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Technology Transfer

Controls and Issues

Name Mark Renfeld, Technology Export Compliance Program Manager


Updated March 2012

Copyright 2012 Hewlett-Packard Development Company, L.P.


The information contained herein is subject to change without notice. HP
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Introducing Mark
Renfeld
Had Engineering Roles at IBM,
Communications Data
Services, NEC, US Computer
Services, and HP
Joined Global Trade for
technology export controls in
2007

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Course Objectives
Why are you here
Is Objectives
Understand Technology
Transfers
Become sensitive to the
compliance requirements
Learn to use HP processes,
tools and professionals to
provide guidance

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Course Objectives
Why are you here
Is Objectives
Understand Technology
Transfers
Become sensitive to the
compliance requirements
Learn to use HP processes,
tools and professionals to
provide guidance

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Is Not Objectives
Provide detailed knowledge of
all technology export
regulations for all nations
Explore detailed knowledge of
all controlled technologies or
all possible scenarios
Cover export regulations for
tangible goods

Technology
Defining Technology
Technology: Non-public information for
the development, production, or use
of an itemknow-how
eMails, drawings, schematics, gerber files,
formulae, specifications, etc
Telephone calls, verbal discussions,
teleconferences, digital media, paper, etc
Application under guidance (work teams,
collaborations, consulting, etc)
And more

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Technology
Defining Technology and Technology Transfer
Technology: Non-public information for the development,
production, or use of an itemknow-how
eMails, drawings, schematics, gerber files, formulae, specifications, etc
Telephone calls, verbal discussions, teleconferences, digital media, paper,
etc
Application under guidance (work teams, collaborations, consulting, etc)
And more

Technology Transfer
The export of this technology
Does not mean transferring legal rights, just sharing the information

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Technology Transfers and Export Controls


includes Technology
Governments control the export of tangible goods
Governments also control the export of technology
Technology Transfers
HP, as a US-based company, is subject to US export
regulations at all HP locations, in addition to any local
regulations
Intra-company Technology Transfers are not exempt!

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Who is Impacted?
Everyone!
Anyone who shares technology across borders
Multinational teams
Overseas suppliers (OEM, ODM, CM), partners, employees, contractors,
consultants, customers, etc.

Anyone who shares technology with foreign national persons,


even when that person is physically in the USA.
This is known as a deemed export
Under US regulations, is the same as transferring the technology to that
persons home nation.
Transfers within HP are not exempt!

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Who is Impacted?
An example
Working in an US-based team with a foreign national
Someone from another country working in the US

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Is All Technology Transfer Controlled?


Most Technology Transfers within HP are not controlled,
however

Some HP commercial technologies are controlled (technology


for computers, networks, data security, sensors, imaging, etc)
Less-commercial technologyany technology created or
modified for
military use is controlled
space/orbital use is controlled
radiation hardening is controlled

and more

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Why Are There Export ControlsConcerns


US and several other governments
Defense (Military) Technology
Dual Use primarily civilian, but may have secondary military
or warfare use
National and economic security, regional stability, anti-terrorism, weapons
proliferation
Treaties and or multinational agreements

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Why Are There Export ControlsRationale


Technology versus tangible items
Tangible items are like soup
Technology is like the recipe
With the recipe, someone can make the soup at will

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Brief History of Technology Export Controls


Nothing new
US export controls on civilian dual-use
items
Tangible items since the 1940s
Technology since the 1970s
Deemed exports since the early
1990s
Each addressed by HP policy

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What Determines the Tech Export Controls


Two vector approach: What technology? and Who is the
recipient?

What is the technology?


Technology for paper inkjets versus technology for transdermal
injectors
Technology for laptops versus highly customized
supercomputers
Technology for household networking versus leading-edge
networking technology

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What Determines the Tech Export Controls


Two vector approach: What technology? and Who is the
recipient?
What is the technology?
Technology for paper inkjets vs. technology for transdermal
injectors
Technology for laptops vs. highly customized supercomputers
Technology for household networking vs. leading-edge
networking technology
What is the recipient nation or nationality?
Nations most friendly to the government and its interests
Nations less friendly to the government and its interests
Nations that are openly hostile to that government

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Consequences of Non-Compliance
Standards of Business Conduct require compliance
Brand damage
Negative publicity & perception
Loss of business
Fines and even prosecution
December 2004: Fujitsu Network Communications fined for
deemed export violations
July 2009: University of Tennessee Professor John Roth
sentenced to 48 months in prison for several violations,
including technology export violations and deemed export
violations

