Government may retain IP title unless recipient is foreign or IP relates to atomic energy

This Bill establishes rules for the protection and use of intellectual property (IP) created through research funded by the Government. It requires recipients of such funds to disclose the IP, manage it through a specific committee, and share income with the creators, while retaining certain rights for the Government.

The law applies to 'recipients' of Government grants for research and development, which includes universities, institutions of higher education, organizations established by an Act of Parliament, and non-profit scientific or educational organizations registered under the Societies Registration Act, 1860. It also applies to the 'intellectual property creators' (employees or engaged persons) who create the IP and the Central Government.

• Recipients must enter into an agreement with the Government before receiving any grant for research and development.
• Recipients must disclose public funded IP to the Government within 60 days of knowing it exists.
• Recipients can retain title to IP in 'designated countries' if they notify the Government within 90 days of disclosure; otherwise, title vests in the Government.
• Recipients must constitute an Intellectual Property Management Committee within 180 days of receiving funds.
• Recipients must share at least 30% of net income/royalties with the IP creator, 30% of the remainder with the management committee fund, and retain the rest for further research.
• Recipients cannot assign IP rights without prior written permission from the Government (deemed granted if no decision in 45 days).
• Exclusive rights to use or sell IP in India cannot be granted unless the product is manufactured substantially in India.
• Accounts of recipients must be audited by the Comptroller and Auditor-General of India.
• Disputes arising from the Act are to be settled under the Arbitration and Conciliation Act, 1996.

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