When a client or a company approaches a technology developer or IT services provider and hires it to develop a new technology i.e. software program for the company, until the technology is completed and handed over to the client, the legal rights and ownership of the technology remain with the developer company. When the client makes the final payment to the company and it’s time to transfer the ownership of the technology to the client, an agreement is written and signed between the client and the developer company that concludes the client has paid the compensation and the company or service provider has handed over the technology with all rights and ownership to the client. These agreements are known as the technology assignment agreements.
Brief Description of Technology Assignment Agreement:
There are two types of technologies that exist these days including real technologies i.e. equipment, machinery, or computer systems, and virtual technologies i.e. software programs, scientific theories, and research work by a technological organization. It is easy to acquire ownership of the real technology as the new owner can keep it in his possession as the legal owner and no one can use it without his permission where on the other hand, when it comes to virtual technology, it is very difficult to hold and control the ownership of such technologies. This is why when a client hires a company to develop a new technology for him until he pays the compensation and buys the technology, the rights, and ownership of the technology remain with the developer company.
When the transfer of ownership takes place, the developer company or the seller signs a legal agreement with the client or buyer of the technology. These agreements includes the information about the buyer and seller, the details of the technology, the transfer of rights and ownership of the technology, and the compensation that the buyer has given to the seller in order to acquire the technology in his ownership. These document is the technology assignment agreement and usually, it is created with the concerns of both parties but when a high-level or very important technology is being sold and bought, lawyers and legal advisers are included in this process.
Here are previews and download links of Free Sample Technology Assignment Agreement Templates created using MS Word,
Key Elements to add to the Technology Assignment Agreement:
- Name of the company/client
- Name of the developer/services providing company
- Details of the technology
- Specifications of the technology
- Date when the ownership is transferred to the client by the developers
- Legal rights, reproduction, marketing, and manufacturing of the technology
- Warranties of the technology offered by the developer
- Rates and payment schedule in exchange for the technology
- Legal obligations of the client and developer after the transfer of ownership
- Rights and ownership of the intellectual property involved
- Reselling of the technology
- Sharing the confidential information by client and developer
- Terms and conditions of the agreement
- Mutually agreed clauses of the agreement
- Termination of the agreement
- Validation of the agreement
- Results of violation of the agreement
- Signature of client and developer