Terms in use in Hungarian research-development

Core research

experimental or theoretical work of discovery nature primarily conducted to obtain new knowledge to understand phenomena, experiments and observations, without seeking to apply them in practice or to use them in any way.

Applied research

planned research or targeted examinations, with the objective of obtaining new information, knowledge and expertise for the development of new products, procedures, technologies or services, or for facilitating the continuous development of products, procedures or services already existing.

Applied invention

the invention of a person, who – beyond his/her job duties – develops an invention, which may be utilised within the scope of operations of his/her employer. The patent on the applied invention vests in the inventor, and his/her employer has the right to utilise the invention.

Infrigement

an act constituting a breach of intellectual property rights, an act of utilisation of the article without the permission or consent of the holder of the intellectual property. Acts deemed as infringing are recorded in legislation relating to the various forms of protection and the Criminal Code.

Subsidy under unique government decision (EKD)

Subsidy under unique government decision means the form of support in Hungary where businesses submit their application for support directly to the government of Hungary. In such cases, the decision on endorsing the application is made uniquely and directly by the government of Hungary.

Eligible costs

Set of rules applied in supported projects defining the range of eligible costs that may be considered in the supported project. Supports are available to cover eligible costs only. The name may be misleading, as they are not actually costs but expenses spend in the tender.

Paid research-development

a research-development project conducted by a party under the financing of another party, where the financing party does not perform any research-development activity.

Maintenance period

Maintenance period is the period during which the subsidized business must maintain the project results realised in a subsidized project. The subsidized business must inform the subsidizing entity in a monitoring report about the maintenance of the project results. Violation of the maintenance period results in the termination of the subsidy contract and the repayment of the subsidy.

Design protection

legal protection for the external form of industrial products. Design includes the appearance of the entire product or any part thereof, constituting the external characteristics of the product or its decoration – in particular its drawing, contour, colours, shapes, surface and the characteristics of the materials used. Products include any industrial or hand-made article. Products also include without limitation packaging, format, graphic marks and fonts as well as parts intended for inclusion in a complex product. Complex product means products consisting of components, which may be disassembled then re-assembled once again.

Protection of geographical indications

community (EU) form of protection, which is granted to every producer or producer group engaged in the production of products consistent with the particular product description in the particular area. Geographical indications include all names of products in the market denoting the geographical origin of the particular product, by default, using the name of a geographical unit (town, region or similar) and the name of an agricultural product or food. Geographical indications may receive protection where it covers the geographical marking and indication of origin used to indicate the geographical origin of the product in commerce. The material difference between the two terms lies in indication of origin having to involve all steps in the production within the same geographical area, while in case of geographical marking having to involve a single step in the production of the particular product within the particular geographical area.

Franchise

a form of cooperation under a contract, in essence a cooperation agreement, where the franchisor grants to the franchisee the right to use a valuable name (generally a registered trademark) and a related valuable business practice, in exchange for payment of a fee.

Utility model protection

a form of protection for a new structural unit under the level of patentable inventions. Protection may be granted to solutions on the form, structure and components arrangement of an object, when it is novel or where based on inventor’s action and may be industrially applied. No protection may be granted in particulat to aesthetic form of a product or a plant variety.

Utilising business

a business association founded on behalf of, in representation of, or with the participation of, or with shareholding by, the state for the business utilisation of an intellectual property created in a state-owned research institute.

Domestic publicly financed support

any and all publicly financed support forms, excepting EU-funds.

Incubation service

in case of immature intellectual property articles / inventions, the university provides various forms of assistance in project development, generally under a contract, for example: it helps in elaborating utilsiation, business plans and strategies; it organises business courses and training sessions, it participates in the furthering of industrial and investor contacts.

Innopoints

persons employed at university faculties dealing with research topics, participating in the search of project ideas and in the continuous development of knowledge map.

Industrial rights protection

a collective term, covering a number of forms of protection, such as: patent protection, utility model protection, plant variety protection, design protection, topography protection, trademark protection and geographical indication protection.

