CSIR Guidelines for
Technology Transfer
and Utilization of
Knowledgebase-2017
Accelerating
Translational
Research &
Catalysing
Technology
Deployment
मिशन मनदे शालय
वैज्ञामनक तथा औद्योमिक अनुसध
ं ान परिषद
2 िफी िािग, अनुसध
ं ान भवन, नई ददल्ली
Mission Directorate
Council of Scientific & Industrial Research
2 Rafi Marg, Anusandhan Bhawan, New Delhi
मिशन मनदे शालय
वैज्ञामनक तथा औद्योमिक अनुसंधान परिषद
2-िफीिािग, अनु
संधान
नई ददल्ली-110 001
मिशन
मनदेभवन
शालय
वैज्ञामनक तथा औद्योमिक अनुसंधान परिषद
2-िफीिािग, अनुसंधान भवन नई ददल्ली-110 001
Mission Directorate
Council of Scientific & Industrial Research
Anusandhan Bhawan, Rafi Marg, New Delhi
INSTRUCTIONS
1. THESE GUIDELINES FOR TECHNOLOGY TRANSFER AND
UTILIZATION OF KNOWLEDGEBASE ARE EFFECTIVE
FROM 1st SEPTEMBER 2017.
2. FOR ALL MATTERS PERTAINING TO THESE GUIDELINES
INCLUDING MARKETING OF IP, THE NODAL POINT AT
CSIR HQRS IS THE RESEARCH, PROJECT PLANNING
AND BUSINESS DEVELOPMENT DIRECTORATE.
3. THOSE ISSUES NOT COVERED IN THESE GUIDELINES,
SHALL BE REFERRED TO DG, CSIR FOR DECISION.
4. THESE
GUIDELINES
SUPERSEDE
THE
EARLIER
GUIDELINES AND RELATED COMMUNICATIONS ISSUED
ON THE SUBJECT.
5. THIS DOCUMENT IS CONFIDENTIAL AND FOR INTERNAL
USE ONLY AND NOT TO BE CIRCULATED / SHARED
WITH OUTSIDERS / CLIENTS.
CONTENTS
S. No.
Chapter
Page No.
1.
Contract R&D
1
2.
Consultancy
8
3.
Licensing of Intellectual Property
13
4.
Licensing of Knowledgebase
18
5.
Technical Services
24
6.
Translation of Knowledgebase by Foreign Clients
27
7.
Sharing of Monies Realized with Staff
31
8.
Procedure for Sharing of Monies with Staff
36
9.
Engagement of Technical and Business Development
Consultants
41
10.
CSIR Scientists to be Members on the Board of
Directors of Private Sector Companies
46
11.
Establishing of Business & Marketing Entities by CSIR
laboratories
48
12.
Setting up Incubation Centres in CSIR Laboratories
50
13.
Mobility of Scientists/ Technologists/ Engineers from
CSIR to Industry/ R&D Institutions and vice versa
53
14.
Creation of Professional Development Fund
57
15.
Setting up of Special Purpose Vehicle (SPV) in CSIR
59
16.
Setting up Knowledge Alliances between
Constituent Laboratories and Private Industry
CSIR
61
17.
Encouraging Development and Commercialization of
Inventions and Innovations: A new impetus” in CSIR
64
A. Scientific Entrepreneurship Scheme
B. Investing Knowledgebase as Equity in an Equity in
an Entity
Annexures
72 - 136
1. CONTRACT R&D
1.1
Definitions and Scope
Contract R&D shall comprise all R&D undertaken and executed under specific
contractual arrangements agreed upon for the purpose. The projects to be
undertaken should fall within the purview of approved research areas of the
laboratory. Contract research shall cover:
i.
Sponsored R&D
Projects wholly funded by the client having specified R&D objectives, and
well defined expected project output/results, generally culminating in
generation of intellectual property/knowledgebase. Sponsored R&D shall
also cover process design and engineering, process modeling and
simulation, application of computational methods, development of software
etc. Sponsored projects could also be multi-client, with two or more
sponsors sharing the project funding and research outputs.
ii.
Collaborative / Cooperative R&D
Projects partially funded by the client, and/or supplemented by provision of
inputs such as expert manpower, engineering, production/ fabrication of
product in bulk for testing/ trials, creation of infrastructural facilities or other
inputs etc. These could be in the advanced areas of research, for
upscaling/proving of laboratory level know-how, technology development or
generation of intellectual property etc. Depending on the nature of the
projects, the expected project output/results could be defined. These
projects could also be multi-client, with two or more parties sharing the
project funding and research outputs.
iii.
Grant-in-aid R&D
Projects involving a grant by way of financial inputs, either in full or in part,
assistance in kind e.g. equipment, training etc. to supplement laboratory
efforts in ongoing or new R&D projects or for creating new
capabilities/facilities. Generally, the laboratory seeks or requests for grantin-aid support/funding from different agencies including government
departments, international bodies etc. Thus, grant-in-aid projects are
normally for supporting basic or exploratory R&D, surveys or for maintaining
large / nationally important R&D groups, for generating databases,
sophisticated equipment for testing and infrastructural facilities.
1
1.2
Approvals
1.2.1 For Projects
Competent Authority
Director
Projects
:
upto Rs. 5 crore
grant-in-aid projects – No limit
Management Council
:
beyond the power of Director
DG, CSIR
:
a)
involving:
- foreign clients
- multi laboratory inputs
b)
taken up/coordinated by staff at CSIR
Hqrs
The project proposals shall be placed before the Competent Authority for
consideration and approval in the prescribed proforma (Annexure-I A). The
Competent Authority shall also have the powers to approve the terms and
conditions for licensing the intellectual property/knowledgebase resulting from
contract research to the client. In case of foreign clients, the laboratory would also
submit the proposal/specific project under the agreement for security and
sensitivity clearance in the prescribed format.
1.2.2 Contracts (legal agreements)
Competent Authority
Contracts
Director
:
drawn up substantially as per the ‘model
agreement’ supplied by CSIR Hqrs
DG, CSIR
:
a)
b)
c)
d)
largely deviating from the model
agreement
with foreign clients or multi-laboratory
projects
projects
initiated / co-ordinated by
CSIR Hqrs
projects taken up by staff at CSIR Hqrs
Projects to be taken up by staff at CSIR Hqrs are to be routed through RPPBD
Directorate for seeking necessary approvals.
2
In the agreements, a specific clause for the credit sharing should be built so as
to clearly delineate the contributions made by the CSIR laboratores for a given
R&D project effort. Such a clause should also be the integral part of the
agreement / MoU signed with Strategic Sector / Government Department(s).
1.3
Authorized Signatories to Contracts
The authorized signatories in the laboratories for all contracts/ agreements may
be chosen amongst the following: Head, Business Development Group/Head,
PME/Senior Controller of Administration/ COA/AO. For multi-laboratory
projects, the signatories shall be the designated officers of the co-ordinating
laboratory. For the contracts/agreements of the CSIR Hqrs, the signing
authorities may be chosen amongst the following: Head, Business
Development Group/concerned division’s Under Secretary/ Under Secretary or
Deputy Secretary of Central Office. Exceptions, however, can be made with the
specific approval of Director and DG, CSIR in the case of laboratory and CSIR
Hqrs respectively.
1.4
Financial Aspects
Plesae refer Annexure – I for details
1.5
Research Output
1.5.1 Publications
The client shall be consulted prior to publishing of any research results arising
from the contract research work. The publications shall duly acknowledge the
inputs of the client.
1.5.2 Intellectual Property (IP) / Knowledgebase
i.
Sponsored R&D
The ownership of the intellectual property and/or knowledgebase
generated shall be negotiated and decided between the parties and shall
be explicitly stated in the contract. The ownership could be of CSIR or
client or joint. Obtaining and maintaining the relevant intellectual property
rights shall correspondingly be the responsibility of CSIR or client or joint.
In case where the ownership of intellectual properly is fully provided to
client, the laboratory/institute shall ensure suitable compensation in the
form of additional payments in Laboratory share or premia and/or recurring
royalty. In case of joint ownership the responsibilities and obligations as
also territory of operation of each party shall be clearly defined. The
decision, whether or not an intellectual property right be obtained, shall be
mutually decided failing which by the Director of the laboratory, whose
decision shall be final and binding.
3
ii.
Collaborative /Cooperative R&D
Intellectual property and/or knowledgebase generated through projects
with technical contribution from the collaborator(s), shall be jointly owned.
Obtaining and maintaining the relevant intellectual property shall be the
responsibility of CSIR. The expenses for obtaining and maintaining the
intellectual property rights shall be borne equally by CSIR and the
collaborator(s). The decision whether or not intellectual property rights be
secured shall be taken jointly by the Director of the Laboratory and the
collaborator(s).
iii.
Grant-in-aid
Intellectual property and/or knowledgebase rights in case of government
departments and agencies may be as per their standard terms and
conditions. However, where the grantor has no standard conditions and for
the non-government agencies, ownership rights shall be that of CSIR.
1.6
Licensing of Intellectual Property/Knowledgebase
1.6.1 Sponsored Research
i.
The rights of licensing intellectual property and/or knowledgebase shall
rest with CSIR, where the ownership lies with CSIR.
ii.
The sponsor shall be given the first right for commercial exploitation of
intellectual property and/or knowledgebase. However, this right shall be
exercised by a written communication to the laboratory within a prespecified period of time as defined in the contract commencing from the
receipt of final report. In the event the sponsor fails to exercise his option
within the specified period, or having done so fails to commercially exploit
the intellectual property within the stipulated time-frame, CSIR shall be free
to license the intellectual property and/or knowledgebase to third parties
and the money accruing therefrom shall be shared equally between CSIR
and sponsor with a ceiling on the sponsor's share equal to the amount the
sponsor had paid to CSIR as sponsorship charges.
iii.
Wherever feasible the sponsor shall be given a non-exclusive license
failing which an exclusive license for a limited period of time for
commercial exploitation of the intellectual property and/or knowledgebase.
In specific cases exclusivity till the validity of patent can also be given with
the approval of Competent Authority.
iv.
For the license granted for commercial exploitation of the intellectual
property and/or knowledgebase to the sponsor, CSIR shall charge an
adequate amount as license fee. This could be a lumpsum and/ or a
recurring royalty.
v.
CSIR shall have the right to license the intellectual property and/or
knowledgebase to any other party on the terms and conditions it may
decide in case where it has granted non-exclusive or limited exclusivity
license upon expiry of the exclusivity period. In such cases, if the licensing
4
of intellectual property and/or knowledgebase is only by CSIR, the money
realized by CSIR is not distributable with the sponsor. However, if the
licensing by CSIR is with assistance of the sponsor, then the money
realized shall be shared with sponsor on mutually agreed basis.
vi.
Notwithstanding the exclusive license granted to the sponsor, CSIR shall
have the right to license the intellectual property during the period of
licence if Government of India desires CSIR to disclose the intellectual
property for its use in India in national interest. In such cases the money
accruing therefrom shall be shared equally between the sponsor and CSIR
on a mutually agreed basis.
1.6.2 Collaborative Research
i.
The rights of licensing of intellectual property and/or knowledgebase shall
be jointly held by CSIR and the collaborator.
ii.
The collaborator shall have the first right for commercial exploitation of
intellectual property and/or knowledgebase. However, the right shall be
exercised by the collaborator by a written communication to the laboratory
within a pre-specified period of time as defined in the contract commencing
from the receipt of final report. In such a case the intellectual property
and/or knowledgebase shall be licensed to the collaborator for exploitation,
on terms to be mutually decided between CSIR and the collaborator.
iii.
In the event the collaborator fails to exercise the option or fails to
commercially exploit the intellectual property and/or knowledgebase within
the pre-specified period as defined in the contract, CSIR shall have the
right to license the intellectual property to others on terms to be mutually
decided between collaborator and CSIR.
Wherever feasible the collaborator shall be given a non-exclusive license,
failing which, an exclusive license for a limited period of time for
commercial exploitation of the intellectual property. In specific cases
exclusivity till the validity of patent can also be given with the approval of
Competent Authority. The intellectual property and/or knowledgebase can
be licensed to others by CSIR on terms and conditions to be mutually
agreed to between the CSIR and the collaborator in case of non-exclusive
license granted; whereas for limited period exclusive license it will be upon
expiry of the exclusivity period. In such cases the monies accruing shall be
shared between CSIR and the collaborator on a mutually agreed basis.
vi.
Notwithstanding the exclusive license granted to the collaborator, CSIR
shall have the right to license the intellectual property, during the period of
exclusivity if Government of India desires CSIR to disclose the intellectual
property for its own use. In such cases the monies accruing shall be
shared between CSIR and the collaborator on a mutually agreed basis.
5
1.6.3 Grant-in-aid Projects
Licensing rights of intellectual property in case of government departments and
agencies may be as per their standard terms and conditions. However, cases
where the grantor has no standard conditions and for non-government agencies,
licensing rights shall be that of CSIR. It could also follow the guidelines provided
in 1.6.1 and 1.6.2, except for sharing of monies with funding agencies.
1.7
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with contract research/
IP and/or knowledgebase licensing shall be subject to a ceiling of the amount
received by CSIR from the client for the Contract Research/ IP and/or
knowledgebase licensing.
1.8
Ownership of Prototype/Products
The ownership of prototypes/products that may be produced during contract
research shall normally be the property of the sponsor for sponsored R&D, for
collaborative / cooperative R&D projects the ownership shall be specifically
agreed upon between CSIR and the collaborator/grantor and so included and
specified in the agreement. In case of grant-in-aid, it shall belong to CSIR, unless
otherwise stated. Ownership of all equipment purchased under the project shall
belong to CSIR, after one year from the closure of the project.
1.9
Foreclosure of the Projects
In the event a project requires foreclosure, the project leader shall submit a
comprehensive proposal stating the reasons for foreclosure to the Competent
Authority. Based on the proposal Head, BD/ Head, PME shall prepare a
comprehensive note including financial statement for the approval of
management council.
1.10 Deferment of Installments
If due to technical reasons, the laboratory is unable to meet its obligations to
achieve the agreed milestones as per the agreement/contract, the laboratory
may defer receipt of payment of subsequent installment(s) from client till such
time that it meets with its stipulated obligation. In such cases, where a deferment
of subsequent installment(s) is to be affected, the laboratory shall place the
proposal, clearly stating the reasons for non-fulfillment of obligations of the
management council for approval.
1.11 Write-off of Unrecoverable Dues
In the event there are unrecoverable dues relating to premia / royalty /
installments from industry, the Head, Business Development Group/Head, PME
shall prepare a comprehensive proposal stating the reasons for short-receipts
of dues to the competent authority. The competent authority shall in turn
6
constitute a write-off committee comprising a senior level scientist of the
laboratory as Chairman, Head Business Development Group or Head/PME as
convenor, COA and SFAO as permanent members and one scientist as
member. The committee recommendations shall be placed before
management council for approval.
1.12 Feedback to Hqrs
Information on all contract research projects shall be provided to RPPBD
Directorate as part of the ‘Research Utilization Data’ being sent by laboratories
once every three months. Information shall be furnished vide item 4 of proforma
at Annexure - III.
7
2. CONSULTANCY
2.1
Definition and Scope
All consultancy services in CSIR shall be institutional. Consultancy shall be in an
area of expertise of the laboratory, preferably its thrust areas.
The consultancy shall comprise scientific, technical, engineering or other
professional advice / assistance based on the available knowledgebase /
expertise of the laboratory, and envisaging only minimum use of laboratory
facilities for essential experimentation and computation to meet the objectives of
the consultancy assignment. It may interalia cover:







