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Subject: Policies and Guidelines on Intellectual Page 1 of 12 pages

Property and Intellectual Property Rights Number 0.13 , Series of 2021

Date Issued: Effectivity: Supersedes:

March 11, 2021 Immediately N/A

In the interest of the service, the following policies and guidelines shall govern the use,
management, and protection of the intellectual properties of the Technical Education and
Skills Development Authority (TESDA), its employees, trainers, trainees/learners, and other
persons or entities.

Section I. Background/Rationale

Section 14 of Republic Act No. 7796 (RA No. 7796), otherwise known as the Technical
Education and Skills Development Act of 1994 [hereafter referred to as "TESDA Act"],
provides that TESDA shall serve as the research and development arm of the government
in the field of technical-vocational education and training. It behooves TESDA to conduct
research studies and develop information systems for effective and efficient planning and
policy-making within the sector.

In support of this role, TESDA issued TESDA Circular No. 048 s. 2017, "Guidelines on the
Implementation of the National Technical Education and Skills Development Research
Agenda (NTRA 2017-2022)" to generate new knowledge in the identified priority research
areas that are focused on issues relevant to the technical vocational education and training
(TVET) sector. In addition, the NTRA provides funding support to TESDA offices, TESDA
Technology Institutions, and for other researchers which/who will embark on policy research
that have implications on TVET policy environment and decision making, and technology
research that will eventually lead to innovation and development of solutions that can aid
TVET instructional delivery.

Republic Act No. 8293, as amended by Republic Act No. 10372, otherwise known as the
Intellectual Property Code of the Philippines, [hereafter referred to as "IP Code"] provides
for protection and security to the exclusive rights of scientists, creators, artists and other
gifted citizens for their intellectual property/ies and creations, particularly when beneficial to
the people, for certain periods. Further, the said law laid down the rules on patentable
inventions, registrability of marks and copyrightable works, as well as the ownership thereof
upon the registration of the same.
Likewise, the Philippine Technology Transfer Act of 2009 or Republic Act No. 10055
provides for the framework and support system for the ownership, management, use, and
commercialization of intellectual property generated from research and development funded
by the government and for other purposes. It recognizes that science, technology, and
innovation are essential for national development and progress. It, therefore, prioritizes the
utilization of research and development, invention, and innovation. Further, it encourages
all stakeholders in policy-making, related to science and technology, to participate
systematically in the transfer and utilization of intellectual property, especially for the general
public.
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Property and Intellectual Property Rights Number 0.73 , Series of 2021

Date Issued: Effectivity: Supersedes:

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To encourage the culture of research and innovation within TESDA, it is imperative that
TESDA provides an environment that will recognize the creators of IP. The necessary
Policies and Guidelines are, therefore, hereby established to provide a mechanism for the
protection of the intellectual property of the agency and its employees and other entities
interacting with TESDA.
Section II. Declaration of Policies

A. TESDA acknowledges the imperative of providing an environment that promotes and

encourages excellence, creativity, and innovation in research and other scholarly
works by identifying and protecting the rights of the agency, its employees, trainers,
trainees/learners, and other entities that TESDA engages with.

B. TESDA shall provide a mechanism to protect the exclusive rights of both TESDA and
the creator of intellectual properties in order to facilitate the transfer of technology,
through training, research, and development.

C. In the creation of intellectual properties within the agency, TESDA shall ensure the
protection and recognition of the contribution of its employees and other persons or
entities dealing with it.

D. TESDA shall establish: (1) a mechanism that provides clear policies and guidelines
in identifying the rightful owners of intellectual properties developed within TESDA;
(2) a management unit that will oversee the implementation of these policies and
guidelines; (3) a mechanism for sharing royalty that may accrue from the
commercialization of the creations developed within TESDA; (4) a committee that will
resolve intellectual property right disputes that may arise in the implementation of
these policies and guidelines; and, (5) a mechanism for the provision of rewards and
incentives to encourage the creation of intellectual properties.

Section III. Definition of Terms

A. Collaborative Undertaking — refers to works undertaken by TESDA in collaboration

with an entity whether as an individual or as an institution not of TESDA.

