Importance and effects of Intellectual Property on technical know-how for SMEs, a development in Petrochemical industry

By: Dr. Shahram Rezaei

Petrochemical industry, as well as other industrial sections, includes different parts, each plays a vital role on manufacturing and supply of the products which involve production line machinery manufacturers, construction and erection companies, feed suppliers, catalyst manufacturers, consultancy engineering companies and … . The factor linking these chains and increase production and petrochemical products for a complex or a production plant, is the technical know-how or license. License is provided by the firms holding the technical know-how. License also determines the type, quantity and even brand of main equipment and materials, feeding, catalysts and … in a petrochemical complex. Consultancy engineering companies inspect the items and finally approve them for utilization. Thereby, license providing companies play a vital role and communication in petrochemical industry.

International companies holding and providing license in petrochemical industry apply intellectual property on their know-how technology, using different approaches. In addition to insistent acts and regulations in the field of intellectual property, other promoting actions which courage companies for respecting the regulations includes strong communications with required and exclusive equipment manufacturers, catalyst producers, … in petrochemical industry. Under such circumstances, applicants for establishment of petrochemical complexes cannot supply or operate such equipment and materials without acquiring such valid license, so to found a petrochemical plant, license is an initial necessary element which should be purchased and then applied.

In Iran, due to the particular conditions raising from level of general knowledge, unfair sanctions, regional competitions and also non-insistent regulations on intellectual property, unique threats and opportunities exist which shall be considered particularly. Although the macro-sized companies have not tended to bold their participation in national industry for the sanctions, especially in recent years, finding strategies to realize the know-how through integrating all the national technical knowledge using the existing capacities, enables the national industry a big opportunity. To create intelligence and knowledge-based contents seems to be a considerable solution to convert the threats into the precious opportunities.

Petrochemical industry of Iran is a pioneering section of petroleum industry. Like international companies, technical know-how is a main required item to construct petrochemical complexes.  Macro -sized complexes in this industry might apply strictly ownership on their technical know-how and can utilize common tools, as well as international petrochemical companies, however, small-sized Iranian companies are not enabled to use such strong tools for technical know-how with lower level of guarantees. Therefore, adjusting new regulations and rules is considered as a new opportunity.


Iran National Petrochemical Industries Co. plays a major and vital role in the Country’s petrochemical industry as the regulator and custodian of the said industry for regulating items like feed, land acquisition, initial agreement with complex applicants, project progress reports to the bank system for granting finance, inspections and other regular superintendents. In this respect, the company can play a supportive role from intellectual property on technical know-how, as for his governing responsibility. Issuing technical know-how certificate by national petrochemical company, along with presenting the required guarantees on final product using such know-how, seems to be a suitable solution. On the other word, developing SMEs which have created a particular know how can present the manufacturing technical knowledge through concluding agreements to the national petrochemical company, after verification, and approval of efficacy and originate. In order to assure the parties for confidentiality, a confidential document is also signed in addition to the main agreement. National petrochemical company issues a certificate once approving the technical know-how, which is concerned as an evidence document for a joint ownership of the technical know-how. simultaneously with issuing the technical know-how a guarantee letter on reaching the technical knowledge to the final product is adjusted by Iran National Petrochemical Industries Co. which specifies if the petrochemical companies utilize such technical knowledge but reaching to the final product faces with problems, either qualitatively or quantitatively, Iran National Petrochemical Industries Co., has the right to indemnify the incurred damages through initial agreements with the technical knowledge based company. The two documents aforesaid, are considered as a powerful support in manufacturing process, leading and operating technical know-how of developing SMEs. Under such conditions, Iran National Petrochemical Industries Co.., as an intellectual property partner of the produced technical knowledge, guarantees the final product credit for production and offers the required advocates. Taking into account the governing role of it, Iran National Petrochemical Industries Co. has the right to supervise the sequent usages and use legalized tools for breaching the regulations.

In this respect, a technical information bank formed of technical know-how of the developing SMEs will be generated which introduces the knowledge and the relevant approvals. Referring such information bank, Petrochemical industry companies will be able to specify their needs and requisitions formally. In order to utilize such technical knowledge, agreements will be concluded cooperating with the technical knowledge owners, considering the parties rights and the technical know-how will be granted to the applicants eventually.

Leave a Reply

Your email address will not be published. Required fields are marked *