Scientific, technical, engineering or other professional advice provided to a
client;
Literature survey and preparation of feasibility studies, technology
forecasting/ evaluation reports etc.;
Interpretation of test results and data provided by the client;
Risk and hazard/ environment impact analysis, pollution abatement/
control measures etc.;
Assistance in erection, commissioning, operation, troubleshooting,
productivity improvements, energy conservation, waste utilisation, etc.;
Customized human resource development programme either at the
laboratory or at client’s location1. (These are specially tailored training
programmes to suite customer needs, undertaken by laboratories either
on their own or at specific request of clients); and
Technical advice2 such as troubleshooting, problem resolving, quality
control etc.
2.1.1 The laboratory has to ensure that attention is not diverted from its R&D as
well as other activities to consultancy. A proper balance of the manpower
and other resources of the laboratory to be deployed between R&D
activities, consultancy and technical services should be decided by the
Management Council.
1
Note: Usually the charges per participant adequately cover expenses and laboratory share.
Such training programme could be a significant source of external cash flow, especially those
arranged for international organizations/agencies.
2
Note: Technical advise shall involve one time assistance mainly advisory in nature to help in
trouble shooting, problem solving, quality control etc.
8
2.2
Approvals
2.2.1 For Projects
Competent Authority
Projects
Director
:
upto Rs. 50 lakh and not involving the Director
or Director level scientist as the sole
consultant
Management Council
:
outside the powers of the Director and those
requiring approval of DG,CSIR
DG, CSIR
:
a) involving the Director or a Director level
Scientist as the sole consultant
b) for foreign clients
c) taken up or coordinated by CSIR Hqrs
The project proposal will be placed before the Competent Authority for
consideration and approval in the prescribed proforma (Annexure-IV A).
2.2.2 For Contracts
Competent Authority
Contracts
Director
:
DG, CSIR
:
drawn up substantially
agreement of the CSIR
a) largely deviating
agreement
b) with foreign clients
projects
c) for projects taken
CSIR Hqrs
as per the model
from
the
model
or multi laboratory
up/ coordinated by
For contracts costing less than Rs. 2 lakh, no formal agreement is necessary and
only exchange of letters clearly stating the advice to be rendered, CSIR’s
obligations and the terms of payment.
In the agreements, a specific clause for the credit sharing should be built so as to
clearly delineate the contributions made by the CSIR laboratories for a given R&D
project effort. Such a clause should also be the integral part of the agreement /
MoU signed with Strategic Sector / Government Department(s).
9
2.3
Authorized Signatories to Contracts
The authorized signatories in the laboratories for all contracts/ agreement may be
chosen amongst the following: Head, Business Development Group/ Head,
PME/ Senior Controller of Administration/ COA/AO. For multi-laboratory projects,
the signatories shall be the designated officers of the co-ordinating laboratory.
For the contracts/agreements of the CSIR Hqrs, the signing authorities may be
chosen amongst the following: Head, Business Development Group/ concerned
division’s Under Secretary/ Under Secretary or Deputy Secretary of Central
Office.Exceptions, however, can be made with the specific approval of Director
and DG, CSIR in the case of laboratory and CSIR Hqrs respectively.
2.4
Financial Aspects
Please refer Annexure – IV for details.
2.5
Multi-Laboratory Projects
The terms and conditions and the contracts for consultancy projects for multilaboratory shall be decided on case-to-case basis in consultation with RPPBD
Directorate, CSIR Hqrs.
2.6
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with Consultancy
Services shall be subject to a ceiling of the amount received by CSIR from the
Party for the Consultancy.
2.7
General Aspects
2.7.1 Contractual obligations of a consultancy project shall be that of CSIR.
Agreements with clients will thus be executed, on behalf of CSIR by the
laboratory and not by an individual consultant or team of consultants.
Every care should be taken to avoid any legal complications involving the
laboratory/CSIR as a result of the consultancy service.
2.7.2
For consultancy services of a minor nature, formal agreement on a
stamp paper may be dispensed with and the terms and conditions of
consultancy settled through exchange of letters. In case the Director
feels that an agreement would be technically and legally useful, the party
may be asked to enter into a legal agreement. The terms and conditions
should include a disclaimer on responsibility of the laboratory for the
advice / recommendations given in the consultancy.
2.7.3 In the case of consultancy service rendered to Government
Departments/Agencies, Public Sector Undertakings, the terms and
conditions including payment schedules may be settled through
exchange of letters. In such cases, formal agreement on non-judicial
paper may not be necessary.
10
2.7.4 CSIR is often called upon to carry out investigational jobs by
Government agencies, Courts of Law, Statutory Authorities etc. These
jobs may need to be undertaken on an urgent basis and in such cases
laboratories shall not, subject to acceptance of payment and other terms
by the client in writing, insist on advance instalment of payment.
2.7.5 The staff involvement for each consultancy project shall be approved by
the Director /Management Council as the case may be. While assigning
the consultancy job to a staff member, due cognizance shall be taken of
his /her workload, qualifications and experience vis-a-vis the specific
requirements of the consultancy job, honorarium likely to accrue to him
/her from consultancy etc.
2.7.6 As far as possible, the ‘team of consultants’ selected for consultancy work
should have the confidence of the client. In case the client indicates
preference for a particular person or persons, the request shall be given
due consideration.
2.7.7 Laboratories should, on the whole ensure a fair distribution of consultancy
work among the eligible staff at all levels and ensure that it is not confined
to specific individuals /groups /levels of staff.
2.7.8 Consultancy assignment costing less than Rs.1.00 lakh should not be
taken. Exceptions, in deserving cases judged by the importance/necessity
of assistance to client/service sought, may be made at the discretion of the
Director of the laboratory.
2.7.9 The total number of days devoted by staff member to consultancy work
should not exceed 50 mandays in a financial year.
2.7.10 A copy of the project report for all consultancies undertaken shall be
retained for record purposes, with the Director of the laboratory, except
those which are purely advisory in nature and where no project report is
required to be submitted to the client. In such cases, a brief note on the
consultancy rendered should be submitted to the Director of laboratory for
records.
2.7.11 Foreclosure of the projects
In the event a project requires foreclosure, the project leader shall
submit a comprehensive proposal stating the reasons for foreclosure, to
the Competent Authority. Based on the proposal, Head, BD/ Head, PME
shall prepare a comprehensive note including financial statement for the
approval of management council.
2.7.12 Deferment of Installments
If due to technical reasons, the laboratory is unable to meet its obligations
to achieve the agreed milestones as per the agreement/contract, the
11
laboratory may defer receipt of payment of subsequent installment(s) from
client till such time that it meets with its stipulated obligation. In such
cases, where a deferment of subsequent installment(s) is to be affected,
the laboratory shall place the proposal, clearly stating the reasons for nonfulfillment of obligations to management council for approval.
2.7.13 Write-off of unrecoverable dues
In the event there are unrecoverable dues relating to premia / royalty /
installments from industry, the Head, Business Development
Group/Head, PME shall prepare a comprehensive proposal stating the
reasons for short-receipts of dues to the competent authority. The
competent authority shall intern constitute a write-off committee
comprising a senior scientist of the laboratory as chairman, Head
Business Development Group as convenor, COA and SFAO as
permanent members as one scientist as member. The committee
recommendations shall be placed before management council for
approval.
2.8
Feedback to Hqrs
Information on all consultancy projects shall be provided to RPPBD Directorate
at Hqrs, as a part of the `Research Utilisation Data' being sent once every three
months. Information shall be furnished vide item 5 of proforma at
Annexure - III.
12
3. LICENSING OF INTELLECTUAL PROPERTY
3.1
Definition
The term ‘Intellectual Property’ shall include patents, copyright, trademark, design
and computer software.
3.2
Types of Intellectual Property
Intellectual Property generated by CSIR is of two types:
3.2.1 Unencumbered
i.
ii.
Developed through wholly in-house R&D programmes / projects. In such
case ownership of intellectual property is solely that of CSIR, and
consequently the licensing rights are that of CSIR alone.
Intellectual property developed through contract research and
subsequently rendered unencumbered as per the contractual
arrangements with the client. In such cases licensing of intellectual
property by CSIR would be in accordance with the terms and conditions
agreed upon for third party licensing in the contract.
3.2.2 Encumbered
Developed through contract research i.e. with total or partial financial
support, and with/without technical inputs from users/clients. In such
cases ownership and licensing of intellectual property for commercial
utilisation shall be governed by CSIR's obligations to client in the matter
and guided by the terms and conditions of legal agreements. (Please see
chapter 1, para 1.6).
3.3
Licensing of Intellectual Property
3.3.1 Definition
Licensing of intellectual property shall mean granting the licensee the right
to further develop the intellectual property or to utilize the intellectual
property to make the resulting product(s) either for commercial/captive
purpose or as otherwise agreed to.
3.3.2 Method of Licensing
Licensing of intellectual property shall be through specific contractual
arrangements. For transfer of intellectual property through supply of
drawings, designs, software etc. licensing can be done through implied
contractual agreement with no liabilities on CSIR.
13
3.3.3 Channel of Licensing and associated ownership rights
Laboratories would be free to choose the channel of
licensing/commercial utilisation of all unencumbered intellectual property
generated. This could be either directly by the laboratory or through a
Public Sector Undertaking like National Research Development
Corporation (NRDC) and Organization/ Section-8 Company supported
by Govt. of India. Any other national or international Technology
Transfer Agency, Business Consultants etc. could also be used for this
purpose after floating Expression of Interest (EoI). Requisite approvals
as per prevailing guidelines would be necessary in each case of
licensing of intellectual property.
3.3.3(a) Direct Licensing by laboratory
Intellectual property that can be licensed directly by the laboratory comprise:
i.
ii.
unencumbered intellectual property developed through wholly in-house
R&D programmes/projects ,
all encumbered intellectual property developed under contract R&D and
subsequently rendered unencumbered (please see chapter 1, para 1.6).
Laboratories should clearly specify in the agreement their obligations and extent
of commitments to the licensee(s) in each case.
Licensing of unencumbered intellectual property could be either on non-exclusive
or limited period exclusive or exclusive basis depending upon the nature of IP.
Where client insist on assignment of the IP, it could also be considered on caseto-case basis with the approval of competent authority.
3.3.3 (b)
Licensing of intellectual property through NRDC/Govt. supported
Organizations/Sec-8 Company/TTAs/Business Consultants
(i)
Only unencumbered intellectual property can be licensed through
NRDC/Govt. supported Organizations/Sec-8 Company/TTAs/Business
Consultants. The ownership rights of all intellectual property to be
licensed through NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants shall vest with the CSIR, while
the NRDC / Govt. supported Organizations / Sec-8 Company /TTAs /
Business Consultants shall be offered only the rights to market the
specific intellectual property. CSIR liabilities if any, from licensing of
intellectual property in all these cases shall be subject to a ceiling of
the amount it receives for the same.
Licensing through NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants shall be through formal
contractual agreement, clearly specifying the rights and obligations of
CSIR and the NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants as also the terms and
conditions governing the marketing/licensing of the intellectual property
by them.
14
(ii)
The share of NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants can be up to 15% of the premia/
royalty received from licensing of intellectual property.
(iii)
CSIR laboratory can also engage a Public Sector Undertaking like
National Research Development Corporation (NRDC) and
Organization/ Section-8 Company supported by Govt. of India for
preparation of DPR, for developing and levering linkages with
commercial firms, setting up incubation centres and technology
parks, creating start-ups/ spin offs, activities related to business
development, skill development activities or any other required
service as deemed appropriate by the Director of the laboratory. Any
other national or international Technology Transfer Agency,
Business Consultants etc. could also be used for aforesaid activities
after floating Expression of Interest (EoI). The charges for the
aforesaid activities may be decided on case to case basis.The
Director of the laboratory shall be approving authority for the
purpose. The terms of payments may be as per the mutual agreement
arrived between CSIR and such agencies. If accruals to CSIR are in
the form of equity, the terms of payments may include upfront fee or
equity share or combination of both as the case may be.
3.4
Post Licensing Aspects
3.4.1 Review of Intellectual Property licensed
Annual review of intellectual property licensed including follow-up with the
licensee, shall be conducted by the laboratory (in association with NRDC/Govt.
supported Organizations /Sec-8 Company / TTAs/Business Consultants as
applicable) to assess its utilisation status. Any change in terms /conditions of its
licensing can then be considered.
3.4.2 Collection of Monies
Laboratories are responsible for prompt collection of monies accrued through
licensing of intellectual property directly by them and through NRDC/Govt.
supported Organizations/Sec-8 Company/TTAs/Business Consultants. They must
thus evolve a proper mechanism for collecting and monitoring the accrual and
realisation of such monies including annual review of outstanding dues.
3.5
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with IPR licensing shall
be subject to a ceiling of the amount received by CSIR from the licensee for the
IPR licensing.
3.6
Financial Aspects
Please refer Annexure – V for details
15
3.7
Approvals
3.7.1 For licensing of Intellectual Property
Competent Authority
Director
Management Council
:
DG, CSIR
:
Criteria
lumpsum above Rs. 15 lakh per IP
where envisaged lumpsum payments per IP is
below Rs. 15 lakh
involving foreign clients.
The estimates of factors considered for arriving at the price of Intellectual Property
vide para 3.6.1 of Annexure-V should be placed for consideration of the
Competent Authority.
3.7.2 License Agreements
Competent Authority
Director
:
DG, CSIR
:
Contracts
drawn up substantially as per the model
agreement provided by CSIR Hqrs.
a) largely deviating from the model
agreement
b) with foreign clients or multi laboratory
projects
c) for projects taken up/coordinated by
CSIR Hqrs.
In the agreements, a specific clause for the credit sharing should be built so as
to clearly delineate the contributions made by the CSIR laboratories for a given
R&D project effort. Such a clause should also be the integral part of the
agreement / MoU signed with Strategic Sector / Government Department(s).
3.7.3 Authorized signatories to contracts
The authorized signatories in the laboratories for all contracts/ agreements may
be chosen amongst the following: Head, Business Development Group/Head,
PME/Senior Controller of Administration/ COA/AO. For multi-laboratory projects,
the signatories shall be the designated officers of the co-ordinating laboratory.
For the contracts/agreements of the CSIR Hqrs, the signing authorities may be
chosen amongst the following: Head, Business Development Group/ concerned
division’s Under Secretary/Under Secretary or Deputy Secretary of Central
Office. Exceptions, however, can be made with the specific approval of Director
and DG, CSIR in the case of laboratory and CSIR Hqrs respectively.
3.7.4 Review of IP Portfolio
The laboratories shall periodically review the exploitable IP portfolio available
with them, in order to build and maintain a relevant and active roster. All such
IP portfolio, which becomes non-exploitable, shall be taken off from the list by
16
giving proper reasons and justification. The laboratory shall maintain a yearwise documentation for the same.
A proposal comprising non-exploitable IP portfolio shall be prepared by
Business Development Group and placed before the Management Council for
approval.
3.7. 5 Deferment of Installments
If due to technical reasons, either party is unable to meet its obligations to
achieve the agreed milestones as per the agreement/contract, either party may
approach the other for deferment of payment of subsequent installment(s) from
client till such time that it meets with its stipulated obligation. In such cases,
where a deferment of subsequent installment(s) is to be affected, the laboratory
shall place the proposal, clearly stating the reasons for non-fulfillment of
obligations to management council for approval.
3.7.6. Write-off of unrecoverable dues
In the event there are unrecoverable dues relating to premia / royalty /
installments from industry, the Head, Business Development Group/Head, PME
shall prepare a comprehensive proposal stating the reasons for short-receipts
of dues to the competent authority. The competent authority shall intern
constitute a write-off committee comprising a senior scientist of the laboratory
as chairman, Head Business Development Group as convenor, COA and
SFAO as permanent members and one scientist as member. The committee
recommendations shall be placed before management council for approval.
3.8
Feedback to Hqrs
Information on intellectual property generated, licensed and utilised shall be
provided to RPPBD Directorate at Hqrs, as a part of the `Research Utilisation
Data' being sent once every three months. Information shall be furnished vide
items 3(a), 3(b) & 3(c) of proforma at Annexure – III.
17
4. LICENSING OF KNOWLEDGEBASE
4.1
Definition
Knowledgebase shall include readily available and commercialisable knowhow,
process and/or process improvements, technology, technique and a new
product. The knowledgebase per se may or may not embody the Intellectual
Property.
4.2
Classification of Knowledgebase
The knowledgebase generated by CSIR falls in two broad categories:
4.2.1 Unencumbered
i.
Developed through wholly in-house R&D programmes / projects. In such
case ownership of knowledgebase is solely that of CSIR, and
consequently the licensing rights are that of CSIR alone;
ii.
Knowledgebase developed through contract research and subsequently
rendered unencumbered as per the contractual arrangements with the
client. In such cases licensing of knowledgebase by CSIR would be in
accordance with the terms & conditions agreed upon with respect to third
party licensing with the client.
4.2.2 Encumbered
Developed through contract research i.e. with total or partial financial
support, and with/without technical inputs from users/clients. In such
cases ownership and licensing of knowledgebase for commercial
utilization shall be governed by CSIR obligations to client in the matter.
(Please see chapter 1, para 1.6).
4.3
Development of Knowledgebase
i.
Development of knowledgebase shall be taken up preferably with user
participation right from initial stages, to ensure commercial viability and
successful utilization.
Wherever feasible and necessary the development should be taken to the
stage of proving commercial viability. However as this would not be
feasible for all laboratory projects, research results of projects should
suitably be protected and maintained till such time that a demand develops
for them. However, in case there is a demand for the research results per
se, these could be licensed, on non-exclusive and 'as-is-where-is' basis, in
a documented (report) form only, without any guarantees or other liabilities
related to knowledgebase licensing.
ii.
18
iii.
The laboratories may continue with further development of the
knowledgebase already assigned / licensed. The method and terms and
conditions of licensing of all such developmental work shall be clearly
specified in the licence agreement. Any directly relatable developments
with respect to the knowhow already referred to the NRDC / licensed to a
client shall be assigned to NRDC / offered to the licensee in accordance
with the terms and conditions of agreements as improvements and/or
additions.
4.4
Licensing of Knowledgebase
4.4.1 Definition
Licensing of knowledgebase shall mean granting licensee the right to use
knowledgebase for making and selling the resulting product(s) either for
commercial/captive purpose or as otherwise agreed to.
4.4.2 Method of Licensing
Licensing of knowledgebase involving transfer through formal means shall be
through specific contractual arrangements. In case the knowledgebase requires
one time demonstration or supply of only drawings, reports, etc. licensing can be
done through implied contractual agreement with no liabilities on CSIR.
4.4.3 Channel of Licensing and associated ownership rights
Laboratories would be free to choose the channel of licensing/commercial
utilization of all unencumbered knowledgebase. This could be either directly
by the laboratory or through a Public Sector Undertaking like National
Research Development Corporation (NRDC) and Organization/ Section-8
Company supported by Govt. of India. Any other national or international
Technology Transfer Agency, Business Consultants etc. could also be used for
this purpose after floating Expression of Interest (EOI). Requisite approvals as
per prevailing guidelines would be necessary in each case of licensing of
knowledgebase.
4.4.3(a)
Direct Licensing by Laboratory
Knowledgebase that can be licensed directly by the laboratory comprise:
i.
ii.
Developed (unencumbered) through in-house R&D programmes/ projects,
Developed under contract research and subsequently rendered
unencumbered (please see chapter 1, para 1.6).
Laboratories should clearly specify in the agreement their obligations and extent
of commitments to the licensee(s) in each case.
Licensing of unencumbered developments could either be on non-exclusive or
limited period exclusive or exclusive basis depending upon the nature of the
knowledgebase.
19
4.4.3(b)
Licensing of knowledgebase through NRDC/Govt. supported
Organizations/Sec-8 Company/TTAs/Business Consultants
(i)
Only unencumbered knowledgebase can be licensed through
NRDC/Govt. supported Organizations/Sec-8 Company/TTAs/Business
Consultants. The ownership rights of all knowledgebase to be licensed
through NRDC/Govt. supported Organizations/Sec-8 Company / TTAs
/ Business Consultants shall vest with the CSIR, while the NRDC/Govt.
supported Organizations / Sec-8 Company / TTAs / Business
Consultants shall be offered only the rights on non-exclusive basis to
market the specific knowledgebase. CSIR liabilities, if any, from
licensing of knowledgebase in all these cases shall be subject to a
ceiling of the amount it received for the same.
Licensing through NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants shall be through formal
contractual agreement clearly specifying the rights and obligations of
CSIR and the NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants as also the terms and
conditions governing the marketing/licensing of the knowledgebase by
them.
(ii)
The share of NRDC/Govt. supported Organizations/Sec-8
Company/TTAs/Business Consultants can be up to 15% of the premia/
royalty received from licensing of knowledgebase.
(iii)
CSIR laboratory can also engage a Public Sector Undertaking like
National Research Development Corporation (NRDC) and
organization / Section-8 Company supported by Govt. of India for
preparation of DPR, for developing and levering linkages with
commercial firms, setting up incubation centres and technology
parks, creating start-ups/ spin offs, activities related to business
development, skill development activities or any other required
service as deemed appropriate by the Director of the laboratory. Any
other national or international Technology Transfer Agency,
Business Consultants etc. could also be used for aforesaid activities
after floating Expression of Interest (EoI). The charges for the
aforesaid activities may be decided on case to case basis.The
Director of the laboratory shall be approving authority for the
purpose. The terms of payments may be as per the mutual agreement
arrived between CSIR and such agencies. If accruals to CSIR are in
the form of equity, the terms of payments may include upfront fee or
equity share or combination of both as the case may be.
4.5
Pre-licensing Aspects
4.5.1 Evaluation of Knowledgebase
A proper technical evaluation of the knowledgebase sought to be licensed shall
be undertaken, through a suitable mechanism to be decided by the Director of the
20
concerned laboratory. The mechanism could be in-house to the laboratory or
external or a combination of both and could also differ from case to case. If the
technical evaluation is satisfactory, a feasibility report for the exploitation of the
knowledgebase should be prepared.
4.5.2 Legal protection
The Director may set up a suitable mechanism for examining the possibility of
legally protecting the knowledgebase generated. All protectable knowledgebase
shall be protected through appropriate legal instruments e.g. patents, copyright,
registered design, trademark etc.
Industrial property sought to be patented shall be licensed preferably after filing of
the complete specifications.
4.5.3 Documentation
In case of knowledgebase sought to be licensed, either directly or otherwise the
detailed document on the technique/ knowhow/ process and/or process
improvements/ technology and the method of its utilization, quality control
aspects, safety and pollution control measures and other parameters associated
with the implementation as per the case must be prepared. This document should
be available centrally either with the Director or the business development unit of
the laboratory. The services /assistance to be rendered by the laboratory to the
licensee for the exploitation of the knowledgebase should be clearly specified.
4.6
Post Licensing Aspects
4.6.1 Review of knowledgebase licensed
Annual review of knowledgebase licensed to assess its utilization / production
status including follow-up with the licensee, shall be conducted by the laboratory
for knowledgebase licensed directly and in association with the NRDC/Govt.
supported Organizations/Sec-8 Company/TTAs/Business Consultants (as
applicable). Any technological modification /development necessitated and also
change in terms /conditions of its licensing can then be considered.
4.6.2 Collection of Monies
Laboratories are responsible for prompt collection of monies accrued through
licensing of knowledgebase directly by them and through NRDC/Govt. supported
Organizations/Sec-8 Company/TTAs/Business Consultants. They should thus
evolve a proper mechanism for collecting and monitoring the accrual and
realization of such monies. The mechanism evolved should include annual review
of outstanding dues from the knowledgebase licensing and their recovery from
the licensee(s).
4.7
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with knowledgebase
licensing shall be subject to a ceiling of the amount received by CSIR from the
licensee for the knowledgebase licensed.
21
4.8
Financial Aspects
Please refer Annexure – VI for details
4.9
Approvals
4.9.1 For licensing of unencumbered knowledgebase
Competent Authority
Projects
Management Council
:
DG, CSIR
:
for all projects.
a) involving foreign clients
b) knowledgebase
involving
laboratories.
mutli-
The following should be placed for consideration of the Competent Authority:
a)
b)
estimates of factors considered for arriving at the price of knowledgebase
vide para 4.8.1 of Annexure-VI, and
technical evaluation and feasibility report prepared vide para 4.5.1.
4.9.2 Licence Agreements
Competent Authority
Contracts
Director
:
drawn up substantially as per the model
agreement provided by CSIR Hqrs
DG, CSIR
:
a) largely deviating from the model
agreement
b) with foreign clients or multi laboratory
projects
c) for projects initiated /coordinated by
CSIR Hqrs
In the agreements, a specific clause for the credit sharing should be built so as to
clearly delineate the contributions made by the CSIR laboratories for a given R&D
project effort. Such a clause should also be the integral part of the agreement /
MoU signed with Strategic Sector / Government Departments.
4.9.3 Authorized signatories to contracts
The authorized signatories in the laboratories for all contracts/ agreements may
be chosen amongst the following: Head, Business Development Group/ Head,
PME/ Senior Controller of Administration/ COA/AO. For multi-laboratory projects,
the signatories shall be the designated officers of the co-ordinating laboratory.
For the contracts/agreements of the CSIR Hqrs, the signing authorities may be
22
chosen amongst the following: Head, Business Development Group / concerned
division’s Under Secretary/ Under Secretary or Deputy Secretary of Central
Office,. Exceptions, however, can be made with the specific approval of Director
and DG, CSIR in the case of laboratory and CSIR Hqrs respectively.
4.10 Review of Knowledgebase
The laboratories shall periodically review the commercialisable knowledgebase
available with them, in order to build and maintain a relevant and active roster.
All such knowledgebase, which becomes non-commercialisable and obsolete,
shall be taken off from the list by giving proper reasons and justification and the
laboratory shall maintain a year-wise documentation for the same.
A proposal comprising non-commercialisable/obsolete knowledgebase shall be
placed before Management Council for approval.
4.11 Deferment of Installments
If due to technical reasons, the laboratory is unable to meet its obligations to
achieve the agreed milestones as per the agreement/contract, the laboratory
may defer receipt of payment of subsequent installment(s) from client till such
time that it meets with its stipulated obligation. In such cases, where a deferment
of subsequent installment(s) is to be affected, the laboratory shall place the
proposal, clearly stating the reasons for non-fulfillment of obligations to
management council for approval.
4.12 Write-off of Unrecoverable Dues
In the event there are unrecoverable dues relating to premia/royalty/
installments from industry, the Head, Business Development Group/Head, PME
shall prepare a comprehensive proposal stating the reasons for short-receipts
of dues to the competent authority. The competent authority shall intern
constitute a write-off committee comprising a senior scientist of the laboratory
as chairman, Head Business Development Group as convenor, COA and
SFAO as permanent members and one scientist as member. The committee
recommendations shall be placed before management council for approval.
4.13 Feedback to Hqrs
Information on knowledgebase generated, licensed and utilized shall be provided
to RPPBD Directorate at CSIR Hqrs as a part of the ‘Research Utilization Data’
being sent by laboratories once every three months. Information shall be
furnished vide items 3(a), 3(b) & 3(c) of proforma at Annexure -III.
23
5. TECHNICAL SERVICES
5.1
Definition
Technical services are meant to render to the clients / customers, assistance
based on available knowledge, expertise, skills, infrastructure and facilities of the
laboratory. Technical services shall thus comprise:






