Abstract

Transfer of knowledge or diffusion of knowledge between institutions of one country or between two countries can be taken placed through various means. Among them, importing of high technology goods and services, foreign direct investment (FDI), and investing for selling and manufacturing of products and services of one country/institution to another country/institution by licensing agreements are more important factors. When technology or the knowledge associated with technology is transferred between two parties, it mainly happens as a “commercial” transaction. Although there are other methods of transfer of knowledge from the producer of knowledge to the receiver categorized as “non-commercial” (such as studying the newest technology through books, periodicals, research papers, patent documents etc.), there is a lacune of applying this knowledge in practical scenario. Therefore, there is a doubt of receiving benefits by both parties equally through such non-commercial means of transfer of knowledge. Generally, the transferor of knowledge expects economic benefits through the transaction, and the transferee will be benefitted by absorbing the newest technology for their economic development. One of the criticisms against the transfer of technology is that it still maintains its monopoly gaining more benefits to technology producer more than the technology receiver in the process of transferring technology to developing countries. This situation could happen in the market by abuse of dominant market position gained by the technology owner through various conditions and restrictions imposed by him via technology transfer agreements. The focus of this research is, to what extent licensing contracts, one means of technology transfer, and laws relating to competition can be used as a means of mitigating some ill-effects of monopoly of patent rights in order to secure fair rights of both technology producers and users in a public interest perspective. This research is based on black letter research methodology with having a comparative analysis of selected jurisdictions based on their developed and developing nature of the economy. In the research, the main focus is made on Sri Lankan licensing contracts on patent and competition law and it concludes identifying several positive features of law relating to licensing contracts which help to reduce dominant positions and emphasizing on the need of introducing a separate statutory law on competition in light of broadening foreign investment in Sri Lanka through licensing agreements and other ways.

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