Professional Documents
Culture Documents
Nego-TT TOPIC 10 SHAD 4033 NO.6
Nego-TT TOPIC 10 SHAD 4033 NO.6
DEALS:
PREPARING AND
NEGOTIATIONS
DR. MD. RAZIB ARSHAD
DR. MOHD KHAIRUDDIN RAMLIY
• There is no one “standard” sales effort in technology transfer but normally will have to
addressed the following issues:
a) Initial response to enquiry
b) Pre-meeting preparation and research
c) Handling the first meeting
d) Addressing secrecy issue
e) Negotiation approach
• Successful technology licensing occurs only when the negotiator understands thoroughly the
benefits that are available to both parties.
INITIAL RESPONSE
• To entertain in timely and professionally manner but care should be taken not to be overexposed
• As extent as possible reference to the enquirer’s need should be made in the disclosure
• Make an effort to gather client’s position and conditions including their business environment
• Responding to a full technical disclosure request? – Respond with as comprehensive possible non-
confidential technology disclosure. But make sure there is an element of personalized/customization.
• Response to request for comprehensive commercial terms will depend on the type of technology in
question
CONT..
• Nothing wrong to gauge whether decision to purchase has already been made by the potential client.
• Deals with enquirer’s interest for a visit with prudent
• Visits need to be planned and considered as integral of the selling effort
• In entertaining a visit, Licensor should aim to send message regarding commercial reality, ease of
operation and capability of to transfer technology in question
• Plant personnel in particular should be made aware and briefed on the objective of the visit
• Staff involved should be made clear of what the visitors can hear and observe during the visit. They also
need to know commercially and technically sensitive areas
PRE-MEETING PREPARATION AND RESEARCH:
INTERNAL AND EXTERNAL
• Internal Preparation:
• Organizational commitment to transfer technology in question?
• Resource required to transfer the technology (staff and documents)?
• Adequate financial incentives for the resources?
• Reasonability of the financial expectation?
• External Preparation
• To better understand prospect’s plans, background and business situation
• Is there currently any commercial relationship with the prospect. If yes, what is the status of the relationship?
• Prospect’s past and current involvement/ familiarity with the technology in question. Any deal with
competitors?
• Prospect’s level of technological sophistication and what resources they own to facilitate the transfer
• Financial related information – creditworthiness, economic criteria, financing facilities.
THE FIRST MEETING
• To manage and make attempt to maintain control of the meeting i.e. agenda, location, timing and
presentation format – to give the right impression
• Transferor’s office as the location
• Agenda defines the material to be included and to ensure emphasis on the appropriate areas. However,
where possible allow prospect to give feedback on the agenda in advance so as to meet their needs
• Advisable to separate technical from the commercial section in the agenda
• Allow deviation from the prepared program
• Appreciate and accommodate cultural difference
ADDRESSING SECRECY ISSUES
• Know the third party concerned - track record, commercial, technical and financial strength.
• Understand their intention and motivation.
• Define the Areas of Responsibility.
• Do Not Abdicate Commercial Involvement.
• Define communication channel between all parties involved.
• Avoid Exclusivity (except for special cases).