Technology Transfer FAQs
What is a technology transfer?
It is a process in which specific technology, including related know-how, market knowledge etc., is transferred from one party (the licensor) to another (the licensee), by way of a legal agreement. The licensee is obliged to use the technology in a manner that satisfies the licensor.
Is there a fee for the transfer?
Yes. In an exclusive license, the fee is paid as a lump sum at the time and/or after the transfer. In a non-exclusive license, it is paid as a royalty, based on sales.
What are the regular deliverables in a technology transfer?
- The right to use the technology to make products or offer solutions in a defined geography for a defined time frame, as specified in the technology transfer agreement signed by the concerned parties.
- Licensing of the patent or intellectual property, as part of the agreement. This licensing is mentioned in the ‘register of patents’ or other relevant official documents.
- Documentation such as engineering drawings, user manuals, process charts etc. (whatever is relevant and required for the successful functioning and maintenance of the technology)
- Support for trouble shooting and maintenance of the technology. This includes providing trained personnel on site for setting up technology and fixing technical problems
Is the technology validated before a transfer? What if it is does not provide the solutions I need?
You will need to properly assess the scope and potential of the technology before entering into an agreement. For this, you can analyze documents such as the patent or other form of IP filing, lab test reports, field trial reports etc. If the technology is operational and available for a pilot test, then that will be the ideal way to determine whether it is the solution your problem needs.
For each, market-ready innovation, we typically make the following documents available to an interested entrepreneur or enterprise :
- Project kit for Entrepreneur (PDF)
- Patent application details (PDF)
- Reports - Pilot marketing | Quality Testing | Market Research etc.
- Term Sheet (Spreadsheet)
- Financial Projections & Workings (Spreadsheet)
- Engineering Drawings & User Manual (to be ready by 31st Jan 2009)
- Any classified document such as P&L statement, customer information etc. (if available)
What is L-RAMP’s role in a technology transfer?
- Identify entrepreneurs / enterprises for the technology / project
- Create technology transfer documentation including technology / project details, marketing collaterals, financial projections, lab reports, clientele lists etc.
- Share technology transfer documentation and respond to queries
- Prepare a term sheet to clearly define financial and non-financial expectations and deliverables for both parties
- Sign an agreement with the innovator detailing the role of each party and agreement to the term sheet
- Sign an agreement with the interested entrepreneurs / enterprises
- Facilitate negotiation and enable signing of technology transfer agreement between innovator and entrepreneur / enterprise
Who pays for the execution of the technology transfer agreement, due diligence and legal advice required?
The innovator and entrepreneur pay for all the costs involved in executing their respective agreements with L-RAMP. They also divide the cost of the technology transfer, legal advice, travel and stay, and due diligence equally between themselves.
What are the obligations of the entrepreneur / enterprise?
They are to use the technology, expertise and resources available to make the project a success (as defined in the term sheet that will be provided).