Comparative Study of Compensation for Breach of Technology Transfer Contracts in the Legal Systems of Iran, Canada, and France

Abstract

Technology transfer contracts are among the common agreements in the field of industrial property law. Based on these contracts, specific technologies, often of strategic value, are made available by the holder to the transferee in exchange for a specified amount and for a defined period. However, like any other contract, these agreements may be breached. Each legal system may adopt different approaches to compensating for the damages incurred in this regard. This study examines these approaches in the legal systems of Iran, Canada, France, and Islamic jurisprudence. In the Canadian legal system, several documents, including the Public Servants Inventions Act and guidelines on intellectual property management issues, have been enacted regarding technology transfer contracts. In the French legal system, Law No. 75-1334 and Article 442-1 of the Commercial Code govern this area. Meanwhile, in the Iranian legal system, laws such as the Electronic Commerce Law and the Foreign Investment Promotion and Protection Act are relevant. Additionally, Islamic jurisprudence has imposed specific restrictions on the transfer of intangible assets. The primary question addressed in this research is: How is compensation for the breach of technology transfer contracts determined in the legal systems of Iran, Canada, France, and Islamic jurisprudence? The findings of this descriptive-analytical study indicate that the foundations and methods of compensating for breach of technology transfer contracts differ fundamentally among the legal systems of Iran, Canada, France, and Islamic jurisprudence. Furthermore, France and Canada, as transferring countries, always seek full compensation in this regard.