What are the principles for entering into and implementing technology transfer contracts?

According to Article 22 of the Law on Technology Transfer 2017 Regulations on entering into and implementing technology transfer contracts are as follows:

- The conclusion of a technology transfer contract must be made in writing or in another form and is considered a written transaction according to the provisions of the Civil Code. The contract document must be signed and stamped by the parties (if any); Sign and stamp (if any) on the pages of the contract and contract appendix.

- The language in the technology transfer contract is agreed upon by the parties.

- Technology transfer contracts are concluded and implemented in accordance with the provisions of this Law, the Civil Code, the Commercial Law, the Intellectual Property Law, the Competition Law and other relevant laws.

In addition, the implementation period and effective date of the technology transfer contract are specified in Article 24 of the Law on Technology Transfer 2017 as follows:

- The term of implementation of the technology transfer contract is agreed upon by the parties.

- The effective date of the technology transfer contract is agreed upon by the parties; In case the parties do not agree on the effective date of the contract, the effective date of the contract is the date of conclusion, except for the case specified in Clause 3 of this Article.

- Technology transfer contracts restricting transfer take effect from the time the Technology Transfer License is granted.

Technology transfer contract subject to registration as prescribed in Clauses 1 and 2, Article 31 of this Law, effective from the date of issuance of the Technology Transfer Registration Certificate; In case of extension, modification or supplementation, the contract for extension, modification or supplementation takes effect from the time the competent state agency issues the Certificate of registration of extension, modification or supplementation of transfer. technology.

And for the price and payment method for technology transfer, it is specified in Article 27 of the Law on Technology Transfer 2017 as follows:

- The price of transferred technology is agreed upon by the parties.

- Payment is made by the following method:

+ Pay once or in installments in money or goods;

+ Convert technology value into capital contribution to investment projects or enterprise capital according to the provisions of law;

+ Pay as a percentage (%) of net selling price;

+ Pay as a percentage (%) of net revenue;

+ Pay according to a percentage (%) of the recipient's pre-tax profit;

+ Other payment methods agreed upon by the parties.

- The price of transferred technology must be audited and implemented according to the provisions of law on taxes and prices in the following cases:

+ Between parties where one or more parties have state capital;

+ There is a relationship between the parties following the parent company - subsidiary model;

+ There is an associated relationship between the parties according to the provisions of tax law.