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RESEARCH SERVICES POLICIES AND GUIDELINES 73

creation and expression of the intellectual property or proprietary information.

11. “Other income” refers to income from activities other than normal business operations,
such as investment interest, foreign exchange gains, rent incomes, and profit from the
sale of non-inventory assets.

12. “Proprietary information” refers to information or data relating to technologies, creative
works, discoveries, products and processes and improvements thereto, trade secrets,
formula, ideas, varieties, lines, breeding materials, parental, which may not be formally
protected through registration, but shall, nevertheless, be properly documented and
recorded for protection. It includes all scientific, business or financial information
relating to ISU, its R&D centers, programs, divisions, units, and in the future, subsidiaries
or affiliates or their respective businesses.

13. “Protection of intellectual property” refers to the act of formally registering intellectual
property with appropriate agencies to gain vested rights thereto, and, where registration
is not required, the act of documenting the transfer of intellectual property or proprietary
information to individuals or organizations for proper documentation and monitoring.

14. “Royalty” refers to payment made for the use of property, especially a patent, copyrighted
work, franchise, or natural resource. The amount is usually a percentage of revenues
obtained through its use.

15. “Technology Transfer Arrangements” as defined in the IP Code, refers to contracts or
agreements involving the transfer of systematic knowledge for the manufacture of a
product, the application of a process, or rendering of a service, including management
contracts, and the transfer, assignment or licensing of all forms of intellectual property
rights or proprietary information.

16. “Third party” refers to someone other than the principals directly involved in a transaction
or agreement.

Section 5. Obligations of those covered by these guidelines

Aside from the duty to invent, create or breed, those covered by these guidelines whether
individuals or colleges/centers where applicable shall have the following obligations:

1. Execute in favor of ISU colleges/centers, an Intellectual Property Undertaking containing
the following minimum provisions:

a. To comply with the ISU intellectual property policy and its guidelines;

b. To disclose promptly to ISU any intellectual properly, which may be solely, or jointly
discovered or generated with others in the performance of their regular duties, or
with the use of ISU agency funds, facilities, or services;

c. To perform all acts necessary to assist ISU in protecting and commercializing the

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