ms-94 mba assignment july dec 2010 Question 2

2. Briefly discuss various routes of technology transfer. Take an organization of your choice, which has adopted a specific route of technology transfer for its product. Discuss the merits and demerits of adopting the specific route by the organization for its product.

Ans : Different Routes of Technology Transfer

Technology transfer appears in various forms licensing, the setting up of spin-off companies, joint ventures, or cooperation with public bodies.
To license the technology to a user under contract is the most straightforward method. In return for the right to use the technology, the contracting party would pay to the University an up-front fee, or a royalty based on turnover or profit, or equity in the company, or a combination of these.
However, unlike developed countries and regions where technologies would be licensed to companies willing to take them up without the universities being involved in either the incorporation or the management of the company, Hong Kong is still relatively unprepared in this aspect. Thus there is a gap in midstream, where inventions originating from universities are not effectively taken up by the industrial sector. In cases where ready licensing to existing companies is not viable, the University has found it beneficial to either incubate these projects in-house, launch spin-off companies on its own, or encourage the launch of start-ups by project staff.

Exclusive License

Exclusive licensee is the person who holds in totality all the rights a patent holder has under the patent. The exclusive license excludes all others including the patent holder to use the patent. Where the rights are granted, as the term implies, exclusively to the licensee. “Exclusive” gives the licensee the sole right to use the patent and deprives the  patentee of the right of use. It is akin to the sale of a patent. The following are the characteristics of exclusive license: The licensor provides the right to the licensee to exclusively use within the contract area & period It is a standard practice to include strict conditions such as minimum sales amount, minimum technical fee, restrictions in economic product dealings etc. as issuance of an identical license to a 3rd party is not possible. Decide whether to accept by comparing additional conditions such as the actual benefit of the exclusive license, minimum technical fee etc. (this is in the position of the technology. implementing party, and the supplier of the technology should view this in reverse)

Non-exclusive License

A non-exclusive license is limited to the licensee and such licenses may be limited to the term, area or purpose as in the case of assignment, where the rights are granted on two or more licensees. “Non-exclusive” gives the licensee the right to use the patent, but its owner may grant similar licenses to others. The follows are the characteristics of non-exclusive license: This is a method where the licensor reserves the right to provide the license not only to a particular licensee but also to other 3rd parties. It is a method generally favored by the licensor. It is a method where the licensor & licensee can choose as a one-off without other burdens. In the position of the licensee (technology implementing party) should arrange so that there are no separate burdens such as minimum technical fee etc.

Sub-license

The technology implementing party who has been given the license can offer a sublicense to a 3rd party under the sublicense provision It can be used efficiently when a single technology is diversely utilized in terms of usage, purpose, and area Must have a basis on the contract.

Sole License

Where the rights are granted to a sole licensee while at the same time retained by the owner. Only the named licensee may use the patent apart from the owner.

License of right

Where a patent is so endorsed, any person is entitled to a license under the patent on such terms as may be laid down by the owner. There is no standard license agreement, as such. Each is individually negotiated according to the circumstances of the desired commercial arrangement.

EXAMPLE - Reliance Communications Limited (RCL)

