Controlling International Technology Transfer. Issues, Perspectives, and Policy Implications

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Since its launch in , the study has collected information about income, work, assets, pension plans, health insurance, disability, physical health and functioning, cognitive functioning, and health care expenditures. The survey focuses on the nature of new business formation activity; characteristics of the strategy, offerings, and employment patterns of new businesses; the nature of the financial and organizational arrangements of these businesses; and the characteristics of their founders. COMETS The Connecting Outcome Measures in Entrepreneurship, Technology, and Science COMETS database is the result of close to two decades of research, hard work, and dedication by a community of scholars working to join data about science, technology, and economic outcomes such that links between innovations, people, and businesses can be tracked better.

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It includes information on the proportion and characteristics of the adult population attempting to start new businesses, the kinds of activities nascent entrepreneurs undertake during the business start-up process and the proportion and characteristics of the start-up efforts that become infant firms. Below is the complete list of the data sources referenced in State of the Field and other known entrepreneurship databases.

Over time, we hope to include data overviews on all of these sources. Do you manage a dataset? Google has metadata for science datasets to formalize their structure. Developing countries often have legislation limiting the choice of applicable law and the jurisdiction of foreign courts. The parties to a patent licence agreement should check the infringement clauses carefully.

Patent marking: the licensor often insists on requiring the licensee to mark patented products with the patent number. In that event, the licence will have no references to patents. However, when know-how exists along with patents, both are often included in one licence agreement. Including know-how can be especially important to a licensee receiving a new product or process. Technical assistance: technical assistance can greatly reduce the time required by the licensee to move the licensed technology into production.

The obvious benefits are that the licensee generates income more quickly and the licensor earns royalties much sooner. While technical assistance benefits both parties, the licensor will need to have the resources available to fulfil this responsibility. Improvements: If the party decides to include improvements made after the effective date of the agreement, this section must be drafted carefully. Many variations are possible depending on the strength and size of parties, their future intentions and the nature of the improvements.

Should the parties agree to allow sublicensing, the main agreement should specify the rights and obligations of the licensor and licensee with respect to the sublicensee s. It is usually obvious that granting sublicensing rights is good business for the licensor and licensee. Payments: the payments in technology agreements usually take the form of a lump sum, a royalty or a combination of both.


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The valuation and methods of payments in technology agreements are discussed at length in module 16 on valuation and methods of payment. Initial payment: technology agreements frequently involve the transfer of valuable know- how. For this reason, the licensor usually requires an initial lump-sum payment when the licensee is executed. Royalties: most licences require payment of royalties based on a percentage of the net sales of the licensed product, as defined in the definitions section.

Advance payments are sometimes required to be made initially or over a period of time; they are applied against running royalties. More often, royalties are collected at set periods three months, six months or yearly based on the net sales for the period immediately preceding. Acquisition of machinery: when a licensor sells proprietary machinery to a licensee, the terms for such a transaction can be shown in separate paragraph of the agreement, in a schedule attached to the agreement or in a separate sales agreement. Term of the licence agreement: in a patent licence, the term is usually from the effective date of the licence until the expiration of the last of the licensed patents, or until none of the licensed patents remain in effect for any other reason lapsed or declared invalid.

Typically in know-how or patent and know-how licences, the know-how royalty period is established by negotiation. Some developing countries limit the term by law, e. In many countries the term does not have to be limited, it does for a patent licence. Boilerplate67 provisions- Third Part 67 Boilerplate Clauses usually appear at the end of a contract. Sometimes they are referred to as the is ella eous p o isio s.

What is TECHNOLOGY TRANSFER? What does TECHNOLOGY TRANSFER mean? TECHNOLOGY TRANSFER meaning

It is common to provide that the licence can be terminated if the breach or default is not cured within a day period following notice of the offence. Breach or default is usually determined in arbitration. Best efforts: a paragraph stating that the licensee will use its best efforts to exploit the licensed technology is common in both exclusive and non-exclusive licences.

It would be desirable for the parties to agree on the meaning of best efforts, and what may constitute best efforts in terms of specific steps to be taken by the licensee. Most favoured licensee: Non-exclusive licensee should insist on this clause. It provides that should the licensor grant another licence to a third party on more favourable terms, the more favourable terms will then apply to the first licensee. Warranty and identification: many times a licensor, especially one in a strong position, will make no warranty or representation of any kind, express or implied concerning any matter in the agreement.

In effect, no warranty is extended. Courts do not always recognize this practice, however. At the same time, if the agreement is silent with respect to a warranty, the licensee should not consider a warranty as implied.

