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Rights and obligations of the technology transfer party

The technology transferor plays an important role in the technology transfer process, with specific rights and obligations that need to be fulfilled to ensure the success of the contract. This article will help you better understand the rights that the transferor enjoys as well as the obligations that need to be complied with, thereby protecting your rights and ensuring the transfer process is smooth and effective.

According to Article 25 of the Law on Technology Transfer 2017, there are provisions on the rights and obligations of the technology transferor, accordingly, the technology transferor will have the following rights:

“a) Require the technology recipient to properly fulfill the commitments in the contract;

b) Be paid in full and enjoy other rights and benefits as agreed in the contract;

c) Hire organizations and individuals to perform technology transfer services in accordance with the provisions of law;

d) Request competent authorities to protect legitimate rights and interests related to transferred technology;

d) 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;

e) Other rights as prescribed by law ...”.

Thus, according to the provisions of Point c Clause 1 of this Article, you can completely hire an organization to perform technology transfer services.

In addition to rights, Article 25 of this Law also stipulates the obligations of the technology transferor as follows:

- 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.