whether your invention has already been patented.
Choose your IP Battles – Determine what aspects are worth protecting and which ones could be safeguarded.
Avoid Facilitating Public Disclosure – Refrain from sharing enough information about your product publicly that would allow someone to replicate it.

In conclusion, one should learn about how Patenting and Intellectual Property works by asking for advice, conducting research, and profit from your product or service by utilizing the mechanics of Intellectual Property.

Technology Transfer and Commercialization

The director of Technology Promotions and CommercializationOffice (TCPO) of USTP CDO Venessa Adalin-Garcia presents us the Technology Transfer and Commercialization of USTP Technologies.

Flight MH370, A Malaysia Airlines Boeing 777 en route from Kuala Lumpur to Beijing, lost contact with Malaysian Air Traffic Control less than an hour after taking off. The plane’s passenger list said the flight was carrying 227 passengers and 12 crew members. The cause of crash remained unclear, but due to false passports, intelligence agencies were examining the possibility of a connection to terrorism, and there were no reports of bad weather in the area. It is said that these are one of the planes that got lost within the Bermuda Triangle.

Technology Transfer is the process of transferring technology from the person or organization that owns or holds the technology to another person or organization, this is discussed in RA 10055 or the Technology Transfer Act of 2009. This is a law that aims to promote and facilitate the transfer, dissemination, and effective use of scientific and technological knowledge and information. The law encourages collaboration between the government, academe, and industry to accelerate the development and adoption of technologies for national development.

Key provisions of RA 10055 include the establishment of mechanisms for the efficient transfer of technologies from research institutions to the industry, the creation of the Technology Transfer Council, and the encouragement of intellectual property protection and commercialization of technologies.

The law recognizes the importance of technology transfer in fostering innovation, economic growth, and global competitiveness. It provides a framework to enhance the utilization of research and development outputs for the benefit of society and the economy.

Technology transfer is a strategic process that aims to leverage and disseminate technological knowledge for the benefit of society, the economy, and national development. It provides a legal framework to guide and facilitate collaboration between various stakeholders involved in the transfer of technology.

The statement “formula” above gives us the understanding of innovation process.

Invention represents the creation of new ideas, products, processes, or technologies. Invention involves the generation of novel concepts or solutions that did not exist before. Exploitation refers to the practical application and commercialization of the inventions. It involves taking the newly created ideas or technologies and putting them to use in the market or society. Innovation goes beyond the mere creation of something new (invention) and encompasses the effective implementation, adoption, and utilization of these creations to bring about positive change, improvement, or value.

This emphasizes that true innovation requires not only the generation of novel ideas or inventions (the creative aspect) but also their successful implementation, commercialization, and practical use (the exploitative aspect).

The graph presented illustrates the transitional gap known as the "valley of death," depicting the evolution of resources from both Academic Support and Industrial Support over time.

In the realm of academic innovation, individuals whose products or services are promoted will be established and will be provided with Academic Support Resources for a specified duration to enhance their startup. Given the limited timeframe, the entrepreneurs are required to actively contribute to the progress of their startup before exhausting the resources given by the university; these resources are used for research and development. Upon approval, ongoing support is then provided in the form of Industry Resources, this will help the startup launch its product or service for market use and provide profit, thus ensuring the sustained operation and development of the startup.

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The statement refers to the concept of an "Innovation Ecosystem," which is a collaborative and interconnected network involving various entities that play crucial roles in fostering and supporting innovation.

Academic institutions are integral components of the innovation ecosystem. They contribute by conducting research, generating new knowledge, and educating students who may later become innovators. Universities often serve as hubs for creativity and the development of new ideas.

The private sector, including industries and businesses, plays a vital role in innovation. Industries are often responsible for translating research and ideas into practical applications, bringing products and services to the market. Collaboration between academia and industry is essential for successful innovation.

Financial support is crucial for bringing innovative ideas to fruition. Investment and funding sources, such as venture capitalists, angel investors, or government grants, provide the necessary capital for research, development, and the commercialization of innovative projects.

Government entities play a role in shaping the environment for innovation through policies, regulations, and funding initiatives. They may provide support for research and development, create favorable conditions for businesses, and implement policies that encourage innovation.

Organizations outside the government and private sector, such as non-profits or research institutions, can also contribute to the innovation ecosystem. They may offer support, resources, or advocacy for specific areas of innovation that align with their missions.

