Passage 3
Yesterday we went through the main ponts of the proposal joint venture. Now you have seen the factory. Shall we discuss technology transfer briefly?
Ah, I'm just coming to that. If you want the products to compete successfully on the international market, you'll have to acquire advanced technology.
Certainly, the technology to be imported should be advanced and appropriate to China's needs.
Excuse me, Mr. Zhao, when you say imported technology, what does the word "technology" refer to?
Naturally it doesn't merely refer to industrial property. Know-how is also included.
We agree, but the know-how we promise to transfer to the joint venture company is what we are adopting in our production at the moment, and you'll pay for it in the form of royalties apart from a certain initial down payment, right?
Yes, and at the same time we also expect that in the duration of the joint venture , you can continue offering us your improved technological expertise.
As to the price of technology, the minimum generally accepted is 5% of the sales price of all licensed items made and sold during the term of the agreement, in addition to an initial down payment of USD100,000.
I'm afraid both the royalty rate and the initial down payment amount are too high. I'm sure you can understand that the company will have a tough time in the initial stages of cooperation----low yield, possibly unstable quality, high expenses. How could the joint venture bear such a heavy additional load each year? This would certainly break the back of the company.
The initial down payment cannot be reduced, but we may consider lowering the royalty rate a bit little. In addition, even the sum of USD100,000 hardly covers all the expenses spent on technological information, drawings , personnel training, etc; not to mention the travelling expenses we'll have to pay for this job of technology transfer.
Well, it could work if the first two years of production were exempt from royalty and if the rate came down to 3% of the net sales price.
How long will the term of agreement be?
Generally not longer than 10 years.
We will accept your proposal to begin royalty payments in the third production year to show that we want to cooperate.
"To render good for good", as the Chinese saying goes, we agree to the amount of USD100,000 as the initial down payment. That's a sign of our sincere desire to venture jointly. And what do you say to the 3 %
royalty rate.
All right. We'll accept it. Mr. Zhao, you see we have been trying to do whatever we can to work closely with you, not only in words but in deeds. Now one more word, since you mentioned quality, we want to have the examples of the first production sent to us in Seoul. Our technical division will make sure that the silk velvet meets the necessary specifications.
We'll do that. OK, I think things are quite clear now.
昨天我们就合资企业的主要内容进行了讨论。

现在你们又参观了工厂，我们是不是就技术转让作简要的探讨呢?
啊，我正想提这点。

要是产品在国际市场有竞争力，就必须获得先进技术。

一点不错。

引进的技术必须是先进的，并且适合中国的需要。

对不起，赵先生，您说的引进技术，这“技术”是指什么？
当然不仅仅是指工业产权，也包括转悠技术。

这我们同意，但我们答应转让给合资企业的专有技术，是指我们同步在生产中使用的技术。

而且除了一笔入门费之外，你们还将以提成方式予以报酬，对吗？
是的，同时我们还希望你们在合资经营期内不断向我们提供新的技术。

关于技术的报酬问题，我们除了要10万美元的入门费之外，在协议有效期内，凡生产和销售的许可商品，我们至少还要按净销售价的5%提成。

恐怕这笔提成率和入门费的数目都太高了。

我确信你们能够体会在开业的最初阶段，公司会经历一段艰难的时期——产量低，质量可能不稳定，开销又大，怎么还能再承担这么巨大的额外负担，这肯定会毁了这公司。

入门费是不可减少的，但我们可以考虑略低些的提成率。

况且即使10万美元也不够技术情报、图纸、人员培训等方面所有的开销，更不用说我们为了技术转让必须开支的那些差旅费了。

好吧，如果头两个生产年度免提成费，而且提成率低到净销售价的3%，那么还是可以接受的。

这个协议的期限有多长？
一般不超过10年。

我们将接受你们关于在第三个生产年度开始支付提成费的建议，以表示我们有合作的愿望。

我们中国有句话：“以德报德”，我们愿意出10万美元的入门费。

这是我们真诚愿意和你们共同冒险合资的一个表示。

那这3%的提成率呢？
好，我们接受。

赵先生，您瞧，我们不仅在口头上，而且在行动上，一直在尽力密切地配合你们。

还有一件事，既然您提到了质量，我们希望你们能将第一批产品的样品寄往首尔，由我们技术部来鉴定丝绒是否达到必要的规格。

我们会做的。

好，我们现在已经谈妥了。