Guidelines for the Implementation of Industry Based Invention Development (IBID) Assistance Program

December 2017

TAPI ADMINISTRATIVE ORDER NO. 295-17

 

1.0 BACKGROUND

The Department of Science and Technology through the Technology Application and Promotion Institute (TAPI) implements the Republic Act No. 7459 otherwise known as "Inventors and Invention Incentives Act of the Philippines" which provides various assistance to Filipino Inventors. In recognition of the indispensability and ingenuity of the Filipino Inventors in the development of technology, TAPI implements a program for the development of the invention through the fabrication of a commercial prototype.

2.0 PROGRAM DESCRIPTION

The Program involves technical and financial assistance for the fabrication of a commercial prototype model for initial commercialization of inventions. The assistance shall include the following:

a. Provision of technical assistance for the fabrication of a commercial prototype in collaboration with experts from the industry, DOST-RDIs and SUCs/HEIs; and

b. Provision of financial assistance for the fabrication of a commercial model of the invention to cover raw materials and labor expenses for the testing, debugging and other refinements of the invention as places in a real working environment.

3.0 PROGRAM OBJECTIVES

The Program aims to:

3.1 Encourage the development of new and working technologies by providing technical and financial assistance in the fabrication of a commercial prototype;

3.2 Hasten technology transfer of inventor-generated technologies;

3.3 Address gaps that inhibit the translation of invention into economic and social benefits;

3.4 Promote the utilization of a locally developed technologies and innovations.

4.0 DEFINITION OF TERMS

4.1 Commercialization refers to the final stage of product development where the decision to enter a full-scale production and product launching is made. This phase takes into consideration the manufacturing, distribution, marketing, sales and customer support components;

4.2 Commercial Prototype refers to a model wherein development efforts of the machine/equipment is designed, built and tested by one or more test customers in actual field conditions;

4.3 Commercial Sale refers to the definition by the Bureau of Internal Revenue (BIR) per Revenue Regulations No. 19-93 that is the sales of goods and services pertaining to the invention exceeding P200,000.00 during any twelve (12)-month period; CAIHTE

4.4 Delinquent Account refers to non-compliance of requirements as agreed in the Memorandum of Agreement and unpaid financial obligations on the predetermined due date and is unpaid for extensive periods;

4.5 Financial Grant refers to the funds provided to the proponent on a particular project for a specified period that does not require repayment;

4.6 Industrial Designs may be three-dimensional features, such as the shape of the surface of an article, or of two-dimensional features, such as patterns, lines or color. Industrial designs are applied to a wide-variety of products of industry and handicraft: from technical and medical instruments to watches, jewelry and other luxury items; from housewares and electrical appliances to vehicles; from textile designs to leisure goods. An industrial design is non-functional; it is primarily of an aesthetic nature and any technical features of which it is applied are not protected (source: www.ipophl.gov.ph);

4.7 Inter-Agency Technical Evaluation Committee (IATEC) composed of experts from the DOST, other departments such as the Department of Energy (DOE), Department of Health (DOH), Intellectual Property Office of the Philippines (IPOPHL), academe, industry or organizations whose technical expertise and/or background is relevant to the request;

4.8 Invention refers to any patented machine, product, process including implements or tools and other related gadgets of invention that has a patent certificate or at least with pending application to the Intellectual Property Office of the Philippines;

4.9 Inventor/Maker/Proponent refers to the person or a juridical entity that prepares and submits proposals for technical or financial assistance for the fabrication of a crude working or commercial prototype;

4.10 Inventor's Forum an avenue for inventors to present their ideas/concepts to a selected group of technical and economic panel of consultants/experts who could help provide directions for the revision and/or improvement of the concept. The inventor may be requesting for assistance for the fabrication of a crude working prototype;

4.11 Line-Item Budget refers to the detailed breakdown of financial assistance requested including the counterpart of the proponent;

4.12 Payment Restructuring refers to the modified plan of payment or schedule of payment on a periodic basis;

4.13 Project Completion refers to the completion of the fabrication of invention, submission of required documents as stipulated in the Memorandum of Agreement and 100% return of the financial assistance;

4.14 Proponent refers to person, private entity or agency that prepares and submits project proposals for TAPI's assistance. They shall exert all necessary efforts to attain objectives specified in the approved project proposal;

4.15 Successful Beneficiary refers to any person or juridical entity assisted by TAPI in the development and commercialization of the invention that has commercial sale of the invention and has fully refunded the total financial assistance;

4.16 Utility Model may be a useful machine, implement, tools, product, composition, process, improvement or part of the same that is of practical utility, novelty and industrial applicability. A utility model is entitled to seven (7) years of protection from the date of filing with no possibility of renewal (source: www.ipophil.gov.ph);

4.17 Working Prototype refers to first unit(s) of a product/device/machine or preliminary version of the technology or innovative idea that can clearly demonstrate the value and functionality of the concept. Working prototypes are tested so that the design or working parameters can be changed if necessary prior to commercial production or fabrication.

5.0 PROGRAM COVERAGE

The Program shall provide technical and financial support to Filipino Inventors for the fabrication of a commercial prototype of an invention:

5.1 The fabrication cost of one (1) unit of the invention amounting to P200,000 or less shall be in the form of grant. The making or using of invention was not conducted for profit and solely for the purpose of demonstration, presentation/introduction to the market/user, or for instruction.

