Intellectual Property Transfer Research Articles

THE CURRENT STATE OF MILITARY AND TECHNICAL COOPERATION BETWEEN INDIA AND THE USA

The article explains why Indian market is so important for suppliers of military products. In the 2000-s a new stage of military and technical cooperation between India and the USA was started. Our analysis showed that due to contracts signed in 2006–2016 their interaction grew sharply and the USA managed to take the second line among arms suppliers to India. There are disagreements in the field of Indian-American military and technical cooperation and they are mainly connected with transfer of technology. Initiatives in joint research and development have not produced the results that might be interesting for India, i.e. the development of products having export potential. It was shown that this situation is caused by legislative restrictions existing in the USA regarding transfer of intellectual property in the field of military products. It was found out that American companies set up joint ventures with Indian firms but they focus on component production and assembly but not on finished products manufacturing, which does not correspond to goals of India that plans to become an exporter of military products.

The Tax Treaty Implications of the Remuneration as Royalties of Intellectual Property and Intangibles

The transfer of intellectual property from a higher-tax country where R&D takes place to a lower-tax country facilitates the phenomenon denominated “base erosion and profit shifting” (BEPS) and this generates a flow of the remuneration of intangibles from high-tax countries to low-tax countries. These remunerations are defined as “royalties”, but they can assume different legal forms and denomination. These crossborder flows of royalties are regulated by a host of bilateral tax treaties between OECD and non-OECD. These treaties generally follow the OECD Model, but also a UN Model exist, while certain countries, such as the U.S., adopt their own model (which does not differ dramatically from the OECD Model). In this Article the provisions of the OECD Model are used as a proxy for the provisions of the numerous existing treaties. The paper analyzes payments that are not royalties, but business profits in so far they are generated in business-to-business transaction, as well the characterization of payments for know-how in different areas. Attention is also devoted to payments for computer software, by looking at the software-related payments that are royalties because they imply the use of the intangibles, but also at the software-related payments that are business profits because of the underlying contractual configuration. Finally the paper focuses on payments for mixed contracts which may have an hybrid legal and tax characterization.

Gravitational waves discovery, intellectual property and technology transfer

Gravitational waves were discovered in the USA on the 14th September 2015. The worldwide media have presented this as a significant achievement of scientific discovery. Detection of the waves was due to the development of accurate and sensitive scientific measurement instrumentation by an international collaboration of scientists. However, patents on the detection of gravitational waves are few. Technology transfer of intellectual property by science groups associated with gravitational waves research has been identified and has the potential of yielding important spinoffs now and in future years.

Art and Archaeology

Poiesis is the simple title of the first book under review, and its front cover carries a view of that well-known Attic red-figure kylix in Berlin, ‘the Foundry Cup’, showing bronze sculptors at work. But librarians may wonder where exactly to classify Peter Acton's monograph on craftsmanship in classical Athens. The author himself is categorically unusual: a Classics graduate who became vice-president of a major global management consultancy firm before undertaking his doctoral dissertation, he clearly enjoys the transfer of intellectual property from academia to the world of commerce, and vice versa. ‘The ancient economy’ is probably where this belongs, though its most substantial case study is focused upon pottery production. Some of Acton's opening declarations are made over-confidently: that ‘craftsmen were well-regarded’ (7) is debatable, given the various literary instances of patent disregard for those engaged in ‘banausic’ activity (both concept and reality of the banausos are conspicuously avoided throughout). And there is carelessness in the presentation of details: the potter Cachrylion becomes ‘Cachsilion’ (281), for example, and the account of bronze and stone sculpture (215–25) is somewhat muddled. Nonetheless, Acton does well to insist upon a city of creators, not consumers. A famous passage in Plutarch concerning the multiple trades involved in building the Parthenon (Vit. Per. 12) implies as much, but our stereotypical image of Athens tends to exclude all workshop smoke and grime.

Innovation Output Choices and Characteristics of Firms in the U.S.

This paper uses new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011 to relate the discrete innovation choices made by U.S. companies to features of the company that have long been considered to be important correlates of innovation. We use multinomial logit to model those choices. Bloch and Lopez-Bassols (2009) used the Community Innovation Surveys (CIS) to classify companies according dual, technological or output-based innovation constructs. We found that for each of those constructs of innovation combinations considered, manufacturing and engaging in intellectual property transfer increase the odds of choosing innovation strategies that involve more than one type of categories (for example, both goods and services, or both tech and nontech) and radical innovations, controlling for firm size, productivity, time and type of R&D. Company size and company productivity as well as time do not lean the choices in any particular direction. These associations are robust across the three multinomial choice models that we have considered. In contrast with other studies, we have been able to use companies that do and companies that do not innovate, and this has allowed to rule out to some extent selectivity bias.

