What Is a Know How Agreement

A know-how agreement, also known as a technical assistance agreement, is a legal contract between two parties where one party, typically a technology owner, shares its knowledge and expertise with another party, typically a licensee. The agreement outlines the terms and conditions of the transfer of knowledge, including the rights of the licensee to utilize the technology, the payment of fees, and the confidentiality of the information shared.

The purpose of a know-how agreement is to enable a licensee to gain access to valuable technical knowledge or expertise that it does not possess. This type of agreement is commonly used in industries such as pharmaceuticals, biotechnology, and high-tech manufacturing, where specialized knowledge and expertise are critical to the success of a product or process.

Under a know-how agreement, the licensee is granted a non-exclusive right to use the technology for a specific period of time. The agreement typically includes provisions to ensure that the licensee uses the technology solely for the intended purposes and that it does not use the technology to develop competing products or services.

In exchange for the transfer of knowledge, the licensee typically pays the technology owner a fee, which can be a lump sum payment or ongoing royalties. The fees are usually negotiated based on the value of the technology being transferred and the level of expertise needed to utilize it effectively.

Confidentiality is a critical component of a know-how agreement. The parties agree to keep the terms of the agreement confidential, and the licensee agrees not to disclose any of the technical information to third parties. The technology owner may also require the licensee to have certain security measures in place to protect the confidential information.

In summary, a know-how agreement is a legal contract that enables a licensee to gain access to valuable technical knowledge or expertise that it does not possess. The agreement outlines the terms and conditions of the transfer of knowledge, including the rights of the licensee to utilize the technology, the payment of fees, and the confidentiality of the information shared. It is a valuable tool that allows companies to leverage the expertise of others to grow and succeed.