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– What are the regulations regarding cross-border technology transfer in China?

The import and the export of technology is regulated under the PRC’s technology transfer regime. Under this regime, technologies are classified in 3 categories:

  • Unrestricted technology: only a registration is needed for the transfer;
  • Restricted technology: the MOFCOM shall pre-approve the transfer;
  • Prohibited technology: technology falling into this category cannot be imported or exported.
  • What is the purpose of a licensing agreement?

A licensing agreement enables companies to commercialize and extract revenue from your intellectual property rights, or to acquire the right to use others’ intellectual property rights.

– Which elements should a licensing agreement contain?

In a general approach, a licensing agreement should protect the rights and interests of the parties, and should be drafted in writing.

Moreover, it is crucial that the licensing agreement addresses which party shall own and/or have rights to use any improvement that might be achieved by either party over the course of performance of the licensing agreement.

Trademarks or licenses of patent shall be recorded with the relevant authorities, as it would be helpful if any third-party challenges the validity of such license. In this case, the licensing agreement’s validity will not be impacted. Royalty fees and technical service fees cannot be remitted abroad if the technology agreements are not properly registered with the relevant Chinese government authorities.

Potential import and export control implications shall also be considered carefully when engaging in cross-border licensing or technology transfer transactions, as mentioned above.

To know more, download our legal handbook related to the intellectual property rights legal regime in China …

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