Intellectual Property Disputes in Technology Transfer: How to Handle Them Effectively?
1. What are intellectual property disputes in technology transfer?
These disputes arise when disagreements occur between parties over intellectual property (IP) rights during the process of technology transfer – which may include trade secrets, inventions, software, data, production processes, etc. According to Vietnam’s Law on Technology Transfer 2017, the scope of transfer includes the mentioned elements as well as associated equipment and machinery. Disputes commonly occur when parties fail to clearly agree on issues such as usage rights, ownership, improvements, or distribution.
2. Why do these disputes frequently occur?
Unclear contracts: Many technology transfer agreements fail to detail who owns improvements, who has the right to sublicense, the scope of application, or how the transferred technology is protected under intellectual property laws.
Difficulty in damage assessment: As technology is often intangible, it can be challenging to determine specific damages in cases of infringement, making court proceedings more complex.
Confidentiality and competition concerns: These disputes often involve sensitive or confidential information, which makes parties reluctant to disclose evidence publicly.
Lack of effective dispute resolution mechanisms: In Vietnam, most disputes are still handled through negotiation, while arbitration and professional mediation remain relatively uncommon.
3. Effective Solutions for Resolving IP Disputes in Technology Transfer
3.1. Drafting clear contracts – Prevent disputes from the outset
Clearly define the scope of transfer: Clarify ownership rights, usage rights, rights to improvement, the exact content of the transfer, exclusivity or non-exclusivity, sublicensing rights, territorial limits, etc.
Include important clauses: Such as penalties for breach, warranties, applicable language and law, and designated dispute resolution bodies – as recommended by HTC Vietnam.
3.2. Prioritize negotiation, mediation, or arbitration – Efficient and cost-effective
Negotiation: A convenient and flexible approach but heavily dependent on the goodwill of both parties. Many businesses opt for this method to promptly resolve disputes.
Commercial mediation/arbitration: More time- and cost-efficient than litigation, while also preserving business confidentiality and preventing prolonged disputes. However, this method remains underutilized in Vietnam, with only around 11% of commercial disputes handled via arbitration.
3.3. When enforcement is necessary – File a lawsuit in court
Courts offer the highest enforcement authority, capable of ordering injunctions, apologies, corrections, and damage compensation. However, legal proceedings are often time-consuming and expensive, particularly for IP-related disputes.
Develop specialized legal mechanisms: Currently, damage valuation and IP appraisal processes remain unclear. There have been proposals to establish specialized courts for resolving IP and technology transfer disputes to improve enforcement efficiency.
4. Hiring expert legal counsel – Optimizing protection of your interests
Law firms specializing in technology transfer can assist with drafting contracts, negotiating deals, resolving disputes, registering licenses, and managing all IP-related matters.
Firms with strong expertise in IP consulting and litigation, including technology transfer issues, can provide comprehensive solutions from commercialization to legal protection.
Conclusion
For businesses, technology transfer is a vital driver of growth – but without thorough legal preparation, intellectual property disputes can pose serious risks. Therefore:
Draft clear, comprehensive contracts.
Proactively handle conflicts through negotiation or arbitration.
When stronger protection is needed, build your case with supporting evidence, assessments, and proceed with litigation if necessary.
Contact DEDICA Law Firm for expert legal consultation!
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