Negotiations for Technology Transfers Getting access to new technology.

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Presentation transcript:

Negotiations for Technology Transfers Getting access to new technology

Introduction  The transfer of technology is about the transfer of knowledge.  The value in technology transfer lies in both the time and effort the buyer saves from not having to discover the technology and from the benefits that use of technology offers.

Sequence  Technology transfer negotiations start when a company realizes that another company possess technology that would be of use.

Preparation  The buyer needs to evaluate the benefit of any technology which may be relevant to his operation.  The buyer needs to evaluate the costs of acquiring and using that technology.  The seller has to evaluate the potential benefits of selling.  Both buyer and seller need to be aware of the legal aspects of intellectual property.

Beginning the Negotiations  Both parties will start negotiations once both sides think that a mutually beneficial exchange may be possible.  Negotiating teams will need to include technical and legal experts.

What will be Negotiated  The buyer and the seller need to agree on to the extent the buyer will be permitted to use the technology owned by the seller and how much the buyer will pay for that permission.  The seller and buyer needs to agree on how the seller will use the technology.

Considerations  Establishing rights of the buyer  Protecting the rights of the seller  Limits of use of technology  Assurance of quality maintenance  Corporate Form by which the technology will be used  Values assigned to the different elements of the technology transfers

Conclusion  Technology Transfers are complex because of the legal aspects and the assurances that have to be included so as to protect the buyer and seller’s rights.