BILL ANALYSIS Ó
AB 744
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 744 (John A. Perez) - As Introduced: February 17, 2011
Policy Committee: Business and
Professions Vote: 6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the Office of Intellectual Property (OIP)
within the Business, Transportation, and Housing Agency, and
requires the office to:
1)Develop a database to track specified information about
intellectual property (IP) generated by state employees and
state-funded research.
2)Establish guidelines, including specified elements, for state
agencies to use in administering their IP.
3)Develop an outreach campaign informing state agencies of their
rights and abilities concerning intellectual property.
4)Develop sample invention assignment agreements that state
agencies may use to secure rights to potentially patentable
items created by their employees using state resources.
5)Develop sample language for licenses or terms-of-use
agreements to limit others' use of state agencies' IP.
FISCAL EFFECT
First-year GF costs in the range of $400,000 for the OIP to
AB 744
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develop guidelines, a data base, outreach campaign, and sample
language, and ongoing costs in the range of $300,000 assuming
three staff for the office.
COMMENTS
1)Rationale . This bill establishes the OIP to track state-funded
inventions and establish guidelines for administering IP. This
bill is in response to a report released by the State Auditor
in 2000 and two other reports that found that the state is
lacking in a system for tracking state-owned IP. According to
the author, the state's disjointed system costs the state
money. He argues that as technology advances, state agencies
without sufficient knowledge of how to protect IP will become
increasingly vulnerable to unauthorized use and inability to
capitalize on reduced contracts costs or increasing revenue to
the state. AB 744 is intended to set up the framework to
determine what IP the state owns and informs state agencies of
their rights and abilities to protect the state's IP.
2)Related Legislation . In 2007, AB 1456 (Mullin) would have
created the OIP for purposes of identifying and providing
policy guidance for state agency management of IP developed by
state employees or with state funds. This bill was amended to
address an unrelated issue.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081