Royalties and similar fees can be charged to operations provided payments
for said fees are covered by a technology transfer agreement (TTA) which
conforms with the mandatory and restrictive provisions of the Intellectual
Property Code (IPC). Compliance of the TTA with the IPC requirements
will not require the registration of the TTA with the Documentation,
Information and Technology Transfer Bureau (DITTB) of the Intellectual
Property Office (IPO).
The non-conformity of the TTA with the IPC shall generally render the
TTA unenforceable. However, in certain exceptional and meritorious cases
provided under the IPC, non-compliance with the IPC is allowed subject to
prior approval of the TTA by the IPO.
The IPC provides certain restrictions in the terms and conditions of the TTA
particularly those that will adversely affect free competition and trade. It
also prescribes certain mandatory provisions that should be included in the
TTA.