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HP Policy for Compliance


SBC, Transfer of Technology Policy
HP Standards of Business Conduct require compliance to all
applicable regulations, including technology export (Technology
Transfers)
HPs Transfer of Technology Policy
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/policies/Pages
/hp022-08.aspx

Policy administered by HP Global Trade


Under this policy
Global Trade provides policy, compliance tools, and expertise
Businesses are to provide compliance systems to connect to these GT
items

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Technology Transfer Control Operational


Model
Detection: Is there a controlled
technology?
Engagement: How to get help?
Assessment & Authorization: What is
needed to proceed?
When Government Approval is
Required

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Operational Model: Step 1 Detection


Is there a controlled technology?
Always focus on the Technology FIRST, not the nation /
nationality
Set checkpoints early enough in the program system / lifecycle
where
The technology is somewhat defined
But before the technology is propagated beyond a very small group (deemed
exports)

Check technologies against the risks list (Note: This list is not
exhaustive and provided for reference only) if youre unsure,
ask (next slide)
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/
techWhich.aspx

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Operational Model: Step 2 Engagement


How to get help?
If there is a concern or youre unsure
Do not ignore or assume; ask questions
Utilize the appropriate process, form(s), and contacts
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/
techTransfersMenu.aspx
R&D, Manufacturing, Consulting, etc.
Avoid acronyms, internal jargon, program codenames, etc.
May need information about tangible items in addition to the technology

Send form and other information to the indicated contacts


Do not proceed until authorized

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Operational Model: Step 3 Assessment &


What
is needed to proceed?
Authorization
Global Trades Assessment
Review the technology and parties involved
May have additional questions regarding the technology,
participants, etc.
Authorization: Turnaround time is highly variable (clarity,
complexity, etc)
In most cases: No government approval is required: Trade will authorize the
Tech Transfer with specific conditions (requirements upon HP and/or external
partners)
In some cases, however, government approvals, known as licenses, may be
required

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Operational Model: Step 4 When Government


Approval Required
Global Trade will apply for the export license(s), working with
the business
May require extensive documentation from the HP team and/or external
partners
May require multiple jurisdiction licensing multiple agencies and/or
multiple governments

Timeline: 8 12 weeks minimum, with no guarantee of


approval
Licenses are limited to specific parties and technologies
Must not transfer technology until license is granted
Always come with conditions

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Technologies Lists
Why not discuss the controlled technologies in this
training?

Volume: The US controls, when printed, are a stack of paper


over 20 cm thick!
Complexity: Varying levels of control
Volatility: Change over time
HPs Scope: HPs technology scope is constantly changing
Organization of the list
Major groups: electronics, computers, networks, data security,
lasers, sensors
Other: military, space/orbital, production equipment, materials
and more

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You Can Make a Difference!


Inform Global Trades about HP technology
HP Engages in multiple levels of advocacy for export regulations
Direct advocacy with US and other governments
Indirect advocacy through industry consortia & trade groups
When you communicate your projects and technologies with
Global Trade
HP can more effectively work to reduce or eliminate controls
Where controls are necessary, HP can work to make them
more manageable

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Tech Transfer Policy, Process, and Tools


HP Transfer of Technology Policy
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/policies/Pages
/hp022-08.aspx

Technology Transfer processes, tools, and information


http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/
techTransfersMenu.aspx

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Definitions
Lists: What technologies are controlled, Prohibited activities
Review processes (R&D, Consulting, etc)
Forms to use for reviews
Contacts

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Related GT Information
Technology Transfer:
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/
techTransfersMenu.aspx

GT Webpage:
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/Pages/index.as
px

GT Export Policy/Strategy Webpage:


http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/i
ndex.aspx

Visits, Training, and Hiring (VTH)


http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/v
thindx.aspx
Similar goals (technology export control) but different exposure
Separate policy, process, and forms

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Summary
What to remember
Technology Transfers, even those within HP, can fall under
export controls
Global Trade has policies, processes, tools, and professionals to guide you.
HP businesses need to have systems to connect to Global Trade.

Early detection of controlled Technology is the key


Use the tools, processes and contacts at
http://intranet.hp.com/finance/WW/controllership/GlobalTrade/export/Pages/
techTransfersMenu.aspx

Ask questions your project team, your management team,


and or GT
The key to success is you!

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Thank you!

Copyright 2012 Hewlett-Packard Development Company, L.P.


The information contained herein is subject to change without notice. HP
Restricted