Testing & Analysis (including certification and calibration);
Routine training;
Technical assistance of an advisory nature;
Fabrication, production and supply of special products for R&D;
Repair and Maintenance; and
Providing information.
5.2
Testing & Analysis (including Certification & Calibration)
Services undertaken under this category pertain to use of specialized facilities
and technical expertise available at the laboratories for testing & analysis. Except
for purposes of fulfilling their statutory obligations, laboratories should in general
refrain from undertaking testing & analysis jobs of routine nature or those for
which facilities are easily available commercially.
The laboratory shall wherever feasible draw-up a schedule of charges for its
testing and analysis service, which may be reviewed atleast every two years.
In respect of testing jobs undertaken for purposes of ‘Certification’ and
‘Calibration’, the certificates issued should clearly specify:
i.
ii.
iii.
Limitations of testing equipment /procedures available with the laboratory;
Disclaimer on responsibility of the laboratory for non-conformance of
products/ instruments to results given in the certificate; and
Testing based only on the samples supplied.
5.3
Training
Laboratories take up training programmes either on their own or at the specific
request of clients. Charges per participant for training programmes arranged by
the laboratory on its own shall be such that at least all out-of-pocket expenditure
is recovered. Normally, training programme could be a significant source of
external cash flow, especially those arranged for international organisations /
agencies. Thus, due consideration should be given to this factor while charging
for training.
24
5.4
Technical Assistance
Technical assistance shall involve one time assistance mainly advisory in nature
to help in interpreting the analytical data, problem resolving, quality control etc.
No formal contractual arrangements are needed to be concluded with the client
for technical assistance sought. However the scope and objectives of the
assistance requested by the customer should be clearly specified and CSIR
obligations in that service to be rendered clearly stated through proper /
appropriate documentation (e.g. letters, joint declaration etc.).
5.5
Fabrication/Production of Special Products (Job Work)
CSIR laboratories are often called up to produce/ fabricate limited quantities of
special materials, products or equipment either due to non-availability of
commercial facilities for these or due to the activity being commercially unviable.
Thus, while agreeing to undertake the work, due consideration should be given to
the following:
i.
ii.
the service is not in competition with that available commercially to the
client; and
the charges for the service at least recover all the expenditure incurred.
5.6
Repair and Maintenance
Over the years some CSIR laboratories have acquired special expertise /
knowledge of repair and maintenance of sophisticated instruments, equipment
etc. While the actual out of pocket expenditure for manpower, components etc.
for repair and maintenance may be small, the charges should take into
consideration the opportunity value and the amortisation of investment made in
building up the specific group and the knowledgebase.
5.7
Supply of Information
CSIR laboratories have collected and compiled information and databases in
specialised areas, which could be of significant value to clients. In the past this
type of information has often been given free. There is a business opportunity,
which can be beneficially used. While no rigid guidelines can be laid on the
price of supplying this information, the laboratory must ensure that price
charged takes into consideration the benefit to be derived by the client on
acquisition of the information / database as also the nature of the client. While
laboratories may supply the information / database at a modest price to
universities and other S&T organizations /agencies, the charges for such
information to commercial organisations and international / foreign agencies
should be based on commercial considerations.
25
5.8
Financial Aspects
Please refer Annexure – VII for details
5.9
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with Technical
Services shall be subject to a ceiling of the amount received by CSIR from the
client for the Technical Services.
5.10 Competent Authority for Approval
All jobs undertaken under Technical Services and charges thereto shall be
approved by the Director of the laboratory.
5.11 Deferment of Installments
If due to technical reasons, the laboratory is unable to meet its obligations to
achieve the agreed milestones as per the agreed terms, the laboratory may defer
receipt of payment of subsequent installment(s) from client till such time that it
meets with its stipulated obligation. In such cases, where a deferment of
subsequent installment(s) is to be affected, the laboratory shall place the
proposal, clearly stating the reasons for non-fulfillment of obligations to
management council for approval.
5.12 Write-off of Unrecoverable Dues
In the event there are unrecoverable dues relating to installments from industry,
the Head, Business Development Group/Head, PME shall prepare a
comprehensive proposal stating the reasons for short-receipts of dues to the
competent authority. The competent authority shall intern constitute a write-off
committee comprising a senior scientist of the laboratory as chairman, Head
Business Development Group as convenor, COA and SFAO as permanent
members and one scientist as member. The committee recommendations shall
be placed before management council for approval.
5.13 Feedback to Hqrs
Information on Technical Services undertaken by the laboratory shall be furnished
to the RPPBD Directorate at Hqrs once every three months vide item 6 of
proforma at Annexure - III.
26
6. TRANSLATION OF KNOWLEDGEBASE BY
FOREIGN CLIENTS
Preamble
There has been an increasing interest in utilization / translation of the CSIR
knowledgebase, by clients, not only from developing countries but also from
developed countries. Some of the CSIR laboratories are already exporting
their R&D and services and the international business is growing.
The consolidated guidelines for exploitation of knowledgebase by foreign
clients are as under:
6.1
Definition
Foreign Client is deemed to be:
i.
ii.
iv.
A juridical entity registered/ situated outside India;
Acompany registered in India with more than 50% equity holding by
foreign entity;
All UN and World Organisations/ Bodies such as UNDP, UNIDO,
UNESCO, WIPO, CSC etc.; and
NRI Client seeking to utilise/ exploit CSIR knowledgebase abroad
6.2
Approvals
iii.
6.2.1 For Projects
The Government of India guidelines/instructions on the subject (vide
O.M.No.1/116/5/98-TS dated 21st December, 1999) specifies all projects
involving foreigners/foreign collaboration in any form need a first level scrutiny
from security & sensitivity angles by the concerned Ministryfor clearance by the
Secretary of the concerned Ministry/Department or a High Level Committee
(HLC) of the Govt. of India depending upon the nature of the project. Thus, all
proposals for undertaking projects involving foreigners /foreign collaboration by
CSIR and the laboratories should be referred to CSIR Hqrs for obtaining
security and sensitivity clearance of Competent Authority after due diligence of
scrutiny by the Director at the laboratory/Head of Division of concerned division
at Hqrs.
These shall then be referred to :
ISTAD
For all bilateral projects with other international scientific
organizations excluding Global Research Alliance (GRA) projects
RPPBDD
For all International Business and Marketing related projects viz.
(i) Contract Research, (ii) Consultancy, (iii) Technical Services,
27
(iv) Licensing of Intellectual Property, and (v) Licensing of
Knowledgebase and Global Research Alliance (GRA) projects at
CSIR Hqrs for obtaining clearance/approval of the Competent
Authority as per the detailed procedure given in Annexure- VIII.
6.2.2 Contracts
The Competent Authority for approval of contracts in all cases will be Director
General, CSIR. In the agreements, a specific clause for the credit sharing
should be built so as to clearly delineate the contributions made by the CSIR
laboratories for a given R&D project effort. Such a clause should also be the
integral part of the agreement / MoU signed with Strategic Sector / Government
Departments.
6.3
Authorized Signatories to Contracts
The authorized signatories in the laboratories for all foreign contracts
/agreements may be chosen amongst the following: Head, Business
Development Group/Head, PME/Senior Controller of Administration / COA/AO.
For multi-laboratory projects, the signatories shall be the designated officers of
the co-ordinating laboratory. For the contracts/agreements of CSIR Hqrs, the
signing authorities may be chosen amongst the following: Head, Business
Development Group, concerned division’s Under Secretary/Under Secretary or
Deputy Secretary of Central Office. Exceptions, however, can be made with
the specific approval of Director and DG, CSIR in the case of Laboratory and
CSIR Hqrs respectively.
6.4
Financial Aspects
6.4.1 Charging for Projects
The estimates of costs to be taken into consideration for costing of a `Project’
with foreign client will be the same as for the Indian clients and an opportunity
charge levied keeping in view the cost that the foreign client would incur
internationally or in his country for a similar project.
In several countries, particularly the Europe and USA, the concept of Full Time
Equivalent (FTE) are prevalent. Usually the FTE includes one group IV staff
member, two project assistants, normal raw materials, analytical services and
intellectual fees/ laboratory fee & project fee. CSIR laboratories can also adopt
this concept in the contract by foreign clients. Towards these objectives, each
laboratory may work out their respective FTE rates. The basis for costing will
be same as for the Indian clients and an opportunity charge levied keeping in
view the cost that the foreign clients would incur internationally or in his country
for a similar project as also the reputation of the laboratory in the area.
In general, fees levied to an overseas client should be at least twice that levied
to an Indian client for a comparable assignment. However, lower multiples
could be charged if it is perceived that it could lead to leverage the country
image or result in a strategic advantage to the country.
28
6.4.2 Pricing
The pricing of intellectual property and/or knowledgebase shall be done on the
same conditions as for Indian client. All factors enumerated therein shall be taken
into account while arriving at the price of the intellectual property. However the
`opportunity value' shall depend upon the specialised nature of inputs like raw
materials, expertise, size of plant, competition from similar technology from other
countries, state of art of technology etc. and it would play a greater role in
determining the final price to be offered to the foreign client.
6.4.3 Terms of payment
The terms of payment by the foreign client could be negotiated and settled to
mutually agreed conditions, to be approved by the Director. The laboratory
shall endeavor to receive the payment in designated foreign currency only.
Some countries may not have a well developed system for foreign currency
remittances and as such royalty collection may be difficult. In such cases it may
be advisable to transfer the Intellectual property and/or knowledgebase preferably
against lumpsum payments only while in other cases the charges could be split
between lumpsum amount and recurring royalty payment.
6.5
Intellectual property
6.5.1 Ownership
i.
Sponsored R&D
The ownership of the intellectual property generated shall be negotiated
and decided between the parties and shall explicitly be stated in the
contract. The ownership could be of CSIR or client or joint. Obtaining and
maintaining the relevant intellectual property rights shall correspondingly
be the responsibility of CSIR or client or joint. In case where the
ownership of intellectual properly is fully provided to client, the
laboratory/institute shall ensure suitable compensation in the form
additional payments in Laboratory Share or premia and/or recurring
royalty. In case of joint ownership the responsibilities and obligations as
also territory of operation of each party shall be clearly defined. The
decision, whether or not an intellectual property right be obtained, shall be
mutually decided, failing which the Director of the laboratory will decide
and his decision shall be final and binding.
ii.
Collaborative /Cooperative R&D
Intellectual property generated through projects with technical contribution
from the collaborator(s), shall be jointly owned. The expenses for obtaining
and maintaining the intellectual property rights shall be borne equally by
CSIR and the collaborator(s). The decision whether or not intellectual
property rights be secured shall jointly be taken by the Director of the
laboratory and the collaborator(s).
29
iii.
Grant-in-aid
Intellectual property rights in case of international agencies shall be
mutually decided prior to undertaking assignment. However, where the
grantor has no standard conditions and for non-government agencies,
ownership rights shall be that of CSIR.
6.5.2 Licensing
CSIR and the foreign client shall negotiate and decide the terms & conditions for
licensing/ commercial exploitation of the intellectual property. These terms &
conditions shall be clearly spelled-out in the contract agreement
6.6
Indemnity/Liability
The liability, if any, for CSIR arising out of or in connection with the projects with
foreign clients shall be subject to a ceiling of the amount received by CSIR from
the client.
6.7
Foreclosure of the Projects
In the event a project requires foreclosure the project leader shall submit a
comprehensive proposal stating the reasons for foreclosure, to the Competent
Authority. Based on the proposal Head, BD/ Head, PME shall prepare a
comprehensive note including financial statement for the approval of
management council.
6.8
Deferment of Installments
If due to technical reasons, the laboratory is unable to meet its obligations to
achieve the agreed milestones as per the agreement/contract, the laboratory
may defer receipt of payment of subsequent installment(s) from client till such
time that it meets with its stipulated obligation. In such cases, where a deferment
of subsequent installment(s) is to be affected, the laboratory shall place the
proposal, clearly stating the reasons for non-fulfillment of obligations to
management council for approval.
6.9
Write-off of Unrecoverable Dues
In the event there are unrecoverable dues relating to premia/royalty/
installments from industry, the Head, Business Development Group/Head, PME
shall prepare a comprehensive proposal stating the reasons for short-receipts
of dues to the competent authority. The competent authority shall intern
constitute a write-off committee comprising a senior scientist of the laboratory
as chairman, Head Business Development Group as convenor, COA and
SFAO as permanent members and one scientist as member. The committee
recommendations shall be placed before management council for approval.
6.10 Feedback to Hqrs
The laboratory shall keep RPPBD Directorate, CSIR Hqrs informed of any
‘Project’ negotiated and contracts entered into with foreign clients by submitting
a quarterly statement of the details of such project(s) including a copy of the
signed contract agreement.
30
7. SHARING OF MONIES REALISED WITH STAFF
Preamble
The Resolution of the Government of India for setting up the CSIR provides
that a portion of monies realized from licensing of Intellectual Property,
knowledgebase,
consultancy
and
fee
from
sponsored
research
projects/schemes be shared with the staff. In accordance with the provisions,
GB of CSIR has from time to time considered and approved of the scheme of
sharing of monies with the staff.
The consolidated revised guidelines for sharing of monies realised from various
R&D activities with the CSIR staff are as under:
7.1
Contract R&D and Technical services
The distributable share to staff is 25% of the project cost excluding capital costs
for projects taken up on or after 1st September 2017. If direct expenses in any
specific Contract R&D Project and Technical Services Project is higher than
the 40% of the project cost excluding capital costs then the difference should
be adjusted against the project fee and only remaining amount of project fee
will be distributable among the staff.
Note:
i.
ii.
iii.
iv.
7.2
Contract R&D contracted prior to 1st October 1977 and on or after
1st April 1994 is distributable among the staff.
Contract R&D projects for which agreements were executed between
1st October 1977 and 31st March 1994 is not distributable among the staff.
Sharing of monies is not permitted in the projects that are not wholly funded
(direct and indirect cost + goods and services tax) by the client. Partially funded
projects are not eligible for sharing of monies.
Sharing of monies from projects that have been foreclosed or where there is
short receipt of funds or where dues are not recovered fully shall not be
distributable. Deductions at source on account of income tax is not considered
as short receipt.
Consultancy Projects
The distributable share to staff is 1/3rd of the project cost or up to 2/3rd of the
project fee (refer Annexure-IX) whichever is minimum for projects taken up on
or after 1st September 2017.
31
7.3
Premia/Royalty
received
from
Licensing
of
Knowledgebase
(technology,
process
knowhow,
improvements in process knowhow etc.) and Intellectual
Property
The monies/fees realized from licensing of knowledgebase and intellectual
property (a) referred to NRDC and (b) directly by the Lab from 1st April 1994 and
upto 6th May 2017 is to be shared as follows:
Share of
Monies realized from licensing
Through NRDC
NRDC
CSIR (Laboratory)
Investigators*
30%
30%
40%
Direct by
Laboratory
60%
40%
The monies/fees realized from licensing of knowledgebase and intellectual
property (a) referred to NRDC and (b) directly by the Lab on and after 7th May
2017 is to be shared as follows:
Share of
NRDC
CSIR (Laboratory)
Investigators*
Monies realized from licensing
Through NRDC
Scenario Scenairo
I
II
10%
15%
50%
45%
40%
40%
Direct by
Laboratory
60%
40%
Note
Scenario I
As per the agreement dated 7th May 2017 executed between CSIR and
NRDC, 10% of the premium and royalty for knowledgebase & intellectual
property where premium is more than Rs. 10 lakh. In exceptional cases,
where either NRDC inputs are significant in developing the
knowledgebase & intellectual property package or NRDC licenses the
knowledgebase & intellectual property to second or more clients, the
premia and royalty share shall be 15%.
Scenario II 15% of the premium and royalty for knowledgebase & intellectual property
where premium is up to Rs. 10 lakh.
Note
i.
The Investigators’ share of premia/ royalty/ other money realised from licensing of
knowledgebase (technology, process knowhow, improvements in process
knowhow etc.), developed and referred to NRDC or approved for direct licensing by
laboratory prior to 1st October 1977 and on or after 1st April 1994 is distributable
amongst the staff.
32
ii.
7.4
The Investigators’ share of premia/royalty in respect of knowledgebase
(technology, process knowhow, improvements in process knowhow etc.), referred
to NRDC/released directly by the laboratory between 1st October 1977 and 31st
March 1994 is not distributable amongst the staff.
Pattern of Distribution
7.4.1 Contract R&D, Intellectual Property Licensing, Knowledgebase
Licensing, Consultancy and Technical Services
i.
The distribution pattern of Investigators’ share of monies realised from
contract R&D licensing of Intellectual property, licensing of knowledgebase
etc., and technical and knowledge based services upto 30th September
1977 is to be as follows:
S.No.
Staff
i.
Innovators
ii.
Other members of the team
iii.
Those who have provided physical and mechanical
inputs directly associated with the project work
iv.
Common Pool
v.
Welfare/Benevolent Fund
Share
35%
35%
15%
10%
5%
Note:
ii.
(i)
The share for the Common Pool has been merged with the share for
Welfare/ Benevolent Fund w.e.f. 15th December 1986. (Ref: 111th GB
meeting held on 15th December 1986).
(ii)
The investigators share of monies realized from NRDC for the process
referred up to 30th September 1977 shall also be on the same pattern.
The distribution pattern of Investigators’ share of monies realised from
Contract R&D, licensing of Intellectual property, licensing of
knowledgebase etc., and technical services on and after 1st April 1994 and
upto 31st August 2017 is to be as follows:
S.No.
i.
Staff
Share
Innovators & Principal Contributors
40%
ii.
S&T and Other staff who contribute direct inputs
to the specific development/activity
35%
iii.
Remaining staff of the laboratory
20%
iv.
CSIR Welfare Fund (maintained at Hqrs)
5%
Note:
The investigators share of monies realized from NRDC for the process referred
on and after 1st April 1994 and upto 31st August 2017 shall also be on the same
pattern.
33
iii.
The distribution pattern of Investigators’ share of monies realised from
consultancy on and after 1st April 1994 and upto 31st August 2017 is to be
as follows:
S.No.
i.
ii.
iii.
iv.
iv.
Staff
Team of Consultants
Other S&T Staff
Supporting Staff
CSIR Welfare Fund
Share
65%
15%
15%
5%
The distribution pattern of ‘Investigators’ share of monies realised
from Contract R&D, Consultancy, Licensing of Intellectual Property,
Licensing of Knowledgebase and Technical services for project
taken up on and after 1st September 2017 is to be as follows:
S. No.
Staff
Share
i.
Innovators & Principal Contributors/ Team of
Consultants
65%
ii.
Directly associated S&T Staff#
20%
iii.
Administrative Staff (Purchase, Stores,
Administration, Finance, ESD, Engineering,
Utilities, Instrumentation etc.)
10%
iv.
CSIR Welfare Fund (maintained at Hqrs)
5%
#
Note:
(i)
May include Project Assistant, Research Associates and Project Scientist
who directly contributed in a specific consultancy assignment/ licensing of
knowledgebase.
(ii)
In case there is no staff under ‘Directly associated S&T Staff’ category, the
share of honorarium earmarked for this category shall then go to Laboratory
Reserve Fund (LRF).
Note:
The investigators share of monies realized from NRDC/Govt. supported
Organizations/Sec-8 Company/TTAs/Business Consultants for the process
referred on and after 1st September 2017 shall also be on the same pattern.
The detailed procedure for distribution of monies realised is given in
Chapter 8 para 8.1 and para 8.2.
34
7.4.2 Provision for utilizaing Laboratory Reserve Fund (LRF) generated
by a Principal Investigator(s) for Translational Research Project (s)
10% of the Laboratory Reserve Fund (LRF) generated by a Principal
Investigator(s) could be utilized by him/her to pursue translational research
project(s). The guiding principles for the purpose are as under:
(i)
The individual ledger for pooling the money in the name of the
concerned Principal Investigator(s) shall be maintained by the Business
Development Division and the Finance Division in a laboratory. In the
case of CSIR Hqrs, it will be maintained by RPPBD Directorate and
Audit Section.
(ii)
10% of the LRF deposited can be utilized by the concerned Principal
Investigator for academic and R&D activities related to project including
purchase of consumables, associated travel expenses, hiring of
manpower in project mode etc including all other revenue head
permitted as per the approved extent Laboratory Reserve Fund (LRF)
guidelines.
(iii)
10% of the LRF deposited can be accumulated in the name of
concerned Principal Investigator(s) and a ledger will be maintained. All
unspent money, after 5 years from date of deposition in the ledger of
concerned Principal Investigator(s) will revert to LRF.
(iv)
In case there is more than one Principal Investigator in the project, the
money (10% of the LRF) deposited should be equally distributed
amongst them.
35
8. PROCEDURE FOR SHARING OF MONIES WITH
STAFF
8.1
Sharing of monies realized from Licensing of Intellectual
Property and Knowledgebase as well as Contract R&D and
Technical Services etc.
8.1.1 Conditions for sharing of monies
The sharing of portion of monies as specified in Chapter 7 is subject to
fulfillment and compliance of the following:
a) A formal cost accounting has been put in place and notified by the
laboratory;
b) A legally valid agreement has been executed for Intellectual Property
licensing / Contract R&D / licensing of technology etc;
c) The laboratory has fulfilled its obligations in the assignment in
accordance with the terms of the agreement;
d) All the monies/fees due have been received in full;
e) The client has not contested CSIR's fulfillment of its obligations as
defined in the contract/ agreement;
f)
In the event of any legal action/dispute necessitating refund/ payment
of monies/ fees by CSIR to the client, the amount paid to the staff is
recoverable;
g) Sharing of monies is not permitted in the projects that are not wholly
funded (direct and indirect cost + GST) by the client. Partially funded
projects are not eligible for sharing of monies; and
h) Sharing of monies from projects that have been foreclosed or where
there is short receipt of funds or where dues are not recovered fully is
not permitted.
8.1.2 Categorization of Staff
a) ‘Innovators and Principal Contributors’ may comprise scientists and
other S&T staff who provide innovative, developmental, design
engineering, experimental, data/ information, testing/ analytical, repair/
fabrication, training and business development / marketing inputs for
the project/ activity;
b) Directly associated S&T Staff’ may comprise of the staff who provide
direct inputs for the specific project/activity. In case of licensing of
knowledgebase ‘Directly associated S&T Staff’ may also include
amongst the Regular Scientists and Technical Staff, the Project
Assistant, Research Associates and Project Scientist who directly
contributed to the specific knowledgebase development. In case there
36
is no staff under ‘Directly associated S&T Staff’ category, the share of
honorarium earmarked for this category shall then go to Laboratory
Reserve Fund (LRF);
c)
Administrative Staff may comprise laboratory staff from the sections of
purchase, stores, administration, finance, ESD, engineering, utilities,
instrumentation etc.; and
d)
Any change in the approved group of ‘Innovators and Principal
Contributors’ and ‘Directly associated S&T Staff’ can be made by the
Director, with the revision being ratified by the Management Council or
DG, CSIR for projects within their competence for approval.
8.1.3 Maintenance of Project Records
The Head of the laboratory shall ensure that the following records are
maintained and kept securely in the laboratory:
(i)
By Project Leader
a) Project File
Document containing information on a systematic basis on initiation of the
idea; date of starting of the project; list of ‘Innovators and Principal
Contributors’ and ‘Directly associated S&T Staff’ (as defined earlier);
responsibilities assigned to the individuals and the extent of their
participation (whether whole time or part time).
b) Completion Report
A document listing the outcome of the project/ activity including the
contributions made by each of the ‘Innovators and Principal Contributors’
and ‘Directly associated S&T Staff’. The final record shall be signed by
each of the Innovators, Principal Contributors and the Project Leader.
c) Project Cost
Certified expenditure for each project/ activity in accordance with
Integrated Management & Project Accounting (IMPACT) system.
(ii)
By Innovators & Principal Contributors and Directly associated S&T Staff
Record Book
A document maintained individually by the ‘Innovators and Principal
Contributors’ and ‘Directly associated S&T Staff’ listing date of his/her
joining the project; extent of participation (whether whole time or part
time); work allotted and/ or undertaken from time to time; contributions or
achievement made, verified and countersigned by the Project Leader/
Director.
8.1.4 Distribution of Monies/ Fees
i) The names of the ‘Innovators and Principal Contributors’ and ‘Directly
associated S&T Staff’ should be included in the project proposal put up to
37
the Competent Authority for seeking approval to the project.
j)
A Standing Committee shall be set up by the Director to consider and
decide on the share of the Innovators and Principal Contributors, Directly
associated S&T Staff from the monies realised from licensing of
Intellectual Property and knowledgebase as well as the Contract R&D
projects and S&T Services.
k)
The Project Leader shall recommend to the Standing Committee the
share of the individual Innovators, Principal Contributors and Directly
associated S&T Staff for a specific project/ activity commensurate with the
individual's contributions to the project/ activity as reflected in the Project
Records.
l)
The Standing Committee shall decide the share of each individual in the
light of the recommendations of the Project Leader and taking into
consideration the Project Records [as at 8.1.3 (ii) above], wherever
necessary.
m)
The recommendations of the Standing Committee shall be intimated to
each of the Innovators and Principal Contributors and Directly associated
S&T Staff and also displayed on the laboratory and other appropriate
notice boards. In case no objections / representations are received within
fifteen days of the date of notification, then the same can be submitted for
consideration and approval by the Management Council.
n)
Representations, if any, against the recommendations of the Standing
Committee, within the stipulated time limit, shall be reconsidered by the
Standing Committee. The fresh recommendations of the Standing
Committee, along with the details of representations shall be put up to the
Management Council for consideration.
o)
The decision of the Management Council shall be intimated to each of the
Innovators and Principal Contributors and Directly associated S&T Staff
and displayed on appropriate notice boards. Distribution of the monies/
fees will then be done if no representations are received against the
decision of the Management Council within thirty days of the date of
notification.
p)
Appeals against the decision of the Management Council, within thirty
days of the date of notification, can be made to DG, CSIR through the
Director of the laboratory. Decision of DG, CSIR shall be final and binding
on all concerned.
q)
The portion of the monies/ fee earmarked for the ‘Administrative Staff’ is
to be uniform for a salary scale and is to be distributed once a year.
r)
A person is entitled for a share from the monies/fees even in the event of
his transfer / retirement / resignation from CSIR. In the event of death of
a person, his/her legal heir shall be entitled to his / her share of
monies/fee.
38
s)
From 1st June 2005, there is no ceiling on the amount of honorarium
receivable by an individual from licensing of intellectual property and
knowledgebase as well as contract R&D and technical services.
8.2
Distribution of Honorarium for Consultancy Services
8.2.1
The ‘Team of Consultants’ shall comprise only such staff members who
provide intellectual inputs to the specific consultancy work.
8.2.2
Directly associated S&T Staff’ may comprise staff who have provided
direct inputs for the specific project/ activity including Project Assistant,
Research Associates and Project Scientist. In case there is no staff
under ‘Directly associated S&T Staff’ category, the share of honorarium
earmarked for this category shall then go to Laboratory Reserve Fund
(LRF).
8.2.3
Administrative Staff may comprise laboratory staff from Purchase,
Stores, Administration, Finance, ESD, Engineering, Utilities,
Instrumentation etc.
8.2.4
The portion of the monies/ fee earmarked for the ‘Administrative Staff’ is
to be uniform for a salary scale and is to be distributed once a year.
8.2.5
The names of ‘Team of Consultants’ and ‘Directly associated S&T
Staff’ with the proposed share (%) of honorarium of each individual
member should be included in the project proposal put up to the
Competent Authority for seeking approval to the project.
8.2.6
Any change in the approved `Team of Consultants' and ‘Directly
associated S&T Staff’ for the consultancy project can be made by the
Director, with the revision being ratified by the Management Council or
DG, CSIR for projects within their competence for approval.
8.2.7
The consultancy will be deemed as completed only when the obligations
envisaged in the assignment have been fulfilled and all the money due
from the client has been received.
8.2.8
On the completion of the consultancy, the project co-ordinator shall in
consultation with the team of consultants decide the share of
honorarium to each member of the `Team of Consultants' and ‘Directly
associated S&T Staff’, commensurate with the inputs of each individual
member. The share of distribution agreed upon will be intimated to the
concerned staff and displayed on the notice board of the laboratory. In
case no objection to / representations against the proposed distribution
are received within fifteen days from the date of intimation/ notification,
the recommended distribution may be taken as final.
8.2.9
In case of Consultancy projects running for longer duration (more than
two years), honorarium may be distributed annually, provided the
amount due for the corresponding year has been fully received from the
client.
39
8.2.10 The Director would be competent to approve the distribution of
honorarium (vide procedure stipulated in para 8.2.8 above) in all cases
where there is no deviation from the approvals obtained for the
distributable amount and/or share of honorarium of individual member
for a consultancy project.
8.2.11
In cases where there is a deviation in the approved share of honorarium
of individual member and/ or the amount available for distribution,
approval of Competent Authority to the revised proposal for grant of
honorarium as envisaged by the changed conditions may be obtained
prior to distribution of honorarium as per procedure prescribed in para
8.2.6 above.
8.2.12
Any objections/representations (received within the stipulated period of
time) to the distribution of honorarium proposed vide para 8.2.6, shall be
discussed with the Project Coordinator by either the Director or any
Committee setup by the Director for the purpose. The Director's/
Committee's recommendation would then be placed for consideration/
decision of the Management Council (MC). The decision of the MC shall
be intimated to all concerned staff and displayed on the Notice Board. In
case there is no representation against the decision of the Management
Council within 30 days of its display on the Notice Board, distribution of
honorarium as per the MC decision shall be done.
8.2.13
Representations/ objections against the decision of the MC can be
made to DG, CSIR within 30 days of the date of its display on the Notice
Board (A copy of all such representation should invariably be endorsed
to the Director of the laboratory). The recommendation of DG, CSIR in
the matter shall be final and binding on all concerned.
8.2.14
A member of the consultancy team shall have the option to forego
his/her share of honorarium, which shall than lapse to the CSIR Welfare
Fund.
8.2.15
From financial year commencing 1st April, 1995 there is no ceiling on the
maximum amount of honorarium receivable by an individual from
consultancy provided that the mandays devoted by the individual on
consultancy work in a financial year do not exceed 50 mandays (as
stipulated in Chapter 2, para 2.7.9)
8.2.16
Any distribution made in disregard to the prescribed procedure and
guidelines shall be deemed as unauthorized and liable to recovery with
12% interest.
40
9. ENGAGEMENT OF TECHNICAL AND BUSINESS
DEVELOPMENT CONSULTANTS
Preamble
Companies, world over have realized that to gain competitive advantage they
need to leverage their capabilities through outsourcing. Thus, the innovation
chain is no more country/company specific and is increasingly becoming global.
As a consequence, national as well as international companies are increasingly
approaching R&D set-ups in public domain, engaged in niche areas, for
contract R&D. This phenomenon may gain additional momentum in future and
result in unique public-private-partnerships.
CSIR has to be competitive in the knowledge driven economy. It should thus
have the ability to co-opt external skills and competencies not available within
the organization through suitable consultancy services. Such a consultant can
either be in the science and technology area or in areas related to business
development, intellectual property rights management, safety management,
and human resources management.
CSIR in 1994 had instituted a Scheme for engagement of consultants for
business development. The Scheme has been found to be useful and the
engagement of consultant(s) leveraged the capability base of the given
laboratory in the identified domain(s). The scheme has been renewed and
extended from time to time.
Under the scheme, the consultants are appointed for a fixed period and
