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Regulations No. 121/1993 on Transfer of Technology of the Council of Ministers, Ethiopia

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Latest Version in WIPO Lex
Details Details Year of Version 1993 Dates Entry into force: July 31, 1993 Issued: July 31, 1993 Type of Text Implementing Rules/Regulations Subject Matter Patents (Inventions), Transfer of Technology, Industrial Property

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Main text(s) Main text(s) Amharic Regulations No. 121/1993 on Transfer of Technology of the Council of Ministers      English Regulations No. 121/1993 on Transfer of Technology of the Council of Ministers        

hlJlI .MU/\. tJft

'1',;1

Adclis Ababa, 31st July

4'1

1993

53-

U·I\. ". '}OD-r """'rc !le

52nd Yar No.

_._--_ . --. . --------.. _.

f h. -}-,. It, f 7i -, '" I: (10"}..,,.· .).

,;J It flJ

E-G A RIT GA ,ZETA

OF THE TRANSITIONAL GOVERNMENT or ETH\Oj:)IA

CONTENTS

I.

Rl'l!ulntion No. 121/1993 Tran.fer of Technology Council of Ministers RegulntiOIlB .... Page 424

CUUNCIL OF lIl\:ISTF.RS REGIJ LATIONS No. 121/1993 , COUNCIL 0'" MINISTERS REGlILATIONS TO REGULATE , TilE TRANSFER OF TECHNOLOGY

Th{'se Regula tioD!l' are issued by the Council of M inisters pursuant to Ar ticle 4l2J of the Definition of Powers and Duties of the Prime l'IIinister and Council of Ministcrs Proclamation No. 2/199I and Artide 23( 4) of the Eneouragcmeut, ExpaD!lion and Coordination of Iuvestl;nt I'rocla,mation No. 15/1992.

PART I

GENERAL

1. S"ort Title
These Regulations ma y he cited ao thc "TraD!lfcr of
Te{'hnology Council of Ministers RcgulutioWi No.
121/1993".

2. De/initioru

For the purpose of these Regulations, the following con· cepts and words, shnll have chq meaning provided hereunder:·

I -"ngn'Nllcnt" menn. technology trnnsfer agrecment;

2. "pally" mCDns a ,;erson participating in a technology

transIer agreement either lIS supplying party or as rt'ceh'inl! party;

Negarit Gazeta -No. 53 31st July 1993 -Pogo 426

5. m'llUf/' Seftlemflnt

Parlics IIIl1y agree o IIImlc .iisl'u\.el! ,.... ,ng in ">I",.:.;tion wilh lechnology transfe agreement by direct lIt'gol;atiollll

or in accordance with rules and procedures of "flllCililltion and arbitration.

6. Form alia lAlnguugll of Agreemenls

], A IPchuolog), Irander ng.reemcut shall IN" J)ll.Jn in writiJig.

2. The language of the agreement sOOIl he Enj!lir.h.

PART 11

CHOICE OF TECHNOLOGY AND ADVISORY SERV1C.

7, Choice of Technology

1. The choice of l;chn ology or of specific tedllldugical

..,nj"e shall ,, made by the recciV'in,: pnrh,

,

.) !\otwithslanuingthe provisiolls of s.arlicle (I) of

;

Ihis Article. tbe cboice of Lcehnolo,:y shall])I; .unde

by giving due nsideration to the need, " .. ;tRhility

and non-ob!loleseeDcc of the technulogy. In !.urlif!ular,

altention shall be given whether the technology:

n J contrwules to tbe promotion of Ih.. I :.>Hlltry'a

economic policy nml Jc\'e!opmcnl "IIUI' :3i.,.,;

b) answers immediale n!'eds. Inking illlo "etuWll the gap belween the' rcquiremelll,; of j"'«'III"lOnl Blltl n/ltiow.1 technological eOINlIJilily, •• r

e' NJlllrihuteo to the dc\'eloplIIent u{ .1111;"",,1 ,,.!b

nical or tlcicnti£ic know how .

