2. 01
Fairness Opinion
Board (FOB)
02
Fairness Opinion
Report (FOR)
03
Conflict of Interest
04
Documentary
Requirements
05
Detailed Process
Flow of Licensing
06
FOB Secretariat
Table of contents
3. RA 10055- known as the Philippine Technology
Transfer Act of 2009
- an act providing the framework and
support system for the ownership,
management, use and
commercialization of Intellectual
Property generated from research and
development funded by government
and for other purposes.
4. Fairness Opinion Board (FOB)
Provides the DOST Secretary with a Fairness Opinion
Report (FOR). The FOB reviews fairness to the
(government funding agency or research institute) of
the financial terms, such as licensing or royalty fees,
specified in the licensing agreement.
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5. FUNCTIONS OF THE FOB
Determine the date, venue, and frequency of the meetings
Review the written request and all supporting documents
Render opinion as to the fairness to the GFA or RDI concerned
of the proposed transaction
Shall complete and submit FOR to the requesting party in no
more than 15 working days
All requests for FOR, including all documents received shall be
kept confidential
6. WHEN IS FOB CALLED UPON?
The constitution of FOB is done, whenever publicly funded research and
development outputs are commercialized.
The FOB reviews the fairness to the government (GFA or RDI) of the financial
terms such as the licensing or royalty fees, specified in the licensing
agreement
7. MEMBERSHIP OF THE FOB
Legal Expert Technical Expert Financial Expert
• DOST Secretary shall constitute the Board thru a Special order.
• The board should be composed of three(3) members with at least one
member coming from the private sector.
• In selecting the members of the Board, the persons’ neutrality, impartiality
and expertise shall at all times be given due regard. The experts shall
execute a statement of no conflict of interest and non-disclosure agreement
pertaining to the written request, which shall be notarized
8. Fairness Opinion Report
(FOR)
The FOR is an assessment of whether a proposed
technology transfer agreement between a Research and
Development Institute (RDI) and a technology adopter
or business is fair to the government
02
9. Who request for FOR?
It is the RDI or GFA who is the owner of the technology who will
apply for FOR to the DOST Regional Director. The RDI, can be a
State University or College (SUC), a government research center, or
even a private research institute that received government funds
for the generation of the subject technology.
10. FAIRNESS OPINION REPORT-CRITERIA
a. Financial capability of the Technology Transferee and its ability to
sustain the production of products, adoption of process in
rendering of services;
b. FOB opinion as to the fairness to the GFA or RDI of the proposed
transaction, particularly its financial terms;
c. Recommendations on the proposed transaction;
d. All citations, references and all supporting documents; and
e. A certification and verification signed by all members of the
FOB as to the foregoing transactions
11.
12.
13. CONFLICT OF INTEREST
a. CONFLICT OF INTEREST OF REGIONAL OFFICE
• When RO is the GFA and/or RDI of the technology
• DOST Secretary to appoint another RO as the FOB Secretariat
b.CONFLICT OF INTEREST OF FOB MEMBER
• The member is a shareholder, director, officer, consultant, or employee of
the funding agency, the technology generator/researchers, or the technology
adoptor;
• The member is a relative within 4th degree of consanguinity or affinity of
the funding agency, the technology generator/researchers, or the technology
adoptor;
• Has financing, pecuniary or adverse interest or personal gain in the proposed
transaction;
03
14. CONFLICT OF INTEREST
• Member is involved in the development of competing technology or is a
shareholder, director, officer, consultant or employee of a competing
company;
15. Documentary requirement for
application of FOR
1. Proposed Transaction
• Technology licensing agreement
• Licensing Term Sheet
2. Financial documents to prove financial capability of the transferee
• Valuation Report (licensor);Audited Financial Statement (licensee);Spin off
(proof of capitalization, annual income tax return, business plan/model
canvass, terminal report
3. Documents relating to IP Protection
• IP application/registration
• SOA of IP application
• Application/Registration Number
• Freedom to Operate
• Trade Secret Protocol or Agreement
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16. DETAILED PROCESS FLOW OF
LICENSING
PROCESS NO. OF WORKING DAYS
DOST Regional Office as the Receiving Office and FOB Secretariat conducts
formality evaluation as to the authenticity and completeness of the
documentary requirements
FOB Secretariat identifies possible FOB members from private and public
sectors experts on the following: technical aspect of the proposed
transaction, financial analysis and market feasibility, IP Lawyer
3 DAYS
8 DAYS
DOST Secretary constitutes the members of FOB for the proposed
transaction through a Special Order
5 DAYS
05
17. DETAILED PROCESS FLOW OF LICENSING
PROCESS NO.OF WORKING DAYS
FOB Meetings and Evaluation:
1st meeting between FOB experts and Secretariat:
Brief orientation on the DOST Guidelines on the issuance of FOR
Discuss the submitted documents, additional documents requested by
the FOB; schedule of next meeting and other administrative matters 2
nd meeting between FOB and the requesting parties (GFA/ RDI and
licensee)
Brief presentation of RDI on the proposed transaction
FOB’s interview to GFA/ RDI and licensee
Conduct of ocular visit on the facility of the licensee and/or
demonstration of the technology prototype 3 rd meeting between FOB
experts and Secretariat to draft and finalize the FOR.
10 DAYS
18. DETAILED PROCESS FLOW OF LICENSING
PROCESS NO. OF WORKING DAYS
FOB experts finalize and issue the FOR. 5 days
FOR Secretariat forwards the originally signed FOR to DOST
Secretary through the DOST Undersecretary for Regional Operations,
TAPI, and requesting parties
1 DAY
DOST Secretary through TAPI issues Written Recommendation. The Written
Recommendation covers areas such as the technical, legal, socio-economic
and environmental aspects of the proposed transaction, and areas that may
not be covered by the Fairness Opinion Board.
8 DAYS
TOTAL 40 DAYS
19. DOST-02 FOB SECRETARIAT
MS. VIRGINIA G. BILGERA
Regional Director
ENGR. MARK GIL S. HIZON
R&D, Innovation Mngt Unit Head MS. RODORA B. SANTOS
Project Assistant I
