Transferring technology in an environment where patent protection is uncertain can pose significant risks to an innovating firm's ability to appropriate rents. This paper incorporates asymmetric information in a screening game where the innovating firm has the choices of licensing a new product at arm's length to a foreign firm, exporting it, or licensing it to a subsidiary. Subsidiary production avoids the risk of imitation but involves higher costs for the innovating firm. The gains to the Southern country from the lack of intellectual property right protection may be offset by strategic behavior by Northern firms who opt for technology transfer via subsidiary or monopoly production.