Prof. Dr. Habip ASAN President Turkish Patent and Trademark Office Ideas to Assets: Driving the Future Economy with Intellectual Property

Content General Overview Legislation Regarding IP Assets Recent Developments What TURKPATENT Does?

Turkey – Overview 80 million population $857.7 billion GDP 17th largest economy Average 5% growth rate in the last 15 years 1.06% of GDP for R&D expenditures (Target 3% in 2023) 183 universities, more than 600 R&D centers 123,000 R&D staff (FTE) Party to WTO and TRIPs since 1995 Party to EPC since 2000

Turkey – Rankings in IPR & Innovation World Intellectual Property Indicators 2015 9th in terms of resident IP filing activity by origin 11th in terms of total (resident and abroad) IP filing activity Global Innovation Index 2017 65th in 2011, 43rd in 2017 5th among the upper middle income countries 9th in the whole world in terms of the efficiency ratio

Turkey – National Applications

Legislation Regarding IP Assets R&D Incentives: Law No 5746 (2008) Incentives for R&D centers: expenditures, staff and equipment Tax Incentives: Law No 6518 (2015) Similar to patent box regime Tax exemption for commercialized patents Valid for income arising from the inventions as a result of innovative activities performed in Turkey patented by TURKPATENT IP Assets as Commodity: Law No 6750 (2017) IP assets can be used for trade exchange as commodity as loan collateral Increase in financial inclusion Law No 5746 brings about a significant support for R&D centers, for their equipment purchases and the expenditures for qualified R&D staff In addition to previous laws for supporting R&D directly, with Law No 6518: Invention arising as a result of R&D, innovation and software activities realised in Turkey and is patented or utility model certified Licence, patent, adaptation, development, revision, deployment and plug-in derived from the software or products developed as a result of the research and development activities in technology development zones

Recent Developments Turkish Patent and Trademark Office has been appointed as ISA/IPEA for PCT applications in 2016. New IPR Law No 6769 Entered into force on January 10th, 2017 Enhance the quality of the IP system Better harmonization with the international and EU agreements Improve the institutional capacity of the Office Combine the IPR legislations in one single law instead of previous Decree Laws Establishment of IP Academy Implementing Regulations of IPR Law No 6769 Entered into force on April 24th, 2017 Implementing Regulations on Employee Inventions, University Inventions and Inventions Arising from State Funded Projects Entered into force on September 29th, 2017

New IPR Law No 6769 Ownership of inventions by the universities: What has been introduced for better commercialization of IP assets? Department of Innovation and Promotion Valuation of IP assets Mediation for technology transfer and commercialization of IP assets Turkish Version of Bayh-Dole Act Ownership of inventions originating from universities are now given to the universities Inventions Arising from State Funded Projects Public institutions have the right to use the state funded inventions to meet their own needs without paying any royalties Ownership of inventions by the universities: Strengthening the university/TTOs as an IP owner increase the probability of commercialization with the help of the higher potential of TTOs to meet the industry mitigating the workload of the academician

University Innovation Cycle Invention Obligation of notification to the university Demand for ownership by the unviersity Patent application Commercialization of the invention by the university Income generated by the invention Academician Ownership of inventions by the universities: Strengthening the university/TTOs as an IP owner increase the probability of commercialization with the help of the higher potential of TTOs to meet the industry mitigating the workload of the academician

Employee Inventions Service Inventions vs. Free Inventions Obligations of parties: Employee’s Obligation: to notify the invention to his employer immediately Employer’s Obligation: to apply for patent Reasonable compensation to the employee Implementing Regulations on Employee Inventions, entered into force on September 29th, 2017 Compensation tariff pertaining to employee's invention and the arbitration procedure Remuneration of employee inventions Systematic and objective assessment method: commercial applicability of the service invention, the duties and position of the employee in the enterprise, and the enterprise’s contribution to the invention Service Inventions; an invention made during the term of employment resulted from the employee’s tasks or essentially based upon the experience or activities of the enterprise Free invention; an invention which is not service invention

What TURKPATENT Does? Technology Transfer Platform Online platform for investors and inventors Licensing & Transferring In & Out Technology partners Publications Similar to Asia Intellectual Property Exchange (AsiaIPEX) www.teknolojitransferi.gov.tr As a result of the Decrees of Supreme Council for Science and Technology, Technology Transfer Platform was enacted as of February 2015 by TurkPatent. It is a free service to provide an environment to match the inventors and the investors. You can both offer your patents and designs to be licensed and look for patent holders for your projects. There are more than 1000 licensing offers and more than 700 technology partners as of today

What TURKPATENT Does? Cooperation with BIST (Istanbul Stock Exchange) IP exchange market under BIST To enhance the investment and liquidity opportunities without going public Over-the-counter negotiation platform for the seller and the buyer Technology offers & demands Secure “interview rooms” www.bistozelpazar.com

What TURKPATENT Does? A Draft Project: IPRs as Intangibles in the Accounting Records

THANK YOU! habip.asan@turkpatent.gov.tr www.turkpatent.gov.tr