The Innovation Ecosystem emphasizes the interconnectedness and collaboration among these diverse entities. A well-functioning ecosystem encourages the flow of knowledge, resources, and support among universities, industries, funding sources, government agencies, and non-governmental organizations, fostering an environment conducive to innovation and technological advancement.

Technology Transfer Offices (TTOs) are crucial entities established within universities to oversee the management of intellectual property (IP) assets and facilitate the transfer of knowledge and technology to industry. The primary objectives of TTOs include the development and implementation of strategies to foster innovation and entrepreneurship, the acceleration of revenue generation, effective resource management, and the optimization of outputs from vibrant research and strengthened extension services. These offices play a pivotal role in strengthening partnerships and collaboration among various stakeholders, contributing significantly to the university's impact on industry and society.

Commercialization is the strategic and systematic process through which technologies, innovations, or intellectual property are transformed into marketable products, services, or ventures with the ultimate goal of generating income or profit. This multifaceted process involves several key approaches: licensing, which involves granting permission to another party to use, produce, or sell a particular technology, product, or intellectual property, granting the creator royalties or fees in return for granting these rights; spin-off ventures, which is a process where a new, independent entity is created to develop, market, and commercialize a specific technology or innovation; outright selling, where the creator or owner sells the rights to the technology or intellectual property to another entity; and joint ventures, which involve collaboration between two or more entities to develop and commercialize a technology, this allows for the sharing of resources, risks, and rewards.

This structured approach to commercialization involves careful assessment, strategic planning, and collaboration with key stakeholders that involves investors and Technology Commercialization Committee which helps the inventor process their Intellectual Property Protection and Commercialization Analysis to successfully bring the invention to the market through the established external companies or nurturing startups with coaching.

The process starts with creation of invention or intellectual property, which could be a product or innovation that is developed through research and development; then the assessment of the product's potential value and determination of protection strategy (can the product be patented or copyrighted?); once the product is protected, the Technology Commercialization Committee, along with investors, assess the potential of the invention and its viability of commercialization; and then conducting a thorough analysis and assessment of market and business opportunities, which involves identifying and understanding the target market and competitors, and assessment of demand for the innovation; then developing commercialization strategy with investors who help support the product by funding and other commercialization process, helping the product go up to the market; finally going into collaboration with an external company that may take over the commercialization efforts through licensing or acquisition, or the creation of startups that go through incubation and coaching processes where the owners of the product receive support, mentorship, and resources to establish and grow their startup business.

The Process Flow of Technology Transfer is a systematic journey encompassing several critical stages.

Firstly, the process begins with Technology Assessment, which evaluates the technology readiness level, manufacturing readiness level, and investment readiness level.

Subsequently, Intellectual Property Protection becomes a focal point, involving crucial steps such as Invention Disclosure, Patent Search, and Patent Draft to secure and safeguard innovative ideas.

The third stage, Licensing, is a pivotal aspect, incorporating IP evaluation, considerations of IP ownership and grants, delineation of territory, licensing and royalty fee agreements, provisions for the return of rights, and stipulations related to research and publishing rights.

The final phase involves Monitoring, where diligent oversight is exercised through performance appraisal, product quality monitoring, and the review of audited financial reports.

This comprehensive approach ensures a well-structured and thorough process for the transfer of technology, covering assessment, protection, licensing, and ongoing monitoring of the transferred technology's performance and impact.

The Process Flow of Technology Transfer commences with the crucial steps of Technology Disclosure and engaging in meetings with potential investors and researchers. Upon satisfying the necessary requirements, the process advances to the Protection of Intellectual Property stage, involving tasks such as Conducting Readiness Level assessments, developing comprehensive Technology Profiles, and actively seeking potential Commercialization Partners. If an interested party, termed the Adopter, is identified for the intellectual property, the process proceeds with further stages. This includes the development of a thorough Technology Valuation, collaborative meetings with the Adopter, inspection of facility size to ensure compatibility, and culminates in the formal signing of a Licensing Agreement for the technology. Conversely, if an Adopter is not found, the process pivots towards exploring opportunities with investors or researchers to further develop and potentially refine the technology, fostering ongoing engagement and collaboration in the pursuit of successful technology transfer.

The Technology Promotions and Commercialization Office (TPCO) serves as the interface between the technology developed in the university and what the industry and the community demand; forging partnerships and nourishing relationship-building resulting in life-changing innovations, and enhanced productivity, and ingenious discoveries. The core services of the TPCO include proteciton and promotion of University of Science and Technology of Southern Philippines' (USTP) Intellectual Property Assets, development of the technologies' business plans and market of potential, and facilitating the transfer of technology.