8 _ ,4dl'isory ServiJ.:e

Tbe qffiC'{" dUllI upon ",-qucl, ndvise the wceh,j,ug !""tftJ 0" Ihe choice of technology. a!'o!'ist i.. Ihe nt"L"<l!rinlioDll,

nnd the prO\'iion or inf;'rrmrtioll 011 l.hcrnalin· "'IIH"!'S 01 Icchnology and other relaleq mnller.!. I

PART III

EVALUATION, APPROVAL AND REGISTRATION OF
TRANSFER OF TECHNOWG¥ AGREEMENT

q. (;!'fJunJ for Evaluation Takillg into Il!'COUlIl the fnd thlll "",.. il, of .,."ll1afi" .. eril..ria vary d"1""nriing 011 Ihe type /l1If1 lIult,,'.-of rho Il"!'hnology under ooderlltion. lh" offirr .. iII ."."Iollto 1 .... lmology lranfer reemnt in "OOI",ral ion wilh "')1)1>01'

n''11 offiCCl! and on Ihe basis or thl' followinit 1""vHo05 ond othcr relevant laws.

10. l)elcriplion alld llemiztJcion of Teclllw{oB) 1/ The agrtlement shall, to the exlcnt IHIIt!Iit:llbk. IWo

lain detailed descriptiOn of Ih.. technolol%Y Ib". "l'O rorreot Rnd romI'll"" for the purpose of thr "".mt'nt. In particular:

Negarit Gazela -NJ. 53 3bt July 1993 Page 427

11 ) (b" technological eonlent Dnd the principal lentun'S of 11le technology being acquired; the anti. cipaled "roduction to be ocquired and tbo quality rand spooi.ftion of products must he dcfincd in detail.

hi "lIr(ie\llllr or Ih., 1 • ..,h .. j",,1 OI\.,1..luII"" IllId 11", srrvic(' 1'0 I't'udrred 'by the supplier aud the manner in whieh tbe tecbnology and tbe techui. t:al ser\,jc should he prodded must be clearly

identified.

c) tht" relevant teelmiool documents and other <Win required from tlw.supplier to use the technology should be specified.

2, Where the ugreeltl4'lII, -eof,ists of different c1emenIR, il shall specify each of the elemenb 'involved and .heir ,olues.

11. Ou'n""lIiJ> and Validity of indll.Jtrial Pperty' (Uld Third Pary' CkxirM

1. tbE' supplier sha¥ usure thot it .is 'the owner 'Or

entitled transfe)c

.2, the suppliE'r shallguomnret' for the duration of the

contract that. to thE' 11<'51 of its knowledge. third partit't! shllll have no rigfl! 'in the induslril prnprrly right which would 'Juf'"ent or limit ils cxploitotioll by the receiving party.

::I, the agreement shnll exprc.;.<ly stole that 'lilt! suppJiC1' shall he liable Ior the infringement of iilldUBIl'inl property rights' of thin! parties.

1.2. SuimbUiJy lor Use Tbe wpplier shall guaranlee that the technology, if used in aooordnnce witb his specific instructions given pUr-IU' ant to the agreement, is suituhle for manulacturing of goods or rendering of !!en' U . agreed upon b1 tbe panies and stipulated in the agreement.

13. Confidentiality

1. 'hf:n tbere is an obligalion of eon£id.ence thnt r•. 'I, ricts fl'ft' UI!IC or disclosure of toohllology 'in or ('mon· a1ing from thd iigreement. the duty of obligation .shall terminate if:

It) tbe technologool infOllllBtioll has .becomc pon

of the public' dmain independenUy 'Of the ,recipient; or

I. b) the recipient was in possession of the technologi.

cal information independently of tlle supplier .. at the time of acqui5i.tion

2. The restriction ';t use of technology .hol1 also be termiualed where the agreement .is expired.

16. Traillillg 01

,

Ihe ogreement shall pl'Oyide that, upon request of tho recipienl, Ihe supplier will provide adeqWlIl' training

fhl' It'ehnolof,'J trnnsferred for the recipient's pCl'llOn· lIel designoted by him.

2. III such 0 ca-I', the '1uolifit-atiolls of the per"'JJ1Ild to I ... Imined. Ih .. fields of fl;lilling. 'Ihe m..flwd, dll.ra. lioll alld ploe," of IIl0ining, limeloble for ,'urryilll.l Ollt Ihe Iroining programme. nlld olher relevulIl dolJlliis .hould he worked oul.

1i. I'ruisioll 01 Accessoriu, Compmumts and Spare Furt.,

I . Where the supplying porly is the mujor or sole sup· plier, he shall furllisb the recipiellt for 11,,, period

pceificd in Ihel agrecDll'nl. with uecessories. spare

parts and "omp,menls thal ore neccssory for using the Icchnolog)' ID be ,transferred.

