A BILL TO BE ENTITLED
AN ACT relating to state Information technology and intellectual property assets.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 66 of the General Statutes is amended by adding a new Article to read:
"Article 11C.
"State Intellectual Property and Information Technology Assets."§ 66‑58.21.  Definitions.
The following definitions apply in this Article:
(1)	Advanced medical and technological research. – Includes research and development in the fields of nanotechnology, medicine, medical technology, genetics, bioengineering, and biotechnology.
(2)	Computer program. – A set of instructions, statements, or related data that in actual or modified form is capable of causing a computer or computer system to perform specified functions.
(3)	Copyrighted materials. – Includes any of the following literary or artistic works:
a.	Books, journal articles, texts, glossaries, bibliographies, study guides, laboratory manuals, syllabi, tests, and proposals.
b.	Lectures, musical or dramatic compositions, and unpublished scripts.
c.	Video and audio tapes or cassettes.
d.	Films, film strips, charts, transparencies, and other visual aids.
e.	Live video and audio broadcasts.
f.	Podcasts over the Internet.
g	Programmed instructional materials.
h.	Other materials or works that qualify for protection under the patent laws of the United States or other protective statutes, whether or not registered under those laws or statutes.
(4)	Industrial property. – Includes (i) inventions and patents, (ii) trademarks, (iii) industrial designs, and (iv) geographic indications of source.
(5)	Intellectual property. – Creations of the mind, including, but not limited to, inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. The term includes (i) patentable materials and copyrighted materials, whether or not formal protection is sought; (ii) a patentable plant and a novel plant variety; (iii) industrial property; and (iv) advanced medical and technological research.
(6)	Inventor. – Any person who conceives a new concept that may result in a proprietary product.
(7)	Novel plant variety. – A novel variety of sexually reproduced plant.
(8)	Patentable materials. – Items other than software which reasonably appear to qualify for patent protection under the patent laws of the United States.
(9)	Patentable plant. – An asexually reproduced distinct and new variety of plant.
(10)	Royalties. – All things of value received by an inventor in connection with the licensing, assignment, or sale of intellectual property.
(11)	Software. – One or more computer programs existing in any form or associated operational procedures, manuals, or other documentation, whether or not protectable or protected by copyright or patent laws of the United States.
"§ 66‑58.22.  State technology and intellectual property assets.
(a)	Intellectual property developed by a State employee during work hours, within the scope of the employee's employment, or when using State‑controlled facilities is the property of the State.
(b)	Intellectual property developed by a local government employee, including public school personnel, during work hours, within the scope of the employee's employment or when using facilities that are either State‑owned or owned or controlled by the local employing entity, is the joint property of the State and the local employing entity.
(c)	The State shall hold a security interest in royalties from any intellectual property or information technology capabilities developed by any person, organization, or vendor, as provided by the express terms of a contract conveying the security interest, where the person, organization, or vendor uses State or local funds, facilities, or other resources to develop the intellectual property or information technology capability. Specific terms defining the State's interest shall be included in all State contracts and amendments where the potential exists for a vendor to subsequently use all or part of the intellectual property, information technology project, or software in projects for other customers. State contracts and amendments shall specify the State's compensation for any use of intellectual property or information technology capabilities developed using State or local funds, facilities, or other resources. Compensation specified in the State contracts shall be based on current market surveys and analysis, and this analysis must be documented fully.
(d)	The Governor shall set policies that he or she deems necessary to implement the provisions of this section.
(e)	The University of North Carolina and its constituent institutions and the North Carolina Community Colleges System shall adopt and from time to time revise intellectual property, inventor, and information technology development guidelines for their respective State‑supported institutions of higher education. The provisions of subsection (a) of this section apply to The University of North Carolina and its constituent institutions, to the North Carolina Community Colleges System, and to employees of these respective institutions except to the extent that the employees are subject to the intellectual property and inventor policies of the institutions employing them.
(f)	The Department of Public Instruction shall adopt and from time to time revise intellectual property, inventor, and information technology development guidelines applicable to local school administrative units.
(g)	The governing board of each unit of local government and each local board of education shall adopt and from time to time revise intellectual property, inventor, and information technology development guidelines applicable to their respective employees and contractors.
"§ 66‑58.23.  Confidentiality.
All data, information, and records in any form created by or on behalf of the State to protect its intellectual property and information technology assets shall be held as confidential and is not subject to public disclosure under Chapter 132 of the General Statutes unless the Governor in his or her discretion specifically directs the release of such information to serve the public interest."
SECTION 2.  This act is effective when it becomes law and applies to contracts executed on or after that date.