Rights and obligations in technology transfer contracts | iGuide

iGuide Stories

Rights and obligations of the parties in a technology transfer contract

In a technology transfer contract, it is important to clearly define the rights and obligations of the parties to ensure effective cooperation and protect the interests of each party. This article provides an in-depth look at the common rights and obligations in a technology transfer contract, helping you understand your responsibilities and rights, thereby ensuring the transfer process is smooth and legal.

1. Rights and obligations of the technology transfer party

According to Article 25 of the Law on Technology Transfer 2017, the technology transfer party will have the following rights and obligations:

- Rights of the technology transfer party:

+ Require the technology recipient to fulfill the commitments in the contract;
+ Be paid in full and enjoy other rights and benefits as agreed in the contract;
+ Hire organizations and individuals to perform technology transfer services according to the provisions of law;
+ Request competent authorities to protect legitimate rights and interests related to transferred technology;
+ Require the technology recipient to apply remedial measures and compensate for damages in case the technology recipient fails to properly perform the obligations specified in the contract, unless the parties have another agreement;
+ Other rights as prescribed by law.

- Obligations of the technology transfer party:

+ Ensure that the right to transfer technology is legal and not restricted by a third party, unless the parties have another agreement;
+ Fulfill the commitments in the contract; compensate for damages to the technology recipient and third parties due to breach of contract;
+ Keep confidential information about technology and other information during the negotiation, signing and implementation of technology transfer contracts according to the agreement;
+ Notify the technology recipient and take appropriate measures when discovering technical difficulties in the transferred technology that may cause the technology transfer results to be inconsistent with the commitments in the contract;
+ Request for granting of Technology Transfer License in case of transferring restricted technology from Vietnam to foreign countries, unless the parties have other agreements;
+ Perform financial obligations and other obligations as prescribed by law.

2. Rights and obligations of the technology recipient

According to Article 26 of the Law on Technology Transfer 2017, the technology recipient will have the following rights and obligations:

2.1. The technology recipient has the following rights:

+ Require the technology transferor to fulfill the commitments in the contract;
+ Request competent authorities to protect legitimate rights and interests related to transferred technology;
+ Hire organizations and individuals to perform technology transfer services according to the provisions of law;
+ Require the technology transferor to apply remedial measures and compensate for damages in case the technology transferor fails to properly perform the obligations specified in the contract, unless the parties have other agreements;
+ Other rights as prescribed by law.s

2.2. The technology recipient has the following obligations:

+ Fulfill the commitments in the contract; compensate for damages to the technology transferor and third parties due to breach of contract;
+ Keep confidential information about technology and other information during the negotiation, signing and implementation of technology transfer contracts according to the agreement;
+ Request for granting of Technology Transfer License in case of transferring restricted technology from abroad to Vietnam, unless the parties have other agreements;
+ Perform financial obligations and other obligations as prescribed by law.