In sud,' ,'n"", shall provide 111A1 thc prices of the said articls should not be higher Ihou 11 ... ellrn'nl inl .. rnnlionnl price lends.

Ill, V"fllil)' SllIIu/ard,

·In "i1"",-,.I "'re Ih.. IIgn'III"1 ; 11 "'"d,·. the ">0<; nr Iho ""I'pli...., Irmlf',"n,·k., tradl" TlllllleS or similar idelllifieali· nil of It"od ... ill. Ihl' ogr<'elIIf'nI shall provide with the dllli"" of Ihl> I'arti... 10 "b,"-'f\'c Ihe ogree,l qUIlJily I"vds.

IQ. /'". ul 1.111'1" /{"_'"l1rt"'S alld L,",O/ l'erSIJIIII"[

I. Tht-pro

\ i,I" ol)",.",ise Dnd ",t1>Sf'r ;lIdlllliug of ",uit

Negarit Gazela -No. 53 -31st July 1993 -Pag 429

!

2. npplicnble. there 'Sholl be a provision on the we of locally avnile:ble UlteriaJB. technology, techni. eal skills. nsultany ad engineering l!I!rVices and otller resources to be indicuted and tiubscqucntly made available by the recipienl.

20. Payment ObliBfUiOll$

1. tt,ehnoJogy may .he paid on ·the basis of a lump.sum,

·

myoltit'S, or a eomLiwiuon of these two elemeuts or on the basis of' fees filr technicaJ aervices· u the

ca.oe may be.

2. the agreement shall sp.ciIy the form and procedure

of payment as \e1l u'the currency oC pa yments IIInd

I

Ilriee indexation.

3. th!.'", shall be no fed inimum royalty payments.

·

'1. the agreement shall provide tbat payment obLigatwll terminate when inoustrial property rights :have expired or bave bceninvalUlaled, when payment ill bllSCd Ul.l i..U;: c.:m'i."lu:!u exc,h:uec of the;e r;gb!t 'Il!: Ihol

I .

.

parties rcn(!gutiule Ihei payment obligotions, wbl'rt,

technology consists of':"

and know how <lnd pa'it of tile technology tronsferred

I .
is no longer .aJid:

21. Evuiualion 0/ Payment

1. In evaluating aymenl ohligatiollS. tl,,· um"" HIlly consider: I .

). whether tbe Illultual ooligations of tbe portiCll aI'e in conform'; with the normal practice bet ween . indepe8deJ\' persons end Ihe consideration is in proportWIl:ltI Ihe technology transferred, or

b) the Iype of production or seclor oC aelhily, the , value of producliu and related maLLcrs 10 dcler· mine the msolel1c8S of luinp-suni and tI",

e

]'('curringiroyahy, if, any, ·is an acccl'lJIIlJlc llral"'" 0011 of t6e folue ut producliun IllltI ('OU1l11l'nsurale ,with the lechnology to be Ilcquired

.2 . hn th" l'W"P uf die ptmiSlUlI of th" ..u1.atl'ck

(1) ofthi& ArLile, tbe following criterw may he

considered:

the degree of lechnological innovnIion , IIsspssed on the basis ollhe length or dOl" Cor what it has been known and u.sed;

b) the degr;ee of technologit-ul L'Omplt'l-ily hy ,,"Illparing it. whenever po5Sible, withj teiihniques ontI

proces!le!l u {or the IIIlme r.urr!:· whelher hy

tlte same !,upplier or other ul'pli"ts;'

1.') Ihl.' 'jllolity 81andurd of Ihe producl obtained in "l'plieIlJion of the lechllology. in tbe context of the mark8l;

d) whether there is a steady follow up. supply of 111"1...<101" leclmologiml infWlIIlllion Ilnd .1nlo. l."l'l'<·inlly ill tbe eDSC of D' sector ill whi,'" tl ... te('\mology is dYDIIllnie. in olher words, ol1e that is subjcct to eOllt inuou.' d, ...clopllIellt and the innovations cannot be proleoted1

e} the replltotion end imporlance of tile supplier in the sector;

f) t h supplier's re.!!eafch and development ellpabi. lily;

g) the type of prodUCI Or !!Celor oC oelh'ily inlenu.s of Ihe degree of ,essentiolity;

hI the leugth of time required for Ihe complete lronsf",r of Ihe I('cnology and for il full assi· miIalion by the recipienl.

