Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
OVERVIEW OF CONTRACTUAL AGREEMENTS FOR THE TRANSFER OF TECHNOLOGY

OVERVIEW OF CONTRACTUAL AGREEMENTS FOR THE TRANSFER OF TECHNOLOGY

Ratings:

4.0

(1)
|Views: 15|Likes:
Published by Sam Han
OVERVIEW OF CONTRACTUAL AGREEMENTS FOR
THE TRANSFER OF TECHNOLOGY, WIPO
OVERVIEW OF CONTRACTUAL AGREEMENTS FOR
THE TRANSFER OF TECHNOLOGY, WIPO

More info:

Published by: Sam Han on Sep 23, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/16/2009

pdf

text

original

 
OVERVIEWOFCONTRACTUALAGREEMENTSFORTHETRANSFEROFTECHNOLOGY
I. Introduction
1. Simplyput,technologytransferistheprocessbywhichatechnology,expertise,know-howorfacilitiesdevelopedbyoneindividual,enterpriseororganizationistransferredtoanotherindividual,enterpriseororganization.Effectivetechnologytransferresultsincommercializationofanewproductorserviceorintheimprovementofanexistingproductorprocess.2. Dependingonthenatureoftechnologyandthecapacityoftherecipient,theprocessoftechnologytransfermaybesimpleandstraightforwardbutusuallyisiterative,collaborative,andfairlycomplex.Inthelattercase,itmayrequiretheuserstoacquirenewinformationandskillsandchangeoldhabitsandwaysofdoingthings.Itmayevenrequirechangesinthetechnologybeingtransferred,toimprovethechancesof“fit”andoptimalperformanceinthenewsituation.Technologytransfermayhappenfromcountrytocountry,fromindustrytoindustry,orfromresearchlaboratorytoanexistingornewbusiness.Itmaybefacilitatedbyfinancialorothertypesofassistanceandsupportthatmaybeprovidedbygovernmentorotheragenciesatnational,regional,localorinstitutionallevels.3. Thisarticledealswithissuessuchashowistechnologytransferred;whatarethemaintypesoflegalcontractsforthetransferoftechnologyandwhatwilldeterminethetypeofagreementthatisenteredintobythetwopartiesinvolvedinthetechnologytransfer.
II. TechnologyTransferinToday’sEconomy
4. Thecreationorabsorptionofnewtechnologyhasbecomeavitalcomponentforcompaniestoimproveormaintaintheircompetitivepositioninthemarketplace.Companiesoperatinginsectorswherecompetitiontakesplaceonthebasisofpricealone,suchastheextractionorcommercializationofrawmaterials,mayrelyonnewtechnologiestoimprovetheirefficiencyintheextractionofrawmaterialsbyimprovingtheirproductiveprocessesoracquiringnewmachineryandequipment.Theymayalsousenewtechnologytobettercommercializetheirproductsortoimprovetheirmanagementstructure,controlandcommunication.5. Inothersectors,wherethemarketevolvesincessantlyasnewproductswithnewfunctionsordesignsappearonaregularbasis,companiesareforcedtoinnovatebyacquiringordevelopingnewtechnologies.Technologicalinnovationisthereforeacrucialelementofthecompetitivestrategyofanyenterprise,bigorsmall,high-techorlow-tech.Theongoingintegrationofdomesticandinternationalmarketsthroughcontinuingderegulationandliberalizationofmarketshasenhancedcompetitivepressureforallfirms,andespeciallyincreasedthetechnologicalneedsofsmallenterprisesworldwidewhilealsoimprovingtheiraccesstonewtechnologiesandcapitalgoods.6. SmallandMedium-sizedEnterprises(SMEs)havetodecidewhethertodeveloptechnologyin-houseortoobtainitfromothers.Whileinvestingintechnologycreationmaybeexpensiveandrisky,astherearemanyuncertaintieslinkedtotheinnovationprocess,ithastheadvantageofpreventingtechnologicaldependenceonothercompaniesandenablesthe
 
