SOVIET TRADE IN PATENTS AND LICENSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R001400570001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: August 20, 2010
• Sequence Number: 1
• Publication Date: April 16, 1984
• Content Type: MEMO

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16 April 1984
MEMORANDUM FOR THE RECORD
SUBJECT: Soviet Trade In Patents and Licenses
The following paper was written in response to a request
from the DDO/LA to provide information on Soviet Trade In Patents
and Licenses. The paper, itself, is Unclassified.
STAT
Manpower and Planning Branch
Soviet Economy Division
Attachments
1. Patents Granted to the Soviet Union by
Industrialized Western Countries
2. Active Soviet Licenses in the United States
3. Select License Agreements Between the
Soviets and Western Firms
SOVA-M-84-10060
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SUBJECT: Soviet Trade In Patents and Licenses
Distrubituon:
SOV-M-84-10060
Original &
1 - Addressee
1 -
SOVA/ES
1 - D/BONA
1 -
SOVA/CS/D
1 - DD/BONA
1 -
SOVA/DI/D
1 - DC/PES
1 -
SOVA/EA/D
1 - DDI Action Staff
1 -
SOVA/PA/D
1 - ED/DCI
1 -
SOVA/TF/D
1 - DDO/SAG
1 -
SOVA/SF/D
1 - NIO/Economics
5 -
OCO/IMD/CS
1 - NIO/USSR-EE
1 -
SOVA/SE/I
1 - SA/IA/DCI
1 -
SOYA/SE/R
1 - SOVA/SE/D
1 - SOVA/PS
1 -
SOVA/SE/T
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11 April 1984
Soviet Trade in Patents and Licenses
A. Soviet Trade Policy With Regard to Licenses
Soviet technology trade has traditionally been concentrated
on machinery imports and non-negotiable covert transfers, instead
of licenses. Until the mid 1960's Soviet trade in licenses was
virtually negligible. Since then license trade has assuredly
grown, but the overall level is still probably low. One Soviet
has estimated the USSR spends less than 1 percent of its STAT
R&D budget on purchasing licenses--Western countries generally
spend between 15 - 45 percent. STAT
It is 1 ikely, however, that this estimate of Soviet spending
refers only to the purchases of the Soviet foreign trade
organization set up to trade licenses, Litsensintorg. These
purchases are for "pure technology" licenses that do not include
supporting hardware. Package deals that include licenses and
hardware are not handled within Litsensintorg, and while numerous
and important, are probably not included in the published Soviet
estimates of license trade. If they were included the level of
license trade may be significantly increased, but would still
constitute a very small share of total Soviet trade and,
additionally, would still be much less than the level of license
trade carried on by Western countries. STAT
SOVA-M-84-10060
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The most interesting comparison is with Japan. Like the
Soviet Union, Japan entered the post-war period with a wrecked
economy and a determination to rebuild quickly. The Japanese,
while not allowing direct foreign investment, did actively pursue
Western technology and know-how and between the years 1965 and
1971, for instance, purchased 6851 licenses. The USSR, on the
other hand, showed little
1960's and,
interest in 1 icenses until the mid
by 1976 had acquired
STAT
STAT
only 1,300 licenses.
Interest in license trade has probably increased since the
mid 1970's as Soviet disappointment in the benefits of plant and
equipment imported without accompaning know-how has grown.
However, the post-Afghanistan East-West political environment and
hard currency constraints have probably discouraged Soviet
imports of licenses, despite the technological advances the USSR
believes such licenses could promote. It is also likely that
Soviet exports of licenses--which are probably no more than one-
half Soviet imports of 1 icenses with respect to both the number
and value of transactions--have not significantly grown. They
have been hindered not only by the political climate but by
Soviet bureaucratic obstacles which include a general
unwillingness to release with the license all needed auxiliary
information.
6. Some Facts and Figures on Soviet Trade and Licenses
There is little information on Soviet trade in patents and
licenses, but, according to the available evidence;
STAT
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-- Industrialized Western countries have granted the USSR at
least 17,000 patents since the mid-1970s (Attachment
1).
