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Obstacles to Licensing know how and trade secrets

The following pierce comes from International Trade in Technology - Licensing of Know-How and Trade Secrets by Hans Verhulst, Consultant, Centre for Promotion of Imports from Developing Countries (CBI), The Netherlands. "Transfer of know how and trade secrets is not restricted to "technical" know how. Know how in each of the value adding activities is "fit for transfer". Production and logistical know how are the first choices when it comes to contract manufacturing. Companies that want to increase their share in emerging markets may opt to transfer their marketing secrets and support know how to local companies in those markets in return for a royalty on sales volumes. Unfortunately, the licensing instrument is underutilized by SMEs. For the bigger part, this is because licensors are afraid of uncertainties about the protection of their intellectual property, including trade secrets.. On the other hand, licensees are reluctant to accept the often severe restrictions that come with license agreements. These in turn are the result of licensors being overcautious to protect their interests. The vicious circle is completed. Transfer of technology can be a remedy against the problems that proliferation of production and trade has brought along. But then again, a lot of work has to be done to make the licensing of know how and trade secrets more accessible for those who need it most." To read the entire article click here.

Full post as published by The Trade Secrets Vault on November 18, 2008 (boomark / email).