B. Commissioned Works — refers to works that are created for a specific project or
purpose under the direction and control of TESDA.1

C. Confidential Information - refers to any information not publicly available that has
socio-economic value and which the creator or inventor has taken reasonable efforts
to keep confidential. It includes but is not limited to: Invention description(s), technical
and business information relating to proprietary ideas, inventions, trade secrets,

1 RA No. 8293, as amended

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drawings and/or illustrations, patent searches, existing and/or contemplated products

and services, research and development, production, non-public financial
projections, customers, marketing, and current or future TESDA plans and models,
regardless of whether such information is designated as "Confidential Information" at
the time of its disclosure.

D. Copyright — refers to the right granted by a statute to the proprietor of a literary,

artistic, or scientific work to its exclusive use and enjoyment to the extent specified in
the statute.2

E. Copyrightable Works — refer to all literary and artistic works, derivative works, and
published edition of works defined in Sections 172 —174 of the IP Code, as amended,
including researches, teaching or training materials or modules, regardless of the
format in which it was created or produced, and technology and policy researches.

F. Creator — as used in this Policy, refers to any person who creates, conceives, reduces
to practice, or otherwise makes a significant/substantive intellectual contribution to
the creation of Intellectual Property.

G. Employee — refers to a probationary, regular, casual, part time or full-time employee,

who receives salary or compensation from TESDA based on employee-employer
relationship.

H. Externally Funded Undertaking — refers to works undertaken by TESDA but funded

by an external funding entity such as but not limited to domestic or foreign entities.

I. Independent Contractor - refers to an entity engaged by TESDA to perform work or

services through a contracting arrangement, without any employee-employer
relationship. This includes contracts of service and job order personnel of TESDA
duly licensed and/or recognized by the appropriate government agency.

J. Intellectual property (IP) — refers to the term used to describe intangible assets
resulting from the creative work of an individual or organization. It also refers to
creations of the mind such as inventions, literary and artistic works, and symbols,
names, and images used in commerce3

K. Intellectual Property Rights — consist of copyright and related rights, trademarks and
service marks, geographic indications, industrial designs, patents, layout designs
(topographies) of integrated circuits, protection of undisclosed information,4 including
utility models.

2 Memorandum Circular No. 2020-025, Revised Rules on Copyright Registration, IPO

3 RA 10055 - Philippine Technology Transfer Act of 2009
4 RA No. 8293, as amended
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Property and Intellectual Property Rights Number cas , Series of 2021

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L. Licensing agreement — refers to an agreement executed between the owner,

assignee, transferor, or duly authorized representative of the foregoing of intellectual
property rights granting the license privileges, whether for a fixed period/duration or
in perpetuity such as but not limited to the authority to exploit, make, use, sell, copy,
display, distribute, and modify the works upon terms and conditions mutually agreed
upon by the parties.

M. Mark — refers to any visible sign capable of distinguishing the goods (trademark) or
services (service mark) of an enterprise and shall include a stamped or marked
container of goods as defined under the IP Code, as amended, and other related
laws.5

N. Patent — refers to a government-issued grant, bestowing an exclusive right of the

creator(s) over a product or process that provides any technical solution to a problem
in any field of human activity that is new, inventive, and industrially applicable. It is
an exclusive right that allows the creator(s) to exclude others from making, using, or
selling the product of his invention during the life of the patent as defined in the IP
Code, as amended.6 The intellectual property developed within TESDA may include,
but is not limited to, industrial and training equipment, learning systems and
simulators, and devices that are new and have industrial applicability.

0. Patentable inventions — refers to any technical solution of a problem in any field of

human activity that is new, involves an inventive or innovative step, and is industrially
applicable. It may be or may relate to a product, a process, or an improvement of
any of the foregoings

P. Regular Duties of TESDA Employee — refers to the prescribed roles and duties
performed on a regular basis as indicated in the job description of a TESDA official
and employee and/or the regular duties assigned by a superior as part of the
employee's regular workload.

Q. Revenue - refers to all monetary and non-monetary benefits derived as a result of the
development, production, transfer, use, and/or commercialization of IPRs, including
income from assignments and royalties from licenses.