:1. E, aluatiull of paymd 1 I!halI he mode in cOlIsultllliun with the appropriale authority.

22. ApI>rut'u/ und liegislr<lfion <if Agreelll'mls

I. Th., office shall renuer illS dedsion of uPI'fm',,j or rejCl'tlol1 fo ",'glslroti";, or th" ngrcellll'lI! "ilhill " period of 30 days kern the <laIr of recei'pl oC (be application.

:3. Tlte decision of the office rejecting the registration of Ihe agreement shall stole the reason:; ru,' "url, rejection in writing.

3.
Lt-registered forthwith hy the urnce.

·1. t;I'UII n'gilrotiul\ of 1he agn-mllellt, Ihe
inllllcdiotciy issue 8
npl'licllnt nud notify the Sllllle
of Ethiopia.

23. Gruullds for disapprf.lval and

1. The Office shall. depending of technology. refu to 0Pl>rtn'c IIl1d to ]'(-g;1'". " lIl('nls, involving the Inmsfer where:

a) rNlrictioll5 lire ill1pol'd 011 r!'Sl'llr..h lopment adoplion ond modification hy the recipient! in ooml'lltlion log')' l"lnSCerreti;

b) tbe tcchnology to be t!1lnsft'rred is I"'!>' et! 'u I ... 01."-011.'1.. and/o: )-o"suitllolt. or 1I\'nilllhl,· in Ethiopia;

c) "bne the agreell1cl!t inl'ludes c1anse!' I ),nt euuole

Ih", lechnology supplier direclly or indir('{·tly 10 c'ontml or to ,ulrrvene in 'Ih.. mnllug"ment of lbe recipicllt;

the agreement oontaius ohligal ion I .. IrulIsfcr or
10 use illdWllfial property ight8 or illll'/"O\'(,III,-"II"
ouw;'led by the technology fM.:il'i(,lIt. wilh 'or
without compen.Dlion,

of informalion '.embodics an el"ment oC 1"cil'ro.

rity or on 8danlage 10 the recil,ienl;

Negarit Gazeta -Nu.. 53 3lat July 1993 -Page 431

" __ _ .

e) the lIi i. [hed [or unduly long duration;

r) the asreement oontains cJalUell prohibiting, or t1III.ri.ctives without valid gtounds, the WIe of oomplemenlllry technology;

g) the recipient is required to obtain equipment, tools, sp or raw mater.ials exclusively from a apecilied sOUl'Ile, when alternative supply lIOur_ or faeilities exist on the national or inter· Djttional market !IT to ccept additional teclmo-" Jogie1l, rr.tu inventions IInd improvements.soods and llervices not wanted by him;

production volumes arc limited or sale or resulc prices an\ imposed on the reoipients national production'" or rts

i) Ihe recipien,t

'by the tloIr supplier. [or a definitc or indefinite periOd Or time. except in tbe absence oC Ethiopia, technical' pet!IOIIlIel t:raiDed in the bo...-;IOOge.and Qpe1'lltion f the technology to be tl:anIIlemed.;

j) the rceipicn( is .fC'luircd to colltiludt, exclusive wet! or rel,aI:iOlL contracts with the technology supplier. cept' in Ihe cos!' of exporl,

provided 'tMt the renipient acceJlt:!.llU' ",qwrl"

menl ·tlle pl'lier has.,atlequatc machinc.cy at his dispoSal 91' lbat he enjoy!' the' net'esSlll'y oommerejal ffpl(.totion to carry out the market· i.ag of the pods under better 1lOJldiDons than the

recipient;

1;.) the supplying parly by WCllns uf quality clonlrol or prescription ,uf standards seck.!; 10 impo-:!C un· neeesl'4J'y aDd onerous obligation on the recipient;

I) the export of goods ur services produCl'd by the '

M'Cipif'11t is unreasonably prohibited or Te!llrietcd;

m) the agreement ,jl'Olllains the obligation to !lCll the go,ods produeed by tilt> recipient to an exclu· Sive client;' , .

I .n) the payment lM; JlO relation to the technology acquired or coll,etitutes an unjustified or e:xees>live encumbral fOf the national economy or [or the v:ing party.

