1. Definition of international technology trade
International technology trade is one of the main forms of international technology transfer. International technology transfer is an act in which a technology supplier transfers technology of a certain content across national borders to a technology recipient for use in a certain form.
There are two main forms of international technology transfer: one is non-commercial international technology transfer, which is a free technology transfer in the form of technical assistance between government agencies of different countries; the other is commercial International technology transfer refers to the paid technology transfer by signing technology agreements or contracts between government agencies or enterprises on commercial terms. The latter type of technology transfer is profitable, and this commercial international technology transfer is called international technology trade.
2. The main differences between international technology trade and international commodity trade
After the war, international technology trade developed rapidly with the development of the scientific and technological revolution. International technology trade can not only bring considerable technology transfer fees to technology exporting countries and obtain greater trade benefits, but it is also more beneficial to technology importing countries. Through technology import, the technological transformation and development of the country's national economic sector can be accelerated, and it is especially conducive to promoting the upgrading and optimization of the industrial structure. In addition, it can shorten development time, save development costs, improve product quality, and enhance overall national strength and competitiveness.
International technology trade is very different from international commodity trade, mainly in the following aspects:
(1) The content of the subject matter of trade is different
International Technology trade is a kind of trading activity in which intangible technical knowledge, that is, intellectual property rights, is entered into the market and transferred as the subject matter of trade. The subject matter of technology trade is mainly patent (Patent), trademark (Trade Mark) and special technology (knowhow).
Patent trade mainly refers to the transfer of the patented technology by the owner of the patent rights to another party for use by signing a patent license agreement or contract. Trademark trading means that the trademark owner transfers the trademark to another party for use through a trademark license agreement or contract. Know-how is usually the undisclosed technical secrets and experience required to produce a certain product. Trade in proprietary technology is when a party that owns proprietary technology transfers its proprietary technology to another party for use by signing a proprietary technology license agreement or contract. In trade practice, technical trade is often carried out by combining intangible technical knowledge and related machinery and equipment.
In technology trade, the former is called software and the latter is called hardware. If there is only mechanical equipment and no transfer of technical knowledge, the transaction does not belong to technology trade. Different from technology trade, the subject matter of commodity trade is tangible goods, such as consumer goods, raw materials, machinery and equipment, etc. These commodities are tangible commodities that can be seen and touched. Therefore, the subject matter of trade between the two is different.
(2) The right to use and ownership of the subject matter of trade are different
Technology trade is the transfer of the right to use the subject matter of technology trade by the technology owner or supplier under certain conditions. For use by the recipient, however, the ownership of the technology is not transferred to the recipient of the technology. The recipient of the technology can only obtain the right to use the technical subject matter, but not the ownership of the technical subject matter. Therefore, in principle, technical trade is a trade in which the ownership of the subject matter and the right to use it are separated. In commodity trade, the right to use and the ownership of the goods are transferred at the same time. The seller loses the ownership and right to use the goods, and the seller has no right to continue to control and use the goods.
(3) There are differences in terms of the relationship between the parties to the trade
The performance period of technology transfer contracts signed by both parties in international technology trade is generally longer, usually 5-7 years. It can last up to 10 years. During the contract period, the two parties formed a long-term technical cooperation and technology restriction and counter-restriction relationship in terms of transfer and technology use.
What is different from this is that the performance period of commodity trade contracts is usually shorter, and the parties to commodity trade do not have the kind of relationship between cooperation, technology restrictions, and counter-restrictions that exists in technology contracts.
(4) There are differences in pricing principles for the subject matter of trade
In international technology trade, the recipient of technology generally adopts the profit sharing method to price the subject matter of technology trade, that is, The greater the profit, the higher the technology royalties; conversely, the smaller the profit. The lower the technology usage fee. The price of the subject matter of commodity trade is usually set based on the cost of the commodity plus a certain amount of profit, which is not necessarily proportional to the level of profit.
(5) There are differences in the laws involved in trade
The laws involved in international technology trade, in addition to being applicable to the sales of goods laws and contract laws of various countries, are also subject to industrial Property rights law, patent law, trademark law and other international conventions or laws governing intellectual property protection. Commodity trade contracts are mainly applicable to various countries’ sales of goods laws, contract laws, conventions on the international sale of goods, etc. Therefore, the laws and conventions involved in international technology trade are more extensive and complex than commodity trade contracts.
(6) Differences in the balance of payments
Income and expenditures from international technology trade belong to intangible commodity trade and are generally not included in the country’s foreign trade balance of payments. In the table, it is usually reflected in the current items in a country's balance of payments. Commodity import and export is an important item in the country's trade balance of payments.