R. Royalty — refers to payments for the right to use or to exploit intellectual property (IP),
such as copyrights, patents, and licenses.7

5 Sec. 38, R.A. No. 166a, RA No. 8293, as amended

6 intellectua! Property office of the Philippines, httpsIliwww.ipophil.gov.phiservicesipatenti
7 Murray 2020. https://www.thebalancesmb.com/what-are-royalties-how-they-work-4142673
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Property and Intellectual Property Rights Number 0 23 , Series of 2021

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S. Substantial Use - refers to when: (1) TESDA funds were used to specifically support
the development of the Intellectual Property; (2) The work could not have been
developed or created without using the facilities or resources of TESDA; or (3) Use
of resources of TESDA that are not ordinarily available to most TESDA employees,
trainers, and trainees/learners such as, but not limited to laboratories, equipment,
and technical computer software.

T. Trainee - refers to persons who are participants in vocational, administrative, or

technical training programs for the purpose of acquiring and developing job-related
skills.8 Trainee can also be interchangeably referred to as learners.

U. Trainer - refers to persons who direct the practice of skills towards immediate
improvement in some task.9

V. Work - refers to any kind of intellectual property and for this Policy, can be
interchangeably referred to as creation.

In all items not defined in this section, the TESDA Act, the IP Code, as amended, and the
Technology Transfer Act shall have suppletory application.

Section IV. Coverage

These policies and guidelines shall apply to all TESDA officials, employees, trainers,
trainees/learners, and any person/s who participate, use, are involved in the management
of research and/or in creative activities pursuant to any program, project, and/or grant,
under the auspices of TESDA. This also includes but is not limited to, independent
contractors as defined herein and such other persons or entities who will transact with
TESDA relative to the latter's intellectual properties. The policies cover all kinds of
intellectual property rights such as, but not limited to, the IP Code, as amended, its
implementing rules and regulations (IRR), RA No. 10055 and other related issuances.
Section V. Governance and Operations

From the issuance of this Policy, there shall be created an Intellectual Property
Management Unit (IPMU) whose main tasks are to promote awareness, administer the
policies on the creation, innovation, ownership, licensing, monitoring, evaluation,
governance, and management of the intellectual properties of TESDA, its officials,
employees, trainers, trainees/learners, and independent contractors. Upon effectivity of this
Policy, the IPMU shall forthwith formulate the Implementing Guidelines (IG). The IPMU shall
also have the mandate to recommend the adoption of a reward system for creators/authors
of works to encourage innovation and creativity of the employees of TESDA.

8 Section 4, Definition of Terms, RA 7796/TESDA Act of 1994

9 Section 4, Definition of Terms, RA 7796/TESDA Act of 1994
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Property and Intellectual Property Rights Number op , Series of 2021

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All Executive and Regional Offices shall, within the same period, designate a representative
who shall serve as the focal person of their respective offices and coordinate IP related
activities and matters.

The Director-General of TESDA shall organize the Intellectual Property Committee on the
Resolution of Dispute (IP-CoRD) to administer and formulate policies on the methods of
alternative dispute resolution and assist in the resolution of intellectual property rights
disputes as covered by this Policy.

In the settlement of Intellectual Property Disputes, conflicts pertaining to patents, marks,

copyrights, and other related rights shall be resolved through any modes of alternative
dispute resolution such as but not limited to amicable settlement, mediation, and arbitration
to be facilitated or administered by TESDA's IP-CoRD. In case of failure of parties to
amicably settle any dispute, claim, controversy, or disagreement arising out of or in
connection with intellectual property, the same shall be resolved or adjudicated in
accordance with the provisions of Republic Act 9285 otherwise known as the Alternative
Dispute Resolution Act of 2004 or the pertinent provisions of Executive Order 292, otherwise
known as the Administrative Code, as may be applicable.

Section VI. Guidelines on Patents

A. Creations Covered

All patentable creations as defined in the IP Code, as amended, shall be covered by

the policies on patents.

B. Patent Ownership

1. The right to a patent belongs to the creator, his/her heirs, or assigns unless
otherwise provided by law.

2. TESDA shall have the right to a patent over inventions made and developed
by its employees or other persons or entities provided that any of the following
conditions shall exist:

a. The creation was a result of the performance of the regular duties of

TESDA employees.

b. The creation made substantial use of TESDA resources.

c. The contract specifically indicates that the right to a patent belongs to

TESDA;
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d. TESDA commissioned and funded the invention including works for

hire;

e. In cases of non-employees such as consultants, specialists, advisers,

experts, or independent contractors, as long as it is within the scope of
the services for which they are engaged unless there is a stipulation to
the contrary; and

f. The patent rights were assigned by the creator to TESDA.