assigned a specific and specialized task. Generally the given work assignment
requires them to visit diverse organizations, develop contracts to carryout the
desired activities. GB in its 164th meeting held on 15th December 2004
approved that the consultants appointed in the scheme be provided a
documentary proof of their affiliation to CSIR for the identified task. This (proof
of) affiliation however will be temporary and will be used only for the period
consultant is working for CSIR and in no way allow him/her to claim any other
benefits.
9. 1 Eligible Consultant(s)
The consultant(s) could be any legal entity, individual(s)/group of
specialists/experts, corporate entities such as Firms / Companies/ Societies
/ Trusts etc. Individuals who have been retired from Government / SemiGovernment / Public Sector organization(s). Individuals who are regular
employees of Government / Semi-Government/ Public Sector organization(s)
could be engaged as consultants, on deputation / foreignservice basis, as
applicable.
41
9.2
Scope
Scope of consultants' services could interalia cover assistance to the
laboratory/CSIR Hqrs in:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.
xviii.
xix.
xx.
xxi.
xxii.
xxiii.
Evolving of business plans and strategies;
Specialized technical inputs to R&D programmes;
Forecasting of technology;
Carrying out market/demand surveys;
Evaluation and upscaling of technology;
Tying up with design engineering consultants/companies, financial
institutions and other agencies for packaging the laboratory
knowledgebase;
Identifying and developing market(s)/client(s) for the IP/ knowledgebase;
Negotiations and contracting of the IP/knowledgebase;
International marketing of IP/knowledgebase;
Human resources management
Safety management
Designing and developing publicity material/campaigns for IP/
knowledgebase;
Activities related to research planning, project development and evaluating
performance;
Entrepreneurship development;
Skill development;
Human resource development;
Carrying out techno-economic survey/evaluation;
Economic impact assessment;
Societal impact assessment;
Market survey;
DPR preparation;
Science communication & dissemination; and
Any other function to be assigned by Director/DG, CSIR as the case may
be.
Note:
Consultant(s) cannot be engaged for seeking and securing contracts / sponsored R&D
and funds from Govt. Departments / Agencies, UN and other International Aid Agencies,
Public Sector Undertakings/Enterprises.
42
9.3
Engagement of Consultant(s)
Broadly two types of consultants are envisaged viz. (i) Fixed fee consultant and
(ii) Variable Fee consultant. The procedure for engaging the two types of
consultants is as follows:
i.
The Fixed Fee consultant(s) to be engaged is to be recommended as
under:
a. For Laboratory: Director of the Laboratory
b. For Headquarters: DG, CSIR
ii.
The Variable Fee consultant to be engaged is to be recommended as
under:
a. For Laboratory: Management Council (MC)
b. For Headquarters: DG, CSIR
9.4
Terms of consultancy
i.
General terms
a. The consultant(s) shall be engaged for a specific job assignment;
b. The roles, rights and responsibilities of consultant(s) will be well
defined;
c. The period of engagement of consultant could be upto one year only;
any extension shall be reviewed and approved by the Director / MC /
DG, CSIR as the case may be upto a maximum of another one year.
ii.
Payment terms
The payments / fees to the Consultant and procedure for approval shall be as
follows:
(i)
Fixed Fee Consultants:
Payment/ Fee Amount
Up to Rs. 30 lakh per annum
Approving Authority
For Laboratory - Director
For Headquarters – DG, CSIR
Over Rs. 30 lakh per annum
DG, CSIR
43
(ii)
Variable Fee Consultants:
Payment/ Fee Amount
Approving Authority
Upto 5% of amount realized from
business development with a
new customer
Upto 8% of amount realized for For Laboratory - Management Council
identifying
a
customer
for
knowledgebase licensing
For Headquarters – DG, CSIR
Upto 15% of amount realized for
locating a customer for licensing
IP
Beyond the above limits
DG, CSIR
9.5
i.
Agreement
Terms and conditions of the agreement.
The agreement with consultant(s) should interalia specify:
a.
Details of job assignment to be undertaken by the consultant(s);
b.
Details of facilities, assistance etc. if any, to be provided by the laboratory;
c.
Details of expenditure to be reimbursed, payment for the services to be
made and mode of payment indicating the value, periodicity, linkages to
stages of performance etc.;
d.
Duration of the assignment along with affiliation (documentary proof);
e.
Secrecy/confidentiality to be maintained by consultant(s) and their staff of
the information disclosed by the laboratory and or acquired during the
course of consultancy by the consultant(s);
f.
Disclaimer by consultant(s) on claims/rights in:
- any intellectual property/information/data/prototype resulting or acquired
during consultancy, and
- any money receipts accruing or received during or consequent to
utilization / commercialization of the said intellectual property, information,
data, prototype etc.;
g.
Mechanism for resolution of disputes between the consultant(s) and
CSIR/Laboratory.
ii.
Approval of Agreement [Ref. OM No.9/203/2001-RPBD, Amend–11
dated 29.12.2001 and OM No. 6-3/(54)/209-EIII dated 18.3.2010]
44
Competent Authority for approval of the agreement(s) with:
Indian consultant(s):
(a) For Headquarters: DG, CSIR
(b) For Laboratory: Director
Foreign consultant(s):
DG, CSIR for Headquarters and Laboratory.
9.6
Feedback to Hqrs.
The information on consultant(s) engaged and the agreement entered into
covering interalia the specific activity, duration and fee to be paid shall be sent to
Head, RPPBD Directorate at CSIR Hqrs. within one month of engaging of the
consultants. This may please be strictly complied with otherwise the engagement
of consultants may be held as unauthorized. A financial statement to the effect of
monies received by the CSIR laboratory on account of the services of the
consultant vis-à-vis fee paid may be made available annually to RPPBD
Directorate before 30th April for the previous financial year.
45
10. CSIR SCIENTISTS TO BE MEMBERS ON THE BOARD
OF DIRECTORS OF PRIVATE SECTOR COMPANIES
Preamble
In the changing economic, trade and intellectual property regime, the Indian
industry has to be technology driven. This offers significant opportunity for the
indigenous R&D to exploit its potential by establishing linkages with the
industry. Thus, the presence of CSIR Scientists on the Board of Directors
(BOD) of Companies would help build organic linkages between the CSIR
laboratories and Indian companies/organisations. However, considering the
diversity of CSIR knowledgebase and the Indian industry, adequate caution is
needed in selecting such companies/organisations so that functioning of the
scientists on their BODs is mutually rewarding to the CSIR and the
companies/organisations. Recognizing this, CSIR has permitted its scientists to
be on BODs of companies/organisations, which are:
i.
existing / promoted by CSIR licensees;
ii.
established by CSIR scientists;
iii. having in-house R&D units recognised by DSIR;
iv. having activities in which CSIR could provide significant S&T support;
v.
manufacturing high tech products.
10.1 Terms & Conditions
i.
CSIR scientists could be permitted to be members of Board of
Directors/Governors/Trustees (generically referred to as BODs) of any
Indian Company and Foundation (hereinafter generically referred to as
ORGANISATIONS);
ii.
Senior Principal Scientist and above including Director are eligible to apply
for such permission;
iii.
At any time a scientist could be on the BODs of not more than three such
ORGANISATIONS. Startup/ Spin offs created by Scientists under CSIR’s
Scientific Entrepreneurship Scheme shall be excluded for this purpose;
iv.
A certificate of Conflict of Interest and/or Conflict of Commitment needs to
be furnished by the scientist seeking permission (Part III; Annexure –X);
v.
To safeguard the scientist against any possible personal liability arising out
of legal or criminal defaults by the ORGANISATION, scientist is required to
obtain a Certificate of Compliance (as given in Annexure-X-A) from the
46
functional Directors/Executive Officers of the ORGANISATION prior to
each meeting of the BODs; and
vi.
Exceptions to the above could be considered and approved on merits by
DG, CSIR
10.2 Competent Authority for approval
DG, CSIR is the Competent Authority to approve the membership of scientists on
BODs of such ORGANISATIONS. The proposal (in the proforma at
Annexure - X) duly vetted by the Director is to be forwarded to Head, RPPBD
Directorate, CSIR Hqrs for processing.
47
11. ESTABLISHING OF BUSINESS & MARKETING
ENTITIES BY CSIR LABORATORIES
Preamble
Some of the CSIR laboratories are working on highly knowledgebased products
having significant potential market demand. Also, a few of the laboratories have
world class facilities as well as skillbase. The marketing of these could bring in
significant revenue to CSIR laboratories. However, due to absence of an
appropriate mechanism hitherto, it had not been possible for the laboratories to
exploit these commercially. The laboratories are now permitted to set up
Business & Marketing Entities subject to terms and conditions mentioned
hereinafter.
11.1 Terms and conditions
A CSIR laboratory may be permitted to establish a legally distinct non-profit entity
such as Society, Trust, Foundation and Section 8 Company (hereinafter referred
to as ENTITY) interalia to exploit/ market its knowledgebase, products, databases
etc. This entity could also be set up for undertaking all techno-commercial and
project management activities to offer end to end turnkey solutions to the
clients.The eligibility conditions are that the laboratory over the immediate past
three years period has:
i.
ii.
external cash flow through contract R&D and consultancy averaging to a
minimum of 1/3rd of the CSIR (government) grant; and
50% of this external cash flow derived is commercial rupee as defined by
CSIR
The laboratary may provide some suitable office space to these entities in the
laboratory. The entity will have to pay the applicable charges as decided by the
laboratory.
The setting up of such ENTITY is further subject to the following conditions:
i.
ii.
iii.
iv.
CSIR's government grant is not used to invest in the corpus/ equity funds
etc. of the ENTITY. The ENTITY may obtain corpus/ equity funds by way of
donations, grants, loans, venture capital etc.;
No budgetary support is provided by CSIR and the Laboratory to run/ for the
ENTITY;
No liabilities, direct/ implied, are created against CSIR/Laboratory by the
ENTITY;
All transactions/arrangements of CSIR/Laboratory with the ENTITY shall be
through formal contractual instruments as required between two legal
entities, CSIR Model Agreement may be referred to in this regard.
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11.2 Competent Authority for approval
DG, CSIR is the Competent Authority for permitting of setting up of such
ENTITIES by the laboratories.
All such proposals (in the proforma at
Annexure-XI) should be forwarded to Head, RPPBD Directorate at CSIR Hqrs for
further processing.
49
12. SETTING UP INCUBATION CENTRES IN CSIR
LABORATORIES
12.1
Background
Encouraging growth of knowledge driven businesses is crucial for future
economic development of the country. The practical application of knowledge
requires entrepreneurial skills on one hand and appropriate enabling
infrastructure on the other. Actual application of knowledge/ innovation
requires further fine-tuning and nurturing of a given knowledgebase through
S&T inputs for commercialization.
The Sivaram Committee while reviewing CSIR guidelines for technology transfer
and utilization of knowledgebase recommended creation of Incubation Centres
within the confines of CSIR laboratory in order to give a boost to innovation led
(industrial) development in the country and also for nurturing start up companies.
The Governing Body in its 166th meeting held on 16th February 2006 considered
the scheme for Setting up Incubation Centres in CSIR Laboratories and
approved the same for implementation. The details of the scheme are as
mentioned below:
12.2
The Scheme
The scheme will be known as Setting up Incubation Centres in CSIR
Laboratories
12.2.1
Aims & Objectives
Incubation Centre would be a multipurpose facility. On one hand it would aim
to provide high quality infrastructure and environment to entrepreneurs and
knowledge workers while on the other, it would help incubate novel products,
technologies, knowhow(s), process(es) and other patentable knowledge into
marketable goods. The objective of Incubation Center(s) would be to nurture
start up companies and encourage early stage innovation through appropriate
hand holding mechanisms. It would encourage commercialization of innovation
led developments and shall provide a breeding ground for start up companies
and technopreneurs.
12.2.2
Scope
The incubation centre shall facilitate:
(i)
(ii)
Set up of start-up / venture companies to develop innovations to
commercialisable products;
Set up of R&D companies to serve Indian and international
customers; and
50
(iii)
Incubate R&D centres by national / international companies as a
prelude to setting up their own independent R&D centres.
12.2.3
Eligibility
A CSIR Laboratory, which has:
i.
ii.
spare laboratory space; and
external funding for creating incubation centres, including for
construction of new facility if envisaged is eligible for setting up of an
incubation centre
However, exceptions from the eligible criteria, based on other performance
parameters (such as technologies developed & transferred for commercial
exploitation and patent portfolio in place) and its niche area of operation, could
be considered by DG, CSIR.
12.2.4
Procedure for Application
The Laboratory desirous of setting up of an incubation centre shall submit a
proposal for necessary clearance in the prescribed proforma. The proposal is
to be submitted to the Head, RPPBD Directorate , CSIR Hqrs, for necessary
examination and processing for approval of DG,CSIR.
12.2.5
Operation Modalities
(i)
The Incubation Centre (IC) will function as an independent entity under
Section 8 company mode and will be professionally managed.
(ii)
The IC would endeavour to be aself-sustaining entity within a period of 5
years of its commencement.
(iii)
In case CSIR laboratory has spare built up area, the same could be
utilized for setting up of the IC. Other necessary facilities could be set
up through grant-in-aid support from external funding agencies.
(iv)
CSIR laboratories which are not able to spare built up space for housing
the incubation centre, may consider constructing a suitable building
through external grant-in-aid funding support for construction.
(v)
All the support services that are provided by the laboratory to IC will
be separately costed and recovered from the IC on a regular basis.
51
12.2.6
Management of the Incubation Centre
(i)
The Director of the concerned laboratory shall act as Chairman of the
Board of Directors of the Section 8 company specifically set up to
operationalize the IC. He will have the over all responsibility of
running the IC (of the concerned laboratory). The Board of Directors
and Managing Director or CEO shall assist the Chairman in the
management of the IC. The company shall have the powers, among
others, to select the applicants based on a rigorous assessment of the
applications received.
(ii)
The IC can identify a suitable person from the laboratory or hire the
services of a professional as Managing Director or CEO (at
competitive market prices) to manage theincubationcentre. He would
be responsible for the day-to-day operations and assist the Chairman
for smooth running of the company.
(iii)
The Board of Directors would meet atleast once in six months to
discuss and take decisions for smooth running of IC.
(iv)
DG, CSIR shall, from time to time, constitute an external committee to
review the performance of the incubation centres and shall decide to
close the non-performing incubation centres.
12.2.7
Agreement
A suitable agreement shall be entered into between the IC and Incubatee
depending upon the scope of the project (as defined in para 12.2.2). The
agreement shall clearly define the role of each party, their obligations, scope of
services to be provided and duration of tenancy etc.
12.2.8
Exit Options
Either party could exercise exit option. In either case, a six month’s notice shall
be given to the other party. Before vacating the premises, the incubatee shall
have to clear all payment dues and obtain a clearance certificate from the IC.
Notwithstanding the exit provision, the IC could direct an incubatee to vacate
incubator space on the condition of non-fulfillment of obligations or violation of
terms of conditions of agreement. In such a case, the IC shall give a three
months notice to the incubatee.
12.3
Proforma
The Proforma for seeking approval for setting up of a Incubation Centre (IC) in
the designated CSIR Laboratory is placed at Annexure XII.
52
13. MOBILITY OF SCIENTISTS/ TECHNOLOGISTS/
ENGINEERS FROM CSIR TO INDUSTRY / R&D
INSTITUTIONS AND VICE VERSA
13.1 Background
The mobility of scientists/ technologists/ engineers from industry to other R&D
institutions and vice-versa is an essential component of seamless transfer of
knowledge and technologies besides imparting newer skills as well as for
fostering long lasting relationships. The mobility could be utilized for leveraging
knowledge, commercialization and/or further development of knowledgebase
jointly and for developing/ learning together newer specialized skills.
Recognizing the importance of mobility of scientists/ technologists/ engineers
from CSIR to industry / other R&D institutions and vice versa in enhancing and
deepening public-private partnership, the Sivaram Committee, while reviewing
the guidelines for Technology Transfer and Utilization of Knowledgebase,
observed that the competitive advantage in knowledge intensive areas
increasingly depends on the underlying technical skills of the people. For
building newer skills, competencies and capabilities, the Committee
recommended mobility of its scientists / engineers from CSIR to industry / other
R&D institutions and vice versa to disseminate and acquire newer skills.
The Governing Body in its 166th meeting held on 16th February 2006
considered the Scheme for Mobility of Scientists/ technologists/ engineers from
CSIR to industry/ R&D institutions and vice versa and approved the same for
implementation. The details of the scheme are as mentioned below:
13.2 The Scheme
The scheme will be known as Mobility of scientists/technologists/engineers.
The main objective of the scheme is to promote and facilitate mobility of
scientists / technologists / engineers from CSIR to Industry / other R&D
institutes and vice versa forbuilding newer skills, competencies and capabilities.
13.2.1 Guiding principles
The proposal shall operate on a “Lender and Borrower” concept. Here the
CSIR, industry and other R&D institutes could either be a ‘Lender’ or a
‘Borrower’. Two scenarios emerge from such a consideration, viz. (i) the
mobility is in the interest of the Lending organisation (scenario I); and (ii) the
mobility is in the interest of the Borrowing organisation (scenario II). The rules
that govern each of these situations will be different and some illustrative
provisions that govern the scenarios are given below:
53
Scenario I: CSIR as a ‘Lender’
(i)
On a specific request from CSIR / CSIR laboratory (hereinafter known as
the ‘Lender’) and on the acceptance of the Borrowing organisation,
hereinafter known as the ‘Borrower’) the mobility of the S&T personnel
could be affected;
(ii)
The objective of such a mobility must clearly be identified and
specifically spelt out in the proposal (on proforma as at Annexure). The
laboratory would further need to justify the reasons for such lending. In
case of mobility to an organization abroad, the status of the specific R&D
area in the country vis-à-vis that country (wherein the mobility is being
sought) needs to be highlighted alongwith the basis for identifying the
chosen organization abroad;
(iii)
The mobility will be permissible for carrying out R&D activities and
associated functions such as technology dissemination and diffusion,
business development, knowledge management, technology and IP
management, quality assurance, informatics, information technology,
etc. at any relevant organization in India or abroad;
(iv)
The mobility under the said scheme shall be admissible to scientists/
technologists/ engineers (group IV) and technical staff (Group III) of
CSIR, who have rendered not less than six years of service in CSIR
and/or its laboratories;
(v)
The mobility shall be granted once in six years, irrespective of other
deputation or assignment during the preceding six years, barring study
and sabbatical leave;
(vi)
In case(s) of applicant(s), who have availed study or sabbatical leave,
the incumbent should complete the bond period before being eligible for
consideration under the said scheme;
(vii)
The official (scientist/engineer) being considered under the said scheme
must have at least six years of remaining service period available after
completion of Mobility period under the said scheme;
(viii)
The duration of such mobility under the said scheme shall be limited to a
maximum period of two years. This provision could be utilized in favour
of a scientist once in six years, subject to a maximum of two such terms;
(ix)
The scientist/ engineer concerned shall be paid salary and other
allowances as per his entitlement by CSIR for the period under mobility.
Additionally, the scientist/ engineer concerned shall be allowed to
receive/ retain any stipend, remuneration, bursary, honorarium and adhoc payment offered by the host organization (where he/she is posted)
without any restrictions whatsoever. However the scientist concerned
54
shall disclose such payments to CSIR for the purpose of Income Tax
calculation etc.;
(x)
During the period of such mobility, the CSIR scientist/ engineer
concerned shall be allowed to retain the Council’s accommodation on
the same terms and conditions as are applicable to other serving
Council employees in the same scale and grade;
(xi)
For all purposes, the mobility period under the said scheme shall be
treated as on duty and also count for all future benefits and assessments
as applicable to other serving Council employees; and
(xii)
The employees permitted under mobility scheme shall execute a bond
worth Rs. 5 lakh with CSIR. The bond agreement shall include
operational clauses so as to ensure that the said scheme is properly
utilized in furthering the interest of the organization.
Scenario II: CSIR as a ‘Borrower’
(i)
On a specific request from CSIR / CSIR laboratory (the ‘Borrower’
organisation) and on the acceptance of the ‘Lender’ organisation, the
mobility of the S&T personnel could be affected;
(ii)
The objective of mobility shall need to be clearly defined in the
prescribed application made (in the proforma at Annexure) by the person
concerned. The concerned CSIR laboratory shall clearly explain with
proper justification the necessity for such borrowing. In case of mobility
from an organization abroad, the status of the R&D area within the
country vis-à-vis that country (wherefrom the mobility is being sought)
and available (quality of) manpower are to be clearly spelt out and the
need for choosing a personnel from abroad shall be sufficiently justified;
(iii)
The mobility shall be for R&D and associated functions such as
technology dissemination and diffusion, business development,
knowledge management, technology and IP management, quality
assurance, informatics, information technology, etc;
(iv)
The position under the said scheme shall be admissible to Scientists/
technologists/ engineers and or IP professionals / working with industry
and other R&D institutions either in India or abroad.Family members
retained at his/her headquarters shall be covered by an insurance cover
to meet medical requirements;
(v)
The position is limited to a maximum period of two years;
(vi)
During the period of his/her stay in CSIR, the scientists/ technologists/
engineers / professional / academician concerned shall be paid
competitive and consolidated remuneration by CSIR. Consolidated
55
remuneration shall be decided by the laboratory on the basis of its
location, experience of the incumbent and area of the proposed work.
The laboratory could provide accommodation and charge for the same
as per provisions of rules applicable to Council employees.Further, the
incumbent shall also be allowed to retain any payment on account of
salary etc. made available from their parent organisation;
(vii)
The Lender organisation may be located within the country or abroad;
and
(viii)
Wherever required the incumbent officer under mobility shall pay all
necessary contributions to his parent organization, ‘the Lender’, as
necessary while he being in service such as pension contribution, leave
salary contribution etc.
All other scenarios
The laboratory shall have the freedom to work out the terms and
conditions on ‘case to case’ basis.
(i)
The selection for mobility in all the scenarios explained above shall be
made through a specially constituted Committee at laboratory level. The
Committee shall comprise of: Director of the laboratory, two senior
scientists of the laboratory (at the level of Scientist G/F), Director/ Senior
Scientist from a sister laboratory and one RC member.
(ii)
In case of CSIR Hqrs the selection for mobility shall be made by a
Standing Committee comprising a Director of the laboratory, two Heads
of Divisions (one of them shall be concerned Divisional Head), FA,CSIR
and Head, RPPBD Directorate (Convener). The Standing Committee
shall be constituted by DG,CSIR on the recommendation of Head,
RPPBD Directorate The recommendations of the aforesaid Committees
will be forwarded to RPPBD Directorate, CSIR HQs. for further
processing and seeking approval of DG,CSIR.
(iii)
The competent authority for approving the proposals under the scheme
shall vest with DG, CSIR. He shall also have the powers to relax the
limits.
The expenditure for the mobility would be met from laboratory budget (CSIR
Hqrs. budget) or LHRF as may be necessary.
13.3 Proforma
The Proforma for seeking approval for mobility of scientists/ technologists/
engineers from CSIR to industry/ R&D institutions and vice versa is placed at
Annexure XIII - A and XIII - B.
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14. CREATION OF PROFESSIONAL DEVELOPMENT
FUND
14.1 Genesis and Background
CSIR laboratories have a provision, wherein, a part of the income realized from
contract research, consultancy and technical services as well as income
earned from premia/ royalty are shared with the team associated with the
developments. However, there is no provision for a scientist to forgo this
income, in part or in total, and to park it with CSIR with an intention to use it for
his professional development.
The Sivaram Committee while reviewing the guidelines for Technology Transfer
and Utilization of Knowledgebase had recommended creation of such a
provision viz. "Professional Development Fund (PDF)" for the scientists in CSIR
laboratories. The Report was considered by the GB and recommended for
implementation. An agenda item capturing the philosophy and modalities of
PDF was accordingly placed for consideration of the GB in its 167 th meeting
held on June 22, 2006 and was approved. The details of the scheme are given
below.
14.2
The Scheme
The scheme will be known as "Professional Development Fund (PDF)”.
It will exist as a separate sub-fund within the Laboratory and Headquarters
Reserve Fund (LHRF).
14.2.1 Generation of PDF
Income earned by individual scientists in Group IV/III category by way of
premia/ royalty, project fee from contract research, consultancy and technical
services, which the individual scientist voluntarily forgoes from accepting for
personal use and upon the individual scientist request, may be transferred to a
separate sub-head account with in the LHRF. The individual ledger account in
the name of the scientist shall be maintained by the respective business
development division of the laboratory. In the case of Headquarters it will be
maintained by RPPBD Directorate.
14.2.2 Expenditure under PDF
The expenditure from PDF is permitted for following:
i.
Purchase of books, subscription to journals and other printed or digital
resources of professional interest;
ii.
Purchase of software related to professional interest;
iii.
Payment of annual/life membership fee to professional societies; and
57
iv.
Full or partial payment towards registration fee and/or travel abroad or
within India for attending conferences/workshops/seminars in areas
relevant to the professional interest of the scientists.
14.2.3 Norms and Procedures
i.
The PDF can be accumulated in the account of individual scientist
maintained by the laboratory. All unspent PDF, either at the time of
superannuation or resignation of the scientist from the services of the
Council, will revert to LHRF; and
ii.
Director in the National Laboratory and DG, CSIR at CSIR-Headquarters
will have the powers to sanction expenditure from PDF within the
delegated powers.
14.3 Budget Sub-head
Necessary and appropriate budget sub head(s) will be created in the LHRF
accounting system.
58
15. SPECIAL PURPOSE VEHICLE (SPV) IN CSIR
15.1 Genesis and Background
Setting up of Special Purpose Vehicle (SPV) is an accepted norm within the
government. SPVs have flexibility in choosing an appropriate legal structure
based on their requirement. The provision however was never used by CSIR.
Some of the recommendations emanating from Kelkar Committee, Sivaram
Committee etc., do require special provisions if one would have to capture the
spirit and philosophy of such recommendation and derive full benefit out of it.
Cases in point are the recommendations such as creation of knowledge
alliances between CSIR and industry; setting up of incubation centres in CSIR
Laboratories; Autonomous Functional Units (AFUs); Autonomous Business
Units (ABUs); NMITLI Innovation Centres etc.
With a view to provide flexible provision in the system, a proposal for setting up
of Special Purpose Vehicle (SPV) in CSIR was placed for consideration of
Governing Body, in its 168th meeting. GB approved the same for
implementation.
15.2 Guiding Principles
The guiding principles for setting up of SPVs will be as follows:
i.
The SPV would be set up for a specific activity, the ownership and
management of which would be independent of the originator;
ii.
The SPV shall own assets and would create new assets;
iii.
The SPV could be established either independently or jointly with
another company / organization by transforming part of their assets to a
separate entity (SPV);
iv.
Upon dissolution / closure of the SPV, the assets will be transferred to
the organizations which established the SPV and as per the agreement
between them;
v.
The SPV set up by CSIR (individually or in association with industry)
would have a separate and autonomous body and all its functions would
be administered by the authorized management;
59
vi.
The SPV would be entitled for sub contracting the part of their work to
the originator i.e. CSIR through an administrative agreement.
vii.
SPV could be in from of a Company (including Section 8 Company), a
society, a trust etc. Consequently, the provisions of the relevant law for
incorporation of such entity, i.e., the companies act etc. will apply. It will
function according to the applicable law. The key feature will be that it
would be capable of acquiring, holding and disposing of assets in
accordance with applicable law. It would be an entity, which would
undertake only the activity for which it is formed and established; and
viii.
The specifics of an SPV would be worked out based on the requirement
and need of such individual entities.
15.3 Application Procedure
A self contained proposal for each SPV to be created would be forwarded to
RPPBD Directorate, CSIR Hqrs for necessary approvals as per the procedure
in place.
60
16. SETTING UP KNOWLEDGE ALLIANCES BETWEEN
CSIR CONSTITUENT LABORATORIES AND
PRIVATE INDUSTRY
16.1
Background
Often, the sharing of knowledge and expertise is considered a key to success.
Knowledge alliances and networking are considered effective strategies for
twinning a research laboratory with a productive enterprise. Such twinning not
only creates a seamless interface between a laboratory and the industry,
resulting in free flow of ideas, people and resources but also builds mutual trust
between organizations and leads to a win-win situation for both.
Recognizing the importance of such alliances in enhancing and deepening
public-private-partnership in CSIR laboratories, the Sivaram Committee while
reviewing CSIR guidelines for Technology Transfer and Utilization of
Knowledgebase, has recommended that CSIR laboratories should be
encouraged to set up such knowledge alliances with private industry either
bilaterally or in a consortium mode in the new and emerging areas of science
and technology.
The Governing Body in its 166th meeting held on 16th February 2006
considered the Scheme for setting up knowledge alliances between CSIR
constituent laboratories and private industryand approved the same for
implementation.
The details of scheme approved by the GB are as follows:
16.2 The Scheme
The scheme is aimed to enable CSIR laboratories to forge partnerships and
create knowledge alliances to achieve higher levels of market driven R&D in
the knowledge economy.
16.2.1 (i) Aims & Objectives
The basic objective of the scheme is to build knowledge alliances with private
industry so as to enable the partners to develop, utilize and/or market their
high-end R&D knowledgebase.
Such alliances by their very nature are long-term in relationship and build in the
spirit of true partnership. Therefore the industry partner would need to commit
for a long term relationship. It is envisaged that CSIR laboratory would provide
technical, intellectual and other inputs while the private entity would bring in
financial, managerial and operational expertise.
61
16.2.1(ii) Scope
Under the scheme, the CSIR constituent Laboratory is permitted to enter into
Knowledge Alliance with any legally registered private / public company or
companies to set up an independent and functionally autonomous entity
(company, society, trust, foundation), if necessary as a SPV to undertake
business driven R&D that leads to knowledge generation and IP. The
partnering entities would bring in complementary expertise and skill base for
the tasks identified for the alliance.
16.2.1(iii) Agreement
Depending upon the scope of alliance, a suitable agreement would be entered
between the partnering agencies. The agreement would clearly define the role
of each agency, obligations, contributions in terms of physical, financial and
manpower, IPR sharing, responsibilities of individual agencies etc.
16.2.1(iv) Eligibility
All CSIR laboratories are eligible to form knowledge alliances.
16.2.2
Procedure for Application
The CSIR Laboratory desirous of setting up the knowledge alliance shall submit
a proposal for necessary clearance in the proforma prescribed at
Annexure-XIV. The proposal will be submitted to the Head, RPPBD Directorate
CSIR Hqrs, for necessary examination and processing for approval of
DG,CSIR. The CSIR laboratory may take advance steps such as negotiations
with identified organisations for setting up the alliance. The laboratory should
however, sign the legal agreement / document only after the proposal has been
approved by DG, CSIR.
16.2.3
Monitoring
The CSIR laboratory shall constitute a Monitoring Committee. The committee
shall include representatives of CSIR laboratory and partnering organization.
16.2.4
Intellectual Property Ownership
16.2.4.(i) Intellectual Property owned by CSIR / Laboratory:
CSIR / Laboratory shall be the sole and exclusive owner of the: Intellectual
Property and materials it owned prior to entering into the knowledge alliance;
Intellectual Property and materials acquired by CSIR / Laboratory using its
resources on or after effecting the alliance; Intellectual Property and materials
developed by or on behalf of CSIR / Laboratory other than in connection with
the knowledge alliance.
62
16.2.4.(ii) Intellectual Property owned by Alliance Partner:
The organization shall be the sole and exclusive owner of the: Intellectual
Property and materials it lawfully owned prior to entering into the alliance;
Intellectual Property and materials acquired by the organization on or after
effecting the alliance using its resources; Intellectual Property and materials
developed by or on behalf of the organization other than in connection with the
alliance.
16.2.4.(iii) Intellectual Property – Joint ownership:
The IP generated/ acquired as a consequence of the activities undertaken under
the alliance shall be jointly owned equally by the participating entities.
In situation not covered as above (vide 16.2.4 (i), (ii) and (iii)), the sharing of IPR
shall mutually negotiated and decided.
16.2.5
Commercialisation of IPR
The industrial partner(s) shall have the first priority for commercializing the
knowledgebase/ IP generated in the alliance.