Open culture and innovation: integrating knowledge across boundaries

What does open source mean for culture? For knowledge? As cultural production has come to be characterized by contribution as well as consumption and as alternative modes of intellectual property transfer challenge the ‘dominant paradigm’ that knowledge and information should be protected and monetized, the logic of ‘open sourcing’ has extended into many cultural spheres. This article positions ‘openness’ as a value that intermediates between re-usable software code, institutional transparency, and expanded opportunities for participation in knowledge production cultures. By observing and analyzing the expansion of ‘openness’ from computer software to electronics hardware, we can develop a framework that identifies the tensions between socio-cultural visions of knowledge commons and the realities of governing those commons. This research focuses in particular on the knowledge related to electronics hardware and other material objects governed by open hardware licenses. The insights in this article are valuable for anyone studying open source and peer production processes and the knowledge claims surrounding them.

Pricing the Transfer of Intellectual Property as a Problem of Second-Best Tax Policy

The adequate pricing of intellectual property (IP) for tax reporting is a largely unsettled issue. Transactional profit-based are on the rise although only rated as methods of last resort by the OECD. This paper focuses on regulated profit splitting and compares this transfer pricing rule with one allowing multinationals to price IP freely subject to the constraint that the price used for tax reporting is also used internally. The standard of comparison is global efficiency in R&D. The model is one of second best. It allows for internationally differentiated tax rates and non-deductible effort costs in the production of know-how.

Localization Barriers to Trade: Threat to the Global Innovation Economy

Countries’ use of localization barriers to trade (LBTs) — policies that seek to explicitly pressure foreign enterprises to localize economic activity in order to compete in a country’s markets — have grown dramatically. But LBTs such as forced local production or forced technology or intellectual property transfer as a condition of market access harm the global innovation economy, the countries affected by them, and even the very countries that implement them, all while detracting countries’ from focusing on implementing productivity and innovation-based policies that could deliver stronger, more sustained economic growth. This report documents the growing global use of LBTs — and explains what to do about it.

International low carbon technology transfer: Do intellectual property regimes matter?

Transfer of low carbon technologies to developing countries has been recognized as important in global efforts to limit climate change. Yet the mechanics of international technology transfer, especially around intellectual property rights, have remained a controversial issue in international negotiations. Using a new dataset on international partnerships in China and India in three key low carbon technologies—solar photovoltaics, electric vehicles, and coal gasification/integrated gasification combined cycle—and complementary expert interviews we study the dynamics of the transfer of intellectual property and the underlying drivers that guide the development of business strategies and partnerships in the context of transitioning intellectual property regimes in emerging markets. We find that weak intellectual property regimes are indeed a hindrance to the diffusion of certain classes of low carbon technologies: (i) for cutting-edge technologies, (ii) for fully-embodied (explicitly codified) technologies, and (iii) for small firms. However, we also find that intellectual property issues do not represent a barrier to the diffusion of the relatively mature and low to medium cost low carbon technologies that are materially (at scale) most important for carbon dioxide emissions reduction in the short to medium term. Competitive technology supply, shifting market dynamics, and increasingly vigorous domestic innovation coupled with mechanisms and opportunities to structure credible intellectual property deals allow for the diffusion of key low carbon technologies to occur within the context of existing business, political, and institutional structures.

Technology Transfer From Biomedical Research to Clinical Practice

Studies documented 17 years of transfer time from clinical trials to practice of care. Launched in 2002, the National Institutes of Health (NIH) translational research initiative needs to develop metrics for impact assessment. A recent White House report highlighted that research and development productivity is declining as a result of increased research spending while the new drugs output is flat. The goal of this study was to develop an expanded model of research-based innovation and performance thresholds of transfer from research to practice. Models for transfer of research to practice have been collected and reviewed. Subsequently, innovation pathways have been specified based on common characteristics. An integrated, intellectual property transfer model is described. The central but often disregarded role of research innovation disclosure is highlighted. Measures of research transfer and milestones of progress have been identified based on the Association of University Technology Managers 2012 performance reports. Numeric milestones of technology transfer are recommended at threshold (top 50%), target (top 25%), and stretch goal (top 10%) performance levels. Transfer measures and corresponding target levels include research spending to disclosure (<$1.88 million), disclosure to patents (>0.81), patents to start-up (>0.1), patents to licenses (>2.25), and average per license income (>$48,000). Several limitations of measurement are described. Academic institutions should take strategic steps to bring innovation to the center of scholarly discussions. Research on research, particularly on pathways to disclosures, is needed to improve R&D productivity. Researchers should be informed about the technology transfer performance of their institution and regulations should better support innovators.