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Export control: if the technology or products made under a licence are considered sensitive or if they might be utilized in countries to which the licensing country restricts exports, the licensor will require a clause to assure that such restrictions are not violated. Arbitration and applicable law: aarbitration is being used more and more frequently as a means to resolve licence agreement disputes because it is usually faster, much less costly and more amicable than lawsuits.

There are many subtle points to consider in writing arbitration and applicable law clauses General provisions: include assignment, Severability,68 Entire agreement69, Force Majeure, contingencies and notices. Under the contract as much as all other clauses. The purpose of boilerplate provisions is to save the parties and drafters of contracts time with commonly used and understood language.

Inventers of the technology makes money off their IP by granting others the right to use and exploit the property. These grants generally take the form of contracts.

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Calkins briefed, that numerous modes of international technology transfers can be grouped into the following nine categories71 including TTAs: 1. Projects: Establishment of a business operation owned and controlled by a foreign parent company such as foreign direct investment and turnkey projects.

Trade in Goods and Services: sale of equipment, tools, end products materials, and consulting services. Contracts and Agreements: Licensing of patents, trademarks and trade names, know how, contracts of management services, equipment maintenance facilities etc. Personnel Exchanges: Development Assistance under bilateral and multilateral aid programmes, international executive corps, employment of nationals by foreign firms, employment of foreign technicians, and migration of trained personnel.


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Publications: Professional and scientific literature, books etc. International visits, conferences exhibitions: professional and scientific meetings, academic conferences, technical societies and trade associations, trade shows etc. Teaching and training: foreign study programmes, specialiesed seminars for executives, training programmes conducted by UNO and other international agencies, associations and research institutes.

Another subject matter. Such earlier dealings could be licence agreements, secrecy agreements, letters of intent or other matters. Ist Ed. Robok, Robert D. Sometimes in return for the assignments, the party selling the property might get either a lump sum or a continuing payment known as royalty and in some cases an assignment may provide for the return of the intellectual property under certain conditions. Rao, Joseph A. A license may be exclusive or non exclusive77 and may be restricted by territory, time, media, purpose, or virtually any other factor desired by the parties.

Following data embodies in the form of some tables and figures describes that how licensing contracts have been the main source of technology transfer. Japan is not only the most developed country of Asia but one of the largest and modern economies of the world which developed rapidly by way of acquiring and adopting new technologies through licensing agreements.

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It may refer to a geographical area, technological application, method of production, or production of a specific product, whereas, A license in which the same rights to an intellectual property granted to several licensees within the same scope or field, consecutively or simultaneously. But licensing remains the favorite instrument for transferring technology. Following are the well known forms of licensing contracts according to their functions.

It is common to grant an exclusive license based on different fields and regions and especially for a specific period,81 this type of licensing agreement is very common and carry the particular clauses of Guaranteed Sale and Royalties etc. If it is registered with the patent office, the non-exclusive licensee can use the rights against third party, even if the patent or a non-exclusive license is transferred to a third party and can also be granted to multiple parties within same boundaries as those of the same patent or exclusive license.

Depending upon the contents of license agreement it can further classified as restrictive, nonrestrictive, statutory and licenses by compulsion.


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In a non restrictive licensing agreement licensee can make multiple licensing 80 Bo DeMatteis. Square One Publishers, Inc. Inventing for Dummies. Wile Pu lishi g I. R Radhakrishnan and Dr. Excel Books. New Delhi. A condition in patent license may state that the licensee use the patented technology only for the manufacture of products in a specified field of use.

The business practices potentially involving a patent licenses are technology transfer, franchising and softer ware licensing88, some software and patent licensing may be accompanied by the transfer of knowhow, which can be communicated in tangible form if sufficiently codified. This form of communications requires little ongoing inter firm day to day interaction which increase when the technology being transferred is not sufficiently codifiable to be understood by the recipient without training and assistance from an engineer of the technology transferor to an engineer of the technology recipient.

Where the license is not the primary object of the agreement and is ancillary90, the trade mark licensing means any arrangement by which one party consents to the use of its trade mark in accordance with the specified terms and conditions. In its broader form trade mark licensing is a multibillion dollar activity that pervades the ways in which goods and 84 Ibid 85 When a person intended to use the patented invention was unable to get permission from patentees or when the exclusive licenses demand the compulsory decision from the office of Patent Commissioner.

