14 No. 31745 Act No. 51, 2008 GOVERNMENT GAZETTE, 22 DECEMBER 2008 INTELLECTUAL PROPERTY RIGHTS FROM PUBLICLY FINANCED RESEARCH AND DEVELOPMENT ACT, 2008 (h) NIPMO may request that the exclusive licence contemplated in paragraph (f) be converted to a non-exclusive licence if a recipient fails to furnish the reasons within the period contemplated in paragraph (g), or if NIPMO is not satisfied with such reasons. (2) Each intellectual property transaction must contain a condition to the effect that, 5 should a party fail to commercialise the intellectual property to the benefit of the people of the Republic, the State is entitled to exercise the rights contemplated in section 14. (3) (a) Each intellectual property transaction involving assignment of intellectual property by an institution to a small enterprise in return for shareholding as a consideration must contain a condition providing that in the event of the liquidation of 10 that small enterprise, the intellectual property shall revert to the institution. (b) The Minister may prescribe the terms and conditions for other intellectual property transactions involving assignment of intellectual property by a recipient. Restrictions on offshore intellectual property transactions 12. (1) Offshore intellectual property transactions are subject to the following 15 conditions: (a) A recipient must advise NIPMO of its intention to conclude an intellectual property transaction offshore; (b) subject to paragraph (c), offshore intellectual property transactions may occur only in accordance with prescribed regulations and any guidelines contem- 20 plated in section 9(4)(e); and (c) any intellectual property transaction which does not comply with the regulations and guidelines requires prior approval of NIPMO. (2) A recipient wishing to undertake an intellectual property transaction offshore in 25 the form of an assignment or exclusive licence must satisfy NIPMO that— (a) there is insufficient capacity in the Republic to develop or commercialise the intellectual property locally; and (b) the Republic will benefit from such offshore transaction. Intellectual Property Fund 13. (1) There is hereby established an Intellectual Property Fund to be managed by 30 NIPMO. (2) The purpose of the Intellectual Property Fund is to— (a) provide financial support to institutions for the statutory protection and maintenance of intellectual property rights, subject to subsection (3); (b) finance any costs incurred by NIPMO for obtaining statutory protection of the 35 intellectual property; and (c) finance any costs incurred by NIPMO when acting in terms of section 14. (3) An institution may recover the costs incurred in obtaining statutory protection for the intellectual property contemplated in this Act from the Intellectual Property Fund— 40 (a) to the extent determined by NIPMO; and (b) on such terms as may be determined by NIPMO. Acquisition of intellectual property rights by State 14. (1) The rights acquired by the State in terms of this section are additional to the rights granted to the State in terms of any other legislation in the Republic. (2) NIPMO must conduct reviews of non-commercialised intellectual property in 45 consultation with the recipients. (3) If a review contemplated in subsection (2) shows that the intellectual property in question can be commercialised, NIPMO must engage in further consultations