Innovation

the entirety of scientific, technical, organisational, business and commercial operations to achieve an improvement in effectiveness and profitability, and favourable social and environmental impacts, whereby a new or significantly adjusted product, procedure or service is created, a new or significantly adjusted procdure or technology is applied and launched in the market, including changes deemed novelty for the particular industry or entity only.

Innovation management

A harmonised and purposeful operation and cooperation of corporate functional and/or operational areas to ensure effective implementation of corporate research-development and/or innovation projects.

Experimental development

obtaining, summarising, distribution, application and use of existing scientific, technologival, business and other knowledge and expertise for the creation of new, adjusted or improved products, procedures or service plans or design of the same. Experimental development may include: (i) activities for the definition, design and documenting of new products, procedures and services; (ii) activities covering the creation of drafts, blueprints, plans and other documents, provided that they are not for use in commerce; (iii) preparation of prototypes not intended for commercial use; (iv) development of prototypes and experimental projects that may be used in commerce in cases where the prototype is the commercial end-product itself, and the production costs are too high to have it for demostration and authentication purposes only; (v) experimental production and testing of products, procedures and services, provided that they may not be used or adjusted to a version to allow their use in industrial applications or in commerce. Experimental development will not include usual, temporary or routine adjustments made in products, manufacturing lines, production procedures, existing services and other ongoing procedures even when such adjustments are deemed as development, or where these adjustments result in the upgrading of the particular product, procedure, process or service.

Know-how

financial, technical and organisational knowledge and experience that may be used in practice, has limited access and which is generally protected until it gets in the public domain. Know-how may be assigned to other parties, in other words, they may be sold at a price.

Consortia

cooperation between the contracting parties performing a defined set of jobs between them under a specific contract to pursue joint research-development and innovation operations or to complete a research-development and innovation project.

Budgetary research institute

a budgetary entity engaged in research-development operations as key or principal activity, or as supplemental activity to its key or principal activity.

Covenants

Covenants are the entirety of mandatory undertakings of a bidding business, in other words, obligations tha the business is to fulfil in exchange for the support it receives. These covenants are laid down in support contracts and the bidding business must report on fulfilment of these obligations, which is then duly checked by the supporting entity.

Publicly financed support

a budgetary subsidy under the Act on state budget, including EU-funds, and support from foreign parties under international contracts entered into by the State.

Research-development

an activity covering core research, applied research and experimental development.

Utilisation of research-development and innovation results

utilisation within a business for profits and community utilisation resulting in an improvement of standard of life and public services, in the protection of natural and constructed environment, sustainable development of the country, and improvement of its defense potential and security status.

Research-development and innovation programme

a tender or a series of tenders put out to support the implementation of research-development and innovation projects aiming to attain objectives defined by the publicly financed support fund manager or those in a specific group.

Research-development agreement

an agreement between two or more businesses or a business and a research institute (for the purposes of this section, hereinafter referred to as: parties), with any of the following subject matters: (i) a joint research-development on a particular product, procedure or service under the agreement, and joint utilisation of the results of such research-development project; (ii) a joint utilisation of the results of research-development projects on a particular product, procedure or service under an agreement between the same parties; (iii) a joint research-development on a particular product, procedure or service under an agreement between the parties, without joint utilisation of the results therefrom; (iv) a paid research-development on a particular product, procedure or service under the agreement, and joint utilisation of the results of such research-development project; (v) a joint utilisation of the results of a paid research-development projects on a particular product, procedure or service under an agreement between the same parties; (vi) a paid research-development on a particular product, procedure or service under an agreement between the parties, without joint utilisation of the results therefrom.

Research-development project

a project covering applied research, or experimental development activities in full as certified by the attestation issued by the entity with competence to grant attestation to research-development projects. It is to be noted that where a research-development project covers more than one activities, the various activities must be classified under either applied research or experimental development RD group.