In the event of industrial partner deciding to commercialize the IP/ knowhow
developed on its own, the CSIR laboratory would receive one time lumpsum
payment and subsequently milestone payments and royalty as decided,
based on exploitation and valuation of the IP; and

In the event of out-licensing / sell off of knowhow /IP to third party, each
party would receive 50% fees realized.
16.2.6
Exit Options
The participating entities, at regular intervals would review the progress made and
may decide to continue or terminate the alliance. In the event the alliance is to be
terminated, both parties would attempt to mutually arrive at valuation of respective
ownerships (% of IPR held) and measures / steps to exercise exit option. Either
of the parties may decide to buy out IP share of the other in an amicable way. In
the event of any dispute, the decision of DG, CSIR would be final and binding on
the participating entities.
16.3
Proforma
The proforma for seeking approval for setting up of knowledge alliances
between CSIR constituent laboratories and private industry is placed at
Annexure XIV.
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17.
ENCOURAGING
DEVELOPMENT
COMMERCIALIZATION
OF INVENTIONS
INNOVATIONS: A NEW IMPETUS IN CSIR
AND
AND
17.1 Background
Essential for competitiveness and economic development of the nation,
inventions and innovations, need to be translated into commercializable
knowledgebase. The efforts for the purpose (translational R&D) are often risky,
long drawn and require continuous association of inventors. Also unleashing of
entrepreneurial skills of the knowledge generators is necessary in order to
enhance the pace of knowledgebase commercialization. Recognizing necessity
of encouraging commercialization of inventions and innovations, through a
national policy intervention, the Government approved proposal of DSIR on
“Encouraging Development and Commercialization of Inventions and
Innovations: a New Impetus” (DSIR OM No. 3/3/2009-TU/V/Knowledge-toequity dated May 25, 2009). The key components of the proposal approved for
implementation are:
i.
Permitting the researchers to have an equity stake in scientific enterprises /
spin offs while in professional employment with their research and
academic organizations (Universities, academic and research institutions,
hereinafter referred to as Scientific Establishment) – Scientific
Entrepreneurship Scheme;
ii.
Permitting the Scientific Establishment to Invest knowledgebase as equity
in the enterprises;
iii. Encouraging the Scientific Establishment to set up incubation centers; and
iv. Facilitating mobility of researchers between industry and scientific
establishment.
DG,CSIR constituted a Committee for: formulating detailed guidelines and
operating procedures for implementation of the aforesaid new impetus; and
evolving guidelines to address issues related to conflict of interest (following the
methodology depicted in DSIR OM).
The Committee formulated guidelines and operating procedures for the
components namely, “Scientific Entrepreneurship Scheme” and “Investing
Knowledgebase as Equity in an Entity”. The guidelines to address issues
related to conflict of interest were also formulated. The Committee observed
that the guidelines and operating procedures in operation for Setting up of
Incubation Centres and Mobility of Researchers between Industry and Scientific
Establishments, as earlier approved by Governing Body (GB) in its 166 th
meeting (based on Sivaram Committee recommendations) meet the overall
requirement of the proposed initiatives. These may be continued thus without
any change.
64
The Governing Body in its 174th meeting held on 11th August 2009 considered
the guidelines & operating procedures and approved the same for
implementation. The details are as below:
17.2
Guidelines for Scientific Entrepreneurship Scheme
17.2.1 The Background
Promoting science and engineering based enterprises and entrepreneurship is
the future challenge for Indian R&D institutes and Universities as the way to
create continued impact on society and the economy. This measure will
encourage not only creation of new businesses/ spin off companies but also
employment opportunities for highly skilled technical and scientific personnel.
17.2.2 Definitions
In these guidelines, unless the context otherwise requires:
(a)
“Government” means the Central Government;
(b)
“Entity” means a “person” which includes any company or association or
body of individuals, incorporated under various laws, constituted primarily
to commercialize Knowledgebase;
(c)
“Scientific Enterprise” means a special class of new Entity that leverages
scientific research, inventions and innovations and transform into
commercializable technologies/products;
(d)
“Scientists” means Group IV scientist of CSIR; and
(e)
“Knowledgebase” means all inventions / innovations (whether patentable
or not) invention / innovation disclosures, trade secrets, know-how,
proprietary information, technical data, documentation, data collections,
databases, concepts, processes, software, designs drawings, materials,
support services and the like, whether or not the foregoing are in tangible
or intangible form.
17.2.3
Eligibility
The scheme shall be applicable to Group IV scientists in CSIR.
17.2.4
i.
ii.
iii.
Procedure
Any CSIR scientist desiring permission under the scheme shall apply
to the Director of the Laboratory in prescribed form (Annexure XV).
The concerned Laboratory shall examine each application received
under the scheme, seeking permission to have a stake in a scientific
enterprise and to be associated with the Entity as non–executive
Director, in accordance with procedures.
The decision on application of the scientist shall be taken by the
Director of the Laboratory and will be approved by the DG,CSIR in
shortest possible time.
65
iv.
Not withstanding anything contrary contained in any other rule, order
or notification but subject to the provisions of this Scheme, Director of
the Laboratory may or may not recommend permission as sought by
the Scientist in the application.
17.2.5
Responsibilities and Liabilities of Scientist
i.
The primary responsibility of the Scientist is to the CSIR and shall be
bound by any instructions, general or specific, that the CSIR may
issue from time to time.
The Scientist(s) making application under the scheme shall bring the
potential conflict of interest issues (as per the guidelines in Annexure
XVI) to the knowledge of the Director of the Laboratory(or his/her
nominee) and shall be governed by the instructions issued by the
Director of the Laboratory.
The guidelines on issues relating to
conflict of interest will form the basis for this purpose.
Notwithstanding any permission granted to a Scientist, no scientist
shall directly or indirectly:
ii.
iii.
i.
a.
associate himself / herself with any process to license
knowledgebase to the Scientific Enterprises;
b.
associate himself / herself with any process for the purchase or
hiring of any goods and services from the Scientific Enterprises;
and
c.
associate himself / herself with the evaluation of any goods or
services that compete with the goods or services of the
Scientific Enterprises.
ii.
The scientist may provide professional advice to the Scientific
Enterprises, on such terms and conditions as the CSIR/ Laboratory
concerned may prescribe from time to time.
If the scientist desires to be associated with the Scientific Enterprises
in the initial stage on a full time basis, the scientist shall be on a lien
for a maximum period of three years from the CSIR/Laboratory
concerned.
17.2.6
Responsibilities and Liabilities of Scientific Enterprise
i.
The scientific enterprise should not be construed as an agent or
representative or part of the CSIR/Laboratory. The scientific
enterprise is solely responsible for the activities undertaken by it or
for any liabilities that may arise from its activities.
The Scientific Enterprises can utilize the resources of the CSIR/
Laboratory concerned (the term ‘resources’ shall be construed widely
and include, without limitation, laboratories, equipments, personnel
and space of the CSIR/ Laboratory) with prior approval in writing and
on such terms and conditions as the CSIR/ Laboratory concerned
may prescribe.
ii.
66
iii.
iv.
Subject to the existing rights or licenses, the scientific enterprise shall
have the option to obtain license of Knowledgebase from the CSIR
by paying royalty (upfront or staggered with milestones or a
combination of both).
The scientific enterprise shall continue to be liable to the CSIR for
payment of royalty as per agreement even if the Scientist disinvests
his/her stake in the Scientific Enterprise.
17.2.7
Responsibility and Liabilities of CSIR/ Laboratories
i.
CSIR may take equity stake in the Scientific Enterprise in lieu of
royalty/premia or its combination, as per agreement. In case CSIR
decides to disinvest the equity, it will be first offered to the promoters
of the Scientific Enterprise.
Inventor will have the first right of refusal of exploiting the
knowledgebase to create Scientific Enterprise. However, CSIR shall
license Knowledgebase to the Scientific Enterprise on terms not less
than the terms on which the CSIR would have licensed the
Knowledgebase to another entity on arms length basis.
The scientist who has been granted permission under the scheme
shall be exempted from the provisions of the Rules 15, 16 and 18 of
CCS (Conduct) Rules, FR-11 and other related rules.
ii.
iii.
17.2.8
Resolution of disputes
“Any dispute arising out of the agreement shall be referred to an arbitral
tribunal comprising of three arbitrators; one arbitrator to be appointed by each
party to the dispute and the two arbitrators in turn shall appoint a third arbitrator.
The three arbitrators shall constitute the Arbitral Tribunal. The decision of the
arbitral tribunal shall be final and binding on the parties. The venue of the
arbitration shall be the place of the Laboratory concerned. The arbitration
proceedings shall take place in accordance with the Indian Arbitration and
Conciliation Act 1996 or any subsequent amendment thereof. The cost of
arbitration proceedings shall be equally shared by both the parties. The
language of the arbitration proceedings shall be English.
17.3
Guidelines for Investing Knowledgebase as Equity in
an Entity
17.3.1 The Background
The focus is to permit Scientific Establishments and Industrial Research
Organizations (SIROs) to invest knowledgebase as well as cost of support
services as equity in an Entity.
67
17.3.2
Objective
The objective of this scheme is to encourage and support enterprises aiming to
commercialize knowledgebase developed at CSIR labs by allowing CSIR to
take equity in lieu of licensing/assignment fees (upfront or deferred, in part or
whole) and/or fees for support services.
17.3.3
Definitions
In these guidelines, unless the context otherwise requires:
(a) “Government” means the Central Government;
(b) “Entity” means a “person” which includes any company or association or
body of individuals, incorporated under various laws, constituted primarily
to commercialize Knowledgebase;
(c) “Scientific Enterprise” means a special class of new Entity that leverages
scientific research, inventions and innovations and transform into
commercializable technologies/products;
(d) “Scientists” means Group IV scientist of CSIR ; and
(e) “Knowledgebase” means all inventions / innovations (whether patentable
or not) invention / innovation disclosures, trade secrets, know-how,
proprietary information, technical data, documentation, data collections,
databases, concepts, processes, software, designs drawings, materials,
support services and the like, whether or not the foregoing are in tangible or
intangible form.
17.3.4
Eligibility
With the permission of DG, CSIR, CSIR Laboratories shall be able to exercise an
option of taking equity in an entity in lieu of licensing fees (upfront or deferred, in
part or whole) and/or fees for support services.
17.3.5
Procedure
(a)
General
i.
The Laboratory desiring permission for equity participation for its
knowledgebase shall apply to the DG, CSIR in prescribed form
(Annexure XVII).
The Laboratory shall provide a detailed justification for a) taking the
equity route as opposed to the conventional licensing route, and b) the
rationale for the proposed level of equity planned to be held in the
entity and any other related terms.
Not withstanding anything contrary contained in any other rule, order
or notification but subject to the provisions of this guideline, DG,
CSIR may or may not grant permission as sought by the Laboratory
on the basis of sensitivity angle.
The final approval on the application made by Laboratory shall be
ii.
iii.
iv.
68
given by DG,CSIR within a quarter (three months time) from the date
of receipt in CSIR HQs.
(b)
Terms of Knowledgebase as Equity
i.
The terms of knowledgebase as equity would be finalized by CSIR
based on the mutual agreement between the identified entity, and
other involved parties and the CSIR constituent Laboratory.
Equity investment shall be made in lieu of royalty/premia (upfront or
staggered with milestones or a combination of both or in any form as
agreed upon) resulting or expected from Knowledgebase (as
defined) through a valid licensing agreement only.
CSIR Laboratory could also invest the cost of support services of
CSIR as equity with the approval of the respective competent
authority.
The guiding principles for CSIR laboratories to take equity in an entity
in lieu of knowledgebase / support services are as under:
ii.
iii.
iv.
a) The laboratory may take equity in lieu of licensing/ assignment fee
(upfront or deferred, in part or whole) in (a) Scientific Enterprise,
Start-up and Spin off created by CSIR Scientists and Research
Associates/ Project Scientists in association with CSIR Scientists
with the knowledgebase/ IP of CSIR ;and (b) Scientific Enterprise,
Start-up and Spin off created by the individual (s) not from the
CSIR system with the knowledgebase/IP of CSIR. The
percentage of the same could be:
Type of License
Equity Percentage
Non-Exclusive
Minimum 3% Equity
Exclusive
Minimum 6% Equity
b) The equity holding by CSIR laboratory in lieu of support services
will be 2% to 5%;
c) Each laboratory should define support services for which equity
could be taken by it. Laboratory should also develop Standard
Operating Procedures (SOPs) for the same;
d) The laboratory shall constitute an Empowered Committee to
decide on the percentage (%) of the equity to be taken in lieu of
69
the support services. This Empowered Committee would
comprise of a Chairperson (who should be an eminent person in
the domain), a Chief Scientist from the Laboratory and three
external experts from Technology funding Agencies/ Angel
Investors/Venture Capital Funds/Banks to be nominated by the
Director of the laboratory;
e) The laboratory may provide Incubator space and may allow
Scientific Enterprise, Start-up and Spin off to utilize
equipment/instruments of the laboratory as per the policy of the
laboratory. The laboratory may offer discounted rates to Scientific
Enterprise, Start-up and Spin off created by CSIR Scientists and
Research Associates/ Project Scientists in association with CSIR
Scientists with the knowledgebase/ IP of CSIR. The laboratory
may charge Start-up/ Spin off as follows:
Category
of
Scientific Charges for Incubator
Enterprise, Start-up and Spin off Space and
equipment/
facilities utilization
Scientific Enterprise, Start-up and 25% of applicable charges
Spin off created by CSIR Scientist (as
decided
by
the
and Research Associates/ Project laboratory)
Scientists in association with CSIR
Scientists with the knowledgebase/
IP of CSIR
Scientific Enterprise, Start-up and Applicable charges (as
Spin off created by individual (s) decided by the laboratory)
not from CSIR system with the
knowledgebase/IP of CSIR
f)
Prevailing circle rates of the land should be used as a basis for
arriving at monthly/ yearly rent of laboratory space.
(c)
Issues pertaining to management of the Entity wherein equity stake
is being taken
i.
Laboratory shall not participate in the management of the Entity wherein
CSIR constituent Laboratory is investing knowledgebase as equity. The
management of such entity shall vest in the promoters or next majority
stakeholder.
Laboratory shall be allowed to nominate its representative on the Board of
Directors of the company/ management mechanism of the Entity if
required.
ii.
70
(d)
i.
ii.
iii.
iv.
Distribution of the money received from the Enterprise wherein
equity stake is being taken
The dividend received from entity as well as divestiture of equity shall be
shared with the innovators and staff of concerned CSIR Laboratory /CSIR
HQs. as per the procedures laid down by CSIR.
Dividend received from the income of such entity as well as the amount
received due to divestiture of equity shall be ploughed back by CSIR in
furthering its research objectives.
CSIR/Laboratories shall be permitted to hire the services of professional
institutions to assist in setting up equity arrangements and/or managing the
equity portfolio.
CSIR at an appropriate opportunity, on its discretion, shall have the option
to divest its equity in an entity as per the financial norms.
17.3.6
Power to approve investment of Knowledgebase
The Competent Authority to approve investment of Knowledgebase as well as
cost of support services as equity in an Entity is DG,CSIR.
17.4
Implementation and Modification
The guidelines will be modified/ amended/ expanded if necessary, based on
the experience gained while implementing the initiatives with the approval of
DG,CSIR, from time to time and will be placed before CSIR GB for ratification
or any other direction deemed fit.
71
Annexure - I
CONTRACT R&D PROJECT
1.4
Financial Aspects
1.4.1 Costing of contract research project1
The charges for contract research project shall comprise of:
1.4.1(i)
Direct Expenses2 ( 40% of the project cost excluding capital costs)
and shall comprise of:
a)
Cost of (i) man-days of CSIR staff deployed and (ii) temporary project
staff deployed;
Cost of consumables/raw materials/components with 25%
overheads;
cost of physical inputs/services/utilities with 25% overheads;
Equipment usage cost;
TA/DA with 25% overheads;
Contingencies including external payment envisaged e.g. for hiring
infrastructural facilities, experts, computer time, information etcwith
25% overheads; and
Others (if any) with 25% overheads;
b)
c)
d)
e)
f)
g)
Total direct expenses = Sum of i(a) to i(g) above
1
In case the contract research is to lead to generation of intellectual property/knowledgebase,
provision and charges for licensing the use of intellectual property/knowledgebase to the client
should be additionally (clearly) specified (see chapter 3).
Collaborative / cooperative R&D is a joint endeavour. Thus, while costing CSIR’s inputs for
such projects, the laboratory share and project fee should be included in notional project
charges. As the client may bear only a part of the CSIR project expenses, the laboratory
should endeavour to ensure that the balance of project charges are recovered through
licensing the R&D results/intellectual property to the collaborator/third parties.
2
If direct expenses in any specific Contract R&D Project is higher than the 40% of the project cost
excluding capital costs then the difference should be adjusted against the project fee and only
remaining amount of project fee will be distributable among the staff. In case, the direct expenses
are less than 40%, the balance amount would be credited to laboratory share.
72
1.4.1(ii)
Laboratory Share (35% of the project cost excluding capital costs)
1.4.1(iii)
Project Fee (25% of the project cost excluding capital costs)
Project Charges = Direct Expenses + Laboratory Share + Project Fee
i.e. sum of (i+ii+iii) above
1.4.1 (iv) Capital Cost
1.4.1 (v)
Project Cost = Project Charges + Capital Cost
1.4.1 (vi) Goods And Services Tax (GST)
Government of India has implemented Goods and Services Tax (GST)
w.e.f. 1st July 2017 through the “The Central Goods & Services Tax
Act, 2017”. Various taxes including service tax have been subsumed
within the GST. Thus, GST shall be levied as applicable on the date of
payment on the project cost.
The total charges for the contract R&D to a client shall be as follows:
(a) Total direct expenses [1.4.1 (i)]
(b) Laboratory Share [1.4.2(ii)]
(c) Project Fee [1.4.1 (iii)]
Project charges = (a+b+c)
(d) Capital Cost
(e) Goods and services tax as applicable on (a+b+c+d) above
(f) Total charges to be obtained from the client = (a+b+c+d+e)
above
1.4.1 (vii) Fast Tracking of Industrial R&D Projects
a)
1
To fast track the industrial R&D projects, CSIR laboratories can hire
desired manpower for filling the gaps to carry out the identified R&D
in fast track mode.Thus, project manpower could be hired from the
market at the designated rate limited to 2 times of the prescribed
rates as defined by CSIR1 with the approval of the Director of the
laboratory. The said manpower charges should be built into the
project costing.
As per CSIR OM No. 4/CMG/2016-PPD dated July 04, 2016 and Chapter No. 9 titled
“Engagement of Technical and Business Development Consultants” of this Guidelines.
73
b)
Contingency and/ or outsourcing budget of specific project could
also be used for the payment of enhanced remuneration to project
manpower and outsourcing of specific jobs under projects be
permitted with the approval of Director of the laboratory to leverage
and fast track the identified R&D activities.
c)
The projects in fast track mode should be continuously reviewed
through a domain expert group constituted by Director of the
laboratory.
1.4.1(viii)
Exception to full funding for sponsored R&D could be made with the
approval of Competent Authority for specific nationally relevant
projects related to Defence, Health, Social Welfare and the like.
1.4.1(ix)
Grant-in-aid projects are meant to supplement laboratory efforts in
ongoing or new R&D activities or for creating new capabilities/facilities.
Generally, the granting agencies have their own set of norms for
funding such projects based on the recommendations of their specially
constituted committee. Therefore, these projects may or may not
follow the above costing norms. The laboratory share and project fee
is not mandatory for such projects.
1.4.2
Explanation
1.4.2(i)
Direct Expenses
a)
Manday costs: Is the charge for time (in days) of S&T staff deployed
on the contract research as per prescribed manday rates for
different category of staff (Annexure II). In case of the temporary
staff deployed the actual cost with 50% overheads will be charged.
b)
Cost of consumables/ raw materials/ components: Comprise
chemicals, glasswares, stationery, raw materials, components and
other stores items required for the project and should be charged at
100% cost plus overheads @ 25% of the cost (towards expenses
for purchase, storage, handling etc.).
c)
Cost of physical inputs/ utilities/ services: Comprise water, steam,
gas(es), electricity, workshop, drawing office etc. required for the
project and should be charged at 100% cost plus overheads @ 25%
of the cost (towards installation, maintenance etc.).
d)
Equipment Usage:
Uses of existing equipment of laboratories: It is to be charged on
pro-rata based on an annual usage charge upto 20% of cost of
equipment and installation. In case of old equipment where its cost
cannot be readily ascertained this component of costing could be
decided by the Competent Authority.
74
e)
f)
TA/DA: Comprises payments on travel and daily allowances of CSIR
staff visiting/travelling for the work related to the contract research
project plus overheads @ 25% of the cost. In this regard the
following guidelines approved by the Governing Body of CSIR in its
109th meeting held on August 8th, 1986 and 132nd of May 6th 1992
shall apply;