2. Without prej'llwFe 10 the provisions of suh-articlc (I) nf tbis Article, 1£ the OClicc cuD9itlcrs that the tcrmsof the agreentt DJ' the technology to be tra.nsferred it co ntrary 10 p(ililic order or the nationol ' interest, it .hall I!'xpl't"Sl,. 80 AtIItc. Dnd shall deny approval aDtI rt"giflll'lllion.

Negorit Gazeta -No. 53 -31s1 July 1993 -Poge 432

3. Nol ,"ill1Slondill Ih.. nhovt' l'riviion or .ul..orl;,·l" (I) of lili, Arll"l". In Oil" ""l«! if 1111' Uff;"t' j" Rllli.fit'll

.

. Ihot il would .be in Ihe nolionol interest sn 10 do. if"

lI11lY "I'prove oud rei.lt'r Ih" "grt>ClIlellt.

24. Ef/crl.' ,,/ /(t',;tlltlliulI A h'ehof)!/\g Imnsh'r Ilgtl't'm('nt which i.• 1101 r"gi,[I'rcI' in uC('onlanec wilh Ih're regllolioll., ho. 110 legul cH..cl.

I

25. CllIIt'P/!"ri'.1I of Hpg;strnt;oll

I . ,. here Ih" Offict, is sllli'fid thnl IIn)' :Irt'''\lI('nl Iws, 5uh,"<tl1enl In the regislrolion Ihereof. heen oDlelllled or lIlo"ifi"Il, ill l'UnlnlH'nlioll III Ihe 11TO'·";Ofl. of II",,'{· Hf"l!lalin',I';. II hnlt Ilh( unlie.. in wrilifl 10 tfl('

;).

Il!O,,'/TO/l1M; AM) IEl\'EIFAL Of' 1'ECllNOLOGl 7'RANSf'ER AGREElIfENT

26. 'J/olli!orillp

1. ,The Offi,,!' ,Imll. in C(I.opcmlioll wilh "l'l'mpriotP !'lIthol'ilico. IllOoil",. the implementAtioll" or !lie I('rms :11111 "OIltJi i 'nn, gJlct'ifh'II il; 0 teehllolog) t rUI"rcr urpcnl(nt .

I) pI'S oncl 111011..':5 of D1onilorillg.

3. Tit. Offi,'!' ,holl r"'I,iir(' I,rngn-" rl'l,,"I"_ within " )lrio<1 pr<'ified d"l'cntlinp; nil 11", In'" lIf Ih,' Ilrt:t'>

.

1l1Clll.,

4, Tit!" Tt'p"rI thot wTll he lIllJnill",1 tu ,I"" Of!i,.., 0' prr 11", Irll"irrl1lCllt or 8uJ,·t\rliPl" (3) of this Arti!'!e hre'inabO\I' holl conlnin:

8) Ill!" bt'nrlil' "Ni,,,d from 1111' .p.·..in,· Irdlllolog) Ir"!l.frrr...! illdudinl( m'w "cvel"l'lII('nls ami illl' prowml"nlS derived Iht,,!, from:

b I Ihl' ",·tlvili,·, nncl ",nice. n'1II11'1'<'I1 by ony IIlh·i. '''r' ur "'ehnirn; foreil:n 18rr nn,1 Ihr programme of troilli,, ullderlolcn wilh Ihc vi!"" of Aubstilul· ing such "",rvices by nalional Slofr;

c) Ihe 511'1"

lokell OU Ihe CllIhlisluncllt and odhilics or research and dC\'c!opmenl:

d) tl... mrn.ures underlskeu on the "hsorptlon ond ...Iaplalion or Ihl' lronsfl.'rred teehllology; "',.!

(') any olhn relc\'sll! maller concerning the Imlll' fnrpc Il'chllology and rt'lated iss\le.

Ne(larit GamIn No. S3 ,Ullt July 1993 Page 433

    1. Rcu",tlu[ 0/ Aw-f.elllent Th" Uffice JlUly, upon request of the reeipient party and in consultntion with the nppropriate Iluthority, consider and deeide DppJicDliop for renewal of technology agree
    2. ments.
  1. Ellectite Date Thes... Regulations !!hall come into force on tbe dale of their PubJieatioD in t Negoril Gazeta.

Done at Addis Abaha.thi.t 31st day of laiy 1993. TAMUT LAYNIE .PIlIME AUl'dSTER (IF THE TRANSITIONAL

GO\,ERNMENT OF ETHIOPIA


No data available.

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