India: Licensing And Technology Transfer: A Glance On Indian Scenario

INTRODUCTION

Technology Transfer (also called Transfer of Technology (TOT) and Technology Commercialization)1 are the processes by which the information or knowledge related to the technological aspects travel within the group or between the organizations or entity. Taking this to the broader scenario, give rise to International technology transfer in which the knowledge travels in between the countries, which is not only limited to the Knowledge and information, rather includes skill transferring, methods of manufacturing, physical assets, know-how, and other technical aspects, and henceforth helps in further development of the technology and innovation, by effectively utilizing the technology transferred and finally incorporating it.

Technology transfer has been used in the movements of technology from the laboratory to industry or from one application to another domain application or taking developing countries into consideration technology transfer helps in growing access to technologies which are related to other developed countries and henceforth helps in approaching towards the newer technologies and inventions i.e. from Developed to developing countries.

On the other hand licensing is allowance granted by the patent owner to another person or organization for using the patented invention on agreed terms and conditions, while the patent owner continues maintaining his ownership to the patent and hereafter becomes the source of income by receiving the predetermined royalties or as per the condition.

So by combining the concept of the technology transfer with the licensing one can help in taking the benefit of the technology research that has been done previously, as licensing creates the permissible structure for the transfer of the technology to a larger assembly of researchers and engineers, which will help in saving the expenses of conducting the research and the costs of maintaining development activities or facilities and hence will help in the further development of the technology which has already been done.

As now a days in the era of the advancement in the technologies there are many technologies which with the combination with the other technologies is giving birth to the other new advent technologies. so here the licensing do play the important role in providing the legal platform to utilize the combination of the technologies made or discovered by the other persons or the organization which has been created earlier, and hereafter prevents from wastage of the time and the research cost incurred in developing the earlier inventions.

FORMS OF TECHNOLOGY TRANSFER:

Technology transfer can be classified into vertical and horizontal technology transfer2

Vertical transfer refers to transfer of technology where transmission of new technologies is done from the generation of new technology during the research and development programs into the science and technology organizations, for instance, to the application related to the industrial and agricultural sectors, or we can say that vertical transfer is the technology transfer commencing from basic research to applied research, from applied research to development followed by development to production.

While the horizontal technology transfer is the movement of a well-known technology from one equipped environment to another (from one company to another) or say refers to the transfer and use of technology used in one place or organization to another place or organization.

As discussed above generally developed countries follow the route:-

Research -> Development -> Design -> Production

While less advanced and developing countries follow the route:-

Production -> Design -> Development -> Research

Generally there are the reverse trends in the developing countries because the path to be followed depends upon the transfer, absorption, and adaptation of existing technology

(Habibie (1990), often referred to as the architect of the Indonesian aircraft industry, states that, "technology receivers must be prepared to implement manufacturing plans on a step-by step basis, with the ultimate objective of eventually matching the added-value percentage obtained by the technology transferring firm." He refers to such an approach as "progressive manufacturing" and popularized the slogan, "begin at the end and end at the beginning" implying that a transferee firm should start with production and move backwards to research.)

Today in the era of advent in technology one could choose any of the routes of the technology transfer which depends upon how the technology advancement chains of the transferor and transferee are associated.

ADVANTAGES RELATED TO TECHNOLOGY TRANSFER:

The advantages related to technology transfer comprises of the essential gain to the public who benefits from the manufactured goods that get to the market and ultimately the availability of the jobs which results from the improvement and sale of the products so formed. And hence it encourages use of technology developed and the benefiting to the society development which comes from the revenue of the tax payers. And escalating visibility to researchers and allows researcher to generate and earn royalty income and henceforth attaining financial profits for the government and the employees from royalty payments for those technology transfers that involve patent licenses.

Moreover resulting in commercialization of the researches and the discoveries made, which was the course of the investment done for the development and being protected by the patent. Hereafter all the Investments done in the course of the development in intellectual property are returned to the public through products made for the public, opportunity of more employment, and revenue in the form of taxes.