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Cavendish Publishing. Printed and bound in Great Britain. Such agreements are reckoned to reduce the risks associated with licensing technological knowhow. Cross licensing agreements are increasingly common in high technology industries. Universities are struggling with the role that academic technology transfer should play in the innovation chain of scientific discovery, technology development, and product commercialization. Wilkof, Daniel Burkitt. Trade Mark Li e si g. Sweet and Maxwell. Pe l utte. Cengage Learning, Canada. Tee e. Oxford University Press.

The know-how may be communicated in a tangible form. Examples of know-how that could be transmitted in such forms are architectural plans of factory buildings, documents, photographs, blueprints, computer cards, and microfilm, among others, are illustrations of tangible forms etc. A franchise or distributorship is a business arrangement whereby the reputation, technical information and expertise of one party are combined with the investment of another party for the purpose of selling goods or rendering services 97 wipo.

The firm then chooses to begin a business relationship with a firm in the host country, the parties new legal relationship generally fall into one of the two categories, in the first, a joint venture, the parties form a separate entity. The second category is joint exploitation of IP is a contractual relationship that does not involve the formulation of new legal entity. These are normally called collaboration agreements, joint development agreements, co- marketing or revenue sharing agreements, International joint ventures are used in a wide variety of manufacturing, mining, and service industries and frequently involve technology licensing and transfer.

The agreement may be stand alone or incorporated as clauses in other agreements such as license, sales, employment and consulting etc. Intellectual Property in Business Transactions. Continuing Education of the Ba. Printed in Germany. Nondisclosure Agreements. New Jersey, Canada. In the past two decades, specific provisions on transfer of technology have been incorporated into various international instruments. Such provisions have different objectives and scope, and different modes of implementation, including the provision of financing, and are subject to different terms and conditions.

Compendium of International Arrangements on Transfer of Technology. Kluwer Law International. The Netherland. Under this principle cancelation or expiration of patent in one country of the convention does not affect the expiration or cancellation of a patent for the same invention in another member state of the Paris Convention. Under the declaration access to technology and transfer of technology and dissemination of knowledge were at the heart of declaration. The Berne Convention has recently been "updated" for the digital age by the WIPO Copyright and Performances and Phonograms Treaties, under article 10 Computer programs, whether in object code or source code, must be protected as literary works under the Berne Convention.

GATT A ti le requires that imports be treated no less favourably than the same or similar domestically-produced goods once they have passed customs. Moxon,Howard V. Pergamon Press. New York. Edward Elgar Publishing. Some inventions, such as tape recorders, had made it easier to copy recorded works. The Berne Convention only applied to printed works and thus did not help copyright holders defend against the new technologies. To address the perceived need for strong legislative protection for recorded works, the Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations was concluded by members of WIPO on October 26, It extended copyright protection from the author of a work to the creators and producers of particular, physical embodiments of the work.

Module : The I ter atio al Fra e ork. The rights of performers, phonogram producers and broadcasting organisations are certainly covered, and are internationally protected by the Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations. Technology Transfer. It states that WTO members may not apply any measure that discriminates against foreign products or that leads to quantitative restrictions, both of which violate basic WTO principles.

One set of trade policies that is often motivated on the basis of international technology diffusion objectives is TRIMS which discriminate against imports by creating incentives other than import tariffs to source input from domestic producers. A motivation for TRIMS is often that foreign firms might be expected to transfer knowledge to ensure that local input satisfy their specifications.

Edward Elgar Publishing, UK. The agreement was concluded in and came into force in Agreement on Trade Related Investment Measures. International Technology Transfer to Developing Countries. Hoek a ,Beata K. Global Integration and Technology Transfer. Technology for these purposes includes know-how, patents, design rights or software copyright. The current TTBER provides an exemption from the rule prohibiting anti-competitive agreements Article of the Treaty on the Functioning of the European Union TFEU It is shortly known as Block Exemption Regulation BER and according to the Wikipedia it is an exemption in a business line or industry, which debars organizations in the industry from some business activities in order to create competition.

The regulation is highly known in the automobile industry due to the effect caused by the Block Exemption Regulation BER from the European Commission, The block exemption regulations are updated regularly to create competition among the Member State of the European Union, recently, On 21 March , the European Commission adopted new rules for the assessment of technology transfer agreements under EU competition law. The package will apply from 1 May Antitrust Licensing agreements for the transfer of technology.

New EU competition rules on technology transfer agreements. Such agreements are deemed to have no anti- competitive effects or, if they do, it is assumed that the positive effects of the agreement outweigh the negative ones. If an agreement is not covered by the TTBER it is not automatically anti-competitive, but will require self-assessment for compliance by the parties and their advisers. As a result, it is often preferable for an agreement to be covered by the TTBER if possible, because this gives certainty about its competition assessment.