All employees of the same status should be treated equally in
the matter of TA/DA, irrespective of the source of the funds.
Thus, TA/DA at CSIR rates only shall apply. However in
exceptional cases, the actual expenses incurred by the staff
could be reimbursed with the prior approval of the Director;

Client’s hospitality, wherever available, may be accepted by
the CSIR employees at their discretion subject to payment of
DA being limited to 25% in the event of both boarding and
lodging provided free, or 50% if only either boarding or lodging
is provided free by the client;

Air-travel may be allowed to non-entitled staff by the Director
or the authorized officers, as per applicable rules, on functional
basis and if it is expedient to do so in the project interest; and

The laboratory should recover from the client at least the actual
expenditure incurred by it on TA/DA paid to its staff deputed for
work relating to the contract research project.
Contingencies: Provides for external payments as well as any
unforeseen expenditure likely to be incurred on the project plus
overheads @ 25% of the cost. The external payment could be
towards hiring by the laboratory, of outside infrastructural facilities,
experts, computer time, information etc., to supplement its
expertise/facilities. This would depend on the specific project.
However, estimates of contingency charges at 5 to 10 % of total
project costs are normal, besides external payments on actual
basis.
1.4.2 (ii) Laboratory Share
This reflects charges for CSIR investment over a period, in building and
sustaining the knowledgebase and facilities. Laboratory Share should be 35% of
project cost excluding capital costs.
1.4.2 (iii) Project Fee
This will include the honorarium to be paid to the staff and should be 25% of the
project cost excluding capital costs.
For micro and small enterprises including cottage industries (as per government
definition), the concessional laboratory share and project fee can be considered
75
by the authority, competent to approve the project. However, reasons justifying
the concession should be specifically indicated in the project proposal, put up for
approval.
1.4.2 (iv) Capital Cost
New Equipment1: The new equipment specifically required for the project if any,
shall either be provided by the client at his cost as per the specifications given by
the laboratory or purchased by the laboratory and charged to the client with an
additional procurement and handling charges of 5% of the cost of equipment.
1.4.2 (v) Goods and Services Tax (GST)
Government of India has implemented Goods and Services Tax (GST)
w.e.f. 1st July 2017 through the “The Central Goods & Services Tax Act, 2017”.
Various taxes including service tax have been subsumed within the GST.
Thus, GST shall be levied as applicable on the date of payment on the project
cost.
The laboratories are responsible for obtaining: (i) the registration from the
appropriate authorities (ii) collection and payment of the GST in the prescribed
manner and (iii) timely filing of the applicable tax returns. The payment of GST
is to be debited to the project account.
1.4.3 Charging for inter laboratory Contract R&D
In case of contract research undertaken by one CSIR laboratory for another, two
possibilities arise i.e.
(i)
(ii)
CSIR in-house and publicly funded projects: In such cases only the actual
project expenses and no laboratory share and project fee shall be charged
from the sister laboratory; and
Externally funded projects, which include an laboratory share and project
fee: In such cases in addition to project expenses, laboratory share and
project fee can be charged.
1.4.4 Terms of payment
The laboratory shall obtain an advance of not less than 25% of the project cost
on or before signing the agreement and the balance in installments linked to
suitable milestones/deliverables as defined in the project/agreement. However,
in case of projects from government departments/ agencies, public sector
enterprises etc. and projects secured against open tenders, the terms of
payment may be as per the mutual agreement.
1
In case the client seeks to gift the equipment to the laboratory a clear and unambiguous letter
stating that the gift is without any conditions or attachments should be obtained from the
client.In case the equipment is considered to be useful for the laboratory it may be purchased
from the client at a price not higher than the depreciated value of the equipment.
76
Annexure - I A
PROFORMA FOR APPROVAL OF CONTRACT R&D PROJECT
1. Project
a) Title, Number & Accounting Code
b) Type (Sponsored/Collaborative/
Grant-in-aid)
2. Client / Customer
:
:
:
a) Name and address
:
b) Category* (Type & size)
:
(*Govt. Deptt./ Agency/ Voluntary / Cooperative Agency, Research
Organisation, Foreign Firm/Agency, Public/Private Sector, Micro/ Large /
Medium / Small / Cottage Unit)
c) Status
d) If it is repeat, please provide a brief
statement of past experience
:
:
3. Objective, scope and duration of the project :
4. Does the activity fall within the approved
research areas of the laboratory
:
5. Present state of knowledge available with lab:
in the area including IPR position
6. Specify the S&T inputs being provided by
client
(a)
(b)
Programme of work with phasing,
:
milestones and deliverables envisaged
from CSIR
Vesting of Intellectual Property Rights :
7. Project Team (S&T Staff)
:
77
New / Repeat
8. Financial aspects
I.
Direct Expenses (40 % of the project cost excluding capital cost). See para
1.4.1 (i) and 1.4.2 (i) of Annexure I
a) On Mandays
Name & Designation
Mandays Rate Amount
(Rs./day)
(Rs.)
i.
ii.
iii.
iv.
v.
Total
b)
Consumables/raw materials/
Components with 25% Overheads
:
Rs.
c)
Services/utilities with 25% Overheads
:
Rs.
d)
Equipment /Computer Usage
(seepara 1.4.2(i) d) of Annexure - I
:
Rs.
e)
External Payments with 25% Overheads
:
Rs.
f)
TA/DA with 25% Overheads
:
Rs.
:
Rs.
(See para 1.4.2. (i) e) of Annexure - I
g)
Contingencies with 25% Overheads
______________
Total expenses
Sum of I(a) to I(g)]
78
______________
II. Laboratory Share -
:
Rs.
(35% of the project cost excluding capital cost) See para 1.4.2 (ii) of
Annexure – I)
III. Project Fee
:
Rs.
(25% of the project cost excluding capital cost) See para 1.4.2 (iii) of
Annexure – I)
Project Charges : Sum of (I+II+III):
IV. Capital Cost
(See para 1.4.2 (iv)) of Annexure - I
:
Rs
:
Rs.
V. Project Cost : Sum of (I+II+III+IV):
VI Goods and Services Tax
(See para 1.4.2 (IV)) of Annexure - I
_____________
Total Charges (I+II+III+IV+VI)
Rs.
_____________
VII. Schedule of payments to be received
:
(Link the payments receivable to deliverables,
specify the deliverables, vis-à-vis time frame
and the amount of installment receivable from client)
* If any concession is provided on laboratory share and project fee, a note of
justification may be enclosed.
9. Utilization of Intellectual property
:
/knowledgebase generated
Licensing :
a) Exclusive/Non-Exclusive
b) Period
79
c) Envisaged Fee/Charges
i. Lumpsum (instalments, amount,time, mode)
ii. Recurring royalty (Period and basis)
10. Honorarium payble
The distributable share is 25% of the project cost excluding capital costs for
projects undertaken on and after 1st September 2017. If direct expenses in any
specific Contract R&D Project is higher than the 40% of the project cost
excluding capital costs then the difference should be adjusted against the project
fee and only remaining amount of project fee will be distributable among the staff
(Please refer para 7.1 of Chapter 7).
‘Group of Staff’ for Contract R&D Project (Please refer para 8.1 of Chapter 8)
a)
Innovators & Principal Contributors- 65%
Name & Designation
% share
i.
ii.
iii.
b)
Directly associated S&T Staff - 20%
Name & Designation
% share
i.
ii.
iii.
c)
Administrative Staff from the sections of purchase, stores, administration,
finance, ESD, engineering, utilities, instrumentation etc.) – 10%
Name & Designation
% share
i.
ii.
iii.
d)
CSIR Welfare Fund - 5%
Remarks
Project Leader
(Signature)
80
DECISION OF COMPETENT AUTHORITY
Director / Management Council / DG,CSIR
Signature
Copy to:
1.
2.
3.
4.
5.
6.
Project Leader
Sr. COA/COA/AO
Sr. Finance & Accounts Officer
Project file
Stores & Purchase Officer
In-charge Workshop / Instrumentation Cell
81
Annexure - II
MAN POWER CHARGES
The minimum manpower charges for all external work shall be as follows:Category of Staff
Manpower Rates (Rs.)
Per day
Per annum
a) Senior Level Scientist (S&T personnel of the 10500
level of Sr. Principal Scientist and above
including Scientist ‘H’ and Director of the
Laboratory)
21 lakh
b) Scientist (S&T personnel of the level of 6000
Trainnee Scientist and up to Principal
Scientist)
12 lakh
c) S&T Assistants (Personnel below the level of 4500
Trainee
Scientist
including
Research
Associates/ Project Scientists )
9 lakh
d) Projects Assistants
actual cost with 50 %
overheads
Note:
(i)
In cases where Group I & II staff contribute S&T inputs to the project their
manpower charges are to be calculated at 2.5 times the median emoluments of
the grade/scale on per day/per annum basis as applicable.
(ii)
The charges shall be effective for projects/activities taken up on or after 1st
September 2017.
(iii)
These are minimum manpower charges, higher rates could be charged wherever
possible.
(iv)
While working out the manpower charges on the basis of per annum rates for
different categories of staff, the number of working days in a year shall be taken
as 220.
(v)
Per day charges will apply where total mandays for the project / assignment are
less than sixty, otherwise prorata per annum manday charges shall apply.
82
Annexure – III
Item-1
RESEARCH UTILISATION DATA
(to be provided in soft as well as hard form quarterly)
For the quarter
20
to
20
From (Name of Laboratory) :
I.
Major Contributions to CSIR Knowledgebase
Please include here, amongst others, information (alongwith publicity and
related literature) on:
i. Commissioning
of
any
industrial
unit
based
on
technical
assistance/consultancy / know-how supplied by the institution (list details of
capital investment, capacity, value of expected output and any other special
features of the unit)
ii. Commissioning of any special Research, Design, Development and Testing
facilities (list details of the facility, utility, cost etc.)
iii. Completion
of
any
R&D
projects
economic/welfare/national security impact potential
iv. Any other achievement
83
having
significant
Annexure – III
Item-2
II
EXTERNAL CASH FLOW (ECF) FOR THE QUARTER
S.No Category
Govt
Indian
CPSE*
industry
1. Sponsored
R&D
2. Collaborative /
Cooperative
R&D
3. Grant-in-aid
R&D
4. R&D
Consultancy
5. Technical
services
6. Premia/Royalty
*CPSE: Central Public Sector Enterprise
**SPSE: State Public Sector Enterprise
84
SPSE** Foreign
Foreign
Others
Companies Agencies
Annexure – III
Item-3
III. Intellectual Property
3. (a) Developed & Available for Exploitation
S.No. Title
Date*
of At
Scale Through
Development
(Quantitative)
In-House/
Contract
Projects
* Date when made ready for licensing.
** Channel of licensing i.e. Direct by CSIR /TT Agency / Others
85
Licensing**
Through &
Terms
3. (b) Intellectual Property Licensed
S.No. Title
Licensee*
Licensed
Through
CSIR
Others
(Specify)
* also indicate if first licensee
86
Terms of
Licence
Effective
Date of
Licence
3.(c) Intellectual Property Productionised & Monies Accrued Thereof
S.No.
Title
Licen
see
Licensed Through
CSIR/Others
(Specify)
Effective
Date
of Plant
Date
of Commencement Capacity/
Licence
of Production
Investment
87
Money
Received
Premia/
Royalty
Annexure – III
Item-4
IV. Contract Research Projects
S.No. Client
Name
/Status#
*
Name
of
Project/
(Type*)
Value of
Contract
(Rs.
Lakh)
Money
Received
During
the
Quarter
(Rs.
Lakh)
Date &
Duration
of
Project
Status
of
Project
(New/Cont./
Comp.)
SP - Sponsored Project
#GD - Govt. Deptt./Agency
@ LAR - Large
CP - Collaborative Project
CV - Co-operative/Voluntary Agency
MED - Medium
GA - Grant-in-aid Project
PS - Public Sector @
SM - Small
PVT - Private Sector @
COT - Cottage
RO - Research Organisation
FO - Foreign Agency/Organisation
88
Licensing
of
Knowhow
Envisaged
(Yes/No)
Annexure – III
Item-5
V. Consultancy Projects
S.No. Client*
Name/
Status
Name of Value of
Project
Contract
(Rs.
Lakh)
Money
Received
During
the
Quarter
(Rs.
Lakh)
Date &
Duration
of
Project
*GD - Govt. Deptt./Agency
@ LAR - Large
CV - Co-operative/Voluntary Agency
MED - Medium
PS - Public Sector @
SM - Small
PVT - Private Sector @
COT - Cottage
RO - Research Organisation
MIC - Micro
FO - Foreign Agency/Organisation
89
Status
of
Project
(New/Cont./
Comp.)
Licensing
of
Knowhow
Envisaged
(Yes/No)
Annexure – III
Item-6
VI. Technical Services
VI.a Training
S.No. Title
of
Programme
Training Duration
Number
Trainees
of Money
Received for
the Training
VI.b. Other Technical Services
Number of Clients
Testing/Analysis Work
Repair And Maintenance
Job Work
Supply
of
Databases
Information/
Any Other Service Rendered
(Please Specify)
90
Total Money Received
(Rupees)
Annexure - IV
Consultancy Project
2.4.1 Costing of Consultancy Project
The charges for consultancy project shall comprise of:
2.4.1(i) Direct Expenses1 (25% of the project cost) and shall comprise of:
a)
b)
c)
d)
e)
f)
Cost of man-days of staff deployed
Cost of physical inputs /services /utilities / consumables raw
materials/ components (if any) with 25% overheads
Equipment usage cost
TA/DA with 25% overheads
Contingencies and external payments envisaged e.g. to outside
consultants, for procuring data, hiring of infrastructural facilities
etc.with 25% overheads
Other (if any) with 25% overheads
Total direct expenses = Sum of i(a) to i(f) above
2.4.1(ii) Laboratory Share (25% of the project cost)
2.4.1(iii) Project Fee (50% of the project cost)
Project Cost = Total Direct Expenses + Laboratory Share+ Project Fee
i.e. sum of (i) + (ii) + (iii) above
2.4.1(iv) Goods and Services Tax (GST)
Government of India has implemented Goods and Services Tax (GST) w.e.f. 1st
July 2017 through the “The Central Goods & Services Tax Act, 2017”. Various
taxes including service tax have been subsumed within the GST. Thus, GST shall
be levied as applicable on the date of payment on the project charges.
1
Note: It is feasible to make realistic estimates of inputs for a consultancy project. Thus the
initial estimates should be worked out with due care and diligence. Record of deployment of
resources for a consultancy project, especially the manpower, should be separately and
carefully maintained and the resources deployed should by and large be in conformity with the
approved estimates. In case the direct expences are less than 25% of the project cost, the
balance amount would be credited to laboratory share.
91
The total consultancy charges to a client shall thus be as follows:
(a) Total Direct Expenses [2.4.1(i)]
(b) Laboratory Share [2.4.1(ii)]
(c) Project Fee [2.4.1 (iii)]
Project Cost = (a+b+c)
(d) Goods and Services Tax as applicable on (a+b+c) = d
(e) Total consultancy charges to be obtained from client =
(a+b+c+d) above
2.4.1 (v) Fast Tracking of Industrial R&D Projects
a)
To fast track the industrial R&D projects, CSIR laboratories can hire
desired manpower for filling the gaps to carry out the identified R&D in
fast track mode.Thus, project manpower could be hired from the
market at the designated rate limited to 2 times of the prescribed rates
as defined by CSIR1 with the approval of the Director of the laboratory.
The said manpower charges should be built into the project costing.
b)
Contingency and/ or outsourcing budget of specific project could also
be used for the payment of enhanced remuneration to project
manpower and outsourcing of specific jobs under projects be permitted
with the approval of Director of the laboratory to leverage and fast track
the identified R&D activities.
c)
The projects in fast track mode should be continuously reviewed
through a domain expert group constituted by Director of the
laboratory.
2.4.2 Explanation
2.4.2 (i) Expenses
Costing of various elements/components contributing to the expenses of the
consultancy project shall be similar to that of Contract R&D (Reference Chapter 1,
para 1.4.2 of Annexure I).
2.4.2 (ii) Laboratory Share
This reflects charges for CSIR investment over a period, in building and
sustaining the knowledgebase and facilities. Laboratory share should be 25% of
project cost.
1
As per CSIR OM No. 4/CMG/2016-PPD dated July 04, 2016 and Chapter No. 9 titled
“Engagement of Technical and Business Development Consultants” of this Guidelines.
92
2.4.2 (iii) Project Fee
This will include the honorarium to be paid to the staff and should be 50% of the
project cost.
In cases of consultancy offered against open tenders, laboratory share and
project fee could be decided by the Competent Authority keeping in view the
potential competition. For micro and small enterprises including cottage industries
(as per government definition), the concessional laboratory share and project fee
can be considered by the authority, competent to approve the project. However,
reasons justifying the concession should be specifically indicated in the project
proposal, put up for approval.
2.4.2 (iv) Goods and Services Tax
Government of India has implemented Goods and Services Tax (GST) w.e.f
1st July 2017 through the “The Central Goods & Services Tax Act, 2017”.
Various taxes including service tax have been subsumed within the GST. Thus,
GST shall be levied as applicable on the date of payment.
The laboratories are responsible for obtaining: (i) the registration from the
appropriate authorities (ii) collection and payment of the GST in the prescribed
manner and (iii) timely filing of the applicable tax returns. The payment of GST
is to be debited to the project account.
2.4.3 Charges for inter-laboratory consultancy
In case of consultancy taken up by one CSIR laboratory for another, two
possibilities arise, i.e.
i.
ii.
When the consultancy is for an In-house CSIR project: In such cases only
direct expenses excluding overheads shall be charged. No laboratory share
and project fee shall be payable.
When the consultancy is for an externally funded project, which includes a
laboratory share and project fee: In addition to total expenses, laboratory
share and project fee can be charged.
2.4.4 Terms of payment
The laboratory shall endeavour to obtain an advance of maximum percentage,
which should not be less than 50% of project charges on or before signing the
agreement. The balance amount of payment could be availed of in installments,
to be negotiated with the client and linked to the project milestones. However, in
cases covered under clauses 2.7.3, 2.7.4 of Chaper 2 and consultancy
assignment offered against open tender it might not be necessary to insist on the
above terms of payment.
93
Annexure- IV A
PROFORMA FOR APPROVAL OF CONSULTANCY PROJECT
1.
Project Title, Number & Accounting Code :
2.
Client/Customer
:
a)
Name and address
:
b)
Category *
:
(*Govt.Deptt./ Agency, Voluntary / Cooperative Agency, Research
Org., Foreign Firm/Agency, Public/PrivateSector; Large/ Medium/
Small/ Cottage/ Tiny Units)
c)
Status
d)
If it is repeat, please provide a brief
statement of past experience
:
:
3.
Objective, scope and duration of the project:
4.
Present state of knowledge available
with lab in the area including IPR position:
5.
Programme of work with phasing,
milestones and deliverables envisaged
:
from CSIR
6.
Benefits to client on utilization of project
output
:
94
New / Repeat
7.
Financial aspects
I.
Direct Expenses( 25% of the project cost)
a)
On Mandays
Name & Designation
:
(No.
of
days) Amount
Manday Rate
(Rs.)
(Rs./day)
i.
Ii.
iii.
iv.
v.
Total
* The scientists/staff included have not rendered consultancy exceeding 50
days in the FY under consideration.
b)
Consumables/raw materials/
Components with 25% Overheads
:
Rs.
c)
Services/utilities with 25% Overheads
:
Rs.
d)
Equipment /Computer Usage
:
Rs.
(see para 1.4.2 (i)) of Annexure - I
e)
External Payments with 25% Overheads
:
Rs.
f)
TA/DA
:
Rs.
:
Rs.
with 25% Overheads
(See para 1.4.2. (i) e) of Annexure - I
g)
Contingencies
with 25% Overheads
(See Para 1.4.2 (i) f) of Annexure - I
__________________
Total expenses
[Sum of I(a) to I(g)]
II.
__________________
Laboratory Share-
:
Rs.
(25% of the project cost See para 2.4.2 (ii)
of Annexure -IV)
III.
Project Fee:
Rs.
(50% of the project cost). See para 2.4.2 (iii)
of Annexure - IV
95
Project Cost (I+II+II)
Rs.
___________________
IV.
Goods and Services Tax
:
Rs.
(See para 1.4.2 (iv)) of Annexure - I
__________________
Total Consultancy Charges (I+II+III+IV)
Rs.
________________
IV.
Schedule of payments to be received:
(Link the payments receivable to deliverables, specify the deliverables,
vis-à-vis time frame and the amount of installment receivable from client)
8.
Honorarium payable
The distributable share to staff is 1/3rd of the project cost or up to 2/3rd of
the Project Fee whichever is minimum for project taken up on or after 1st
September 2017 (See para 7.2 of Chapter 7).
Group of Staff for the consultancy project
(see para 8.2 of Chapter 8)
a)
Team of Consultants - 65%
Name & Designation
% share
i.
ii.
iii.
b)
Directly associated S&T Staff- 20%
Name & Designation
% share
i.
ii.
iii.
c)
Administrative staff (Purchase, Stores, Administration, Finance, ESD,
Engineering, Utilities, Instrumentation etc.) – 10%
Name & Designation
% share
i.
ii.
iii.
96
d)
CSIR Welfare Fund - 5%
9. Remarks
Project Leader
(Signature)
DECISION OF COMPETENT AUTHORITY
Director / Management Council / DG,CSIR
Signature
Copy to:
1.
2.
3.
4.
5.
6.
Project Leader
Sr. COA/ COA/ A.O.
Sr. Finance & Accounts Officer
Project file
Stores & Purchase Officer
In-charge Workshop / Instrumentation Cell
97
Annexure-V
Licensing of Intellectual Property
3.6.1 Pricing
There is no rigid formula for determining the price of intellectual property and thus
estimates vary from case to case. However, the following factors shall enable the
laboratory to arrive at the cost of IP:
(a)
Cost of development which Includes estimated cost of:
(i)
(ii)
(iii)
(iv)
(v)
S&T Manpower deployed on the project (as per prescribed rates)
Raw materials, consumable components etc. with 25% overheads.
Physical inputs for the project with 25% overheads.
Equipment usage
External payments involved, if anywith 25% overheads.
Total cost of development = Sum of a (i) to a (v) above
(b)
(c)
(d)
(e)
Cost of securing the IP
Cost of maintaining the IP
Indirect Cost - Notional amortization of investment on the staff, equipment,
facilities deployed for the project; and Intellectual inputs.
Goods and Services Tax (GST) as applicable on (a+b+c+d).
It is suggested that a minimum floor price of Rs. 5 lakh per IP should normally be
levied as cost of securing an IP. However, in exceptional cases and with prior
approval of DG, CSIR, concessions could be considered.
3.6.2 Goods and Services Tax (GST)
Government of India has implemented Goods and Services Tax (GST) w.e.f. 1st
July 2017 through the “The Central Goods & Services Tax Act, 2017”. Various
taxes including service tax have been subsumed within the GST. Thus, GST shall
be levied as applicable on the date of payment.
The laboratories are responsible for obtaining: (i) the registration from the
appropriate authorities (ii) collection and payment of the GST in the prescribed
manner and (iii) timely filing of the applicable tax returns. The payment of GST
is to be debited to the project account.
98
Annexure - VI
Licensing of Knowledgebase
4.8.1 Pricing
There is no rigid formula for determining the price of a given knowledgebase and
thus estimates vary from case to case. The price would depend upon direct and
indirect inputs for the development and the estimates of opportunity value and
"what the market can bear".
The estimates of following factors shall be placed for the consideration of the
Competent Authority to arrive at the price of knowledgebase:
i.
ii.
iii.
iv.
v.
vi.
vii.
Cost of development;
Cost associated with knowledgebase demonstration;
Estimate of net benefit to be derived by the licensee;
Size and number of potential licensees;
Comparative cost of competing knowledgebase in the market, wherever
applicable/available;
Potential for unauthorized use of the specific knowledgebase subjected to;
and
Opportunity value
Price decided for a specific knowledgebase should be reviewed periodically,
atleast every three years for revision, if any required.
4.8.2 Explanation
i.
Cost of Development
Includes estimated cost of:
Direct inputs
a) S&T Manpower deployed on the project (as per prescribed rates);
b) Raw materials, consumable components etc. with 25% overheads;
c) Physical Inputs for the project with 25% overheads;
d) Equipment usage;
e) External payments made, if any with 25% overheads;
f) Securing of intellectual property rights for the knowledgebase with 25%
overheads; and
g) Cost of publicity with 25% overheads; and
Total cost of development = Sum of i(a) to i(g) above
Indirect inputs
a) Notional amortization of investment on the staff, equipment, facilities
deployed for the project; and
b) Intellectual inputs.
99
ii. Net benefit to be derived by the licensee
This can be calculated as the money to be saved by the licensee by productivity
improvement such as saving in raw materials, energy, time, labour, capital etc. or
the additional profit to be realized due to better quality of product or reduction in
pollution etc. or the net profit from the exploitation of the knowledgebase.
iii. Size and number of potential clients
Some estimate may be made of the potential market for the knowledgebase and
the likely number of licensees for the knowledgebase, if it is to be licensed nonexclusively. Sometimes there may be alternative competing sources for the
knowledgebase. These should be taken into consideration while determining the
likely number of licensees for the laboratory's knowledgebase.
iv. Price of competing knowledgebase
In some cases the equivalent knowledgebase may have been imported or sought
to have been imported in the country. The price and level of such technology
could be an indicator for fixing the price of intellectual property.
v.
Unauthorized use of knowledgebase
Some knowledgebase is highly innovative but difficult to prevent from being
pirated by others. The price would need to give due recognition to the
knowledgebase protection that can be accorded to the licensees.
vi. Opportunity Value
Opportunity value in terms of money is the estimated amount that can be realized
by cashing upon the circumstantial /contingent aspects prompting the utilization of
the knowledgebase by the licensee. For purpose of calculations, opportunity
value could be expressed either in absolute money value or as a percentage of
profits anticipated or of value addition envisaged.
4.8.3 Differential costing of the Knowledgebase
In order to help Micro and Small Industries including cottage/ tiny industries,
differential costing could be applied for pricing the designated knowledgebase.
It would be as under:
i.
Cottage/tiny industry: the knowledgebase shall be provided only for a token
lumpsum charge, which could even be less than the cost incurred to develop
the same. No royalty to be charged. Such licensing should always be on
non-exclusive basis. The lumpsum fee could be decided by the Management
Council
ii.
Micro and Small scale industry: only direct cost of development of the given
knowledgebase will be charged. Where there is a possibility of licensing the
technology non-exclusively for more than one client, the direct cost could be
divided by such possible clients to arrive at the cost/client;
100
iii. Medium and large scale industry: charges will be as per normal costing
pattern.
iv. CSIR’s socially relevant products/ processes/ technologies could be
transferred to Micro and Small Enterprises including cottage industries, if
necessary, on non-exclusive basis without any license fee.
v.
In consideration of the free License as a societal intervention by CSIR, the
concerned Micro and Small Enterprises including cottage industries will
provide feedback on the technology/ knowledgebase and keep CSIR
laboratory updated on regular basis atleast for a period of 3 years from the
date of licensing;
vi. Concerned Micro and Small Enterprises including cottage industries will
duly recognize contribution of CSIR and make sure thatCSIR logo would
be present on all marketing materials of the technology and also on the
product;
vii. The Concerned Micro and Small Enterprises including cottage industries
shall affix in a conspicuous manner upon every product and/or mode of
packaging containing the product a label or plate bearing the inscription
“CSIR KNOWHOW”. The Concerned Micro and Small Enterprisesshall not
sell (product and/or any box or package containing the product) without
such label or plate being affixed thereon. Similarly every advertisement,
hoarding, technical literature, publicity and the like material in respect of or
relative to the product issued by the concerned Micro and Small
Enterprises shall include the same inscription as aforesaid in a prominent
manner.
The realization of price could be divided between lumpsum amount and recurring
royalty payments for cases falling under 4.8.3 (iii). The licensee's interest would
be to pay the price only through recurring royalty based on production, whereas
CSIR interest is to realize as much price as possible through lumpsum payment.
Thus, a balance has to be struck between these two competing interests.
It would be in the interest of CSIR to realize as much price as possible through a
lumpsum payment for cases 4.8.3 (ii).
101
Annexure –VII
Technical Services
Charges for technical services (except for supply of information / databases) shall
comprise of:
5.8.1(i)
Direct expenses1 ( 40% of the project cost) and shall comprise of:
a)
Cost of (i) man-days of CSIR staff deployed and (ii) temporary
project staff deployed;
b)
Cost of consumables/raw materials/components with 25%
overheads
c)
cost of physical inputs/services/utilities with 25% overheads ;
d)
Equipment usage cost/ depreciation / replacement costs/cost of
equipment procured specifically for the project, if any; and
e)
Any other out-of-the pocket expenditure with 25% overheads
Total direct expenses = Sum of i(a) to i(e) above
5.8.1(ii)
Laboratory Share( 35% of the project cost)
5.8.1(iii)
Project Fee ( 25% of the project cost)
Project Cost = (a+b+c)
i.e. sum of (i+ii+iii) above
5.8.1(iv )
Goods and Services Tax (GST)
Government of India has implemented Goods and Services Tax
(GST) w.e.f. 1st July 2017 through the “The Central Goods & Services
Tax Act, 2017”. Various taxes including service tax have been
subsumed within the GST. Thus, GST shall be levied as applicable on
the date of payment on the project charges.
The laboratories are responsible for obtaining: (i) the registration
from the appropriate authorities (ii) collection and payment of the
GST in the prescribed manner and (iii) timely filing of the applicable
tax returns. The payment of GST is to be debited to the project
account.
1
If direct expenses in any specific Technical Services Project is higher than the 40% of the
project cost charged to the client excluding capital costs then the difference should be adjusted
against the project fee and only remaining amount of project fee will be distributable among the
staff. In case, the direct expenses are less than 40%, the balance amount would be credited to
laboratory share.
102
Technical service to a client shall be as follows:
(a)
Direct Expenses [5.8.1(i)]
(b)
Laboratory Share [5.8.1(ii)]
(c)
Project Fee [5.8.2 (iii)]
Project cost = (a+b+c)
(d)
Goods and Services Tax as applicable on (a+b+c)
Total charges to be obtained from the client = (a+b+c+d) above
The laboratories are responsible for obtaining: (i) the registration from
the appropriate authorities (ii) collection and payment of the GST in
the prescribed manner and (iii) timely filing of the applicable tax
returns. The payment of GST is to be debited to the project account.
5.8.1 (v) The laboratory shall endeavour to collect the technical services charges
fully in advance. However, in cases of technical services from
government departments / agencies and public sector enterprises
advance payment may not be insisted.
5.8.1 (vi) Fast Tracking of Industrial R&D Projects
a)
To fast track the industrial R&D projects, CSIR laboratories can hire
desired manpower for filling the gaps to carry out the identified R&D in
fast track mode.Thus, project manpower could be hired from the
market at the designated rate limited to 2 times of the prescribed rates
as defined by CSIR1 with the approval of the Director of the
laboratory. The said manpower charges should be built into the
project costing.
b)
Contingency and/ or outsourcing budget of specific project could also
be used for the payment of enhanced remuneration to project
manpower and outsourcing of specific jobs under projects be
permitted with the approval of Director of the laboratory to leverage
and fast track the identified R&D activities.
c)
The projects in fast track mode should be continuously reviewed
through a domain expert group constituted by Director of the
laboratory.
5.8.1.(vii) The laboratories are permitted to offer technical services (testing/
calibration/ certification etc.) and utilization of equipment/ facilities at a
discounted rate to industry partners of CSIR laboratories who have
licensed the CSIR technologies. Such industry partners should be
charged 25% of the applicable charges for technical services (testing/
calibration/ certification etc.) and utilization of equipment/ facilities.
1
As per CSIR OM No. 4/CMG/2016-PPD dated July 04, 2016 and Chapter No. 9 titled
“Engagement of Technical and Business Development Consultants” of this Guidelines.
103
Annexure –VIII
PROFORMA FOR SEEKING SECURITY & SENSITIVITY CLEARANCE FOR
PROJECTS INVOLVING FOREIGNERS/ FOREIGN COLLABORATION
1.
Proforma
The proposals for undertaking any and all projects involving foreigners/foreign
collaboration by CSIR and the laboratories after due diligence of scrutiny be
referred to Head, RPPBD Directorate at CSIR, Hqrs as the case may be in the
following format for obtaining security and sensitivity clearance. [OM No. 222(2)/2004/ISTAD]
i.
Title and short description of the project;
ii.
Name, address, nature of organization and the activities of foreign
collaborator/sponsor and more specifically of the direct collaborator;
iii.
Details of past collaborations, if any, by the collaborator/sponsor with the
applicant lab./other CSIR lab.(s)/other Indian institution(s);
iv.
Details if any, available on R&D projects of sensitive and national
security, taken up and/or funded by the sponsor/collaborator in the past
in its own country or any other country;
v.
Genesis to the origin of the project;
vi.
Total cost (in Rs. and Foreign Exchange) and duration of project;
vii.
Foreign support/collaboration (details):
a)
b)
c)
d)
e)
f)
Financial support (Rs. & Foreign Exchange)
Equipment support
Technical support
Manpower training/exchange ((Indian/foreign)
Data/Informational support
Miscellaneous/others (use of facilities, ship, computers etc.)
viii.
Justification/need for foreign sponsorship/collaboration and likely benefits
(scientific, economic, societal, strategic etc.) for the laboratory/CSIR/and
India;
ix.
The project involves (give details):
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
Referring to or sourcing of strategic/sensitive material/ information;
Transfer of biological material(s) to the collaborator/sponsor;
Use of genetically modified organisms;
Use of environmentally or otherwise hazardous material(s);
Use of radioactive materials;
Field surveys/trials/proving/collection/testing (give locations);
Intellectual Property Rights (IPR) generation/exploitation/ use;
Visits if any, by the personnel of foreign collaborator/sponsor to India;
if so, the places/institutions to be visited and likely duration;
ix. Ethical issues in conducting of the project;
104
If answer to any of the points in (ix) is ‘yes’, the investigator/proposer to
give undertaking to abide by relevant and extant CSIR/national
regulations and guidelines on the subject.
x. Any conditionalities on use of project results for strategic and/or
national security uses;
xi. Any other relevant information not covered above; and
xii. Endorsement and specific recommendations of Director of the lab
that:


