have a competitive advantage, and thus no longer have the impetus for developing new technology. However, IP rights must also allow the sharing of new scientific knowledge which fosters further advances and prevents duplication of efforts by others, which in turn preserves RD&D funds for new efforts. Currently, the CEC’s “EPIC Standard Grant Terms and Conditions” allows the CEC and the CPUC to grant IP licenses to LSEs, including the IOUs, that provide electricity to EPIC ratepayers. The licenses allow LSEs to utilize EPICfunded IP “to enhance the entities’ service to EPIC ratepayers.” The CEC requested that the scope of this proceeding include clarification or modification of D.13-11-025, as necessary, regarding the circumstances under which the CEC may grant licenses to LSEs for EPIC-created IP. Specifically, the CEC seeks Commission support for the CEC’s interpretation of D.13-11-025: the CEC may grant LSEs a free license to use models and analytical tools that can inform distribution planning and decision-making that benefits electric ratepayers, but no licenses are to be granted by the CEC for any other type of developed technology. The CEC explains in its application that its request is based on input it received when it conducted a public workshop in September 2016, in order to better understand potential barriers that may deter private sector companies from applying for EPIC funding opportunities. The CEC reports that workshop participants, including entrepreneurs and private investors, raised concerns that the EPIC Standard Grant Terms and Conditions provision that allows the CEC and the CPUC to grant IP licenses to LSEs deters EPIC applicants. More specifically, “[i]nvestors are hesitant to fund companies with pre-exiting IP commitments, which prevents companies, especially entrepreneurs and
have a competitive advantage, and thus no longer have the impetus for developing new technology. However, IP rights must also allow the sharing of new scientific knowledge which fosters further advances and prevents duplication of efforts by others, which in turn preserves RD&D funds for new efforts. Currently, the CEC’s “EPIC Standard Grant Terms and Conditions” allows the CEC and the CPUC to grant IP licenses to LSEs, including the IOUs, that provide electricity to EPIC ratepayers. The licenses allow LSEs to utilize EPICfunded IP “to enhance the entities’ service to EPIC ratepayers.” The CEC requested that the scope of this proceeding include clarification or modification of D.13-11-025, as necessary, regarding the circumstances under which the CEC may grant licenses to LSEs for EPIC-created IP. Specifically, the CEC seeks Commission support for the CEC’s interpretation of D.13-11-025: the CEC may grant LSEs a free license to use models and analytical tools that can inform distribution planning and decision-making that benefits electric ratepayers, but no licenses are to be granted by the CEC for any other type of developed technology. The CEC explains in its application that its request is based on input it received when it conducted a public workshop in September 2016, in order to better understand potential barriers that may deter private sector companies from applying for EPIC funding opportunities. The CEC reports that workshop participants, including entrepreneurs and private investors, raised concerns that the EPIC Standard Grant Terms and Conditions provision that allows the CEC and the CPUC to grant IP licenses to LSEs deters EPIC applicants. More specifically, “[i]nvestors are hesitant to fund companies with pre-exiting IP commitments, which prevents companies, especially entrepreneurs and
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