What is technology transfer? Can industrial property rights be transferred? Follow the article below to analyze the legal issues related to technology transfer in Vietnam.
I. Current state of technology transfer licenses
Currently, the issuance and management of technology transfer licenses are facing many challenges. Legal regulations, management and control, market competition in technology, intellectual property protection, and ensuring sustainable development are all issues that need attention.
II. Legal provisions related to technology transfer licenses
1. What is a Technology Transfer License?
A technology transfer license is one of the necessary legal documents to conduct technology transfer activities.
- Technology transfer is the assignment of technology ownership or the transfer of the right to use technology from the party entitled to transfer the technology to the receiving party.
- Domestic technology transfer is the transfer of technology carried out within the territory of Vietnam.
- Technology transfer from abroad to Vietnam is the transfer of technology across borders into the territory of Vietnam.
- Technology transfer from Vietnam to abroad is the transfer of technology from the territory of Vietnam across borders to another country.
2. Authority to issue technology transfer licenses
According to Clause 5, Article 30 of the Law on Technology Transfer 2017, the authority to issue technology transfer licenses is vested in the Ministry of Science and Technology, which evaluates and issues the licenses.
3. Procedures for applying for a technology transfer license
According to Article 30 of the Law on Technology Transfer 2017, the procedure for applying for a technology transfer license is as follows:
Step 1: After receiving the approval letter from the Ministry of Science and Technology, the organization or individual transferring the technology proceeds to sign the technology transfer contract. Within 60 days from the date of signing the technology transfer contract, the party obligated to apply for the technology transfer license submits one set of application documents to the Ministry of Science and Technology.
Step 2: Within 5 working days from the date of receiving the application, the Ministry of Science and Technology reviews the documents. If the application is incomplete, the Ministry will issue a written request for the organization or individual to amend or supplement the documents as required.
Within 60 days from the date of the request for amendment or supplementation, the parties must amend or supplement the documents as requested or submit a written request for an extension of the amendment and supplementation period. The extension period shall not exceed 60 days. After this period, if the parties do not amend or supplement the documents as requested, the Ministry of Science and Technology will issue a notice of refusal to grant the technology transfer license and return the documents upon request.
Step 3: Within 15 working days from the date of receiving the complete application, the Ministry of Science and Technology evaluates and issues the technology transfer license. If the license is denied, the Ministry must provide a written response stating the reasons.
III. Questions related to technology transfer licenses
1. What important contents should the latest technology transfer license include?
According to Article 23 of the Law on Technology Transfer 2017, the important contents of the contract should include:
- Name of the technology being transferred.
- The subject of the technology transfer, products created by the technology, standards, and quality of the products.
- Assignment of ownership rights, transfer of the right to use the technology.
- Method of technology transfer.
- Rights and obligations of the parties.
- Price and payment methods.
- Duration and effective date of the contract.
2. How much will an organization be fined for failing to comply with the content of the technology transfer license?
According to point c, clause 2, Article 22 of Decree 51/2019/ND-CP, which regulates violations in the formulation and implementation of technology transfer contracts, technology transfer service contracts, the content of technology transfer in the articles, clauses, appendices of the contract, and project investment dossiers. Accordingly, failure to comply with the content specified in the Technology Transfer License may result in administrative fines ranging from 20,000,000 VND to 30,000,000 VND for individuals.
This is the fine for individuals committing the violation. In the case of organizations committing the same violation, the fine will be double that for individuals.
Therefore, organizations failing to comply with the content specified in the Technology Transfer License may be subject to administrative fines ranging from 40,000,000 VND to 60,000,000 VND (according to clause 3, Article 3 of Decree 51/2019/ND-CP).
3. What contents should the application for a technology transfer license include?
According to Article 23 of the Law on Technology Transfer 2017, the contents of the contract should include:
- Name of the technology being transferred.
- The subject of the technology transfer, products created by the technology, standards, and quality of the products.
- Assignment of ownership rights, transfer of the right to use the technology.
- Method of technology transfer.
- Rights and obligations of the parties.
- Price and payment methods.
- Duration and effective date of the contract.
- Definitions and terminology used in the contract (if any).
- Plan and schedule for technology transfer, the location where the technology transfer will be carried out.
- Responsibilities for the warranty of the transferred technology.
- Penalties for contract violations.
- Responsibilities for contract violations.
- Dispute resolution authorities.
- Other contents agreed upon by the parties.
4. How is an organization penalized for transferring technology on the list of restricted technologies without a license?
According to Articles 3 and 26 of Decree 51/2019/ND-CP, an organization that transfers technology on the list of restricted technologies without a technology transfer license will be subject to administrative fines ranging from 60,000,000 VND to 80,000,000 VND.
Additionally, the violating organization may be subject to one or more of the following remedial measures:
- Compulsory recovery of all or part of the transferred technology.
- Compulsory compensation for damage caused to affected organizations or individuals due to the administrative violation.
- Public disclosure of information about the administrative violation in the mass media.
5. How is an organization penalized for failing to register for extension, modification, or supplementation of technology transfer content when agreed upon?
According to Article 17 of Decree 51/2019/ND-CP, which regulates violations related to the request for approval of technology transfer, registration for extension, modification, or supplementation of technology transfer content, and issuance of technology transfer licenses, failing to register for extension, modification, or supplementation of technology transfer content when agreed upon, in cases where registration is required, can result in administrative fines ranging from 4,000,000 VND to 8,000,000 VND for individuals.
For organizations committing the same violation, the fine will be double that for individuals, ranging from 8,000,000 VND to 16,000,000 VND (according to clause 3, Article 3 of Decree 51/2019/ND-CP).
Above is information regarding the topic of Technology Transfer Licenses. For support or to learn more about the legal provisions concerning technology transfer licenses, you can contact NPLaw for consultation from our experienced team of lawyers and legal experts.
