Government Scientific and Technological Research and Development Results Ownership and Utilization Regulations

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=H0160037

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Article 1


These regulations have been drafted in accordance with Article 6, Paragraph 3 of the Fundamental Science and Technology Act (henceforth "this Act").


Article 2


Definitions of terms used in these regulations:
1. Scientific and technological research and development results (henceforth "R&D results"): Intellectual property rights and results derived from scientific and technological research and development projects funded, commissioned, or invested from the scientific and technological project budget of a government agency (organization).
2. Funding agency: Any government agency (organization) that enters into scientific and technological research and development project contracts with R&D implementing units via a funding, commissioning, or investing approach.
3. R&D implementing unit: Any public school, public research agency (organization), government-operated enterprise, juristic person or organization that implements scientific and technological R&D projects.
4. Income derived from R&D results: All licensing fees, royalties, purchase fees, equity, or other rights and interests derived from management and utilization of R&D results by the funding agency or R&D implementing unit.


Article 3


Where the funding agency funds, commissions, invests fund or a public research agency (organization) duly provides R&D budgets for science and technology R&D, the results so yielded through such R&D efforts belong to the R&D implementing unit unless the funding agency officially recognizes that the results should belong to the nation. Income derived from R&D results shall be handled as specified in Articles 10 through 12.
Regarding the ownership, management and utilization of the relevant R&D results mentioned in the preceding paragraph, the funding agency and the R&D implementing unit should expressly specify in writing upon execution of the contract.


Article 4


The funding agency shall enjoy non-exclusive right of implementation without compensation of the R&D implementing unit’s R&D results within and outside the territory of the ROC. If, however, the funding agency's amount of funding, payment, or investment is less than 50% of the total project funding, the two parties shall negotiate implementation.
The above rights may not be transferred to a third party.


Article 5


Where the R&D results are obtained by the funding agency or the R&D implementing unit in accordance with Article 3, Paragraph 1, such the funding agency or R&D implementing unit shall assume the responsibility for management & utilization and shall duly set up sound managerial mechanism for the R&D results to manage and utilize the R&D results owned by them.
The term “management & utilization of the R&D results” as set forth in the preceding paragraph includes all such acts to apply for and assure all rights at home and abroad, licensing, transfer, gaining the benefits, avoidance from presence (recusal) and divulgence of the relevant information and data, mandate, trust, litigation or all other acts which might be linked up with management or utilization of the R&D results.
The managerial mechanism mentioned in Paragraph 1 includes management by the designated unit, maintenance & management, management on utilization, avoidance from conflict of interests, divulgence of information and accounting process. The term “avoidance from presence (recusal) and divulgence of the relevant information and data” as set forth herein includes the purposes, applicable targets, scope of application, matters which should be declared or divulged, procedures for review and mechanism to report.


Article 6


When transferring R&D results owned by a R&D implementing unit to a third party, the transfer shall, unless otherwise provided by law or contract, be approved by the funding agency.
R&D results owned by a funding agency may be transferred to a third party.


Article 7


If the intellectual property rights owned by a funding agency or R&D implementing unit do not possess utilizable value, and have not been transferred to any other party, the payment of annual fees and other maintenance expenses may be stopped.


Article 8


With regard to the management and utilization responsibilities specified in Article 5, Paragraph 1, the transfer or licensing of R&D results must comply with the following requirements. Likewise in the case of re-transferal or sub-licensing. If R&D results are managed or utilized in some other manner that conforms to the goals and intents of this Act, the below requirements do not apply.
1. It must be done in a fair, open, and compensated manner.
2. It must target public schools, public research agencies (organizations), government-operated enterprises, and juristic persons or organizations.
3. Manufacturing or use must be take place within the national territory.


Article 9


In the case of R&D results owned by a R&D implementing unit, and upon one of the conditions described below, the funding agency may ask the R&D implementing unit or R&D results transferee to license a third party to implement the R&D results, or may declare the R&D results national property when necessary:
1. The R&D implementing unit, R&D results transferee, or exclusive licensee has not effectively utilized the R&D result within a reasonable time period and does not have appropriate reasons.
2. The R&D implementing unit, R&D results transferee, or exclusive licensee has implemented the R&D results in a manner that hinders environmental protection, public safety, or public health.
3. To advance significant interests of the nation.
The third party that is licensed as specified above must pay reasonable compensation to the licensing party.
In the event the funding agency licenses a third party for implementation or declares national property in accordance with this Article, the procedures and key points connected with the exercise of these rights must be specified in written contractual form when establishing a contract.


Article 10


Income obtained by a R&D implementing unit through the management or utilization of R&D results must be handled in the following manner. If, however, the funding agency has reached a contractual agreement with the R&D implementing unit specifying different percentages or exemption from payment, and the agreement conforms to the goals and intents of this Act, the below requirements shall not apply.
1. If the R&D implementing unit is a public school, private school, or public research agency (organization), it must pay 20% of income derived from R&D results to the funding agency.
2. In the case of other R&D implementing units, 40% of income derived from R&D results must be paid to the funding agency.
If, however, the funding agency's funding, payment, or investment is less than 50% of total project funding, the percentages of income must paid to the funding agency in the preceding paragraph, the funding agency and R&D implementing unit may negotiate a different contractual agreement or exemption from payment.
Income paid to the funding agency as specified in the above two items may take the form of licensing fees, royalties, purchase fees, equity, or other rights and interests.


Article 11


If the R&D implementing unit bears responsibility for management and utilization of R&D results, a certain percentage of income derived from management and utilization must be allotted to the inventor. If the funding agency bears responsibility for management and utilization, a certain percentage must be allotted to the inventor and to the R&D implementing unit.


Article 12


The R&D implementing unit may keep and use any income derived from R&D results after the amount due to the funding agency and inventor has been subtracted. This requirement does not apply, however, when otherwise stipulated in law.


Article 13


The stipulations of Article 5 and Article 8 are applicable to the management, utilization, transferal, or licensing of R&D results derived from scientific and technological R&D projects conducted independently by public schools and public research agencies (organizations).


Article 14


These regulations are applicable to the ownership, management, and utilization of R&D results derived from scientific and technological R&D projects funded, commissioned, or invested by government agencies (organizations) from their non-scientific and technological budgets.


Article 15


These regulations came into force when promulgated.