Research-development attestation

it is possible under Hungarian laws to seek attestation for certain corporate activities in terms of research and development. The purpose of attestation in a public administration procedure is to determine whether the particular corporate activity may be deemed as research-development under laws in force. Where the particular corporate activity is deemed as research-development, it will be deemed as such by all authorities.

Researcher-developer

a natural person engaged in the creation, development of a new knowledge, intellectual property, product, service, procedure, method or system, or in the management of the implementation of projects aiming the same.

Research site

an institute, organisational unit or business engaged in research-development operations as key or principal activity, or as supplemental activity to its key or principal activity.

Licence

full, partial, time or space restricted assignment of a rigth of utilisation or use or permit in relation to an intellectual property under industrial rights or copyrigth protection. The legal relations are governed by the licence agreement between the licensor and the licensee.

Micro, small and medium-sized enterprise

a micro, small and mid-sized enterprise as per Article 3 of Act XXXIV of 2004 on small and medium-sized enterprises and the support provided to such enterprises (hereinafter referred to as: SME Act).

Number of retained research-development jobs

the annual average statistical number – in the 12 months period before the submission of the application for support – of employees engaged as part of their job at least 50% of their work time in research-development in the facility where research-development is carried out, or where the investor has agreed to create jobs at a higher number under another support contract in the particular facility, then this number applies. Moreover, in both cases, in determining the number of employees in new jobs engaged in research-development, part time and temporary workforce is taken into account proportionately in comparison to those employed full time.

Number of retained jobs

the annual average statistical number – in the 12 months period before the commencement of the research-development project – of employees, or where the investor has agreed to create jobs at a higher number under another support contract in the particular facility, then this number applies. Moreover, in both cases, in determining the number of employees in new jobs engaged in research-development, part time and temporary workforce is taken into account proportionately in comparison to those employed full time.

Implementation period

Implementation period means the period of time when the supported research-development projects are implemented and completed. In this period, the work plan of the research-development project is to be implemented and this is the period where eligible costs incur and arise. The implementation period usually starts with the submission and/or acceptance of the bid and will end with the realisation / completion of the end-product undertaken in the project. The bidding business must fulfil its undertakings under the subsidy contract in the implementation period. Failure to do so may result in the termination of the subsidy contract and/or in repayment of the subsidy in part or in full.

Monitoring period

A term used in the context of supported projects. The monitoring period usually corresponds with the maintenance period.

Large company

any enterprice not deemed as micro, small or medium-sized company under Act XXXIV of 2004 on small and medium-sized enterprises and the support provided to such enterprises (hereinafter referred to as: SME Act). Key characteristic: at least 250 staff members in the past completed financial year. In cases where it is not an independent business, the staff number must be calculated and determined in view of the staff number of the parent and/or related companies.

Plant variety protection

a form of protection for plants subject to breeding (hybrids, lines, clones, etc.). Plant variety protection may be given to any variety of plants in any botanical branch or line, including hybrids between branch and line varieties, if those may be differentiated, whether unform, permanent or new. A plant variety may be differentiated in the event where any of the characteristic from genotypes or genotype combinations markedly differs from a public domain variety on the priority date.

Nonprofit research site

a research site qualified as a public benefit entity under the law on the right of free association, public benefit status, and the operation and supporting of NGOs.

Project

an activity for the implementation of a particular reseach-development task or innovation process in accordance with the plan defined by the interested parties.

Project group

the entirety of projects or project parts completed by the applicant in a tax year and named by the applicant in the application that are to be considered as a single unit for the purposes of attestation.

Prototype

a sample article created in a research-development project aiming to create a new or upgraded product, technology or service with the objective of proving that the idea is capable of operation for technical and scientific purposes.

Patent protection

a form of protection for inventions in terms of industrial rights, an exclusive right for the utilisation of an invention, the holder of which may challenge anyone using his/her invention without his/her permit. Any and all invention in any area of technology created as a result of inventive operations suitable for industrial application may be patented. Inventions will not include discoveries, scientific theory and mathematical method, aesthetic creation, plan, rule or procedure for an intellectual property, game, or business administration and computer software.