2.
The project does not involve any national security and/or sensitivity angles
either proximately or remotely now or in the foreseeable future.
Or
The project involves issues of national security and/or sensitivity (specify)
and due diligence has been exercised in the laboratory and measures
(specify) put in place to adequately safeguard the security and sensitivity
issues.
Scrutiny of Proposals at the Laboratory:
Prior to submission of the proposal for clearance as above, the proposal shall
be scrutinised at the laboratory level by the Director with respect to the
following guidelines namely that:
i.
the project is related to national/CSIR/laboratory research priorities and
interests;
ii.
there is need for foreign collaboration in the specific field/subject;
iii.
the foreign collaboration is expected to add value or bring benefits to the
laboratory/CSIR and the nation;
iv.
the field/subject of the project does not have a bearing on sensitive
matters – political, regional, religious, communal, social, tribal and/or
on security, including industrial and technological and on the
country’s commercial interests, either proximately or remotely;
v.
the project would not allow access by foreigners to sensitive information or
data or material;
vi.
the end-use of the results of the study do not impinge on areas of national
security, or on the areas which are ‘sensitive’, particularly through custody
and control over data and its dissemination/publication to the detriment of
national security or interest, now or in the foreseeable future;
vii.
appropriate measures to ensure necessary security have been/will be put
in place in case of visits by foreigners to sensitive areas or institutions;
viii.
for projects involving cruise of foreign vessels in Indian EEZ and/or flight of
foreign aircraft over Indian territory clearance of appropriate interministerial group(s)/Ministries/Departments has been obtained and
specifically mentioned thereto.
105
3.
Scrutiny of Proposals at the Hqrs
The project proposal in the prescribed format alongwith the information on
scrutiny at lab level be referred to Head, RPPBD Directorate at CSIR Hqrs as
the case may be for seeking clearance from security & sensitivity angles. The
proposal shall be examined and processed by the respective division as
follows:
i. Those not involving any security and sensitivity issues will be put up to
Secretary, DSIR and DG, CSIR for his approval on behalf of High Level
Committee(HLC) of the Government and the laboratory informed
accordingly within 3 weeks of receipt of full details;
ii. Those involving security and/or sensitivity aspects will be submitted by
correspondence
for
approval
to
other
relevant
Ministries/
Departments/State Governments and processed as follows:
a)
In case the proposal is cleared by all relevant agencies;
Or
b) In case no response is obtained from referred agencies within 6 weeks;
The proposal will be put up to Secretary, DSIR & DG, CSIR for
approval/clearance on behalf of the HLC and the laboratory informed
accordingly within 8 weeks of receipt of full details.
c)
In case an agency, prior to the expiry of 6 weeks seeks more time for
examination then the proposal would be kept pending for that time and
thereafter processed appropriately. The laboratory will be kept
informed of the position within 8 weeks of the receipt of full details;
d) In case the proposal is not cleared by any of the concerned agencies,
it will be submitted to Secretary, DSIR & DG, CSIR for permission to
forward it alongwith completed prescribed government checklist and
CSIR’s recommendations to the Department of Science and
Technology for the consideration and decision of the HLC. The
laboratory will be informed of non-clearance of the proposal by any
agency within 8 weeks of receipt of the full information.
106
Annexure – IX
CONSULTANCY WORK BY STAFF OF GOVERNMENT INSTITUTIONS
Copy of Office Memorandum No. F-11(2)-E.II(B)/63 dated the 6th May, 1963
from the Govt. of India, Ministry of Finance (Department of Expenditure), New
Delhi addressed to all Ministries etc. Departments.
Subject: Private Consultancy Work by the Staff of Government Institutions.
1. At present, some categories of staff of some Government Institutions
(particularly the teaching staff of technological institutions like the Indian
Institutes of Technology, Bombay, Madras, Kanpur & Kharagpur, the Delhi
Polytechnic, etc.) are permitted to undertake private consultancy work and to
receive fees from private parties in respect therefore, subject to certain
conditions.
2. The position in this regard has been reviewed and it has been decided that,
with immediate effect, private practice (whether it be in the nature of
consultancy work or of some other type of work) should not, except in the
types of cases referred to in paragraph 4 below, be permitted to any member
of the staff in any Government institution.
3. The purpose of permitting private practice to officials, viz. to enable them to
keep pace with the scientific / technological advances that are taking place in
their respective fields and to improve their professional competence, can be
served by the institution concerned itself taking up the consultancy work. The
following procedures may be adopted in such cases of institutional
consultancy:
i.
ii.
iii.
iv.
the institutions taking up the consultancy work will entrust the work to
selected staff members;
as far as possible, the staff members selected for the work should have
the confidence of the client;
the fees received for rendering the consultancy work will be credited to the
funds of the institution;
the institution may sanction suitable honorarium to the members of the
staff who actually execute the work. The honorarium should be fixed
having regard to the nature of the work, the amount of the time spent on it
and the extent of facilities provided by the institution for the work. But the
total amount of honorarium paid to the members of the staff should not
exceed 2/3 of the total fees received for the work by the institution.
4. In the case of an officer appointed on contract, who under the terms of
contract, is entitled to have private consultancy practice, these orders will be
applied to him from the date following the date of expiry of the present
contract. But, if the present contract of such an officer is for an indefinite
period, these orders will be applied in his case after the expiry of two years
from the date of issue of these orders.
5. The Ministry of Scientific Research & Cultural Affairs, etc. is requested to
bring these orders to the notice of the institutions etc. under their
administrative control.
107
Annexure-X
PROFORMA FOR SEEKING APPROVAL FOR
MEMBERSHIP ON BOARD OF DIRECTORS (BODs) OF A
COMPANY/FOUNDATION/SOCIETY/TRUST (ORGANISATIONS)
I.
PARTICULARS OF THE SCIENTIST
i.
ii.
iii.
iv.
v.
II.
Name/ Designation of the Scientist
Laboratory/Division
Date of Joining CSIR
Area of expertise of the Scientist
Particulars of Membership on BODs of Other ORGANISATIONS
PARTICULARS OF THE ORGANISATION (Please enclose past two years
Annual Reports or if new organisation, its Memorandum of
Association/Articles of Association)
i.
Place of Registration & Relevant Act under which Registered
ii. Names and Addresses of the Members of BODs/PROMOTERS
iii. Activities of the ORGANISATION
iv. Details of Foreign linkages/collaboration of the ORGANISATION
v. Period/ Duration for which permission is sought
vi. Remuneration to be paid by the ORGANISATION
vii. Likely direct/indirect benefits to CSIR laboratory of the Scientist
functioning on BOD of the ORGANISATION
III.
CERTIFICATE
COMMITMENT
OF
CONFLICT
OF
INTEREST/CONFLICT
OF
(To be filled in and signed by the Scientist)
1.
I have following associations/relationship with the ORGANISATION
Nature of Association/Relationship
2.
Pecuniary
Benefits
Date from
and to
I and or members of my family do not have any relationship / association
/commitment
/activities
with
the
ORGANISATION
or
its
associates/subsidiaries which may give rise to Conflict of Interest and/or
Commitment, with respect to CSIR activities/knowledgebase
__________
(Signature)
108
IV. RECOMMENDATIONS OF THE DIRECTOR
___________
(Signature)
Date:___________
EXPLANATION:
i.
Conflict of Interest arises when the proposed membership on BOD is such
as to diminish the potential and prospects of marketing the
CSIR/laboratory's present or potential knowledgebase or R&D output.
ii.
Conflict of Commitment arises when the proposed membership on BODs
interferes or appears to compromise the Scientist's responsibilities to
tasks / performance / position in the CSIR/laboratory.
109
Annexure X-A
COMPLIANCE CERTIFICATE
I _____________________________________ Managing Director/CEO on
behalf of the ______________________________ (Name of the
ORGANISATION) do hereby certify that the ORGANISATION and its officers
have acted with reasonable care and circumspection and complied with the
obligations arising under the Companies Act/ Societies Act/ Cooperative Societies
Act, Income Tax Act, Sales Tax Act, Employees' Provident Fund Act, Employees'
State Insurance Act and all other provisions of various Labour and Economic
Legislations and other Rules/Guidelines and the procedures laid down by the
Government as made applicable to the ORGANISATION from time to time.
The Certificate shall be valid from _____________to _____________.
_______________
(Signature)
110
Annexure-XI
PROFORMA FOR SEEKING APPROVAL OF DG,CSIR FOR
ESTABLISHING BUSINESS & MARKETING ENTITY
I.
PARTICULARS OF LABORATORY
1.
Name & Address
2.
Eligibility conditions
(Please give figures of last three years)
Year
I
(a) CSIR Government grant
(b) External Cashflow through
i. Contract R&D
ii. Consultancy Services
iii.Technical Services
Total
(c) Source of External Cash flow
i. Govt. Departments
ii. Public Sector Undertakings
(Central & State)
iii. Private Sector Companies/
Organisations
iv. Foreign companies
v. International/ Foreign agencies
Total
(d) Laboratory Reserves
(e) Source of Laboratory Reserve
111
II
III
i. Govt. Departments
ii. Public Sector Undertakings
(Central & State)
iii. Private Sector Companies/ Organisations
iv. Foreign companies
v. International/ Foreign agencies
Total
II.
PARTICULARS OF PROPOSED BUSINESS & MARKETING ENTITY
1.
Proposed name, registered address and location
2. Nature of ENTITY (Society/Trust/Foundation/Section 25 Company)
(Please enclose Memorandum of Association/Articles of Association)
3. Objectives
4. Financing Scheme
5. Names and Addresses of Promoters and Proposed members on the
Board of Directors
6. Significant Activities envisaged
7. Envisaged Functional/Organisational/Managerial/Financial/ Technical
relationship with the CSIR/Laboratory
8.
Any other information
112
III.
CERTIFICATE BY DIRECTOR OF THE LABORATORY
The ___________________ will be a separate legal entity and all
transactions/arrangements between the laboratory and _____________ shall be
as that between two legal entities. The laboratory has not invested CSIR grant or
portion thereof in the equity / corpus fund of and or provided budgetary support to
______________. The CSIR/laboratory shall have no liability for and towards
any act of omission or commission by the ________________________ or its
employees.
_______________
(Signature)
113
Annexure XII
Proforma for seeking approval for setting up of
Incubation Centres (IC) in CSIR Laboratories
1.
Particulars of laboratory
(i) Name of the laboratory
(ii) Name of the Director
(iii) Contact details (postal address, telephone, fax, email)
(iv) Core R&D areas of the laboratory alongwith strength in each of the
area
(please describe following for each of the area)
a. Manpower (please give strength of group IV and III
personnel)
b. Facility base (please provide details of major equipments
and facilities)
c. Commercialisable knowledgebase developed
describe the technology/ patent portfolio)
(briefly
(v) Details of built up space laboratory can spare for the IC
2.
Details on Incubation Centre (to be set up)
i.
Aims & Objectives
ii. Scope
iii. Budgetary details (including grant-in-aid obtained)
iv. Proposed modality for setting up the ‘IC’:
Being set up within the existing laboratory building (give details)
or
Being set up in the facilities outside the laboratory or in a new
building to be constructed in the laboratory premises (give details)
v. Details of built up area along with details of area to be provided for
each facility and area available to each incubatee
vi. Details of proposed tenancy
114
vii. Fields of activity
viii. Details of facilities to be created
ix. Details of support services to be provided
x. Revenue generation model
xi. Proposed constitution of the section 8 company (provide names of
the Board of Directors)
3.
Certificate by Director of the Laboratory
It is certified that the Incubation Centre at _________________ is as per CSIR
(Name of laboratory)
guidelines on the subject. The laboratory meets the criteria laid by CSIR for
setting up of the Incubation Centres.
_______________
(Signature)
Date:
115
Annexure XIII -A
Scheme for Mobility of Scientists/ technologists/ engineers
from CSIR to industry/ R&D institutions and vice versa
Proforma for seeking approval for mobility from CSIR to industry/ R&D
institutions
1. Name :
2. Designation :
3. Name of Laboratory :
4. Date of joining CSIR / Laboratory :
i.
Length of service in CSIR :
5. Details of deputation availed in last ten years :
6. Details of Study Leave availed (including the period and place of study) :
7. Date of superannuation :
8. Date of proceeding (for proposed mobility) :
9. Period of mobility : From-----------------------
To-------------------------
10. Name of organization for proposed mobility :
11. Nature of organization
12. Broad area of proposed work
13. (Research & development / Business development / Technology and IP
management / Quality assurance / Informatics / Information technology /
any other associated function)Objective of mobility
116
14. Expected benefit to CSIR/Laboratory from the mobility
15. Any other relevant information to support the need for mobility
Signature -----------Place ----------------Date ------------------
Remarks, views and recommendations of the Director of the Laboratory
Signature of the Director with stamp
Date--------------
Approval of DG, CSIR
(Only for deputation abroad/ In case of deputation from CSIR Hq.)
Signature of DG, CSIR
117
Annexure XIII -B
Scheme for Mobility of Scientists/ technologists/ engineers
from CSIR to industry/ R&D institutions and vice versa
Proforma for seeking approval for mobility from industry/ R&D
institutions to CSIR/ Laboratory
1. Name :
2. Designation :
3. Name of Organization :
4. Nature of organization :
5. Date of joining the Organization :
6. Length of service in the Organization :
7. Name of Laboratory where mobility sought :
8. Period of mobility : From-----------------------
To-------------------------
9. Broad area of proposed work
(Research & development / Business development / Technology and IP
management / Quality assurance / Informatics / Information technology /
any other associated function)
10. Objectives of mobility
11. Expected benefit to CSIR/Laboratory from the proposed mobility
12. Any other relevant information to support the need for mobility
Signature ----------------Place --------------------Date ----------------------118
Remarks, views and recommendations of the Expert Committee
constituted for considering the request and need of deputation
(To be completed by COA of the laboratory-attach recommendations of
the committee)
Remarks, views and recommendations of the Director of the Laboratory/
HoD at CSIR (In case of CSIR Hq.)
Signature of the Director with stamp
Date--------------
Approval of DG, CSIR
(In case of deputation to CSIR Hq.)
Signature of DG, CSIR
119
Annexure – XIV
PROFORMA FOR SEEKING APPROVAL FOR SETTING UP KNOWLEDGE
ALLIANCES BETWEEN CSIR CONSTITUENT LABORATORIES AND
PRIVATE INDUSTRY
I.
PARTICULARS OF KNOWLEDGE ALLIANCE PARTNERS
1.
Particulars of laboratory
i.
Name and contact details (postal address, telephone, fax, email)
ii. Name of the person in charge of the activity
iii. Laboratory’s strength in the area
a.
Manpower
b.
Facility base
c.
Knowledgebase
iv. Area proposed for knowledge alliance
2.
Particulars of collaborating industry
i.
Name and contact details (postal address, telephone, fax, email)
ii. Area of business operations
iii. Name of the person in charge for the activity
iv. Strength in the area of proposed alliance
a. Manpower
b. Facility base
c. Knowledgebase
II.
PARTICULARS OF PROPOSED KNOWLEDGE ALLIANCE
1.
Proposed name of the alliance
2.
Location and address
3.
Alliance details
i.
Background
ii.
Nature of alliance
iii.
Period of alliance
iv.
Modalities of alliance
v.
Objectives of the alliance
120
4.
vi.
Current status of the area (in which the alliance is being
proposed) nationally and internationally
vii.
Future scope/ potential of the field focused under alliance
viii.
Likely applications of products developed / services to be
provided through the alliance
Resource inputs for setting up of the alliance (yearwise for the period of
alliance)
i.
By laboratory
a.
Physical
b.
Manpower
c.
Financial
ii. By industry
a.
Physical
b.
Manpower
c.
Financial
5.
Positioning of the knowledge alliance / business opportunity envisaged
6.
Proposed sharing of knowledge/IP generated in the alliance (enclose a
copy of the proposed agreement)
III.
ENVISAGED FUNCTIONAL/
FINANCIAL/
TECHNICAL
CSIR/LABORATORY
IV.
ANY OTHER INFORMATION
V.
CERTIFICATE BY DIRECTOR OF THE LABORATORY
ORGANIZATIONAL/
RELATIONSHIP
MANAGERIAL/
WITH
THE
The ____________________ will be a separate entity and all transactions/ arrangements
(Name of knowledge alliance)
between the laboratory and _______________shall be as that between two legal entities.
(Name of industry partner)
The laboratory has not invested CSIR grant or portion thereof as budgetary support
to the alliance being created. The CSIR/ laboratory shall have no liability for and
towards
any act of omission or commission by the ________________________ or its
employees.
(Name of industry partner)
_______________
(Signature)
121
Annexure XV
Proforma for seeking approval under Scientific Entrepreneurship
Scheme
A.
Particulars of Scientist

