Preparation of Technology Transfer Plan
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1 Preparation of Technology Transfer Plan It is noted that at present technology refers not only to state of art innovations, but also encompasses administration, management and marketing, which are also essential elements in the operation of a business. Moreover, technology is a crucial factor in the development of the country. Therefore, the Foreign Business Committee has adopted technology transfer considerations as factors in its consideration of licenses for foreign businesses in Thailand. Foreigners are required to submit an application for business licenses as of 1 May B.E (2004) together with details of working plans, forms and methods of technology transfer in accordance with the prescribed form. Details are as follows.
2 1. Objectives Advice for the Preparation of a Technology Transfer Plan It is widely accepted at present that technology is an essential element in the operation of a business and is greatly influential in the development of the competitive potential of Thai operators. However, as the success of such an undertaking is dependent upon the cooperation of the transferor as well as the ability of the transferee to adapt the technology for use or to develop into a useful tool, the Foreign Business Committee has sought to rely on its powers under section 5 of the Foreign Business Act, B.E (1999), to impose matters pertaining to technology transfer as a factor in its consideration of granting licenses for foreign business operations in Thailand. It is therefore prescribed that foreigners submitting business license applications as of 1 May B.E (2004) must provide with their applications the details on the plans, forms and procedures for the transfer of technology in accordance with the prescribed declaration forms. 2. Preparing a technology transfer plan in accordance with the forms prescribed The Foreign Business Committee has prescribed declaration forms in relation to technology transfer which are to be submitted with license applications. Such forms require the license applicant to provide data on plans/projects which will be undertaken subsequent to obtaining a business license. A director, manager or person responsible for the business operation of the juristic person or the foreigner that has signed the license application should also affix his/her signature on such forms. Contents under the following headings must be specified in the forms: 1. The conclusion of a technology transfer contract. The contemplated contractual parties shall be specified. The essence of the contract, details on the transfer or matters to be transferred shall also be specified. 2. Research and development projects. The matters to be researched and developed, the duration of programmes and the budget allocated to research and development shall be specified. The details of personnel involved in the project, i.e. details on positions, qualifications and experience of such personnel, whether Thai or foreign, shall also be specified. 3. Training of in-house personnel. Details on training topics/programmes which are relevant to the performance of work, the length of time involved and budgetary allocations, as well as the qualifications/positions of speakers and positions of personnel expected to undergo such training, whether Thai or foreign, shall be specified. In this regard, training means a training, conference or academic seminar or workshop, special lecture, apprenticeship or activity known by other names, whether held domestically or abroad, under a project or programme and having a definite timeframe. A training should possess the objective of human development or enhancement of work performance efficiency and shall also include work visits and practical trainings.
3 The appointment of a Thai national to perform work in a position in lieu of foreigners. The position and characteristics of foreign personnel in whose place Thai nationals will be appointed as well as the period of appointment shall be specified. 5. Educational sponsorship expenses. The approximate contemplated budgetary appropriations for educational sponsorship of educational institutions on matters relating to technology shall be specified. 6. The placement of foreign experts as speakers for educating in-house personnel. Details on training programmes which include foreign experts as speakers, as well as the qualifications of the experts and participating personnel and the budget allocated for the provision of foreign experts, shall be specified. 7. The development of new products or services introduced to the market. The types and details on the products and services which will be developed and duration of introduction to the market as well as the budget involved in the operation shall be specified. 8. Other activities. In the case where an intended activity for the transfer of technology does not fall within the scope of any of the activities stated above, the applicant may specify such activities under the other activities heading. In all cases, if all of the contents or details cannot be contained in the forms provided, supplementary documents may be submitted. 3. Definition of technology transfer. The Foreign Business Committee has prescribed the following definitions in relation to technology transfer: (1) Technology means a technique, skill, experience or means utilised or adapted for production, trade, services, marketing, administration and management. (2) Technology transfer means the adoption of technology for use or for adaptation in a business operation. The transferor must transfer techniques, skills, experience and means which would enable the transferee to adopt such transferred elements for use or for adaptation in production, trade, services, marketing, administration and management; depending on the characteristics of each type of business. (3) Transferor means a foreigner licensed to operate a business under the Foreign Business Act, B.E (1999).
4 - 3 - (4) Transferee means a Thai national performing work in the transferor s organisation and a Thai national who performs work in a juristic person which has trade relations or has engaged in trade transactions with such organisation as well as educational institutions and other relevant institutions in Thailand. In all cases, the determination of the Committee will take into account of the characteristics of each type of business by considering either one or many factors based on the plan details submitted. Account will also be taken of the following matters: 1) The transferor must be the owner of the technology or possess the right to use and transfer such technology to others. 2) The technology adopted must have no effect on national security and consumer safety and must not be harmful to the environment or the conservation of natural resources. 4. Undertakings subsequent to a grant of a business license. After a foreign business has been granted a business license, a report of the operations undertaken under the technology transfer plan must be filed at the Department of Business Development at least once a year (UNOFFICIAL TRANSLATION)
5 เอกสารหมายเลข 1 Please state your plans after obtaining a business license. DECLARATION FOR TECHNOLOGY TRANSFER 1. Conclusion of technology transfer contract. Name of parties Essence of contract (1) (2) (3) Research and development project. Topic Duration Position Details of personnel involved in the project Qualifications/Experience Thai nationals Foreigners Budget (Baht) (1) (2) (3) (4)
6 3. In-house personnel training. Topic/Programme Duration Qualification/Position of Details of participants speaker Position Thai nationals Foreigners Budget (Baht) (1) (2) (3) (4) Appointment of Thai nationals to positions in lieu of foreigners. Position Qualifications of personnel Duration of appointment of Thai national in lieu of foreigners (1).. (2) (3).
7 (4) 5. Educational sponsorship expenses. Institution Sponsored items Budget (Baht) (1).. (2) (3). (4) 6. Placement of foreign experts as speakers in the educational training of in-house personnel. Details of participating personnel Programme Foreign experts Position Thai nationals Foreigners Budget (Baht) (1). (2). (3).
8 (4) The development of new products or services to the market. Type of products/services to be developed Time of introduction to market Budget (Baht) 8. Other activities (please state details)..
9 I, as director, manager or person responsible for the operations of the juristic person, hereby certify that the above statement is true in every respect and I have submitted sheets/copies of supplemental documents. (signed) (1) ( ) (2) You may submit supplementary documents if all the information cannot be contained in this form. ( ) Date (UNOFFICIAL TRANSLATION)
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