(Chapter 2—Intellectual Property - Spring 2009 Report of the Auditor General)
Ottawa, 12 May 2009 – The federal government does not know how much intellectual property it owns or how well it is being managed, says the Auditor General of Canada, Sheila Fraser, in her Report tabled today in the House of Commons. Intellectual property refers to legally protected rights such as patents and copyrights in the industrial, scientific, literary, and artistic fields.
“Intellectual property is a valuable asset that can provide social and economic benefits to Canadians,” said Ms. Fraser. “For example, National Research Council Canada developed a vaccine for meningitis that is used in Canada as well as internationally. In addition to the health benefits, it has generated over $25 million for the organization.”
The federal government generates intellectual property through its own activities and also activities carried out by the private sector under federal contracts for goods and services.
The audit found that despite their significant expenditures on science and technology, including millions of dollars on research and development, Health Canada and Fisheries and Oceans Canada have identified little intellectual property developed by their scientists and researchers. The National Research Council Canada, however, adequately identifies its inventions and copyright material by involving and training its researchers and officers.
None of the three science-based federal organizations that were audited adequately identifies and reports whether work performed under contract is likely to generate intellectual property. The government’s policy on intellectual property arising from contracted activities stipulates that, apart from some specific exceptions, ownership should go to the contractor to increase the potential for commercialization. Yet Health Canada and Fisheries and Oceans Canada retained ownership in more than half the contracts examined where some element of intellectual property was reported, often without adequate justification.
The Report also notes that the federal government does not know if the award plans and policy in place to encourage and reward its scientists for their inventions are effective.
“We saw some good practices by the National Research Council that other departments and agencies could adopt to improve their own management of intellectual property,” said Ms. Fraser.
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The chapter “Intellectual Property” is available on the Office of the Auditor General of Canada website.
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