2.companytoenhanceitstechnologicalcapabilityandtoinnovateaccordingtoitsownspecificneeds.Inalargenumberofcases,firms,includingSMEs(especiallyhigh-techSMEs)willrelyonboth(in-houseinnovationaswellasontechnologypurchasedfromothers)asnecessarymachineryisboughtfromlargefirmstomaketechnicalimprovementstothecompany’sproducts,processesand/orservices.
III. NegotiatingTechnologyTransferAgreements
7. Thesaleandpurchaseoftheexclusiverightstoapatentedtechnologyorofthepermissiontouseagiventechnologyorknow-how,takesplacethroughlegalrelationshipsbetweentheowneroftheexclusiverightsorthesupplieroftheknow-how,calledthe“transferor”,andthepersonorlegalentitywhichacquiresthoserightsorthatpermissionorreceivesthatknow-how,calledthe“transferee.”8. Thenatureoftherelationshipbetweenthetwopartiesandthetypeofagreementthatwillresultfromatechnologytransfernegotiationwilldependonanumberoffactorsincludingsomeofthefollowing:- Thecomplexityandthelevelofdevelopmentofthetechnologythatistobeacquired;- Theactualneedsoftherecipient;- Thetechnologicalcapacityofthetransfereeandabilitytouseand/oradaptthetechnologybeingpurchased;- Therelevance,availabilityandcosteffectivenessofalternativetechnologies,- Thepricetobepaid(incashorkind)bytherecipient,- Otherproposedtermsandconditionsfortransfer,suchassupportofferedduringandaftertransferinabsorbingandadaptingthenewtechnology,orrightsoverimprovementsoradaptationsmadebytherecipient,- Thenegotiatingpowerofbothparties(whichwill,inturn,dependonvariablessuchassize,technologicalsector,demandforthetechnology,numberofcompetitors,etc.)- Thetypeofrelationshipenvisagedbetweenthetwoparties(e.g.long-term,short-termorone-offpurchaseofproducts/services.)- Issuesconcerningproductliability,indemnity,warranty,etc,- Whethertechnicalsupportandtrainingforuseofnewtechnologyandrelatedequipmentisrequired.9. Manyoftheabovefactorswillinfluencetheabilitytonegotiateamutuallybeneficialagreementbythetwoparties.Inmanycasestheexternalcontext(e.g.laws,competitivecontext,demand,etc.)willbecrucialindeterminingtheoutcomethenegotiations.Thecharacteristicsofeachpartywillalsoplayarole(e.g.size,technologicalcapacity,etc.).Onthewhole,asacompanydevelopsandimprovesitstechnologicalcapacity,itsabilitytoabsorbnewtechnologyalsoincreasesasdoesitsnegotiatingpowerandcapacitytomanagetechnologydevelopedbyothers,elsewhere.Asaresult,companieswiththecapacitytoeffectivelyintegratenewtechnologydevelopedbyothersmayrequirelessassistancefromthetransferortoincorporatethenewtechnologyandlearnhowtouseitproperly.10. Technologytransferagreementsmayinvolvedifferentplayers,includinglargemultinationals,smallenterprises,publicsectorbodiesoranyotherentityorindividualseekingtoacquireorsellnewtechnologyortechnologicalinformation.Whatiscrucialisthatbothpartiesperceivetheagreementasbeneficialtotheircompanyand/orinstitution.Neithermustfeelthattheotherpartyhasobtainedabetterdealand/orthattheagreementisunfair.The
 
3.secrettothesuccessoftechnologytransferagreementsisthateachpartyperceivestheotherasapartnerinafruitfulcollaborativeprocess.11. Inmanycircumstances,strategicalliancesbetweencompaniesmayincludeatechnologytransferagreement,andaregenerallyusefulforallowingabusinesstomeetitsobjectives,whilemaintainingtheflexibilitytoadaptquicklytotechnologicaldevelopments,asappropriate.Well-constructedstrategicallianceshelppartnerspoolexpertise,enternewmarkets,sharefinancialrisksandgetproductsandservicestomarketfaster.Strategicalliancescanbetricky.Partnershipsfostermutualbenefits,butthealliancesexistonlyaslongastheyareadvantageoustobothparties.Yet,inrecentyears,theconceptofgainingamarketplaceadvantagebyteamingupwithanothercompanywhoseproductsorservicesfitwellwithonesownisbeingadoptedbyanincreasingnumberofbusinesses.Inmanysituations,astrategicalliancemaybeaprelude,thatis,asortofatrialphasebeforecommitting,toalonger-termrelationshipofajointventureoraneventualmergeroracquisition.Ineachofthesesituations,however,bothsidestosafeguardtheirrespectiveinterestsmustadequatelyaddresstheintellectualpropertyissues.
IV. MainTechnologyTransferAgreements
12. Thelegalrelationshipbetweentransferorandtransfereeisessentiallycontractualinnature,whichmeansthatthetransferorofthetechnologyconsentstotransferandthetransfereeconsentstoacquiretherights,thepermissionortheknow-howinquestion.Therearevariousmethodsandlegalarrangementsthroughwhichtechnologymaybetransferredoracquired,andthefollowingoverviewbrieflyoutlinesthemainones.
1. TheSaleorAssignmentofIPRights
13. Thefirstlegalmethodisthesalebytheownerofallhisoritsexclusiverightsto,say,apatentedinventionandthepurchaseofthoserightsbyanotherpersonorlegalentity.Whenitsownertoanotherpersonorlegalentitytransfersalltheexclusiverightstoapatentedinvention,withoutanyrestrictionintimeoranyothercondition,itissaidthatan
assignment
”ofsuchrightshastakenplace.Similarprinciplesandcharacteristicsapplytotheassignmentofotherobjectsofindustrialproperty(e.g.trademarksandindustrialdesigns)andcopyright.
2. LicenseorLicenseContract
14. Thesecondlegalmethodisthroughalicense,thatis,thepermissionbytheownerofapatentedinventiontoanotherpersonorlegalentitytoperform,inthecountryandforthedurationofthepatentrights,oneormoreofthe“acts”whicharecoveredbytheexclusiverightstothepatentedinventioninthatcountry.Whenthatpermissionisgiven,a“license”hasbeengranted.Itmayberecalledthatthose“acts”arethe“makingorusingofaproductthatincludestheinvention,themakingofproductsbyaprocessthatincludestheinventionortheuseoftheprocessthatincludestheinvention.”15. Thelicenseisusuallygrantedsubjecttocertainconditions,whichwillbesetoutinthewrittendocumentbywhichthelicenseisgrantedtothelicensee.Thelicenseeofwillobviouslyrelateoneoftheconditionstothepaymentmoneyorsomeotherconsiderationinreturnforthelicensethatisgranted.Anotherconditionmightbethattheinventionwillbeusedbythelicenseeonlyforthemanufactureofproductsdestinedforaspecificuse,as,for

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->