3. TESDA shall own the rights to all IPs that may be generated by its employees,
trainers, and trainees/learners, subject to certain conditions prescribed by law.
It shall also own the rights to the IP that may be generated from externally
funded research or from collaborative engagement with external entities,
subject to the stipulations in the funding agreement or collaboration
agreement.

4. In the event that an invention or discovery proceeded from externally funded

undertakings between TESDA and another person or entity, the stipulations
made in the contract relating to the right to the patent shall prevail over this
policy, subject to applicable laws.

Section VII. Guidelines on Copyright

A. Policy on Copyright

1. No copyright shall subsist in any work of TESDA created by an officer or

employee thereof as a part of his or her regularly prescribed official duties.

2. While TESDA does not own the copyright to a work of any of its officers or
employees when such work was created as a part of the regularly prescribed
official duties of the latter, TESDA is not precluded from holding or exercising
proprietary rights over the work against any party.

B. Copyright Ownership

Works created by a TESDA employee or for TESDA by a non-TESDA employee,

copyright shall subsists in the following works

1. Works that are not part of the regularly prescribed official duties of a
government employee;
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2. Works made for TESDA by an individual who is not an employee of the

agency. This includes works created by Independent Contractors or non-
employees unless otherwise stipulated in the latter's Agreement with TESDA.

3. In the event that a work is created from externally funded undertakings

between TESDA and another person or entity, the stipulations made in the
contract/agreement relating to the right to copyright shall prevail over this
policy, subject to applicable laws.

C. Permission, when required

Any natural or juridical person, association, entity, or institution may use and exploit
the works of TESDA without prejudice to TESDA imposing certain conditions
including payments whenever necessary, and provided, that prior approval of TESDA
is obtained in any of the following instances:

1. Wherein the work is created for exploitation or profit

2. In case of works jointly owned by TESDA and other persons where its use is
intended for profit; Provided, that prior approval of the co-owner is secured in
writing.

3. Where the government is the transferee of copyright through assignment,

bequest, or otherwise.

D. TESDA as Assignee

Nothing in this Policy shall preclude TESDA from receiving and holding copyright/s
transferred to it by assignment, bequest, or otherwise, in accordance with the
provisions of Chapter VII of the IP Code, as amended.

Section VIII. Guidelines on Trade and Service Marks

A. TESDA exclusively owns all marks, whether or not registered, such as trademarks,
service marks, logos, symbols, and other marks that it currently uses and distributes
in relation to its products or services, including all those that it may use and distribute
in the future.

B. All marks attributed to TESDA can only be used by other entities through an issuance
or written permission by TESDA.
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C. In collaborative and externally funded works, TESDA's marks shall not appear in the
products or services without written permission from TESDA; Provided, further, that
in the event that written permission is secured from TESDA, the mark shall not be
removed or be altered, or otherwise concealed or modified, from the said products or
services without prior written permission from TESDA.

D. The IP-MU shall have the sole authority to recommend to the Director General and/or
the TESDA Board, as applicable, to engage in or approve the use, licensing,
maintenance, development, design, marketing, or sale of merchandise/product with
registered marks/logos of TESDA. It shall also be in charge of the registration,
maintenance, and the conduct of other necessary activities necessary to protect the
marks of the Agency.

Section IX. Common Provisions

A. Transfer/Waiver of Ownership of Intellectual Property Rights of TESDA

1. In terms of assignment of intellectual property rights to TESDA,

notwithstanding any provision in this Policy to the contrary, any person or
entity may transfer the right to a patent, copyright, and mark in favor of TESDA,
subject to applicable laws, rules, and regulations.

2. The Director-General shall approve the contract involving any transfer/waiver

of rights, subject to ratification of the TESDA Board.

3. Upon approval of the Director-General and subject to ratification of the TESDA

Board, TESDA, may at any time, abandon its intellectual property rights.

B. Disclosure of Information

1. All persons covered by these policies shall not divulge any Confidential
information arising from research, patentable inventions, trade secrets,
copyrightable works, or other related information that are necessary for the
protection of the intellectual properties of TESDA. In case of doubt as to the
nature of the Confidential Information, the party concerned should secure a
clearance from TESDA before divulging any information.