5.2 For the invention that requires more investment, the financial assistance shall be returned to TAPI in three (3) years with six (6) months grace period following the repayment schedule agreed upon by TAPI and the proponent. The assistance shall cover the fabrication cost of one or two units of the commercial prototype model either for field or market testing to determine its market acceptability when placed in a real working environment.

6.0 ELIGIBILITY

6.1 The proponent shall satisfy the following to be eligible for assistance:

a.) The inventor must be a Filipino citizen permanently residing in the Philippines or at least willing to permanently reside in the Philippines for the next five (5) years;

b.) He/She must be of good moral character or has not been convicted of any case involving moral turpitude;

c.) He/She must be in good health and not more than 65 years old. However, inventor over 65 years old should assign a co-project implementor with equal responsibility of the project;

d.) Must have no outstanding obligation with TAPI, DOST and its attached agencies and other government institutions. Outstanding obligation refers to an overdue obligation that is not fully settled or cleared with the FAD of TAPI;

e.) For juridical entity, it must be Filipino-owned and registered in the Philippines and has secured a deed of assignment of patent/UM registration.

6.2 The proponent shall comply/submit the following requirements:

a.) Application letter addressed to TAPI Director;

b.) Valid government ID;

c.) Availability of a crude working prototype;

d.) Project Proposal following the prescribed format;

e.) Endorsement letter from DOST Regional Office incl. RTEC report, if applicable;

f.) Deed of assignment of patent/UM registration to juridical company or RDIs or academic institutions, if applicable;

g.) Letters Patent or pending patent application or on-going IPRAP assistance, if applicable;

h.) Personal bio-data if individual; brief company profile if a juridical entity;

i.) Assigned co-implementor for inventors over 65 years old, if applicable;

j.) Business registration papers, if applicable;

k.) Additional requirement may be requested depending on the nature of the project and capability of the proponent.

7.0 CRITERIA FOR EVALUATION

The invention shall be evaluated based on the following criteria:

7.1 Technical Viability

a. Technical soundness of the invention — workability, sustainability of materials, availability and cost of fabrication, significant improvements, performance efficiency, etc.;

b. Availability of a working model;

c. Has completed the R&D stage;

d. Advanced features of the invention over existing same product/invention.

7.2 Market Potential

a. Presence and capability of the user/partner that is willing to adopt the project;

b. Price point advantage; and

c. Potential market.

7.3 Compliance to any regulatory bodies i.e., DENR, FDA, LTO, etc., environmental and/or any applicable laws and standards, if applicable;

7.4 Socio-economic benefits, if applicable.

8.0 PROGRAM IMPLEMENTATION PROCEDURES

8.1 Proponent submits proposal to the Office of the Director (OD). The OD forwards the request to the Invention Development Division (IDD) for action;

8.2 The Program Manager checks the completeness of the submitted documents based on Item 6.2 under ELIGIBILITY;

8.3 TAPI forms Technical Evaluation Committee (TEC) to evaluate the request. TAPI may form an Inter-Agency Technical Evaluation Committee (IATEC) depending on the nature of the proposal and expertise needed;

8.4 If the submitted documents are not complete, the proponent is requested to submit the lacking requirements within forty-five (45) calendar days. If no written response is received within the period, the proposal is considered withdrawn without prejudicial to reapply;

8.5 If the documents are complete, the Program Manager acknowledges the submission of the documents;

8.6 The TEC conducts initial evaluation of the project. A site visit/validation will be conducted in the proponent's facility or supplier/partner-fabricator/adoptor of the proponent for validation and verification of the information indicated in the proposal;

8.7 If the proposal is favorably considered by the TEC, the Program Manager prepares the consolidated inputs of TEC and presents to TAPI Executive Committee (EXECOM) for consideration;

8.8 If the project is approved, the Program Manager informs the proponent and invites him/her for a MOA orientation. If the project is not approved, the Program Manager also informs the proponent thru a letter and requests to submit the additional requirements;

8.9 A Memorandum of Agreement (MOA) among TAPI, the proponent and the DOST Regional Office if applicable, shall be executed. The terms and conditions concerning the both party's obligations, project monitoring, review, assessment and completion shall be stipulated in the MOA;

8.10 Once signed and all the documentary requirements are completed, the financial assistance will be released to the inventor;

8.11 For financial assistance with repayment, post-dated checks (PDCs) must be issued by the proponent. Upon receipt of PDCs, PM acknowledges receipt and forwards all PDCs to the Cashier;

8.12 Any request for restructuring/rescheduling of financial assistance/refund may be considered by TAPI EXECOM based on the recommendation of the Program Manager and IDD Chief;

8.13 A Certificate of Ownership of the prototype and Certificate of Full Refund of financial assistance shall be awarded to the inventor upon project completion;

8.14 The project shall be terminated based on TAPI's approved guidelines for termination and/or any applicable laws and rules for project termination.

9.0 APPLICABILITY

Other provisions stated in the DOST-GIA guidelines that was not included in these guidelines but applicable as the case may be.

10.0 EFFECTIVITY

This Order shall take effect fifteen (15) days after its publication in the Official Gazette or newspaper of general circulation superseding the previous IBID guidelines.

Taguig City, Philippines, December 2017. DETACa

(SGD.) EDGAR I. GARCIADirector