Technology Transfer Agreement

A Technology Transfer Agreement made to transfer property rights or know-how from one organization to a different. The foremost common way of moving technology is through a license agreement whereby the licensee gets proper to use the technology for a hard and fast period of your time for a specific fee. The contract can also take the shape of a know-how agreement, which involves the transfer of data or experiences.

The contract generally contains aspects of the technology transferred, the method of transfer, the duration that it's sold, and, therefore, the consideration to be payable for an equivalent.

When Do You Need a Technology Transfer contract

A technology transfer contract is required when a corporation wants to transfer its property or know-how to another organization. The deal will lay down the tactic through which the property is to move, and therefore the duration of such transfer is going to be valid.

The purpose of the technology transfer agreement is to get down the terms and conditions under which the technology is going to transfer. The consideration for the transfer is often a lump-sum amount or royalty payment or a mix of both as decided by the parties. The agreement also will specify if the license is an expensive one (solely given to the licensee) or non-exclusive.

Inclusions in a Technology Transfer Contract

The contract must clearly state the names of the parties between whom the contract entered into. This may include the party who is transferring the property rights or know-how (known because of the transferor) and, therefore, the party to whom these rights are being transferred (known because of the transferee). The date which the agreement entered into must even be mentioned alongside the territory during which the contract is enforceable.

The technology transfer contract must clearly say the technology and, consequently, the rights that transferred. The territory during which these rights are going to exercise; therefore, the duration of the agreement must be specified.

Apart from this, the agreement must mention under which law it'll be governed and the way the contract shall be terminated. The way during which the deal is to be modified should even be described.

How to Draft a Technology Transfer Contract

The following is the process to be followed while drafting a technology transfer contract:

First, a preliminary draft should be created referred to as "Heads of Agreement."

This draft should have a summary of the critical commercial also as technical details to be negotiated upon between the parties.

The parties must choose the mode and extent of the transfer. While deciding the size of the assignment, the parties must determine correctly which property rights transferred.

These rights also can be mentioned as a schedule to the agreement.

Once the negotiations are done, the final agreement must be drafted, keeping in mind all the essential clauses that require to be covered under the contract.

The agreement must be reviewed thoroughly to make sure that the interests of both parties are protected.

Benefits of a Technology Transfer Agreement

1. It helps the licensor gain royalty income from the property that's licensed.
2. It helps the licensee gain a billboard advantage over its rivals by getting access to property rights.
3. Transfer of technology is a crucial way of gaining access to the newest technology available within the developed countries.
4. The public gains the foremost from the available manufactured goods and, therefore, the jobs that result from it.

Without a technology transfer agreement in situ, a dispute between the parties could find yourself in court and cause a legal mess.

The extent of the rights being transferred to the licensee won't be defined, and this might create misunderstandings within the future.

Drafting employee agreements can be a daunting task because the ramifications can complete in an expensive lawsuit.