The Economic Impact of Bioscience Connecticut

This economic analysis demonstrates the substantial benefits Connecticut enjoys from implementing Bioscience Connecticut; these benefits flow from construction, subsequent operations, and the generation and transfer of Intellectual Property (IP) to Connecticut start‐ups and existing companies over the eight years of construction and initial twenty years of operations. The analysis covers: design and construction, recruitment of new personnel, expansion of research and development (R&D), establishment and expansion of stage one through to stage four clinical trials, expansions in both medical and dentistry enrollments resulting in establishment of practices by these new Connecticut graduates, and the economic impacts of spin‐offs and transfers arising from the incremental biotechnology scientific base. In this manner, the analysis captures the impacts from fifty additional, higher‐earning med‐surgical beds, of which ten are net gains in beds to John Dempsey Hospital (JDH), after transferring forty neo‐natal beds to the Children’s Hospital. This study also captures future revenues that will flow from expanded clinical trials and intellectual capital in biomedicine and bioscience the new clinical and research staff create, independent of additional industry spin‐offs.However, this study does not incorporate amenity benefits such as the enhanced delivery of medical services and improved health benefits flowing from research‐based innovations. Excluding these benefits from the analysis — benefits historical experience clearly reveals this initiative will generate benefits which are difficult to quantify before the fact, and clearly results in a significant understatement of the total benefits that the citizens of the state will enjoy in terms of health, new jobs, rising incomes, economic growth, and new tax revenues.

An introduction to entrepreneurial separation to transfer technology programs

There is an ever increasing interest in the development of within firm mechanisms to augment the transfer of intellectual property from laboratory environments to commercialization. The Federal Laboratory System is an example of where policy has recently been developed to strengthen their efforts in the technology transfer process. Entrepreneurial separation to transfer technology programs (ESTT) represent one mechanism that laboratories have to assist with the transfer of intellectual property across boundaries, especially in situations where initial efforts at commercialization have failed. However, no formal research exists on the effectiveness of these programs as a boundary spanning device. This work is based on a preliminary study in the ESTT domain placed in the technology transfer body of literature. In depth interviews were conducted with four organizations, along with a review of more than fifty organizational policies in order to develop an initial framework of ESTT programs. We introduce the concept of ESTT programs and discuss how inventor motivations and characteristics of the invention itself might influence the success of ESTT.

Evaluation of public research by Japanese industry: the importance of knowledge transfer pass on public-private research collaboration

Due to the recent trend towards the incorporation of increasingly advanced and complex technologies in high-tech products and services, the full benefit of these advanced technologies cannot be realised without access to adequate science-based knowledge. Consequently, the distance of university and industry has become closer. This paper focuses on recent trends in public-private research collaboration in Japan and examines the importance of information sources/activities from public research by assessing the results of a questionnaire survey for the industry. The main findings are that 'discussions', 'cooperative research with the public sector' and 'publications from public research' are the most useful information sources for industrial R&D, while 'patents/licensing from public research' are the least. A serious mismatch is seen in incentives between the public sector and private sector on publicprivate collaboration and intellectual property transfer system.

Transfer Pricing Treatment of a Business Restructuring from a Danish and German Perspective

Denmark has introduced valuation guidelines and Germany has implemented transfer pricing rules which are relevant in business restructurings. Although in both countries the focus is on the transfer of intellectual property, there are differences, specifically reflected in the valuation approaches.

