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Technology Transfer Agreement

A Technology Transfer Agreement is a legal contract that defines the terms for transferring technology or proprietary information between parties, including rights, obligations, and protections for both sides.

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Technology Transfer Agreement

What is it 

A Technology Transfer Agreement is a legal contract that governs the transfer of technology, knowledge, or proprietary information from one party (typically the owner or developer) to another (usually a licensee or buyer). This agreement outlines the terms and conditions under which the technology can be used, including licensing rights, confidentiality obligations, intellectual property ownership, payment terms, and any restrictions on the use or further distribution of the technology. The purpose of such an agreement is to facilitate the sharing of technology while protecting the interests and rights of the parties involved.

Why is it important

Technology Transfer Agreements are important because they facilitate the safe and legal transfer of technology, intellectual property, and knowledge between organizations or individuals. These agreements protect the interests of both the provider and the recipient by clearly defining the terms of use, ownership rights, confidentiality, and any restrictions on further distribution or modification of the technology. They help prevent disputes, ensure compliance with legal and regulatory requirements, and enable innovation and collaboration by allowing organizations to share valuable technologies while safeguarding their proprietary assets.

When is it needed

Technology Transfer Agreements are needed in situations where technology, intellectual property, or proprietary knowledge is being transferred from one party to another. Common scenarios include: 


  1. Collaboration between Organizations: When companies, universities, or research institutions collaborate on a project and need to share technology, software, or research findings. 

  2. Licensing of Technology: When a company licenses its technology to another entity for commercial use, manufacturing, or distribution. 

  3. Research and Development (R&D) Partnerships: When two or more parties work together on R&D projects and need to exchange technical know-how, patents, or trade secrets. 

  4. Sale or Acquisition of Technology: When one company sells its technology or intellectual property to another, often in mergers, acquisitions, or spin-offs.

  5. Government or Academic Research Transfers: When research results, inventions, or technology developed in government labs or universities are transferred to private companies for commercialization. 

  6. Outsourcing and Manufacturing: When a company outsources production to a third party and needs to transfer proprietary manufacturing processes or technologies. 

In these situations, a Technology Transfer Agreement ensures that the terms of the transfer are clear, legally binding, and protect the rights and interests of all parties involved.

Key Provisions

The most important provisions in a Technology Transfer Agreement typically include the following: 


  1. Definition of Technology: A clear and detailed description of the technology, intellectual property, or proprietary information being transferred, including any patents, software, processes, or trade secrets involved. 

  2. Scope of Use: Specifications on how the recipient can use the transferred technology, including any limitations on usage, geographical restrictions, and whether the rights are exclusive or non-exclusive. 

  3. Intellectual Property Rights: Clauses outlining the ownership of intellectual property, including who retains the rights to the technology, any improvements or derivatives, and the handling of existing and future patents. 

  4. Confidentiality and Non-Disclosure: Provisions to protect confidential information, ensuring that the recipient cannot disclose or misuse proprietary information, and setting terms for how long confidentiality must be maintained. 

  5. Payment Terms: The financial aspects of the agreement, including licensing fees, royalties, milestone payments, or any other compensation for the transfer of technology. 

  6. Warranties and Liabilities: Representations and warranties regarding the technology, including guarantees about its functionality, freedom from infringement, and any disclaimers of liability for issues that arise from its use. 

  7. Indemnification: Clauses detailing who will be responsible for any legal claims or damages that arise from the use or misuse of the technology. 

  8. Termination and Dispute Resolution: Terms outlining the conditions under which the agreement can be terminated, as well as mechanisms for resolving disputes, such as arbitration or mediation.

  9. Transfer of Know-How: Provisions related to the transfer of technical knowledge, training, or support necessary for the recipient to effectively use the technology.

  10. Compliance with Laws and Regulations: Requirements ensuring that the transfer and use of the technology comply with all applicable laws, including export controls, intellectual property laws, and industry-specific regulations. 

These provisions are critical for defining the rights and obligations of both parties, protecting intellectual property, and ensuring a smooth and legally compliant transfer of technology.

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