What type of contract will be considered a technology transfer contract or «TTA»? Parliament defined the term bulk as «any agreement under which a person holding a patent or copyright transfers to another person the right to manufacture and sell a product or to use a patent or copyright procedure.» Clearly, Parliament has tried to launch a fairly broad network. But so far, the scope of this definition has not been tested. And the SBE largely ignored it. A technology transfer contract does not mean a physical personal ownership agreement established under a technology transfer contract, nor does it mean an agreement to transfer objects acquired, created, manufactured or otherwise processed by goods manufactured pursuant to the technology transfer contract. Example 3: Company X produces and leases a patented medical device to Company Y. As part of the rental of the medical device, Company X also entrusts in writing to Company Y a distinct interest in a process outside the medical device including the use, use or handling of the medical device. Company X charges a monthly rent for the equipment as well as a separate fee for each time the separate patented procedure is performed outside the medical device of Company Y. The rental of the medical device by Company X to Company Y for the completion of the patented process separately is not a technology transfer contract and the tax applies to the total rental prices to be paid for medical equipment. The transfer of its own patent shares by Company X for the right to perform the separate patented procedure outside the medical device is a technology transfer agreement. Separate commissions from Company X to Company Y for the right to perform the separate patented procedure outside the medical device are not subject to tax, provided they relate to the right to perform the separate patented procedure, are not intended for the rental of the medical device and constitute a reasonable fee for the right to perform the separate patented procedure outside the medical device.

Where the separate royalties for the right to perform the separate patented process relate to the patented technology built into the design, assembly or internal operation of the medical device, company X`s separate royalties for the right to perform the separate patented process are not part of a technology transfer contract and are instead part of the rents payable from the rental of the medical device.