Table 5 shows the Block Exemption Regulations BERs currently enforce which covered the several kinds of agreements with regard to technology transfer and some others sectors. The first step is to assess whether an agreement between undertakings that is capable of affecting trade between EU countries has an anti-competitive object or actual or potential anti-competitive effects.

Pdf Controlling International Technology Transfer. Issues, Perspectives, And Policy Implications

The Single Market. Kluwer Law International, the Netherland. Epstein,Frank L. Drafting Licensing Agreements. The Commission guidelines on vertical restraints, horizontal cooperation agreements and technology transfer agreements contain substantial guidance on the application of Article 1 TFEU to various types of agreement. The second step, which becomes relevant only when an agreement is found to be restrictive of competition, is to determine the pro-competitive benefits produced by that agreement and to assess whether these pro-competitive effects outweigh the anti- competitive effects.

The balancing of anti-competitive and pro-competitive effects is conducted exclusively within the framework laid down by Article 3 TFEU. In addition even license agreements that do restrict competition may often give rise to pro competitive efficiencies, which must be considered under Article 3 and balanced against the negative effects on competition. The great majority of license agreements are therefore compatible with article Epstein, Frank L.

However, this chapter is mostly and mainly concerned with exploring and assessing the technology transfer links and agreements between China and Pakistan. China and Pakistan are indeed inheritors of the oldest neighboring civilizations, which underwent parallel technological and social evolution throughout the Neolithic, Bronze and Iron ages, and still share many similarities including a common world view.

China and Pakistan share a very long history of interaction and mutually beneficial exchange. One is an example of economic and political progress through good application of scientific and technological knowledge. And other is an example of the techno-economic, and social weakness suffered by many least developed nations. Comparison of these nations techno-economic and socio- institutional systems reveals that China is steadily improving her national technological capability and fast becoming an innovative nation, whereas, Pakistan has never had a serious and long-term technological, industrial or economic policy and in most attempts it has failed to meet the targets.

However a realization is quickly being felt in Pakistan about the importance of science and technology and good macro and micro economic management. China serves as source of inspiration as well as a source of technology embodied in capital goods, but also in investment. But at this stage of economic development the basic concern of Pakistan is building the basic absorption capacity and economic competitiveness to start building a technological capability of her own.

However Pakistan still remains entrapped in the low absorption capacity state or the pre-catch-up stage of absorption capacity, nevertheless Pakistan is growing rapidly economically and technologically and some recent investment and technological ties with China specially the China Pakistan Economic Corridor CPEC is considers to be a game change plan not only for Pakistan but for the whole South Asia.

Such transfer is subject to a special regulatory framework in China that qualifies technology as prohibited, restricted or encouraged. If a technology is qualified as restricted, the technology company must first secure an import licence before the technology agreement is legally valid. Royalty fees and technical service fees cannot be remitted abroad if the technology agreements are not properly registered with the relevant Chinese government agencies. Its FDI policy is geared at developing international joint ventures IJVs between a Chinese and foreign firm and attracting technology to improve productivity of domestic firms, e.

The bulk of FDI is invested in the form of joint ventures, which are thought to have a greater likelihood of inducing technology-related spillovers to domestic firms. The prospect for such productivity gains is strong in China, though there is limited direct evidence for China and other economies.

Thus China is an ideal testing ground for whether formal IJV technology transfer agreements are an effective mechanism for development. Though China still has a long way to go in terms of developing IP law and practice, the country is rich in licensing activity, with growth in domestic research and development helping to fuel the drive for increased licensing,whereas protection of IPRs has never been a barrier for See ibid. Moga, Tho as,. Te h Tra sfer Tur i g Poi t? The oldest JVs were formed in at the start of market-oriented reforms, the data capture the earliest to the latest JVs to receive technology transfer, the latter being in Interestingly the Chinese side often insisted on these transfers as they were presumed to be less costly then licensing the same technology, given the monopoly prices of intellectual property.

Around one fifth The said policy succeeded in bringing many technology transfer agreements into China especially in telecommunication sector because the large quantity of direct sales were attractive enough for the foreign suppliers to take some risk. Some suppliers made a serious commitment to the technology transfer which usually led to the establishment of joint ventures, the Shanghai Bell Telephone Equipment Manufacturing Corp is one of the successful model.

According to the National Bureau of Statistics of China, the number of state validated enterprise technical centers reached 1, Accumulatively, venture investment enterprises were established under the support of State Venture Capital Investment Plans for Emerging Industries, with a total fund size approaching Some 2, thousand patent applications were accepted from home and abroad, and a total of 1, thousand patents were authorized.

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