Under Nepal's Science, Technology and Innovation Ordinance, 2083, intellectual property from research done with a Government of Nepal grant belongs to the institution or group that did the research. If the government funded the work in full, its first patent or IP registration must be in Nepal.
Key takeaways
- The ordinance took effect immediately when the President issued it on 30 Asoj 2083 (16 October 2026).
- Section 27(1) leaves IP from government-funded research with the institution or group that did the work, not with the government.
- For fully government-funded work, the first registration must be in Nepal. If it is registered elsewhere first, the government will give no further grant.
- Research on traditional knowledge or genetic resources needs the community's free, prior and informed consent (Section 27(2)).
- Moving IP or sensitive data from funded research abroad needs the government's prior approval (Section 28(4)).
- Patents are still filed with the Department of Industry under the existing patent law; the ordinance adds rules, not a new office.
What is the Science, Technology and Innovation Ordinance, 2083?
It is a temporary law issued by President Ram Chandra Paudel on the Council of Ministers' recommendation, under Article 114(1) of the Constitution, while Federal Parliament was not in session. It is Ordinance No. 12 of 2083, certified on 30 Asoj 2083, and Section 1(2) says it comes into force at once.
Its aim is to build one national system for research, technology and innovation. It creates a council, a Centre for Science, Technology and Innovation (COSTI) under the ministry, and a fund for research grants. The official text is published by the Ministry of Law, Justice and Parliamentary Affairs.
Chapter 7 is the part that matters for inventors. It is titled "Intellectual Property and Technology Transfer" and has one section, Section 27, on who owns the results and how benefits are shared. Section 28, in the next chapter, adds rules for work with foreign partners.
Who owns IP from government-funded research?
Section 27(1) says that IP arising from innovation, research, invention, production or "any other basis" funded by a Government of Nepal grant stays with the institution or group that did the innovation and research. The government does not take ownership just because it paid.
The ordinance defines a research institution widely. It covers private, non-governmental and not-for-profit bodies, public bodies, industries, universities and units set up under them. A university lab and a private startup can both be the owner under this rule.
What the rule does not settle is the split inside that institution. Whether the university, the lead researcher or a student owns the result still depends on contracts and policies, as our guide on university research ownership explains.
What does "register in Nepal first" mean for a fully funded project?
The proviso to Section 27(1) applies only where the government funded the work in full. For that work, the first registration of the IP or patent must be made in Nepal. The Nepali text says "सुरु दर्ता", which reads as the initial registration.
The ordinance does not define "grant" or "full grant". It also does not say whether "first registration" means the first filing or the first granted patent. Until rules or official guidance explain this, the safest course is to file in Nepal before filing anywhere else.
What happens if a fully funded patent is filed abroad first?
The ordinance does not cancel the foreign registration or move ownership. Its stated consequence is financial: if the work is found registered elsewhere without first being registered in Nepal, the Government of Nepal will provide no grant of any kind.
The text does not say whether this bars the institution, the research group or both, or for how long. For a university that depends on public research money, losing access to all government grants is a serious risk. That alone is a reason to plan the filing order before any paper or conference talk goes public.
Does the rule cover partly funded or privately funded research?
The Nepal-first proviso names only work done with the government's full grant. Partly funded work still falls under the main rule in Section 27(1), so its IP stays with the research team, but the ordinance attaches no filing-order duty to it.
Research paid for entirely by a company, a donor or the inventor is outside Section 27. Ownership there follows contracts and the general law, as our guides on employee inventions and inventor versus owner explain. A grant contract may still add its own conditions, so read it closely.
How does the Nepal-first rule fit with filing abroad?
Filing in Nepal first does not stop you protecting the invention abroad. Nepal is a member of the Paris Convention, so a foreign application filed within 12 months can claim the Nepali filing date as its priority date. Our page on the Paris Convention and Nepal covers how priority works.
Nepal is not a member of the Patent Cooperation Treaty, so there is no single international filing from Nepal. Each country is a separate application, as our guide to international patent filing from Nepal describes. The order is therefore simple: Nepal first, then each foreign office within the priority year.
Can government-funded IP be sold or licensed to a foreign company?
Section 28(4) says that transferring the IP or sensitive data of research done with a Government of Nepal grant abroad, in any form, needs the government's prior approval. An assignment, an exclusive licence or a data-sharing deal with a foreign partner could all count as a transfer.
Section 28(3) adds that joint research or technology agreements with foreign institutions, scientists or engineers must spell out at least the IP created, data ownership, access and confidentiality, cybersecurity, benefit-sharing, technology transfer, publication and national interest. Our notes on licensing clauses and patent assignment show what those terms usually look like.
What consent is needed for research on traditional knowledge or genetic resources?
Section 27(2) requires free and prior informed consent from the community, or the owner of the knowledge or resource, before research based on biological or genetic resources or traditional or local knowledge. Section 2 defines local knowledge, so this is a specific duty, not a general wish.
