Presentation on theme: "Licensing of Intangible Transfers of Technology"— Presentation transcript:
1Licensing of Intangible Transfers of Technology John SondermanOffice of Export EnforcementBureau of Industry and SecurityU.S. Department of Commerce
2Issue Should intangible technology transfers be regulated? If the answer is yes: Procedures are needed for in-country transfers of controlled technology to prevent unauthorized export or diversionCan in-country transfers be regulated?U.S. “deemed” export ruleU.S. deemed reexport rule
3Controlling Intangible Technology Transfer Regulating the in-country transfer of controlled technology is a viable means to control intangible technology transferProblems:Large number of foreign nationals in the domestic high technology work forceMobile and transient work forceGlobal networks and economies that operate around the clockComplicated by non-traditional, intangible methods of transfer
4What is a deemed export?Release in the United States of technology or source code subject to export control regulations to a foreign nationalSuch release is “deemed” to be an export to the home country or countries of the foreign national
5Exempt from the Deemed Export Rule Any foreign national is subject to the deemed export rule except:Foreign nationals granted U.S. citizenship;Foreign nationals granted permanent residence status; or,Foreign nationals granted political refugee status or political asylum.
6What is a deemed reexport? Release of technology or source code subject to export control regulations to a foreign national of another country is a deemed reexport to the home country of that foreign nationalDeemed reexport does not apply to persons lawfully admitted for permanent residence
12Technology Control Plan A Technology Control Plan must be in place with the following essential elements:Corporate commitment to export compliancePhysical security planInformation security planProcedural securityPersonnel screening proceduresTraining and awareness program for ALL employeesSelf evaluation programWhen we review a Technology Control Plan, we look at the following essential elements:Corp. commitment: i.e., CEO letter to employeesPhysical plan: i.e., badging, visitor plan, etc.Info Security: i.e., firewalls, electronic monitoring of databases with controlled technology, intranet systems, etcPersonnel screening: i.e., hiring process, non disclosure statements, visa status, labor certification process, etc.Self-eval: i.e., internal auditsAnother important element is how a company classifies its technology and how it integrates this classification process into its personnel screening process.
13Deemed Export IssuesLack of awareness among exporters to deemed export requirementsLarge number of foreign nationals entering the U.S. work force since end of the Cold WarAlmost 50 % of graduates from U.S. universities in advanced science and engineeringNeed a balance between providing opportunities and potential for diversion of advanced technologyNon-traditional sectors need to be addressedUniversity researchGovernment entities involved in researchCertain industry sectors
14OutreachEducation and outreach has been key to raising industry level of awareness to in-country transfer requirementsStart by targeting sectors of concernUse different venuesInclude site visitsOutreach needs to include relevant government agencies involved in the processOutreach helps licensing processesAids in the development of “best practices” Technology Control Plan
15SummaryExport control requirement for in-country transfers is feasible from both a regulatory and practical perspectiveA Technology Control Plan is an effective tool in managing access and preventing unauthorized disclosureIncluding intangible technology transferKey to compliance is outreach and educationImportant to consider measures for control of in-country transfers to insure that employment of foreign nationals do not provide a “back door” for the diversion of controlled technology