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16th January, 2007
Dear Mr.
Prime Minister,
The National Knowledge Commission while deliberating on issues
related to the creation and application of knowledge recognizes the need to
provide impetus to government funded research and to translate this knowledge
into relevant and useful applications to benefit the widest cross-section of
people. Our consultation with diverse stakeholders has revealed that there is
a need to provide incentives to increase innovations, collaborations,
licensing and commercialization.
It is therefore recommended to enact legislation that creates
a uniform legal framework for the government funded research and gives
universities and research institutions ownership and patent rights. This will
create an enabling environment for them to commercialize such inventions
through licensing arrangements where inventors would also be allowed to
receive a share of the royalty. Conferring ownership rights on universities
and linking such ownership with the patent system and the market, will make
research more attractive and in the process bring about a radical change in
the research landscape in India. The proposed enactment could also incorporate
important safeguards for exceptional circumstances where the government could
be given ‘march in rights’ to protect the public good.
Uniformity of policy for inventions generated out of
government-funded research will provide incentives to various stakeholders as
follows:
- GOVERNMENT:
The government could retain the right to a non-exclusive, nontransferable,
irrevocable paid up license to practice the invention throughout the world. It
could also have the responsibility and power to monitor the implementation of
the act by a provision that requires concerned parties to report to the
government on an annual basis on matters pertaining to utilization of the
invention. Since the patent applications would be filed and owned by the
relevant institutions, the government would be spared from bearing the costs
of filing applications. The government could also be given the right to own
the invention where the party decides not to retain title or fails to file the
requisite patent application. Finally, ‘march in rights’ accorded to the
government in certain situations involving the public good as well as
exceptions for circumstances involving,
inter alia, national security and defence imperatives would help
assuage fears on the same.
- UNIVERSITIES/R&D:
For universities and research institutions, revenue generating incentives lie
in ownership and control over the fruits of research generated out of
government funds. This should encourage filing patents in their own name and
entering into commercialization processes with industry. Further, the
inventor, through profit sharing of royalties from licenses, would also get
rewarded accordingly. The proposed enactment could also provide that the
balance of any royalties or income earned after payment of expenses, be
ploughed back for scientific research and education.
- INDUSTRY:
A higher degree of industry participation in university research will result
due to clear legal title, a uniform legal regime for all government funded
research, commercial gain through collaborative arrangements, opportunities to
obtain exclusive licenses and new businesses opportunities for the new
inventions.
- PEOPLE:
Finally, the taxpayer, whose resources are used in government funding of
research, will also get the benefit of inventions, in the form of products and
services once they are commercialized and made available in the market
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