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Technology Transfer in India A. Lakshminarayanan Advocate
Technology Transfer <ul><li>Technology transfer is the process of sharing of skills, knowledge, technologies, methods of m...
  In India <ul><li>Technology transfer is an important means by which developing countries gain access to technologies tha...
WHY <ul><li>To Research and Develop </li></ul><ul><li>To Commercial Exploit </li></ul>
Indian and Foreign Companies <ul><li>With opening up of Indian economy more and more Indian companies are entering into te...
Technology Transfer Agreement <ul><li>Generally, there are two ways of acquiring technology. It can be developed through o...
Technology Transfer Documents  (partial list) <ul><li>Inventor Assignment Agreement </li></ul><ul><li>Confidentiality Agre...
License & Technology Transfer Agreements     IMPORTANT CLAUSES & ISSUES   <ul><li>Define Technology and List of IPRs </li>...
  RBI procedures and rules  <ul><li>Automatic Route: Payment for foreign technology coloration by Indian companies are all...
Disputes in Technology Transfers  <ul><li>Disputes relating payment of royalty and fees  </li></ul><ul><li>Delay in comple...
Role of Technology Transfer in Economic Development <ul><ul><li>Increase in physical stock of productive and innovative re...
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Technology transfer in india

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  1. 1. Technology Transfer in India A. Lakshminarayanan Advocate
  2. 2. Technology Transfer <ul><li>Technology transfer is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. </li></ul>
  3. 3. In India <ul><li>Technology transfer is an important means by which developing countries gain access to technologies that are new to them. Most technology transfer has between developed and developing countries through commercial technology transfers by the private sector. By opening of the Indian economy (LPG policies-1991), several Indian companies are poised for different types of financial, technical and other forms of collaborations. Though they enter with proper technology transfer agreements, some are not successful with different reasons. </li></ul>
  4. 4. WHY <ul><li>To Research and Develop </li></ul><ul><li>To Commercial Exploit </li></ul>
  5. 5. Indian and Foreign Companies <ul><li>With opening up of Indian economy more and more Indian companies are entering into technical, financial and other forms of collaboration. </li></ul><ul><li>However, not all the collaborations are successful, even if, they are covered by proper technology transfer agreements. For a variety of reasons disputes arise in implementing the collaboration agreements. </li></ul>
  6. 6. Technology Transfer Agreement <ul><li>Generally, there are two ways of acquiring technology. It can be developed through own research and development or it can be purchased through indigenous or imported sources. India has opted for a judicious mix of indigenous and imported technology. Purchase of technology is commonly called 'Technology Transfer' and it is generally covered by a technology transfer agreement. </li></ul>
  7. 7. Technology Transfer Documents (partial list) <ul><li>Inventor Assignment Agreement </li></ul><ul><li>Confidentiality Agreements </li></ul><ul><li>License Agreements </li></ul><ul><li>Patents </li></ul><ul><ul><li>Provisional applications </li></ul></ul><ul><ul><li>PCT applications </li></ul></ul><ul><ul><li>National applications </li></ul></ul><ul><ul><li>Issued patents </li></ul></ul><ul><li>Drawings and Specification, Machinery and components list, etc., </li></ul>
  8. 8. License & Technology Transfer Agreements IMPORTANT CLAUSES & ISSUES <ul><li>Define Technology and List of IPRs </li></ul><ul><li>Grant of License </li></ul><ul><li>Rights & Obligations of Licensee and Licensor </li></ul><ul><li>Exclusive / Non-exclusive </li></ul><ul><li>Transferability </li></ul><ul><li>Revocability </li></ul><ul><li>Territory </li></ul><ul><li>Sub-licensing </li></ul><ul><li>Advertising & Promotion </li></ul><ul><li>Audit of accounts from outside agency </li></ul><ul><li>Royalty Payment and Calculation </li></ul>
  9. 9. RBI procedures and rules <ul><li>Automatic Route: Payment for foreign technology coloration by Indian companies are allowed under the automatic route subject to the following limits: </li></ul><ul><ul><li>The lump sum payments not exceeding US$2 million </li></ul></ul><ul><ul><li>Royalty payable being limited to 5 per cent for domestic sales and 8 per cent for exports, without any restriction on the duration of the royalty payments. </li></ul></ul>
  10. 10. Disputes in Technology Transfers <ul><li>Disputes relating payment of royalty and fees </li></ul><ul><li>Delay in completion of the projects </li></ul><ul><li>Passing of unapproved technology </li></ul><ul><li>Technology up gradation and incomplete data and drawings </li></ul><ul><li>Licensor is competing with licensee with the latest models in India </li></ul><ul><li>After sales service and backup </li></ul><ul><li>Intellectual Property Rights (IPR) issues like of trade mark </li></ul><ul><li>Quality and cost of production, </li></ul><ul><li>Delay and supply of inferior raw materials and components </li></ul>
  11. 11. Role of Technology Transfer in Economic Development <ul><ul><li>Increase in physical stock of productive and innovative resources. </li></ul></ul><ul><ul><li>Further exploitation of economical resources </li></ul></ul><ul><ul><li>- natural resources </li></ul></ul><ul><ul><li>- manpower </li></ul></ul><ul><ul><li>- innovation </li></ul></ul><ul><ul><li>- physical resources </li></ul></ul><ul><ul><li>Productivity increase </li></ul></ul><ul><ul><li>- Labour </li></ul></ul><ul><ul><li>- capital </li></ul></ul><ul><ul><li>- natural resources </li></ul></ul><ul><ul><li>- innovation capacity </li></ul></ul>
  12. 12. Thank You
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