Legal Princinples of License Patent Agreements in Implementing Tranfer of Technology in Indonesia

• Main Author: Agung Sujatmiko, -
• Format: Article PeerReviewed
• Language: English; English; English
• Published: International Journals of Multi Dimensional Research 2018
• Subjects: K Law; K Law (General)
• Online Access: https://repository.unair.ac.id/117706/1/3%20M.pdf; https://repository.unair.ac.id/117706/2/3%20R.pdf; https://repository.unair.ac.id/117706/3/3%20T.pdf; https://repository.unair.ac.id/117706/; http://ijmr.net.in/pastijod.php?p=VOLUME%205,Issue%203,March,2018
• Institution: Universitas Airlangga

One of the best strategy to transfer techology is to license a patent. Through the grant of a license, the licensee is expected to learn to carry out his own patent in the form of the licensed technology. Through the license, the licensee can make modifications, further development and refinement of technology. The implementation of license can be either covered by know-how agreements or other agreements. In the know-how agreements, the licensee can retrieve knowledge to use the technology optimally. This paper will elaborate the legal principles used in a patent license agreement. The freedom of contract principle is the main principle of contract to legalize a patent license agreement. Freedom of contract is applied in the manufacture of a patent license agreement. According to the freedom of contract, the parties are free to formulate the license agreement including but not limited to royalty payment, dispute resolution, and the end of the license agreement. The other basic principle of contract covering a patent license agreement is mutual benefit. This principle requires that the parties must obtain economic value (profit) on the agreement. Licensor is willing to obtain royalty payments from the licensee. The royalty belongs to economic rights which is transferable in order to maximize benefit of the patent to the licensor. In addition, another principle is the principle of equality. Equality does not mean only the licensor who has a right to terminate the license agreement but also the licensee does. In practice, when the licensor does not properly fulfill its contractual obligation, the licensee may request the termination of the agreement, and vice versa. This reflects equality between the licensor and licensee. Moreover, the right to file a lawsuit and the licensed patent infringement lawsuit is not only beared by the licensor, but also by the licensee.