Intellectual property

a form of protection provided by relevant laws, directly applicable legal acts of the European Union and international treaties for intellectural articles and certain outcomes, product indicators (trademarks and geographical indicators) and knowledge not part of the public domain.

Intellectual articles

articles, technical solutions suitable for protection under industrial rights protection (patent, utility model protection, palnt variety protection, design protection and topography protection) or those subject to copyrigths protection by operation of law, including cases where retining such item in secrecy is more reasonable rather than seeking appropriate protection subject to the utilisation objectives and opportunities.

Spin-off business

a business association, company or business founded by a publicly financed research institute, higher education institute or its researchers or instructors, or where such instiute has a shareholding with capital invested, or which obtained its technology from a publicly financed research institute, higher education institute under a licence procedure.

Intellectual property management regulations

regulations laying down the rules on the handling an utilisation of intellectual property articles created at the particular research institute as well as the rights and obligations of researchers participating in the creation of intellectual property articles.
Copyrighted work: a piece of literary, scientific or artistic work that is unique and original in nature. Such works include in particular scientific, literary works, films and audiovisual works, photoes, maps and map-related works, technical facility plans, industrial art articles, industrial design art pieces, software and data bases.

Service invention

an invention of a person who has a vested job duty to create solutions in the context of the invention. The patent on the service invention vests in the employer as legal successor of the inventor.

Technological knowledge transfer

a blanket term covering a number of activities from the development of the technology down to its market application, in other words, the process whereby scientific research results are reduced to practical application. In case of a university-industrial technology transfer, a technology / intellectual property developed at a university by university researchers is utilised by another entity, typically a profit-oriented company. In a wider sense, it also covers non-technological factors, and in a number of cases, there is a joint utilisation and sharing, e.g. researchers and developers are exchanged (mobility), joint seminars and tranining courses are held, expert jobs and joint research-development is carried out.

Technological innovation

the entirety of scientific, technical, organisational, business and commercial operations to achieve an improvement in effectiveness and profitability, and favourable social and environmental impacts, whereby a new or significantly adjusted products, procedures or services are created, new or significantly adjusted procedures or technologies are applied and launched in the market, including changes deemed novelty for the particular industry or entity only.

Topographical protection

a legal form of protection covering the spherical arrangement of semiconductor products in microelectronics having a significant role in top-end technology. Topography is the spherical arrangement of semiconductor product components, of which at least one is an active component, and its connections or any part thereof in any form, or a spherical arrangement made for a semiconductor product intended for manufacturing.

Knowledge map

a data base authentically summarising key university knowledge-assets (on the work of research groups, research topics, staff numbers, connections, range of machinery and equipment, etc.) with a view to attainment of strategic objectives (e.g. financial utilisation).

Novelty

a new invention, if not belonging to the current state of technology, that is, an item not known to anyone by way of written or verbal communication, reduction to practive or any other way.

Number of newly created jobs in research-development

the number of employees engaged as part of their job at least 50% of their work time in research-development, if the investor undertakes to maintain an average statistical staff annually, as compared with the average statistical staff number of such institute 12 months before the submission of the application for support, or where the investor has agreed to create jobs at a higher number under another support contract in the particular institute, then this number applies. Moreover, in both cases, in determining the number of employees in new jobs engaged in research-development, part time and temporary workforce is taken into account proportionately in comparison to those employed full time.

Business angel

a private person with a successful business career, who invests capital in fresh-start innovative companies, assisting the management with his/her personal action and by providing advice.

Trademark protection

a trademark, a product indication, is a form of legal protection for the identification and differentiation of various products and services and for the promoting of awareness on the part of customers. It is a key component in business competition, playing a significant role in marketing and advertisements. Trademark protection may be granted to any graphic marking: a word, a combination of words, including personal names and slogans: a letter, number, figure or image; two or three dimensional forms, including the form of the product or its packaging, colour, combination of colours, light mark, hologram, sound, and a combination of various indications.