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PLAYBOOK TEMPLATES
Technology Transfer Agreement
A Technology Transfer Agreement facilitates the sharing or commercialization of proprietary technology between parties. This playbook provides guidance on ownership rights, confidentiality, and obligations to support the transfer process.
Payment and Royalties
Negotiation strategy
Ensure royalty rates reflect the value of the licensed technology and include audit rights to verify compliance. Specify payment schedules to align with cash flow needs.
Negotiate for flexible payment terms that accommodate sales cycles. Ensure audit rights are reasonable and protect sensitive financial data.
Essential elements
1
Royalty Rates
Percentage or fixed amount per unit.
2
Payment Schedule
Detailed due dates for payments.
3
Audit Rights
Frequency and scope of audits.
Action framework
ACCEPT
Propose edits if royalty rates or payment schedules are unclear or unfavorable.
EDIT
Reject clauses that lack audit rights or specify unreasonable terms.
ADD
Add clauses specifying currency terms and exchange rate mechanisms.
PRO TIP
Always align payment terms with industry standards to avoid disputes.
Example clauses
FAVORABLE
Preferred Royalty Clause
"Licensee shall pay royalties at a rate of X% of net sales, payable quarterly, with audit rights allowing annual verification."
NEUTRAL
Fallback Royalty Clause
"Royalties shall be paid at a fixed rate of $X per unit, with payment due semi-annually, and audit rights limited to bi-annual checks."
UNFAVORABLE
Unclear Payment Terms
"Royalties will be paid as agreed, with no specific schedule or audit rights mentioned."
Fallbacks
High-Volume Sales
In high-volume sales scenarios, ensure payment schedules are frequent enough to manage cash flow effectively and audit rights are robust to verify large transactions.
International Transactions
For international deals, specify currency terms clearly to avoid exchange rate risks and ensure compliance with local financial regulations.
New Market Entry
When entering new markets, consider flexible payment terms to accommodate market uncertainties and establish trust with local partners.
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