Designation :

Name of Laboratory :

Division where placed:

Contact Details:
Phone:
Fax:
Email:

Date of joining CSIR / Laboratory :
B.
Approval sought for

Financial stake in “Scientific Enterprise”

Knowledge as equity

To join as Non Executive Director in the “Scientific Enterprise

All above
C.
Particulars of “Scientific Enterprise”

Name of the Scientific Enterprise:

Address:

Contact Details:



Phone:
Fax:
Email:


Proposed activities of Scientific Enterprise ( about 100 words):
122
D.
Position of Knowledgebase and Licensing by

CSIR

Other (Give name of organization)

Details of Knowledgebase (including IP status)

Details of licensing agreement executed (attach a
copy)

Financial terms of licensing knowledgebase
E.
Proposed ownership of Scientific Enterprise and its functioning

Quantum of stake:


- Self:
- Others (please give details by name):

Modalities of operation

Constitution of BoD
- Financial Pattern
- Ownership of Company
- Stake


Nature of stake
- Knowledge

- Finance

Valuation of stake
- Knowledge
- Finance

Percentage of stake
- Knowledge
- Finance

Full time involvement at the initial
stage of the scientific enterprises
123

F.
Approvals regarding transfer of knowledgebase
G.
Conflict of interest related issues

Details (basis annexure 2 of the Guidelines)

Signed mutually between self and Laboratory
H.
Details of Lien (In case of full time involvement by the scientist at the
initial stage of the scientific enterprises)

Required

Not required

Duration if required
I.
Details of consultancy to Scientific Enterprise

Manmonths (if yes)

Has consultancy agreement with Laboratory
signed

Copy of agreement attached
J.
Positioning of “Scientific Enterprise” (about 100 words)
K.
Details of anticipated returns to CSIR/concerned Laboratory

Any other information:
L.
Undertaking by the Scientist
Yes 
No 




Yes 
No 

I ________________solemnly resolve that my having stake in __________________
(Name of S.E.) and / or I being non-executive Director of ____________________
Name
of
S.E.)
will
not
involve
CSIR
in
any
matters
of
__________________________ (Name of S.E.). The ______________________
(Name of S.E.) shall be solely responsible in my personal capacity for the activities
undertaken by it or for any liabilities that may arise from its activities.
124
I ___________________ further resolve that my primary responsibility will be
towards CSIR and I shall abide by the instructions issued by the Director of the CSIR
Laboratory time to time.
Signature _________
Place ____________
Date _____________
M.
Endorsement and Remarks views and recommendations of the Director
of the Laboratory
Signature of the Director with stamp
Date ________
125
Annexure XVI
Guidelines for managing “Conflict of Interest” Issues Arising from CSIR
Scientists holding equities in Scientific Enterprises/Start Ups/ Spin Offs
created under Scientific Entrepreneurship Scheme
A. For the purposes of these guidelines, the following word(s) / terms will be
used as defined below:
1. Conflict of Interest: Conflict of Interest arises when a scientist’s or his
family member’s interest in a Start Up / Spin Off interferes or has the
perception (to an independent observer with reasonable justification) to
interfere with his or her professional obligations to CSIR. Therefore, a
Conflict of Interest may prejudice a scientist’s ability to perform his or her
duties and responsibilities objectively. The Conflict of Interest can be
financial or non-financial. Conflict of Interest also covers “Conflict of
Roles” and “Conflict of Commitment”.
2. Equity: The capital of a company is divided into equity shares. An equity
share forms a unit ownership of a company and gives its holders the
powers to share the earnings / profits in the company as well as to vote
at shareholder’s meetings of the company. Such a shareholder has also
to bear the losses incurred by the company.
3. Scientific Enterprises: Scientific Enterprise means a special class of
new Entity that leverages scientific research, knowhow, inventions,
innovations and expertise and transform them into commercialisable
technologies / products.
4. Incubation Centre (IC): IC is a unique and multipurpose facility which is
highly flexible and designed to help new start-ups to solve some of the
problems associated with running early stage companies. On one hand,
it aims to provide high quality infrastructure and ecosystem to
entrepreneurs while on the other, it helps nurture start-up companies
and encourages early stage innovation through appropriate handholding
mechanisms. Incubation Centres provide a range of services to
upcoming enterprises especially start-ups and facilitates their survival
and growth through linkage with Intellectual Property, Technology,
Knowhow, Human Resources and Capital.
5. Start Up: A start-up is an entrepreneurial venture that is in the
early stage of the life cycle of an enterprise where the entrepreneur
moves from the idea stage to product or process or service
development. Typically, start- up aims to meet a marketplace need by
developing or offering an innovative product, process or service. A start
up is a legal entity that engages in business and commercialisation of
new products, processes, or services.
6. Spin-off: A Spin-off is an independent start-up firm formed by the
scientific establishment (in the present case CSIR) either independently
or along with its employees or outsiders. Spin-offs typically operate
at arm’s length from the scientific establishments and have independent
126
sources of financing, products, services, customers, and other assets.
The spin-offs may license technology / intellectual property from the
parent organisation.
Such spin-offs are important sources
of technological diffusion in high-tech areas.
7. Entity: Entity means a legal person or company or association or body
of individuals, incorporated under various laws, constituted primarily to
commercialise knowledgebase. For the sake of simplification, Entity in
this guidelines means either the Scientific Enterprise or Start Up or Spin
Off.
8. Company: A company is a legal entity, allowed by legislation that
engages in business (that makes, buys, or sells goods or provides
services in exchange for money). Companies can be formed by
individuals or group of people as an independent organisation
empowered with legal rights which are usually only reserved for
individuals, such as to sue and be sued, own property, hire employees
or loan and borrow money.
9. Income: Payment received including but not limited to a salary, wage,
stipend, honorarium, dividend, interest, rent, proceeds from any sale,
loan forgiveness or payment of indebtedness or any other contribution
received, any community property interest etc. Income also includes
outstanding loan and pro rata share of any business entity or trust.
10. Investment: Investment can be defined as the act of putting money,
effort, time, etc., into something to make a profit or get an advantage, of
the money, effort and time invested. A financial investment is a monetary
asset, physical or tangible purchased, for example, stocks, bonds,
bullion, etc., with the idea that the asset will provide income in the future
or will be sold at a higher price for a profit. An important feature of
financial investments is that they carry high market liquidity.
11. Family: Family for the purpose of this document means the employee’s
wife or husband, his/or her dependent children and dependent relatives
or household members.
12. Scientific Establishment: Scientific establishment means the CSIR and
their laboratories / institutes under it.
13. Scientists: Scientists means such categories of staff as notified by the
CSIR and laboratories/institutes under it from time to time and shall
include scientists and engineers in scientific cadre.
14. Knowledge base: Knowledge base means all inventions/innovations
(whether patentable or not), invention / innovation disclosures, trade
secrets,
know-how,
proprietary
information,
technical
data
documentation, data collections, databases, concepts, processes,
software, design drawings, materials, support services and the like,
whether or not the foregoing are in tangible or intangible form.
127
People covered under CoI Guidelines
In the present context, the following people are covered under CoI:

Scientists & their family (if any) holding equity in scientific enterprise,
start-up or spin-off;

Regular employees engaged in decision making; and

Bhatnagar Fellows and Emeritus scientists.
B. Nature/Type Of Conflict Of Interests That May Arise When Creating Start
Up/Spin-Offs/Scientific Enterprises
The potential areas where the Conflict of interest can arise are: Intellectual
property/copyright/trademark, engagement of human resources, receiving
honorarium, other financial issues, use of laboratory space and utilities and
in decision making. A scientist of CSIR can be involved in a Start-up/SpinOff/Scientific Enterprise in a variety of capacities. These include but are not
limited to a) Founder; b) Equity Holder; c) Consultant; d) Member of
Scientific Advisory Board; and e) Member of Board of Directors. A Conflict
of interest may arise due to any of the following actions:
1.
Diverting lab or project funds and / or staff or research students to the
entity;
2.
Spending significant time in the entity during the official working
hours;
3.
Unauthorized use of laboratory resources / space for the activities of
the entity;
4.
Use of laboratory facilities outside the terms of the agreement
between the CSIR lab and the entity;
5.
Pursuing activities related to the entity in the laboratory which is likely
to benefit the entity commercially;
6.
Diverting laboratory and project staff to the activities of the entity;
7.
Participating or lobbying for IP/technology licensing or for any other
matter (allocation of space, use of facilities etc.) with CSIR lab on
behalf of start- up/spin-off/scientific enterprise or vice a versa;
8.
Negotiating with the entity on behalf of the CSIR lab;
9.
Use of CSIR official e-mail addresses, seal, logos, letterhead,
telephone and other communication facilities to correspond on behalf
of the entity;
10. Participating in the process for Purchase of any goods or service from
the entity;
11. Not separating and clearly distinguishing on-going research and the
personnel (including post-doctoral fellows, other trainees or guest
workers) in laboratory from the work being conducted at the entity;
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12. Involving in the engagement of the company/entity for a third party
that might reasonably be performed by the laboratory / institute with or
without the scientist concerned;
13. Transmission to the entity any unauthorized information, records,
results, materials, or work product, etc., which have been acquired
through research at CSIR or through studies conducted on behalf of
private and public bodies by CSIR for the private gain of the staff
member;
14. Consultancy to the entity that imposes obligations that conflict with
CSIR's IP Policy or with CSIR's obligations to other research
sponsors; and
15. Taking administrative action or any decision within the CSIR which is
beneficial to a business in which he/she has a financial interest.
The above actions that lead to Conflict of Interest should not be resorted to.
C. Guidelines for Managing, Resolving & Mitigating CoI
It is the responsibility of the Scientific Establishment, while providing approval
to its scientists under SES scheme, to specifically state the exemption of that
particular scientist from relevant CCS conduct rules to enable the scientist(s)
permitted by the competent authority to avail of the provision. The approval
must also specifically mention instructions to prevent anticipated conflict of
interest as specified in these guidelines.
Following procedures and guidelines are to be followed for managing, resolving
& mitigating COI:
a) The concerned scientist shall make a full disclosure on his/her/family’s
equity holding in any entity and bring potential conflict of interest issues
(as defined above) to the knowledge of the Scientific Establishment
(including the information on Shareholders and Shareholding pattern of
the entity as per the proforma given at Appendix-I). The general advice
is to make a disclosure when in doubt. He/she will be guided by the
recommendations of the Standing Committee or any other instructions
that the Scientific Establishment (CSIR) may issue from time to time.
The concerned scientist must also update disclosure on his/her and
family’s equity holding in the entity once a year and whenever there is a
change in the status of information;
b) Each laboratory / institute shall set up a Standing Committee for the
review of each CoI disclosure and suggest measures to avoid, manage
or mitigate the CoI. The Standing Committee will be guided by the
present guidelines. The Standing committee must be headed by at least
a Chief scientist and must have two more members including Head of
Business Development Division/Performance monitoring Division, and
one external expert nominated by Director. The chairperson and
members of the Standing Committee must not have any equity holding
in that entity. Standing Committee recommendations shall ensure that
laboratory / institute interests are not compromised while at the same
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time, it does not hinder the objectives of the scheme and functioning of
the entity;
c) The entity can utilize the resources of the Scientific Establishment (the
term ‘resources’ shall be construed widely and include, without limitation,
laboratories, equipment, personnel and space of the Scientific
Establishment) only with prior approval in writing and on such terms and
conditions that the Scientific Establishment may prescribe. Towards
this, the laboratory / institution shall enter into specific agreements with
the Entity with clearly defined terms of payment;
d) The concerned scientist shall primarily be responsible for the Scientific
Establishment he is serving and shall be bound by any instructions,
general or specific, that the Scientific Establishment may issue from time
to time;
e) Each laboratory / Institute may issue additional guidelines relevant to
them for management of conflict of interest, if necessary. To facilitate,
the laboratory / institute may, if so desires, devise a separate proforma
within the guidelines defined herein;
f) The concerned scientist shall not directly or indirectly associate himself /
herself with any process, notwithstanding the permission granted:

to license knowledge base to the Entity;

for the purchase or hiring of goods and services from the Entity;
and

to the evaluation of goods or services that compete with the
goods or services of the Entity;
g) Separate and clearly distinguish the activities of the CSIR lab and the
entity. Disclose the relationship of his/her proposed lab activity to the
entity and how the employee will ensure separation of his/her
organisational role from the employee’s role or interests in the entity.
Further, the scientist concerned should provide a list of projects being
pursued and Intellectual Property (patents, trademarks, copyrights, etc.)
filed by the Entity, to the laboratory / institute at the beginning of every
calendar year;
h) Must not claim ownership of an invention on behalf of entity which
resulted from their activities in the CSIR lab;
i) The officials in decision making positions such as Director, Scientist in
charge of Incubation Centre, Head of Business Development, Heads of
concerned Directorates/Divisions at CSIR Hq., and similar functionaries
should not invest or hold equity in the commercial entities to avoid
conflict of interest;
j) No scientist should be permitted to invest in more than two entities at
any given time;
k) Each laboratory / institute may prescribe upper limits of time involvement
in the entity. However, such involvement could be few hours a day and
cumulatively it should not exceed one working day per week. Beyond
this limits, if the concerned scientist wishes to provide professional
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advice to the entity, he must seek the approval of the competent
authority or may explore alternate options such as taking lien;
l) The concerned scientist, if he/she desires to be associated with the
entity as non-Executive Director, he/she would need to seek the
approval specifically from the Competent Authority;
m) The concerned scientist, if he/she desires to be associated with the
entity full time and guide the activities in the initial phase, he / she must
take lien from the Scientific Establishment. Such lien can be taken for a
maximum period of 3 years and governed by the pertinent rule;
n) The concerned scientist shall, in the event of the entities merger with
another unit or acquiring another unit or coming out with an Initial Public
Offering (IPO) or disinvesting his share in the entity, inform the Scientific
Establishment in advance. Similarly, the Scientific Enterprise should
also inform about the potential dilutions planned / actualized and the
entities / individuals involved in such an activity;
o) No scientist or regular employee of the laboratory / Institute should be
allowed to officiate (on deputation or additional charge) as CEO /
General Manager/ Director / in any responsible position of the Incubation
centre beyond 5 years;
p) The laboratory should maintain a record of all the services provided to
the Scientific Enterprise/Entity; and
q) Wherever, potential conflict exists, written consent must be obtained
from the competent authority before any commitment is made.
D. COMPETENT AUTHORITY
For scientists, up to Chief Scientist, Director is the competent authority in all the
matters pertaining to CoI. However, in the case of Directors, Scientist H,
Emeritus scientists, Distinguished Scientists and Bhatnagar Fellows, DG, CSIR
is the competent authority.
In all the matters of COI, DG’s, CSIR decision is final and binding.
Notwithstanding anything given in this guideline, the provisions of Department
of Scientific and Industrial Research (DSIR) OM No. 3/3/2009-TU/V/knowledgeto-equity dated May 25, 2009 will take precedence. The conflict of interest
guidelines specified applies along with the CSIR rules applicable for the
employees of CSIR.
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Appendix-I
Disclosure of Business or Financial Interests in any external Entity

Fiscal Year:

Employee/Family Member’s Name & Relationship with Employee:

Designation of the Employee:

Name of the Scientific Establishment (CSIR Lab Affiliated):

I and/or my family members (defined as spouse, dependent children and
dependent relatives or household members) hold an equity or financial
interest in an external entity/scientific enterprise/start up/spin-off (all of
them referred as entity).

Name and address of this entity:

Date of inception of this entity:

Details of product/technology/IP/knowhow licensed to the entity:

Date of Grant of Patent:

Status of injection of IP/knowhow from CSIR:

Legal position of the entity (e.g., Company registered under Companies
Act, MSME registered under the MSMED Act, Sole Proprietorship,
Partnership Firms, Registered or un-registered partnership firm, Limited
Liability Partnership Act etc.):

Name & Affiliation of the Promoters of the Entity:

Shareholders and shareholding pattern of the Entity:

Quantum of stake (equity) of the CSIR employee/family:

Executive Director(s) of the Entity:

Non-Executive Directors of the Entity:

Membership Role of the CSIR Employee/Family member in the entity:

Time (in hours/week) spent by employee on the activities of the entity:

List of projects being pursued by the Entity

Intellectual Property (patents, trademarks, copyrights, etc.) filed by the
Entity:

Financials (Attach year wise balance sheets of the entity for the past 3
years):
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
Amount of monies received by the CSIR employee/family member till
date with annual break up:

Dividends issued, if any:

% Equity to CSIR proposed/given:

Nature of Conflict of Interests likely to arise (See section B of the
Guideline):

How do you propose to avoid/manage/mitigate the likely Conflict of
Interest:

Explain how you are maintaining your obligations and interests in the
entity separate from your duties and responsibilities in the CSIR
laboratory:
I agree to update this disclosure at the beginning of every year AND at
any time when there is a change in the information.
Signature of the CSIR Employee
Date:
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Annexure XVII
Proforma for seeking approval for
Investing Knowledgebase as Equity in an Entity
A.
Particulars of “Laboratory” investing Knowledgebase as Equity

Name of Laboratory :

Contact Details:
- Phone:
- Fax:
- Email:
B.
Details of Knowledgebase for which approval is sought

Title of knowledgebase:

IPR status
- Granted (give details)

- In process


Year of development:

Classification (as per definition given under the scheme):
C.
Names of Personnel involved in the development of Knowledgebase
Name(s)
Designation
1.
2.
3.
4.
D.
Positioning of Knowledgebase to be Licensed (100 words)
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E.
Valuation of the Knowledgebase and basis of arriving at the valuation
F.
Particulars of Entity wherein equity is being taken in lieu of
Knowledgebase

Name of the entity:

Address:

Contact Details:
- Phone:
- Fax:
- Email:

Business activities of the entity ( about 50 words):
G.
Ownership of Entity and its functioning

Details of present stake:

Quantum of proposed stake by Laboratory:

Modalities of operation of Entity:
- Constitution of BoD
- Financial Pattern
- Ownership of Company
- Stake
H.
Positioning of “Entity” (about 100 words)
I.
Details of anticipated returns to CSIR constituent Laboratory
(about 50 words)
J.
Any other information:
K.
Endorsement and Remarks views and recommendations of the
Director of the Laboratory
Signature of the Director with stamp
Date ________
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PROFORMA TO BE SIGNED BY THE LABORATORY AND
LICENSEE ON COMPLETION OF TRANSFER OF KNOW-HOW
1.
Name of the process_________________________________________
2.
Indian/Foreign Patent Application Number________________________
3.
Name of Instt./Lab.__________________________________________
4.
Name and address of the_____________________________________
Licensee
_________________________________________
_________________________________________
5.
Terms & Conditions for release of know-how
a)
Lumpsum premium_____________________________________
b)
Recurring royalty_______________________________________
c)
Nature of licence_______________________________________
d)
Period of Licence________________________________________
6.
Date of agreement__________________________________________
7.
Details of the know-how given to the licensee (e.g. process data, raw
materials and utilities required, flow sheet, drawings, list of equipment
and machinery and specifications & materials of construction, cost data,
scale of demonstration, training if any etc.)
This is to certify that in pursuance of the licence agreement with National
Research Development Corporation of India for the Commercial exploitation of
the process, the know-how as detailed above has been given to the
representatives
of
M/s____________________________________________________________
and the representatives of the firm are fully statisfied with the working of the
process and the know-how given to them as detailed in para 7.
Director Laboratory/
Representative of the
Institute or his representative
Licensee
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