Department of Justice Investigation of Orthopaedic Industry*

The U.S. Department of Justice investigation of orthopaedic industry changed the business model of orthopaedics in the United States. Collaboration between orthopaedic companies and orthopaedic surgeons changed, the process of developing new orthopaedic products changed, and industry funding of orthopaedic activities and orthopaedic professional organizations changed. This article reviews the Department of Justice investigation of orthopaedic industry, describes the response of multiple stakeholders, and assesses the impact of the investigation on orthopaedic companies, orthopaedic surgeons, and orthopaedic patients. In March 2005, the U.S. Department of Justice, District of New Jersey, launched a federal investigation into financial relationships between orthopaedic companies and orthopaedic surgeons. The U.S. Attorney for the District of New Jersey, Christopher J. Christie, alleged that orthopaedic companies provided improper financial inducements to orthopaedic surgeons to use their products. The alleged inducements included consulting agreements for questionable work, royalty contracts without transfer of intellectual property, trips to luxury resorts for continuing medical education, expensive meals for medical lectures, inappropriate gifts, and payments to surgeons for using specific joint implants. U.S. Attorney Christie claimed that the orthopaedic companies violated federal Medicare-Medicaid Fraud and Abuse Anti-Kickback statutes (anti-kickback statutes) with these activities1,2. The anti-kickback statutes prohibit offering, paying, soliciting, or receiving “any remuneration” in exchange for referrals of any goods, facility, service, or item for which payment may be made under Medicare or Medicaid3. Both the payer and the person or organization that receives the payment are equally culpable; the statutes authorize civil and criminal penalties for parties who offer or receive payment to influence any person to purchase or procure any supply or service that is paid for by the federal or state health plan. The anti-kickback statute's definition of remuneration includes “any kickback, bribe, or rebate [offered] … directly or indirectly, overtly or …

The Valuation of Technology-Based Intellectual Property In Offshoring Decisions

Businesses engaging in outsourcing of professional service activities to organizations in foreign countries have focused primarily on the issues of cost and the number of jobs affected. However, significant transfers of intangibles occur in many service-based offshoring arrangements as well. Some of these intangibles are considered to be intellectual property (IP). The transfer of intellectual property that accompanies such offshoring arrangements can have significant value, making it important to understand risks of loss, obligations of taxation, and contributions to the profit-making potential of an enterprise. Software is an important and often under-valued component of such transfers of intellectual property. This overview paper offers an interdisciplinary examination of intellectual property valuation issues and a business perspective for considering software valuation in the context of offshoring decisions and practices.

Foster’s and the Authority for Advance Rulings: Overview and Commentary

This article reviews the Foster’s Australia Ltd ruling in India, which considered the taxation of proceeds from the transfer of intellectual property. In addition, the author provides extensive commentary on flaws he perceives in the decision of the Authority for Advance Rulings and proposes a contrasting approach to the issue.

Offshoring and Transfer of Intellectual Property

Offshore outsourcing of work to support software development and services is seen primarily as a transfer of labor to another shore. But with every outsourced job, intellectual property is transferred as well. Such transfers have significant long term effects on the balance of intellectual property (IP) generation and consumption. The value of intangibles is based on the income that these intangibles are expected to generate in the future. This paper relates the key issues of IP found in software, an important intangible, to business models used for offshoring. The use of a quantitative model for software valuation allows formal exploration of business alternatives. The motivation for this paper is to increase the awareness of the need for software valuation when developers of software and the users of that software reside in different countries. A scenario that involves Controlled Foreign Corporations as the mechanism for IP transfer is analyzed in detail.

Factors affecting biotechnology innovation in Canada: analysis of the 2001 biotechnology use and development survey

Advancement in biotechnology requires continued innovative activity by firms. To grow, biotechnology firms must understand the factors affecting their innovative activity. Such understanding also informs policy makers, and supports the development of policies promoting one's biotechnology sector. This study explores factors, which determine innovative activity within the Canadian biotechnology industry. Innovative activity is measured as the natural log of the number of products/processes a firm has at different stages of the innovation spectrum. A model is developed to regress this measure on several determinants of innovation. Significant drivers of innovation include: collaborative arrangements, transfer of intellectual property, firm size and age, whether the firm was in the agricultural or human health biotechnology sectors and whether the firm focused on development or commercialisation. Generally speaking, these factors all contributed to firms having more products/processes either under development, undergoing clinical trials or regulatory approval, or on the market.

Offshoring and Transfer of Intellectual Property

Offshore outsourcing of work to support software development and services is seen primarily as a transfer of labor to another shore. But intellectual property is transferred as well. Such transfers have significant long term effects on the balance of intellectual property (IP) generation and consumption. Software is such an intangible good, and the value of intangibles is based on the income that these intangibles are expected to generate in the future. The paper presents the relationships of IP residing in software to the business models used for outsourcing. The use of a quantitative model for software valuation allows formal exploration of business alternatives. The motivation for this paper is to increase the awareness of the need for software valuation when developers of software and the users of such software reside in different countries.