A seminar entitled “Franchising rights and Technology Transfer” was held recently at the Holiday Inn Continental Resort in Sharjah under the patronage of Sheikh Dr. Sultan Bin Mohammed Al-Qasimi, Member of the Supreme Council and Sharjah Governor. It was opened by Sheikh Abdullah Bin Salem Al-Qasimi, President of the Prince’s Court and attended by high-ranking officials and about 250 experts and businessmen.
The seminar shed light on many Arab laws and legislations relating to franchising rights and technology transfer and activating these in accordance with the requirements of relevant international treaties. The seminar also looked into methods to formulate an Arab law for franchising rights and technology transfer.
Mr. Ahmed Mohammed Al-Medfa’a, President of the Sharjah Chamber of Commerce and Industry, delivered a speech during the seminar in which he said that the steps toward openness in the world are accelerating, and the significance of cooperation between the activities of the private economic sectors, organizations, bodies, international and regional agencies is increasing, in relation to finding an appropriate environment that aims at preserving franchising rights and facilitating the methods of transfer and export of technology. This technology referred to is to assist in the development and modernization of investment activities and projects in all economic, professional and technical fields, followed by a utilizing of technology for these areas.
He said that Arab nations are considered among the first countries that aim to crystallize their ambitions in creating an economic force that invests its potential and capabilities through facilitation of investment procedures and technology transfer methods and settling these within the Arab region. In this regard, Arab states seek to execute a strategy which has the foundations and elements of success within new frameworks and legislations that are able to attract expertise and skills and encourage regional cooperation. Arab countries also aim to benefit from technology transfer and the economic significance of franchising rights and patents, and then enhance the Arab capability in facing international competition at the commercial and investment levels.
He stated that the creation of the Arab Licensing and Technology Transfer Society (ALTTS) is considered an effective means to extend bridges of cooperation with similar societies and regional and international associations. It is also considered a necessary step in anticipation of joining the Licensing Executives Society International (LESI) and facilitation in dealing with the treaties of the World Trade Organization (WTO) in this field.
Seminar Objective and Importance
Alam Attijarat met on the sidelines of the seminar with Mr. Talal Abu-Ghazaleh, ALTTS Chairman. The following dialogue took place on seminar’s objective and significance, and the circumstances of the Society’s creation:
What is the purpose of convening this seminar?
The aim of the seminar is enhancement of the Society’s efforts to develop and encourage opportunities for transferring external investment and advanced technology to the Arab region, in addition to the development of economic structures and investment activities within the Arab world and establishing better forms of cooperation between technical cadres and specialized experts in private sector activities relating to franchising rights and technology transfer. This helps employing Arab potential for the benefit of the Arab economy and works toward attracting technology and exporting it in accompaniment with the challenges and variables imposed by the international arena.
What were the most important documents discussed throughout the seminar?
There were various presentations and ideas addressed, the bulk of which were related to the efforts exerted in preserving franchising rights and facilitating methods to transfer and export technology which would have the effect of developing economic structures and investing activities in the Arab region.
Additional topics that were highlighted included valuation of intellectual property rights (IPRs), advanced technology mediums, European trademark, protection of trademarks, piracy of products, the role of the Society towards government and educational/research institutions, the business sector and the infrastructure in technology transfer.
What were the most important seminar recommendations?
There were numerous recommendations reached after a constructive scientific discussion, the most significant of which was formulating appropriate laws to prevent monopoly, introduction of texts that organize technology transfer in current laws in Arab nations, supporting constant cooperation between the Society and LESI to crystallize common training programs, receive information, reach technology transfer agreements and implement the latest technical and scientific tools for information systems and databases in the field.
The seminar also emphasized the right of the Arab world to obtain technology and develop it in accordance with the interest of the Arab nation, issuing publications and utilizing media to promote awareness within economic sectors in the Arab world on the importance of technology transfer or its export and ratification of licensing contracts.
During the seminar, it was announced that a branch of the Society is being established in the Sharjah Chamber of Commerce and Industry, and a cooperation agreement was signed between the Society and the Ajman University for Sciences and Technology in the fields of research and technical education in preparation for an Arab Masters degree in IPRs.
Creation of the Arab Society
When was the ALTTS created? What is its goal?
It was established in May of last year as a regional society for businessmen and academics in the fields of franchising rights and technology transfer. The purpose behind its creation is to join LESI which will embark on its activities prior to 1999.
ALTTS is comprised of numerous regional and national societies from all over the world and aims to preserve a good relationship with the international community. We’ve requested the assistance and guidance of LESI in the creation of a new apparatus characterized by efficiency and dynamism that will be of help to those working in the realm of franchising rights in the Middle East.
The purpose of forming the ALTTS was for it to be a regional body at the level of the entire Arab world. Its objectives can be summarized as encouraging the adoption of the profession’s ethics and standards among specialists in technology transfer and franchising rights, assisting members in improving their skills and techniques through education, research, special training courses with publications and the exchange of ideas, guiding the business community, governmental and public bodies on the economic significance of technology transfer and franchising rights, protection of IPRs and other activities.
To what extent can the Society contribute to the growth and development of the Middle Eastern countries?
The founding committee believes that work on technology transfer and franchising rights will contribute greatly in the progress and development of all countries of the Middle East, as these nations largely missed their opportunity in obtaining their fair share of capital funds for investment.
The international capital market is considered a regular force that isn’t subject to emotions nor does it accept halfway solutions in relation to its requirements. When some genuine opportunities were overlooked, it seems generally that the reason opportunities were lost in the Arab world is the lack of interest or inability of Arab states to create a business atmosphere capable of competing with other available international alternatives.
Other obstacles include unfair competition, import tariffs, restriction of import volume, protection of intellectual property (IP) below international levels and so on. In recent years, advances in developing a fair number of commercial laws in Arab countries have been taking place.
Transfer of External Investment and Technology
Can ALTTS have a role in the transfer of external investment and technology?
The Society believes that with the existence of improved legislations and more liberalized standards for trade in the Arab world, the opportunities to attract external investment for the region will increase. In this regard, the Society may play a prominent role in the facilitation and advocacy of new legislations that assist in the process of external investment and technology transfer to the Arab region. Investment directed internally has its benefits along with additional benefits resulting from technology transfer.
How will the Society members benefit?
The are numerous benefits such as receiving information, availing the opportunity to attend intensive educational activities related to the field, the opportunity to discuss with and convince policymakers at the national level, participation in special seminars and the opportunity to meet with people involved in the discipline, and receiving the annual membership guide and the ALTTS newsletter that contains specific articles on franchising rights and technology transfer for the entire Middle East and the rest of the world.
Obstacles and Difficulties
Do you believe that the Society may run into obstacles and difficulties throughout the course of executing its programs and objectives?
When discussing franchising rights, technology transfer and IP (i.e. patents, trademarks, industrial models, copyrights, etc..), a need arises to complete a vast amount of work that can only happen by intensifying combined efforts.
Here, the dire need for self-education appears, in addition to educating leaders and especially since the political leaders throughout the Middle East are interested in and concerned with recognizing the performance and special interests of businessmen and their opinions. As a business community, we need to firstly formulate and crystallize those opinions as a group, and present them in a clear and appropriate format.
Also, since we are involved in the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), Arab governments will soon execute more advanced and developed systems for IP protection, which will benefit the community in general and the business community in particular. Actually they will especially benefit us in attracting foreign investments in the field of advanced technology.
Our contribution as professionals imposes that we create a better environment for franchising rights and technology transfer. This will lead to the achievement of two goals; the first is the benefiting of the economy and the second is the benefits that the region as a whole will experience.