Technical Collaborations,

Government Guidelines

Debjani R. Dass
Technical Collaboration

• Foreign technical collaboration is permitted

either through automatic route or with prior
approval from the government.
Technical Collaboration
• Payment for foreign technology collaboration by Indian
companies under automatic routes subject to the
following limits:

▫ Lump sum payment not exceeding USD 2 million

▫ Royalty is subject to a ceiling of 5 % for domestic sales

and 8 % for exports without any restrictions on the
duration of royalty payment. In case of such domestic
sales/export being from a wholly owned subsidiary to an
offshore parent company.
Technical collaboration
• Royalty for use of trademark and brandname
without technology transfer is allowed upto 2%
of exports and 1% for domestic sales.

• In case of technology transfer, no separate

royalty can be paid for trade marks and brand
name

• Remittance upto USD1 million per project for

consultancy service procured from outside India
is permitted under the automatic route.
Patents

• A set of exclusive rights granted by a

State(National Government) to an inventor or
their assignee for a limited period of time in
exchange for a public disclosure of an invention .
Technology assessment
• Technology assessment is vital to program/project
success
• It is a two step process that involves:

▫ Technology Readiness levels (TRLs) that defines the current

level of maturity of all the systems, subsystems and
components required to meet program/project requirement

▫ Advanced Degree of Difficulty(ADD) that defines what is

required to advance the immature technologies from their
current TRL to a level that permits infusion into the
project/program within cost, schedule and risk constraints.