Topical Issues: Valuation, Payments and Contract for Technology Transfer. Adapted from Manual on Technology Transfer Negotiation Investment and Technology Promotion Division of UNIDO

Abstract

Payment schemes in technology transfer agreements are more complex than those in simpler commodity trans-actions. In technology transfer, simple concepts such as “price” and “cost” take more varied forms as “royalties”, “franchise fees”, “technical service fees” etc., each of which carries different meaning. This review offers compre-hensive treatment of the varieties of payment in technology transfer agreements, discusses their advantages and attendant obligations, provides the rationale behind the different types of payment schemes and includes criteria for quantifying and assessing them as well as the legal administrative provisions.

Journal of Applied Science and Technology (JAST), Vol. 4, Nos. 1 & 2, 1999, pp. 72 – 81