September 2014

TAPI ADMINISTRATIVE ORDER NO. 158-14

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

1.0 Background

The Department of Science and Technology through the Technology Application and Promotion Institute (TAPI) was tasked to implement "which provides assistance to Filipino

2.0 Program Description

The Program involves technical and financial assistance for the development and initial commercialization of inventions. The assistance shall include fabrication of the commercial prototype model of the invention for the testing, debugging and other refinements of the invention as placed in a real working environment. The assistance provided shall bridge the gap from the fabrication of commercial prototype up to initial commercialization.

3.0 Program Objectives

The Program aims to:

3.1 Encourage

3.2 Hasten technology transfer of inventor-generated technologies; and

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

4.0 Definition of Terms

The terms used in this Guidelines can be referred to the DOST-Grant-in-Aids Guidelines per DOST Administrative Order No. 006 Series of 2004 and and Annex A of this Guidelines for other operative definition of terms.

5.0 Program Coverage

The Program shall provide financial support to Filipino

5.1 The fabrication cost of one (1) unit of the invention amounting to P100,000 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 Program Requirements

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

a) The inventor must be a Filipino citizen.

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

c) The inventor over 60 years old should assign a co-project implementor with equal responsibility of the project.

d) He/She has no delinquent account with 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.

f) For government or private academic and R&D institutions, they must be willing to return TAPI's assistance.

g) The invention is already patented, patent pending or is being assisted for IP protection by TAPI.

6.2 The proponent shall comply/submit the following requirements:

a) Application letter addressed to TAPI Director;

b) Endorsement letter from DOST Regional Office include RTEC report, if applicable;

c) Project proposal following the format in Annex B;

d) Letters Patent or Pending Patent Application or TAPI's letter re: on-going IPR Assistance;

e) Deed of assignment of patent/UM registration to juridical company or RDIS or academic institutions;

f) Personal bio-data of the proponent or company profile if applicant is a juridical person;

g) Assigned co-implementor for

h) Medical Certificate (physically fit to undertake the project);

i) Business registration papers, if applicable;

j) Certification of Residency from Barangay Center or Barangay Clearance or NBI Clearance, if applicable; and

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

7.0 Program Criteria

The invention shall be evaluated based on the following criteria:

7.1 Technical Viability

a) Technical soundness of the invention

workability, suitability 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 environmental and/or any applicable laws and standards, if applicable.

7.4 Social Benefits, if applicable.

8.0 Program Implementation Procedures

8.1 The Program implementation shall follow the procedures and work instructions (proposal evaluation and approval, release of financial assistance, project monitoring, repayment monitoring, and fund liquidation) stipulated in the TAPI Quality Management System per ISO 9001:2008.

8.2 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.

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

8.4 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. TAaCED

10.0 Effectivity

This Order shall take effect immediately.

Taguig City, Philippines, September 2014.

(SGD.) EDGAR I. GARCIA
Director
Department of Science and Technology
Technology Application and Promotion Institute

ANNEX A

Operative Definition of Terms

1.0 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 (the "beta" test);

2.0 Commercial Sale refers to the definition by the Bureau of Internal Revenue (BIR) per

3.0 Financial Grant refers to the non-repayable funds provided to the proponent on a particular project for a specified period.

4.0 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.

5.0 Payment Restructuring refers to the modified plan of payment or schedule of payment on a periodic basis.

6.0 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.

7.0 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 the objectives specified in the approved project proposal.

8.0 Successful Beneficiary refers to any person or private 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 TAPI's financial assistance.

ANNEX B

Project Proposal Format

1.0 Project Title

2.0 About the Proponent including its address and contact information

3.0 Project Summary (about one paragraph of 1-3 sentences and should include the amount of funding requested and give the most general description of the use that will be made of the funds)

4.0 About the Invention

Describes the invention and define the problem or need the invention is addressing, the manner of operation and how the invention solves the identified problem;

Describe the current technical state of the art and why the invention is considered an advancement or improvement;

Identify features and operating conditions that are new and innovative;

Identify the technical advantages of the invention and compare to the similar and currently available or will be available invention in the future;

Identify the competition even if the competition addresses the problem, in a different way; and

Include patents, technical drawings, photographs, theoretical analyses, experimental data, computer simulations and calculations, performance and test results and others.

5.0 Project Description

Detailed description of the project to be funded;

Include copies of complete Letters Patent or Pending Patent Application or any proof of assistance under TAPI's IPR Assistance Program;

Define the goals/objectives of the project, how they will be achieved, how success or failure will be measured, and what results you expect to bring about;

Discuss the uses of the invention, who will use it and where it will be used; and

Identify any potential problems or anticipated barriers associated with commercializing this invention.

6.0 Project Implementation

Explain the duration of time during which the funds will support the project;

Describe the manner of fabrication including fabrication drawings with complete specifications;

Include information about the staff who will work on the project, their experience and qualifications to perform the activities that will be funded; ESHAIC

Discuss in details the costs associated with fabrication requirements and/or construction techniques;

Provide estimate on the selling price of the eventual product and compare the price with existing competitive products. If the eventual product will be more expensive than the current products you should discuss why the end-user would buy the products;

Provide information why the invention is considered commercially viable; and

Identify and discuss any safety issues and standard requirements, if applicable.

7.0 Project Activities and Timeline

Provide the chronological order of activities to be undertaken at certain period of time; and

Include information about how/when funds that are provided will be spent to support each activity.

8.0 Project Budget

Provide the amount requested for funding and the counterpart funding of the proponent and/or any cooperating institution, if there's any;

Provide estimated cost of fabrication per unit showing itemized materials and components (per unit cost) to be purchased; and

Include quotations from three (3) suppliers of materials/components to be purchased (if the material cost is more than P5,000).

9.0 Commercialization Plans/Strategies

Summarize what is required to continue the development of the invention so that a commercial product could result from your efforts;

Describe what needs to be done to continue the development of the proposed product; and

Indicate needed support to continue the development and pursue commercialization.

Published in the Official Gazette, Vol. 111, No. 8 Page 1159 on February 23, 2015.