Patent Facilitating Fund Created
All those Indian technical, scientific, or academic establishments where research work is carried out through funding by the central or state government will have to save 25 per cent of its earnings, arising from commercialisation its patents, into a Patent Facilitating Fund (PFF).
The fund will be utilised by the institution for updating innovations, filing new patent applications, protecting their rights against infringements, creating awareness and building competency on IPR and related issues.
Issued in concurrence of the Department of Expenditure, ministry of finance, these new instructions and policy guidelines are issued by the Department of Science and Technology.
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According to these instructions while an institution should take necessary steps to commercially exploit its patent on exclusive/non-exclusive basis, it is also permitted to retain these benefits and earnings.
The institution is also permitted to share earnings out of an Intellectual Property Right (IPR) with its inventor.
However, such share is limited to one-third of the actual earnings. In case of an IPR generated through joint research by institutions and industrial concerns can be owned jointly by them as may be mutually agreed to by them.
The partners can even transfer the technology to a third party for its commercialisation. However, the third party, exclusively licensed to market the innovation in India, must manufacture the product in India.
The joint owners are also allowed to share the benefits and earnings out of commercial exploitation of the IPR.