Scholarships, taxation and IP

Australian government taxation ruling

unless:-

• they are received on condition that the student will (or will if required) become, or continue to be, an employee of the scholarship provider 
• they are received on condition that the student will (or will if required) enter into, or continue to be party to, a contract with the provider that is wholly or principally for the labour of the student 
• the scholarship is not provided principally for educational purposes.

As far as the CDx is concerned, our postgraduate scholarships are solely for the purpose of training young scientists and they are for educational purposes only. The rates used are equivalent to the current APA-I award. Copies of progress reports to universities should be sent by the supervisor and to the CDx to confirm that student progress is satisfactory. Students are not obliged to forward additional reports so as not to infringe the above conditions.

Full-time postgraduate research student scholarships are tax-exempt, however, scholarships for part-time students and summer vacation scholars ARE TAXABLE.

Disclosure of research findings

• All CDx staff, visitors and postgraduate students are required to sign a deed of non disclosure to protect intellectual property under development within the CDx since there may be future commercial benefits to be derived from such research and/or communications. This is standard practice with commercial enterprises and this policy must be rigidly enforced.
• PRIOR TO disclosure of commercially - sensitive materials at conferences, publication etc, approval first must be sought from the CDx Director using the CDx "Publication & Presentation Approval" form. The form will need to be submitted at least three weeks prior to the event. Students making oral presentations (including progress reports to university staff in fulfilment of degree requirements) must ensure that a deed of non - disclosure (confidentiality agreement) is signed by all persons in the audience. Any visitors to the CDx also will be required to sign a deed of non-disclosure.
• CDx reserves the right to withhold publication of commercially-sensitive material (including students' Masters or PhD thesis) for several months, although it anticipated that such delays rarely would exceed 1-2 weeks.

Ownership of Intellectual Property (IP)

• Under Section 2.1 of QUT's Intellectual Property Policy (Sep 1, 1998): "QUT owns all rights .... [to any IP] arising otherwise than under the Copyright Act 1968 ..... where such intellectual property was created in the course of employment with QUT and was created with substatial contribution by or on behalf of QUT through the provision of QUT resources.
• Under section 3.1 of the policy: "In the absence of any agreement or assignment varying this position, QUT is not entitled to the ownership of intellectual preperty created by a student in the course of study at QUT. However, "QUT may place conditions on student enrolment or participation in courses, subjects or projects, so that a student assigns to QUT ownership of intellectual property created, either generally or by reference to specific criteria."
• All intellectual property (IP) developed using CDx facilities, expertise and "know how" by any member of the CDx (including commercial & academic members, research scientists, postgraduate students & administrative staff) developed whilst s/he is engaged in CDx-funded research must be surrendered to Diatech Pty Ltd and become property of the CDx. All staff and students associated with the CDx voluntarily must sign a deed to this effect before access to the CDx facilities and expertise is permitted. In the case of postgraduate students, this surrender of IP must not take place until after a student has been awarded a CDxPRA so as not to infringe the Act.
• For full details about CDx policy in relation to protecting IP, please refer to the Centre Intellectual Property page accessed from the Administration page (password required).
• CDx has developed a "reward" system for the inventor(s) of CDx IP which, after patent protection and commercial development, generates or has the potential to generate income for CDx. 

Postgraduate students must be permitted ample academic freedom to fully explore and develop high critical ability and powers of imagination and synthesis through research and investigation. Each postgraduate student in the CDx must decide for his/herself whether the forfeiting of IP and inconvenience of possible delays in disclosure are offset by the many advantages of working in a dynamic, commercially-linked research environment established to develop and apply the next generation of molecular diagnostics.

The alternative to not surrendering IP to Diatech would be that patenting costs would have to be borne by the inventor, and these could be substantial (approx. $3,000 for provisional patent plus $15,000 for full patent plus $50,000-$100,000+ for international patents, depending upon the number of countries, plus $10,000 p.a. patent maintrenance fees; not to mention the costs of patent challenges which send most small companies broke!).

It is really only through infrastructures such as the CDx that a "new breed" of commercially - aware scientist may be forged through:

• Liberal access to state-of-the-art research facilities.
• Guaranteed research funding support at a high level.
• Scholarship top-up to the priority stipend.
• Working within a new culture of applied research resulting from strong ties with industry.
• Free access to academic and industrial expertise and "know-how" for technology transfer.
• Participation in user-oriented research projects with strong and immediate applications focus in commercially - relevant areas.
• Financial backing to cover patent costs or other commercial application of the research.
• Opportunities for undergraduate +/or postgraduate sabbaticals with participating commercial partners, ensuring high prospects for future employment in the diagnostics industry within Australia and overseas.  This is results from a better understanding of industry needs and exposure to "real-world" limitations on industrial research: patent protection, disclosure restrictions, intellectual property arrangements, commercialisation of science, etc.