Technology Transfer Agreements with China

17/09/2014

By: Jan Holthuis
Tel: 86 (0)10 85235780
Email: jholthuis@hil-law.com

Transfer of state-of-the-art technology to China is one of the pillars of present Chinese development towards becoming an innovation-based economy. Such transfer is subject to a special regulatory framework in China that qualifies technology as prohibited, restricted or encouraged. If a technology is qualified as restricted, the technology company must first secure an import licence before the technology agreement is legally valid. Royalty fees and technical service fees cannot be remitted abroad if the technology agreements are not properly registered with the relevant Chinese government agencies.

European companies are advised to first develop a transfer strategy and protect themselves against losing control and ownership. Several transfer models are discussed in this guide. Apart from sale and transfer of technology ownership or providing a licence for technology usage, technology can also be contributed as registered capital of Chinese enterprises. If technology is contributed as registered capital, exclusive ownership is attributed, and the transferor loses ownership.

For full access to the booklet, please click here: Technology Transfer Agreements with China.


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