• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.59
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• pp.3-26
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• 2013

The purpose of this paper is to examine the several points at issue in international technology transfer contract from licensor's and licensee's perspectives, and to refer them when the licensor and the licensee draw up the contract. This author analyzed the critical points of the related provisions of ICC Model International Technology Transfer Contract(2009) by citing the explanations of the Introduction of the Model Contract. The provisions of the Model Contract are generally divided into two categolies; specific conditions and general conditions. This author selected four topics in the specific conditions; Contents of the Contract, Royalty, Modification and/or Improvements of Products, and Territory and Competition. Likewise this author selected three topics in the general conditions; Resolutions of Disputes, Applicable Law and Taxes. Both parties need to be mindful of the following points in the above topics, when they draw up the contract. First, both parties should make the definitions of special terminologies clear, which are included in the Contract. Second, before the parties sign the Contract, they should check any approvals to be necessary by the both countries' governments. Third, for the calculation of the royalty, they should clear the criteria, the scope, and the object. Fourth, as the local laws or regional laws regarding the territory limitation and taxation are mandatory, any provisions of the Contract should not be inconsistent with them. Therefore, both parties should check before-hand the local laws or rules related with the provisions of the Contract. Fifth, when the parties draw up the Contract, they should examine the Provisions of Dispute Resolution in consideration of the Governing Law. Thus both parties decide to make the technology transfer contract, the three aspects namely profitability, legal conflict with mandatory rules, and sustainability of the business resulting from the Contract should be examined in advance, and then proceed the business using the technology transfer.