Reliance Communications Limited (RCL) is the flagship company of the Anil Dhirubhai Ambani Group (ADAG), is India's largest private sector information and communications company with over 48 million subscribers. It was established in the year 2004 as Reliance Infrastructure Developers Private Limited, Reliance Communications started laying 60,000 route kilometres of a pan-India fibre optic backbone with high capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network and to offer services spanning the entire infocomm value chain. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. The Company's business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. During the year 2004, International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm, the company launched RIM Prepaid with attractive offer, Reliance Infocomm introduced World Card - a Prepaid International calling card for affordable and convenient ISD calls from India, the first regional Customer Contact Centre was launched in Chennai. In the same year the company made partnership with MCI to offer India's First MPLS Global VPN Solution. Introduced Railway Ticket booking from R World data applications suite of Reliance India Mobile. In 2005, RCL only the company introduced, first e-recharge facility in CDMA in India, the company has had joins hands with Air Deccan to offer air ticket booking facility at Reliance WebWorld. Reliance Infocomm rolls out international roaming facility across several countries to become the first Indian CDMA operator to offer its customers such a service. The company tied-up with the Bombay Stock Exchange to make available livestock quotes on its mobile phones during the same year 2005. The status of the company was changed to Public Limited in July 2005. Name of the company was changed from Reliance Infrastructure Developers Private Limited to Reliance Communication Ventures Limited in August 2005. RCL, UK launched Reliance IndiaCall service in England and Wales enabling callers to make high-quality calls to India from any landline or mobile phone at economical rates. Reliance Infocomm and China Telecom signed agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the both two countries. India's first Talking Message Service (TMS) enabling the mobile users to send voice messages to not only other mobiles but also fixed wireless phones (FWP) and landlines in Reliance communications network were launched during the year 2006. In the same year 2006, RCL listed on the Bombay Stock Exchange and National Stock Exchange, the company ties up with Disney to offer on Reliance Mobile World India's first 3D animation on mobile, launched 'Hello Capital Plan' to enable its subscribers in 19 state capitals to call each other at the local call rate of 40 paise per minute, T-Com signs contract with FLAG Telecom for Europe-US bandwidth, Reliance Communications' FALCON Cable System was initiated in the same year. RCL launched Free Group Term Life Cover for its CDMA subscribers. RCL and Nokia have joined hands to market the Nokia 1255 mobile handset in India at a price of Rs 1,999 during the period of 2006. Reliance Infocomm Limited, Ambani Enterprises Private Limited, Reliance Business Management Private Limited, Formax Commercial Private Limited, Reliance Communications Technologies Limited, Reliance Software Solutions Private Limited, Reliance Communications Solutions Private Limited and Panther Consultants Private Limited was amalgamated and the Network division of the Reliance Communications Infrastructure Limited was demerged with the Company during the year 2006. The name of the Company was changed from Reliance Communication Ventures Limited to Reliance Communications Limited with effect from 7th June 2006. The Company joined Lenovo and Intel for 'Internet on the Move' in the year 2007. Also in the same year, RCL ties up with Naukri.com for Search Jobs & Classified Ads from Reliance Mobile World. The demerger of Passive Infrastructure division Reliance Communications & Reliance was approved in March of the year 2007. Sunny Days And Nights For Reliance Mobile Subscribers as Reliance Communications ties up with SUN TV to offer video streaming of all SUN TV programs online 24x7. In May of the year 2007, the company bagged West Bengal E-Governance Project. RCL slashed its call rate to US and Canada. It's now just Rs 1.99 per minute and also launched Lifetime Validity Recharge @ Just Rs.499. The tie up was made with Cisco to launch Business Internet Services for SMEs in Pune in the year. After, in July of the same year 2007, the company and QUALCOMM was made collaboration on CDMA2000 Expansion. The biggest acquisition deal so far, the company bought US data Communication Company Yipes Holdings' in an all-cash deal for 4300 million (Rs 1200 crore) in July 2007. RCL came forwarded to sale of equity stake in its Tower Company-Reliance Telecom Infrastructure Limited in July of the year. For air and hotel bookings, the company has had joins hands with Yatra.com. The money transfer also available in the RCL, such facility was started in September of the year 2007. The company made strategic partnership with Vanco. As on April 2008, RCL launched Exam Guru, the educational portal, which provides information on exam result, college admissions, exam schedules, admission deadlines, mock tests and also tips for bettering performance. RCL made ties up with International Cricket Council for rankings in the next eight years. During the same month and same year, the company has acquired UK based eWave World, which offers wireless telephony services using WIMAX technology. In May 2008, Reliance Globalcom, a subsidiary of the company, has acquired London based managed network services provider, Vanco Group, for about $77 million (Rs 324 crore).