Technology Transfer

Technology Transfer (Including Intellectual Property Rights)

Technology Transfer

Technology Transfer is the process of transferring technical knowledge, skills, methods, equipment’s, procedures and facilities from one country, sector or institution to another.

It is the movement of technology into new concern. Trend of technology transfer can be seen from one country to another (C2C), from one sector to another (S2S) and from one business entity to another (B2B). Similarly, in present scenario, technology transfer is seen form developed to developing and LDCs, and West to East. It can be for commercial or non-commercial motive.

Technology transfer includes the following: –

1. Using patent and technology know-how of the technology of foreign origin.
2. Using trade mark of foreign ownership.
3. Receiving service of foreign technical consultant, management & market services.

Importance of Technology Transfer: –

1. Expand technical knowledge, skills and improved system in the world.
2. Increase production and productivity.
3. Increase dynamism, competition and liberalism in world trade.
4. Earn economic benefit through the trade of technology.
5. Develop human capacity and competencies.
6. Establish knowledge-based enterprise and society.
7. Encourage economic benefit through the trade of technology.
8. Cost-efficiency and quality enhancement of goods and service.

Technology Transfer Process: –

Methods of Technology Transfer: –

1. Cooperative and collaborative ventures
2. Contracting
3. Licensing
4. Franchising
5. Outright purchase
6. Enterprise acquisition

Problems of Technology Transfer in Nepal: –

1. No clarity in policy. Separate Act relating to technology transfer not introduced yet. Narrow understanding of technology transfer as a mere component of foreign investment.
2. Poor infrastructural and institutional capacity for technology transfer.
3. Low science and technology base, and no encouragement for research and scientific innovation and invention.
4. Negligence in identification, research & development, and use of appropriate technology.
5. Inadequate government investment, and poor coordination and cooperation between public and private sector regarding technology transfer.
6. Low competitiveness and capability to export domestic & indigenous technology.
7. Poor legal framework for the protection of intellectual property rights.

Intellectual Property Rights: –

Intellectual property is the development of unique product by human intellect which carries market value. The right given by state legislation over the creation or innovation by human intellect is known as intellectual property right. It provides for the ownership of creation of people that is the product of their knowledge, skill and research. Trade related aspects of intellectual property rights (TRIPS) Agreement which came into effect on 1 January 1995 is the most comprehensive multilateral agreement on intellectual property rights administered by WTO to regulate the global trading regime on intellectual property.

Intellectual property covers the following: –

1. Copyright: It establish the ownership right of authors, creators or investigators over their literary creation, artistic work, music, scientific articles, motion pictures, etc. Copyright Act, 2059 has made legal provisions for the protection of copyright in Nepal.
2. Trade Mark: This is the brand or logo, or identification symbol of product to distinguish it from other products. Symbol, word, name, picture, pattern, logo or combination thereof can be used as a trade mark by a business firm or company, which cannot be used by other producers. To ensure this right, Patent, Design and Trademark Act, 2022 has been enacted.
3. Patent: It is the exclusive right given to the inventor or innovator of new and unique invention or innovation for production and trade of such invention. It prevents the exploitation, selling and distribution of the invented product by others without the permission of the inventor. Patent, Design and Trademark Act, 2022 is a legal instrument to govern patent right in Nepal.
4. Design: Design means the form or shape of any material manufactured in any manner. It is the ornamental or aesthetic aspect of industrial goods. It is generally used in industrial goods such as vehicle, watch, electronic products, luxury goods, etc. to draw consumer`s attention and attraction so as to thrive in the competitive market. Registered design is protected by Patent, Design and Trademark Act, 2022 in Nepal.
5. Trade Secrets: It is the provision for keeping the formula, data, statistics and document secret regarding their products by business enterprise from competitors for certain period to gain competitive advantage over competitors.

Government of Nepal has issued National Intellectual Property Policy, 2073 as policy provision regarding intellectual property for the first time. This policy acknowledges 13 different types of intellectual properties.