{"id":699,"date":"2015-12-17T09:22:13","date_gmt":"2015-12-17T09:22:13","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=699"},"modified":"2020-10-16T05:58:55","modified_gmt":"2020-10-16T05:58:55","slug":"guidelines-for-foreign-collaboration","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/guidelines-for-foreign-collaboration\/","title":{"rendered":"GUIDELINES FOR FOREIGN COLLABORATION"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>GUIDELINES FOR FOREIGN COLLABORATION<\/strong><\/span><\/h2>\n<figure id=\"attachment_3132\" aria-describedby=\"caption-attachment-3132\" style=\"width: 725px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/12\/ENTRY-STRATEGY.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3132\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/12\/ENTRY-STRATEGY.png\" alt=\"www.caindelhiindia.com; ENTRY STRATEGY \" width=\"725\" height=\"483\" \/><\/a><figcaption id=\"caption-attachment-3132\" class=\"wp-caption-text\">www.caindelhiindia.com; ENTRY STRATEGY<\/figcaption><\/figure>\n<p style=\"text-align: justify;\">Guidelines to be considered in connection with the formulation of proposals and agreements of foreign collaboration:<\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #993366;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Alternative sources<\/span><\/span> &#8211;\u00a0<\/strong><\/span>The collaborator should explore, to fullest extent possible, alternative sources\u00a0 of technology, evaluate them from a techno-economic point\u00a0 of view\u00a0 and furnish reasons for preferring a particular technology and the source of import.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #993366;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Other\u00a0 arrangement<\/span><\/span>\u00a0<\/strong><\/span>&#8211; There\u00a0 should\u00a0 not be any restriction on the Indian Company in the matter of procurement of capital goods, components, spares, raw materials, pricing policy, selling arrangement, etc.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Sub-licensing<\/span><\/span>\u00a0<\/strong><\/span>&#8211; The\u00a0 Government\u00a0\u00a0 expects that the technical collaboration agreement should generally not prohibit sub-licensing of the know-how, product-design or engineering\u00a0 design under agreement, to other\u00a0 Indian parties. Such sub-licensing, when\u00a0 it becomes\u00a0 necessary, is subject to terms\u00a0 to be mutually agreed by all parties\u00a0 concerned, including the\u00a0 foreign\u00a0 collaborator, and is subject to the approval of the Government. The\u00a0 collaboration agreements should not place any export restrictions to countries except where the collaborator has a sub-licensing agreement.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong><span style=\"color: #993366;\"><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Minimum royalty<\/span><\/span>\u00a0<\/span><\/strong>&#8211; There should be no requirement for the payment of a minimum guaranteed royalty\u00a0 regardless of the quantum and value of production.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Exports<\/span><\/span>\u00a0<\/strong><\/span>&#8211; To the fullest extent possible, there should be no restriction on free exports to all countries.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong><span style=\"color: #993366;\"><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Brand<\/span> <span style=\"color: #ff6600; text-decoration: underline;\">names<\/span><\/span>\u00a0<\/span><\/strong>&#8211; There should be no provision for the use of the foreign brand names on the products for internal sale, although there is no objection to their use on products to be exported.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Training-Research\u00a0and development\u00a0<\/span><\/span><\/strong>&#8211; Adequate and suitable\u00a0 provisions\u00a0 should be made for the training\u00a0 of Indians in the fields of production and management. There should be\u00a0 adequate arrangement\u00a0 for\u00a0 research and development, engineering design, training of technological\u00a0 personnel, and other measures for\u00a0 the\u00a0 absorption\u00a0 and adoption and development of the imported technology. Such measures can be\u00a0 undertaken\u00a0 through in house facilities\u00a0 of the entrepreneur or\u00a0 in collaboration with\u00a0 recognised\u00a0 engineering design\u00a0 consultancy, research\u00a0 and development organisations in the public or private\u00a0 sectors, and recognised\u00a0 scientific and educational institutions\u00a0 where the necessary facilities exist.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"text-decoration: underline;\"><span style=\"color: #993366;\"><strong><span style=\"color: #ff6600; text-decoration: underline;\">Consultancy service<\/span>\u00a0<\/strong><\/span><\/span>&#8211; In case any consultancy is required to execute the project, it should be\u00a0\u00a0 obtained from an Indian\u00a0 engineering\u00a0 consultancy\u00a0 firm. If a\u00a0\u00a0 foreign\u00a0 consultancy firm is also considered necessary, an Indian\u00a0 consultancy\u00a0\u00a0 firm should, nevertheless, be the prime consultant.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Patent laws<\/span><\/span>\u00a0<\/strong><span style=\"color: #000000;\">&#8211;<\/span><strong>\u00a0<\/strong><\/span>If the proposed\u00a0\u00a0 item of manufacture is to be covered by a patent in India, it should\u00a0 be ensured that the collaboration agreement includes a clause to the effect that the payment of royalty for the\u00a0 use of the patent rights till the expiry of the life of the patent, and that the Indian party\u00a0 would have the freedom to produce the item even after the expiry of the collaboration agreement without any additional payment.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"text-decoration: underline;\"><span style=\"color: #993366;\"><strong><span style=\"color: #ff6600; text-decoration: underline;\">Indian laws<\/span>\u00a0<\/strong><\/span><\/span>&#8211; Collaboration agreements will be subject to Indian laws.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"color: #993366;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600; text-decoration: underline;\">Extensions<\/span><\/span>\u00a0<\/strong><\/span>&#8211; Government does not favour requests for extensions of the duration of collaboration proposals. All efforts should, therefore, be made to assimilate the technology\u00a0 within the initial duration of the agreement.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:info@carajput.com\">info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-233 433 33<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GUIDELINES FOR FOREIGN COLLABORATION Guidelines to be considered in connection with the formulation of proposals and agreements of foreign collaboration: Alternative sources &#8211;\u00a0The collaborator should explore, to fullest extent possible, alternative sources\u00a0 of technology, evaluate them from a techno-economic point\u00a0 of view\u00a0 and furnish reasons for preferring a particular technology and the source of import. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[78],"tags":[567,568,569,571,570,572,179,180,214,181,194],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/699"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=699"}],"version-history":[{"count":9,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/699\/revisions"}],"predecessor-version":[{"id":3133,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/699\/revisions\/3133"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}