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Technology Transfer Agreement
I need a technology transfer agreement for licensing patented software to a partner company, with a 5-year term, 10% royalty on net sales, and provisions for IP protection and confidentiality.
What is a Technology Transfer Agreement?
A Technology Transfer Agreement lets one organization legally share its innovations, know-how, or intellectual property with another. These contracts spell out how patented technology, trade secrets, or technical knowledge can be licensed, sold, or shared between parties - typically from research institutions to companies that want to commercialize the technology.
The agreement sets clear terms about ownership rights, royalty payments, and how the receiving party can use the technology. Common in university-industry partnerships and R&D collaborations, these agreements help protect intellectual property while enabling innovations to reach the market. They must comply with U.S. patent laws and antitrust regulations, especially when involving federally-funded research.
When should you use a Technology Transfer Agreement?
Use a Technology Transfer Agreement when your organization needs to share valuable technical innovations or intellectual property with another party. This is especially important for universities licensing research discoveries to companies, businesses sharing proprietary technology with partners, or research institutions commercializing their developments through industry collaborations.
The agreement becomes essential before any technical knowledge or IP changes hands - particularly when dealing with patented technology, manufacturing processes, or specialized know-how. Getting it in place early protects both parties' interests, establishes clear usage rights, and creates a framework for compensation. This protection is crucial for federally-funded research transfers and cross-border technology sharing.
What are the different types of Technology Transfer Agreement?
- Basic Research License: Typically used by universities sharing discoveries with companies, focusing on experimental or early-stage technology with defined testing rights
- Commercial Technology Transfer: Grants full commercialization rights, including manufacturing and sales permissions, often with milestone payments and royalties
- Cross-License Agreement: Both parties exchange rights to use each other's technology, common in joint development projects
- Government Transfer Agreement: Specialized format for federally-funded innovations, following Bayh-Dole Act requirements
- International Technology Transfer: Contains additional provisions for cross-border sharing, export controls, and jurisdiction-specific compliance
Who should typically use a Technology Transfer Agreement?
- Research Institutions: Universities, labs, and R&D centers that develop new technologies and seek to transfer them for commercial use
- Technology Companies: Businesses looking to acquire or license innovations for market development and commercialization
- IP Attorneys: Draft and review Technology Transfer Agreements, ensure compliance with patent laws and licensing requirements
- Technology Transfer Officers: University or institutional staff who manage the transfer process and negotiate terms
- Government Agencies: Oversee transfers of federally-funded research and ensure compliance with regulations like the Bayh-Dole Act
How do you write a Technology Transfer Agreement?
- Technology Details: Document the specific innovations, patents, trade secrets, or technical knowledge being transferred
- Usage Rights: Define exactly how the receiving party can use the technology, including any restrictions or exclusivity terms
- Payment Structure: Outline all financial terms - upfront fees, royalties, milestone payments, and revenue sharing arrangements
- Compliance Check: Review export control regulations and federal funding requirements that might affect the transfer
- Protection Measures: List confidentiality requirements, security protocols, and data protection standards
- Performance Metrics: Set clear benchmarks for technology implementation and commercialization goals
What should be included in a Technology Transfer Agreement?
- Identification Section: Full legal names and addresses of all parties involved in the technology transfer
- Technology Description: Detailed specification of the intellectual property, including patents, trade secrets, and technical documentation
- License Terms: Scope of rights granted, territorial limitations, and duration of the agreement
- Payment Provisions: Clear structure for royalties, milestone payments, and other financial compensation
- Confidentiality Clauses: Protection measures for proprietary information and trade secrets
- Performance Requirements: Specific obligations for technology implementation and commercialization
- Termination Rights: Conditions for ending the agreement and post-termination obligations
What's the difference between a Technology Transfer Agreement and a Data Transfer Agreement?
While both serve transfer purposes, a Technology Transfer Agreement differs significantly from a Data Transfer Agreement. Technology transfers focus on intellectual property, innovations, and technical know-how, while data transfers deal primarily with information sharing and data protection compliance.
- Scope and Subject Matter: Technology transfers cover patents, trade secrets, and manufacturing processes, while data transfers handle personal information, databases, and digital records
- Regulatory Framework: Technology transfers must comply with patent laws and export controls, while data transfers focus on privacy laws and data protection regulations
- Commercial Terms: Technology transfers typically include royalties and commercialization rights, whereas data transfers focus on usage restrictions and security measures
- Duration and Implementation: Technology transfers often involve long-term relationships with ongoing support and updates, while data transfers may be one-time or periodic exchanges
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