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Contracting for technology transfer: patent licensing and know-how in Brazil

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  • Martinez, Catalina

    (CSIC-IPP, Institute of Public Goods and Policies, Madrid, Spain)

  • Zuniga, Pluvia

    (UNU-MERIT, and OECD)

Abstract

Using contract level data, we study the relation between the inclusion of know-how in cross-border patent licensing agreements and the contractual terms used by firms to deal with moral hazard risks. We use official data on international technology contracts with patent licensing terms registered by affiliated and unaffiliated parties before the Department of Technology Transfer of the National Institute of Intellectual Property (INPI) in Brazil between 1996 and 2012. We find that contracts between unaffiliated parties involving know-how transfer show distinctive contractual and technology features compared to the rest: (i) they involve younger but lower quality technologies (compared to contracts without know-how); (ii) they are more prone to up front lump-sum payments than royalty or combined payments (royalty and fixed); and (iii) they are more likely to be accompanied by the licensing of other IPRs, in addition to patents, such as trademarks.

Suggested Citation

  • Martinez, Catalina & Zuniga, Pluvia, 2016. "Contracting for technology transfer: patent licensing and know-how in Brazil," MERIT Working Papers 2016-065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2016065
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    More about this item

    Keywords

    patents; licensing; know-how; trademarks; technology contracts; Brazil;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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