1. o UTLINE… Publicly financed research: policy issues around IPR
2004/2005
2005/2006
2006/2007
Publicly financed research: policy issues around IPR
DST
Presentation to the Portfolio Committee
7 September 2004
2004/2005
2005/2006
2006/2007 o
UTLINE…

2. B ackground National R&D Strategy (approved July 2002)
Section 7.6 considers intellectual property issues
Public discourse has increased
Intellectual Capital Forum
SARIMA
Framework under development for policy

3. G lobal “re-investment” in S&T
1980s: Efficiency - science systems must become more productive and connected – linear “output” model (the customer era): IPR focused on customer requirements
1990s: National systems of innovation essential to sustainable economic growth – multiple sources of value, leads to increased investment mainly human capital and innovation (the stakeholder era): IPR seen more holistically
2000s: S&T a basis for regional performance, e.g. ERA, Euro-Med, North America (the geo-political era): IPR seen as a competitive advantage

4. G lobal context IPR dynamics are changing
Feature of the knowledge economy
Increased “intangible” content in patents
Patents and life forms, genetics and bioresources
Patents and software, business methods, etc
Geopolitical issues I (WIPO, WTO, etc)
Geopolitical issues II (poverty and IPR)
Geopolitical issues III (a global patent system?)

5. (Improvement and Innovation)
National R&D Strategy Indicator Framework
Future R&D Capacity
Technical progress
(Improvement and Innovation)
SET Human
Capital
Business Performance
Current R&D Capacity
Wealth Creation
Imported Know-how
Quality of Life

6. Public Financing Domain Business performance Technical progress
Quality of life
IPR Domain
Wealth Creation
Public Financing Domain
Business performance
Technical progress
(Improvement and Innovation)
SET Human Capital
Imported know-how
Current R&D Capacity
Future R&D capacity
National R&D Strategy

7. Technology Achievement Index: Component view
Source:UNDP 2001

10. Life Sciences Patenting South African Inventors
Source: CBI

11. A
pproach
Consistent approach required to ensure protection of intellectual property developed with public financing
Frameworks and legislation benchmarked against good practice globally and contextualised for national and regional efficacy
Key functions identified and responsibilities allocated

12. Responsibilities in SA
Patents, copyright, designs, trademarks (legislation) and international negotiations: DTI
Public financing approach for research: DST (consults DTI and DoE)
Plant breeders rights (NDA)
IPR and indigenous knowledge (DST lead with dti, DoH, NDA, DEAT, DoE)

13. Approach: National R&D Strategy
It should be legislated;
It should draw on the enabling frameworks of global best practice;
It should not place South African institutions at a disadvantage relative to international practice;
It should create a context for benefit sharing by inventors and innovators;
The obligation of institutions to protect intellectual property developed from publicly financed research should be established;[continues]

14. Approach: National R&D strategy (continued)
The right of the state to acquire the right to use such IP in the public interest should be established;
An acceptable framework for the sale of rights should be established including the conditions under which the rights can be acquired internationally;
There should be powers granted to make regulations in respect of recognition of inventors, designers and authors who develop intellectual property when financed with public funds in respect of benefit sharing by institutions;
Institutional practices in respect of benefit sharing, invention disclosure and minimum standards for institutional intellectual property management, should be standardised.

15. Approach: Current interventions
Innovation Fund (IFCO):
“wholesale” joint financing of patent costs
IPR services for IF, SMMEs and BEEs
Training and capacity development
Policy engagement:
Intellectual Capital Forum (NACI)
SARIMA
Framework for publicly financed IPR under development
Ongoing consultation with stakeholders

16. Policy Issues under Discussion
Intellectual property should be secured on the outputs of publicly financed research
Preference for non-exclusive licensing
Preference for local licensing
Preference for SMMEs and BEEs as licensors
Benefit sharing with inventors defined

17. Policy Issues Under Discussion
Government to have walk-in rights on IP in the national interest – free licence
Government could secure IP if institution does not
Obligations and benefits to accrue to the institution that is publicly financed
Revenue to institutions will grow but it is not expected to be a major source of finance at the system level

18. Issues under discussion
Agency
An agency (or agencies) for managing the disclosure process and for reporting may be required
Employees, students, contactors
An obligation to disclose potential IP developed in the course of publicly financed research could be established

19. Objectives of proposed policy
Clarity, transparency and consistency will lead to enhanced activity
Obligations and benefits are linked
Individuals and institutions have defined rights
Revenue opportunities for institutions
Government has defined relationship to innovators and institutions it finances

20. Global Practice Developed country approaches Economies in transition
Developing world

21. Thank you