India’s big-ticket military acquisitions are expected to aggressively push schedules for the transfer of production to the country’s ambitious aerospace and defense industry. But the technology that India expects to be transferred through co-development work generated by offset agreements is raising concerns among vendors about possible violations of intellectual property rights (IPR).
A revised policy on offsets is expected to be released soon and the industry hopes that this will at last deal with the thorny issue of transfer of technology (TOT), which is no longer mandatory as part bids, as it was in the past. Starting with projects awarded from 2011, TOT can now be offered as offsets.
Industry observers say India’s lack of clarity on dual technology and IPR may result in OEMs finding ways to circumvent the use of advanced technology on the grounds that India does not have safeguards to protect manufacturers that license technology to local partners. The Indian industry has called for a National Technology Audit Agency and an integrated legal framework to be put in place to ensure TOT protects the OEM.
Issues are already surfacing. India’s Aeronautical Development Agency selected 99 GE F414 engines to power the Mk II version of Hindustan Aeronautics’s Light Combat Aircraft for the Indian Air Force. GE Aviation will supply the initial batch of F414-GE-INS6 engines and the rest will be manufactured in India under transfer of technology arrangement.
13/02/12 Neelam Mathews/AIN Online
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A revised policy on offsets is expected to be released soon and the industry hopes that this will at last deal with the thorny issue of transfer of technology (TOT), which is no longer mandatory as part bids, as it was in the past. Starting with projects awarded from 2011, TOT can now be offered as offsets.
Industry observers say India’s lack of clarity on dual technology and IPR may result in OEMs finding ways to circumvent the use of advanced technology on the grounds that India does not have safeguards to protect manufacturers that license technology to local partners. The Indian industry has called for a National Technology Audit Agency and an integrated legal framework to be put in place to ensure TOT protects the OEM.
Issues are already surfacing. India’s Aeronautical Development Agency selected 99 GE F414 engines to power the Mk II version of Hindustan Aeronautics’s Light Combat Aircraft for the Indian Air Force. GE Aviation will supply the initial batch of F414-GE-INS6 engines and the rest will be manufactured in India under transfer of technology arrangement.
13/02/12 Neelam Mathews/AIN Online
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