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The Law and Practice of Technology Licensing

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CLDP conducted an Algerian program on technology licensing consisting of two phases: 1/ A four-day workshop in Rabat, Morocco, that took place in late February 2007. Based upon case studies developed by CLDP, the workshop was focused on the law of technology licensing and of technology transfer. 2/ A week of consultations in the U.S., primarily in North Carolina. These consultations were focused on the practice of technology licensing and of technology transfer. As a direct result of this program, the Algerian Government's Agency for Technology Transfer (ANVREDET) has organized an international conference for 200 people to be held May 19-21, 2008 in Algiers that will focus on research and the development of intellectual property and the creation of innovative businesses. Since this April 2007 event, the Governments of the countries involved have been actively promoting the effective enforcement of intellectual property rights (IPR). Because of their key executive or advisory positions, the delegates were all influential opinion-leaders in their respective countries. While all of them believed in the importance of the effective enforcement of Intellectual Property Rights, before the program, this belief was often a matter of principle, based upon the participants' scientific or legal background. As a result of the program, they stated that they are now both determined and in a position to make a strong case for the importance of effective IPR enforcement. They explained that they are now convinced that, without such enforcement, there cannot be technology licensing or technology transfer; moreover, they highlighted in their debriefing how impressed they have been with the fact that technology licensing and technology transfer are prime sources of: a) Local economic development; b) Creation of new firms, and c) Job creation. \ The program resulted in a progressive application of commercial law to a critical domain from which it was mostly absent, thus contributing to the rule of law in the region. As a result of the first phase of the program, the participants now understand the law of technology licensing, which was not the case at the outset of the program. (This understanding stems from the quality of the U.S. lawyer faculty, from the case studies created by CLDP, and from the fact that each national delegation included a top-notch lawyer). Each national delegation included key government officials who are in a position to make their respective R&D communities become familiar with this, heretofore, almost unknown (in their countries) domain of Commercial Law. For instance, on May 12, 2007, one the Tunisian delegates will give a conference to several dozens scientists from the public sector. \ The program is likely to result in the licensing of technologies from a few U.S. small firms to Maghreb laboratories or firms. As part of the U.S. consultations, the delegates attended the Council for Entrepreneurial Development’s 24th annual venture capital conference held in Raleigh, North Carolina. There, they had a chance to meet with more than 50 U.S. small firms, that had booths, or presented, at the conference. According to the delegates, a few of these initial contacts should result in serious negotiations for the acquisition, by universities from the Maghreb, through licensing, of non-exclusive rights to the technologies of technologies developed by U.S small firms. D. The Program Created A Critical Mass For Research and Development (R&D) In The Maghreb. \ This should result, over time, in more discoveries in the Maghreb. It should foster, too, the licensing or commercialization of these discoveries, which will contribute to job creation. According to the participants, one of the main benefits of the CLDP program was the fact that it resulted in two types of intra-Maghreb contacts that would never have taken place but for the program: Contacts between heads of public laboratories from the three countries; contacts between the latter and lawyers as well as venture capitalists from the three countries. As mentioned above, based upon these contacts, the participants formed a regional technology development and transfer network (REMADETECH). \ \ The participants consider that, thanks to REMADETECH, they will be able to exchange R&D information or pool R&D resources on projects for which there are no national interests in competition. The participants consider that this should result, over time, in more discoveries in the Maghreb. Because REMADETECH includes Maghreb lawyers and venture capitalists as well, the participants also anticipate that REMADETECH should foster, over time, the licensing or commercialization of these discoveries, which will contribute to job creation, a critical priority for the region. The program has possibly yielded unexpected benefits in terms of public diplomacy. \ The participants came from countries (Algeria, Morocco, Tunisia) all very well "endowed" with assistance from the E.U. The participants explained, however, that, only in the U.S., has technology licensing and technology transfer become a successful reality, practiced on a large scale. Therefore, the participants characterized the expertise that U.S. experts shared with them, as uniquely valuable knowledge, only to be acquired thanks to technical assistance from the USG.

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