Technology transfer strengthens industry by identifying new business opportunities which contributes to enhancing the know-how and competitiveness of the technology providers, which ultimately results in broadening the business area and re-focusing to the technologies and systems to serve several different fields. In addition, technology transfer promotes the wider use and awareness of technology and systems.

Technology transfer brings economic benefits by increasing revenues for both technology donors and receiver's benefits with new and better products, processes, and services that lead to increased efficiency and effectiveness, greater market share and increased profits.

Moreover technology transfer helps in earning rewards which is above and beyond the regular salary which is received through patents, licenses, and other technology transfer awards which help in benefiting intellectually and professionally through working collaboratively with their peers in the industrial sector.

DISADVANTAGES RELATED TO TECHNOLOGY TRANSFER

As technology transfer is keen or meant for the business oriented activity, hence forth there can be the chances to have financial or commercial risk, as we are well aware that Licences can generate the income, but patent application which are not licensed will only cost money.

Even when the transfer programme related to the technology transfer is successful or in particular after technology transfer institutional tensions may arise within the organization which may be in between the recipient of licensing income and those who know they will never make utilizable inventions. For the sake of remedy in those circumstances Institutional policies can be made aiming to have partial rearrangement of income received by license between all research groups but, using this strategy may not eradicate the problem rather in most of the cases discoverer will be frustrated or disappointed because the income that they have earned is given to other groups. Technology transfer activities may put researchers in conflict of interest situations, especially when the transfer involves the creation of the spin- off company, hence Institutions should be aware of these possible dangers.

Moreover problem can be because of non performance of licensee. And may be the licensee has limited chances beyond the license scope unless future enhancements to patent included in initial agreement and Unrealistic expectations and demands from licensor.

INDIAN SCENARIO REGARDING THE LICENSING AND TECHNOLOGY TRANSFER

Technology in India is growing exponentially and has played an important role in all round development and growth of economy in the country, India has opted for a wise mix of original and imported technology. Henceforth "Technology transfer" plays a very important role and is generally covered by a technology transfer agreement.

Developing countries like India generally not follow the usual path for development with regard to technologies but use their advantage in the cutting edge technology options which is now available and put the tools to use this modern technology.

Technology transfer is assumed to get benefits from R&D which is shared with the developing and underdeveloped countries , so taking this to the point of consideration National research laboratories is been constructed by the Indian government for the purpose of R&D which is yet to be commenced by the private sectors.

India generally comprises of Small and medium enterprises and is growing since liberalization, which has resulted in growth of The multinational enterprises, which in turn is competing with the international companies which has enhanced the confidence of India. Not only confined to the pharmaceuticals but is broadly categorized in other areas too such as agriculture, dairy and other technologies.

Government of India is in the verge to open Technology Transfer Offices, Universities, institutions which will be funded by central government and will acts as mechanism for transferring or exporting the research conducted and its outcome to the desired place.

Though some of the Indian Institutes have been already commercializing their research and are successful in technology transfer in which they have been licensed as technologies to industry. Moreover, numerous cases of technology transfer are seen in India by various well-known institutions.

CONCLUSION

Technology transfer and its licensing have played a crucial role in all round development and the advent of the technology which in results help in the development of the economy of the country. Hence forth helps in creating the wealth to the country.

India as a developing country need to work on the technology development and technology transfer and needs to make a building strategy comprising of the construction of new offices related to technology transfer and to make youngsters aware to the benefits related to the technology transfer, by establishing the specified universities and henceforth increasing the pace of the technology transfer and technical research and development in technical perspective.

Finally as discussed we can conclude that there is the possible advantage and disadvantage of the technology transfer. But we have to see this in the broader aspect so that our country as well as the citizen of our country should be benefited.

Footnotes

1.http://en.wikipedia.org/wiki/Technology_transfer

2. http://www.businessasia.net/Pdf_Pages/Guidebook%20on%20Technology%20Transfer%20Mechanisms/ An%20overview%20of%20TT%20and%20TT%20Models.pdf

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions