The New Zealand Government yesterday released a national intellectual property (IP) management policy for research organisations as part of its reforms to the science sector. The policy sets out rules for determining whether the IP created under publicly funded research projects will be owned by the creator(s) employed by a research organisation or by the organisation itself.
The rules will apply to most research projects funded within the science, innovation, and technology portfolio from 1 July 2026.
Significant changes to IP ownership rules
Until now, publicly funded research organisations in New Zealand have generally been free to set their own policies on who owns IP created by staff during the course of their employment. The result has been that the research organisations rather than the researchers have had the first right to own and commercialise the IP.
The IP management policy seeks to standardise IP ownership rules across all publicly funded research organisations. However, the rules will differ depending on whether the IP arises from a researcher-initiated project, as is common at universities, or from a research organisation-directed project, such as those undertaken by Public Research Organisations (PROs).
Once the policy takes effect, most university researchers will have the option to own and commercialise IP generated from their research, provided they agree to bear the costs associated with doing so. This marks a significant shift from the typical current approach, under which most universities opt to retain the first right to own and commercialise IP. The Government’s aim and expectation is that this change will encourage greater commercialisation of university research.
Where the research is conducted under the direction of a PRO or other research organisation, researchers will only be given the option to own and commercialise the resulting IP if the organisation chooses not to exercise its right to do so.
A “Waterloo model” with guardrails
The IP management policy takes inspiration from the IP policy of Canada’s University of Waterloo, which stipulates that, with limited exceptions, IP rights are owned by their creators.
Under New Zealand’s policy, universities and their researchers will have 90 days from the submission of an invention disclosure form to agree on whether the researchers, the university, or both will be responsible for commercialising the IP in the research. If no agreement is reached within this period, responsibility for commercialisation will rest with the researchers.
The 90-day period is designed to give university commercialisation offices time to investigate IP protection, engage with researchers, explain the support they can provide, and ensure that researchers fully understand the implications and costs of pursuing commercialisation independently. The Ministry of Business, Innovation and Employment (MBIE) also plans to issue guidelines to assist universities and researchers in these negotiations.
Looking ahead
The IP management policy represents a significant shift in how New Zealand manages IP arising from publicly funded research, particularly within the university sector.
AJ Park has extensive experience advising research organisations and spinout companies on IP ownership and commercialisation matters. Please contact a member of our team if we can assist with these upcoming changes.