2. All operating units are required to promptly disclose to the Director-General

through the IPMU all research, patentable inventions, trade secrets,
copyrightable works, or other related information in which TESDA has or may
have an ownership or interest that are not yet protected. Provided that both
the creators and IPMU shall take all steps to ensure the confidentiality and
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security of such disclosure. Provided further that should IPMU validate that the
disclosed IP is indeed patentable, that it shall forthwith recommend to the
Director General that TESDA immediately initiate protection procedures and
that TESDA shall waste no time to lodge the IP for patent protection.

C. Use and Exploitation of Intellectual Property Rights of TESDA

1. TESDA shall observe the provisions of the IP Code, as amended, and other
applicable laws, rules, and regulations in the use and exploitation of
Intellectual Property and Intellectual Property Rights.

2. TESDA shall at all times, observe its mandate and ensure reasonableness in
its use, licensing, and distribution of intellectual property/intellectual property
rights.

3. In the event of a request for use by a third party of any of TESDA's intellectual
property, TESDA shall exercise reasonable discretion in granting or denying
the same. In granting such request, the same may impose reasonable royalty
or licensing fee, or otherwise, for the use and exploitation of its works_

4. The entity granted with license shall not use the marks of TESDA without
written permission from TESDA. Provided further that in the event that written
permission is secured from TESDA, the mark shall not be removed or be
altered, or otherwise concealed, altered, or modified without prior written
permission from TESDA.

5. Conditions of use shall only pertain to the purpose indicated in the application.
Anything contrary to that stated will be deemed a violation of the agreement
and will result, ipso facto, in the revocation of the said agreement.

6. The use of works by TESDA and its employees shall always comply with the
provisions of IP Code, as amended, and, if applicable, be consistent with fair
use. To be compliant, the use of the works must follow two (2) overriding
principles of fair use: (a) Purpose; and, (b) substantiality. Hence, the use of a
copyrighted material for academic research, for example, may be permitted
relative to the extent to which the material is reproduced.

Section X. Commercialization, Royalties and Revenue Sharing

Revenues accruing from the commercialization of intellectual property may be shared

among the creators. Further, it must be in accordance with the mutual agreement of the
parties provided that if applicable, the provisions of Republic Act 8439, or the Magna Carta
for Scientists, Engineers, Researchers, and other Science and Technology Personnel, and
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Property and Intellectual Property Rights Number 023, Series of 2021

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Republic Act No. 10055 or the Philippine Technology Transfer Act of 2009 and their
implementing rules and regulations and other related laws shall prevail.

A. By and large, and unless the contrary is provided for in applicable laws or in this
Policy, TESDA shall own all intellectual property created by its employees.
Consequently, the right to initiate commercialization shall belong solely to TESDA for
Intellectual Property and Intellectual Property Rights in its name.

B. Commercialization modes that TESDA may pursue may include but not limited to
licensing, assignment, spin-off, and joint venture.

C. All expenses incurred by TESDA in the development, protection, and

commercialization of the intellectual property, which may include, filing and
maintenance fees, taxes, and other costs shall be computed, the total amount of
which shall be deducted from the total revenue.

D. In cases of works originating from an external funding agreement, the provisions of

such agreement shall govern the sharing of revenue and expenses, provided the
same is not contrary to existing laws governing the same.

E. The IP Policy sought to be established herein prescribed a revenue sharing scheme

sanctioned by law. Hence, TESDA, in addition to the foregoing and upon mutual
agreement of parties, shall determine the share of the royalty it will assign to the
creators, the operating unit from which the patentable and copyrightable creations
originated, and to include the TESDA Development Fund (TDF).

F. Shares from the royalty generated from a commercialized IP asset shall be payable
to the creator(s) or his/her/their heir(s) or successor/s-in-interest even after
retirement of said creator/s, or termination of employment or contract of service with
TESDA, subject to the following conditions: 1) That the rights of the subject IP still
exist or remain valid; 2) That the IP continues to earn income streams; and 3) That
the creator/s has/have not been dismissed from service due to a violation of any of
the provisions of this IP Policy.
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Section XI. Sanctions

Any violation of this Policy shall be dealt with accordingly.

Section XII. Amendment

This Policy shall be reviewed regularly by the IPMU. For this purpose, the IPMU may
recommend amendments to the Director General and/or the TESDA Board, as applicable.

Section XIII. Effectivity

This Policy shall be effective immediately upon dissemination of its copies to all employees
and relevant units of TESDA.

v
SEC. ISdRYS.LAPENA, PhP, CSEE
Director General