How the State of Victoria deals with IP in contracts is a significant issue.
Principle 9 of the the State of Victoria’s Intellectual Property Policy Intent and Principles provides that:
9. When State procurement may result in intellectual property being generated, the State:
a) addresses in an agreement any rights to intellectual property (including pre-existing intellectual property) that may arise as a consequence of the procurement;
b) secures a licence to the intellectual property, only to the extent necessary to achieve the purposes of the procurement; and
c) only acquires ownership of the intellectual property if a licence is not adequate in the circumstances.
Principle 10 of the Policy deals with IP in grants and funding agreements.
The Department of Treasury and Finance has prepared a presentation providing further guidance on IP in Government contracts, which you can access here.
The IP Guidelines, which will be released shortly, will also discuss these issues in greater detail.