What Is the Technology Cooperation Agreement?
Technology Cooperation Agreement is designed to increase the cooperation in terms of technical sectors, scientific knowledge, and research between two organizations. Another purpose of drafting the contract is to ensure the social and economic development of the parties by allowing them to share technology. The contract lays out the mode of cooperation, technical support, shared use of the facility, and more.
The contract is drafted when two parties decide to work together or collaborate for a particular project and share their resources for mutual benefits.
When Do You Need a Technology Cooperation Agreement?
The major objective of this agreement is to boost the standard of economic trade, technology areas, and trade investment. Moreover, the cooperation agreement ensures that fair and advanced trading and investment takes place in the economy.
This technology-based agreement is signed between two parties that agree to collaborate for a specific project. The main sector this agreement covers are Trade in Goods, Economic Cooperation, Trade and Investment, Technological Cooperation, and Trade-in Services.
Inclusions in the Technology Cooperation Agreement
The inclusions are
- The identity of each party signing the agreement
- Project Description
- Funding and Budget
- Technical specifications
- Credit offered
- Rights and responsibilities
- Copyright, Ownership, and Clearance
- Warranties and Indemnification
- Contract Term
- Termination of the project
- Assignment and successors to the agreement
- Waivers of specific liability
- Waiver of lien
- Miscellaneous terms and conditions
- Scope of cooperation
- Rights of inspection and testing
- Extent of sharing of proprietary information
How to Draft Technology Cooperation Agreement?
Here is how you can draft the agreement:
- Start the contract with the introduction of both parties that decide to collaborate or aid one another.
- Mention the rights and responsibility clause clarifying the duties of each party
- Write the contract term stating the start and end date of the agreement
- Create a funding and budget clause
- List the copyright, trademark, ownership, and clearance
- Discuss cooperative activity areas
- Entry of personnel and equipment
- Governing laws
- Read the contract thoroughly
- Sign the agreement
To ensure that all the clauses are mentioned properly, and a precise contract is drafted, you can also refer to the technical cooperation agreement sample.
Benefits of Technology Cooperation Agreement
- The agreement ensures that both parties that work together know their respective duties and rights.
- The agreement protects the interest of each party by specifying the terms and conditions in a clear format.
- Once the contract is drafted, read, and signed by both parties, it will come into effect.
- Both parties can rely on the contract should they face any issue.
- The agreement acts as the legal evidence, ensuring that both organizations abide by the clauses and execute their jobs accurately.
- It retains the confidentiality of information while enabling sharing of information for better prospects
- There won’t be a change in the ownership of the technology which will protect the firm that’s holding the technology
- This contract will also limit the liability of loss due to the use of technology while retaining all gains from such technology use.
- It protects parties against obsolescence in case the agreement spans a duration in which new technology emerges
Key Clauses in Technology Cooperation Agreement
The key terms include
- Identity Clause
- Intellectual Property Rights
- Rights and Responsibilities
- Projects using the technology
- Confidentiality of information
- Severability and termination of the agreement
- Liability and waivers of liability
What Happens in Case of Violation?
Any party who violates the terms of the contract (whether intentionally or intentionally) is subject to a penalty. Failure to abide by the mentioned clauses can result in termination of the contract. In case of any loss of profit or injury to the brand, compensatory and punitive damages can be awarded. Otherwise, in most cases, the contract mentions how to deal with a breach of contract.
The Technology Co-operation Agreement is a diplomatic arrangement that seeks to add to the existing free trade agreement between organizations. Because of the nature of this agreement, there can be a boost in the trade and technological cooperation between industries that will help both parties while ensuring that confidentiality of proprietary information remains intact
Sample for Technology Cooperation Agreement
A sample of the agreement can be downloaded from below.
Download this USA Agreement of Limited Partnership for only $9.99