Skipping that consent is an offence under Section 38(घ). The ministry can fine the person or institution according to the seriousness of the breach, stop the research at once and keep a record of it. The neem, turmeric and basmati cases show why countries now write this into law.
Do agreements override the default rule?
Yes, for ownership and benefit-sharing. Section 27(3) says that where an agreement on IP ownership and benefit-sharing exists, it is followed. A grant contract, a collaboration agreement or a community benefit-sharing deal can therefore set the split.
The ordinance does not say whether an agreement can also waive the Nepal-first filing order. Read Section 27(3) as covering who owns and who shares, and keep the filing order as a separate duty.
What counts as a false IP application under the ordinance?
Section 38(ङ) makes it an offence for a research or innovation institution, researcher or innovator to file a false or fraudulent application for IP rights, or to commit intellectual theft. A complaint goes to the ministry under Section 39.
Under Section 40(ङ), the ministry can fine the institution according to the seriousness of the offence and have the victim compensated under the law in force. An appeal goes to the High Court within 35 days (Section 41). Section 43 keeps other laws in play, so the same act can also be punished under them.
| Provision | What it says | Who it affects |
|---|---|---|
| Sec. 27(1) | IP from government-funded research stays with the institution or group | Universities, labs, startups with grants |
| Sec. 27(1) proviso | Fully funded work: first registration in Nepal, or no further grant | Fully funded projects |
| Sec. 27(2) | Free, prior informed consent for traditional knowledge and genetic resources | Biology, health and agriculture research |
| Sec. 27(3) | A signed ownership and benefit-sharing agreement is followed | Partners and communities |
| Sec. 28(4) | Prior approval to transfer funded IP or sensitive data abroad | Foreign licences and partnerships |
| Sec. 38(ङ) | False IP applications and intellectual theft are offences | Every grant holder |
Who helps researchers protect and register their IP?
Section 9 gives the new Centre a duty to help get approvals from other bodies for protecting and commercialising IP created through research and innovation. The Centre is set up under the ministry, with its head office in the Kathmandu Valley.
Section 19 lets the new research fund be used to arrange registration of researchers' and innovators' knowledge, skills and IP. How that support will work is left to rules the government will make under Section 49, so watch for them before budgeting a filing.
Does the ordinance change how patents are registered at the DoI?
No. The ordinance creates no new patent office or procedure. Section 48 says matters it does not cover follow the law in force, and patents are still filed with the Department of Industry under the Patent, Design and Trade Mark Act, 2022 BS (1965).
The DoI still checks whether an invention is new and useful, publishes accepted applications, and allows objections before registration. Our step-by-step patent registration guide walks through that process, and what can be patented in Nepal covers the tests.
How long will these rules last?
An ordinance has the same force as an Act, but it is temporary. Under Article 114 of the Constitution it must be laid before Federal Parliament at its next session, and it stops having effect unless Parliament adopts it. Parliament can also adopt it with changes.
Plan for the rules as they stand today, but check the final Act before relying on any detail. Definitions of "grant" and "first registration" are the points most likely to change or be clarified.
How should a fully funded research team file a patent now?
- Confirm in writing whether the project is fully or partly funded by the Government of Nepal.
- Agree who owns the result and how benefits are shared, as Section 27(3) allows.
- Keep the invention confidential until a patent application is filed. Our page on when an invention becomes public explains why timing matters.
- File the patent application at the DoI in Nepal before any foreign filing. Our patent registration service handles this step.
- File abroad within 12 months, claiming the Nepali date as priority.
- Get the government's prior approval before any transfer, licence or data deal with a foreign party (Section 28(4)).
Common mistakes to avoid
The most likely mistake is filing in the United States or India first because a foreign co-author or partner is used to doing so. For fully funded work, that risks every future government grant. Agree the filing order with partners when the project starts.
The second is publishing first. A journal article or thesis can destroy novelty before any application exists, as our note on student inventions and theses warns. The third is signing a foreign licence or data deal without the government approval Section 28(4) requires.
Here is an illustration, not a real case. A university team builds a low-cost water filter with a full Government of Nepal grant. A partner in Germany files a European patent first and the Nepali filing follows a month later. Even if Nepal later grants the patent, the team may lose access to all further government grants.
In short
The 2083 ordinance gives government-funded researchers ownership of what they create, and in return asks fully funded teams to register in Nepal first. It protects communities whose knowledge is used and controls transfers abroad. Until the rules define "full grant" and "first registration", file in Nepal before anywhere else and get legal advice on anything unclear.
People also search for
- University research ownership and technology transfer
- Protecting traditional knowledge and genetic resources
- International patent filing from Nepal
- Patent registration in Nepal
If your research is funded by the Government of Nepal and you want to file a patent in the right order, contact IP Sewa for a review of your project and grant terms.
Comments (0)
Leave a comment
Replying to —