-- The Soviets sell licenses to more than 30 countries.
-- Inter-CEMA license deals are probably relatively few.
According to Soviet sources, in the mid 1970's there were
only around 100 such arrangements in effect.
-- In 1976, the last year for which data are available,
Soviet license sales totaled 119 on a world-wide basis.
-- The number of Soviet licenses sold to the West totaled
around 200 for the years 1962-1976. One study gives a
rough estimate of Soviet earnings from sales of licenses
to the West from 1964 to 1976 of $100-107 million and
contrasts this with U.S. license earnings in Western
Europe in a single year (1977) of $2,263 mill ion.
-- The number of licenses the Soviets sold to the U.S. over
the last 15 years is quite small--around 30. The value
of these sales, measured in fees and royalties paid, is
probably not more than $50 million.
-- Soviet imports of licenses are at least 2-3 times greater
(in both value and number) than Soviet license exports.
-- Data collected by John Kiser in 1979 implies that about
50 percent of Soviet exports of licenses to the West are
in the f iel d of metallurgy. (Attachment 2 is a 1 ist of
Soviet 1 i tenses in the United States comp i 1 ed 1 ast year
STAT
STAT
STAT
STAT
STAT
STAT
STAT
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by John Kiser. Attachment 3 is a 1 ist of select 1 icense
agreements between the Soviets and Western firms
published in a 1980 OECD study.)
C. Effect of Imported Licenses on the Soviet Economy
It is difficult to estimate the impact of importing 1 icenses
on the Soviet economy as a whole. Licenses probably have played
an important role in the development of specific industrial
sectors such as automobiles and chemicals. On the whole,
however, the effect of licenses has probably been slight and has
definitely been far below potential because of the Soviet policy
of severely l inviting the personal contacts and exchanges
necessary to effectively transfer the know-how embodied in a
license. The lack of such personal interaction, coupled with the
well know problems the Soviets have in coordinating research,
development and production within their civilian economy presents
a formidable obstacle to the effective utilization of imported
licenses on a broad scale--although high priority licenses are
apt to receive enough special resources to serve as exceptions to
this general rule.
D. Evaluation of Soviet Capability to Transfer Licenses and
Patents to Different Sectors of the Economy
The Central Research Institute for Patent Information
(TsNIIPI) acts as a clearing house to collect and disseminate
information on Western patents throughout the economy. Its
collection and transfer of information on patents to different
sectors seems well organized, substantially funded and
effective. Efforts to effectively utilize patent information,
STAT
STAT
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however, often fall victim to the influences already cited in
section C of this paper--xenophobia and problems in the R&D and
production process. These same factors inhibit effective
utilization of Western 1 icenses. Even if a single sector
surmounts these obstacles, further successful transfer of the
technology embodied in a patent on license is likely to be a slow
process because of bureaucratic separation and competition
between branches.
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Attachment 1
Patents Granted to the Soviet Union (197*0-82)
by Industrialized Western Countries
Applicant Country-(Soviet Union) by year
Grant Country
1970
1975
1976
1977
1978
1979
1980
1981
1982
Austria
71
68
57
60
44
54
54
35
41
Belgium
125
42
31
29
13
19
11
9
11
Canada
112
101
120
133
136
105
138
146
147
Denmark
8
15
10
15
16
11
11
12
11
France
326
198
705
542
414
333
553
349
256
FRG
80
351
391
383
373
353
313
239
277
Italy
--
--
--
--
--
--
39
--
--
Japan
78
209
193
337
259
242
225
233
203
Luxembourg
2
3
2
2
2
3
--
1
2
Netherlands
--
23
35
36
40
42
48
32
25
Norway
11
15
13
13
10
14
7
11
14
Sweden
150
171
153
126
124
94
93
85
122
Switzerland
93
101
76
133
8
61
51
71
62
Britain
369
458
430
353
413
250
172
110
191
U.S.
218
404
426
393
411
329
463
373
209
Total
1,643
2,159
2,642
2,555
2,263
1,910
2,178
1,706
1,571
* U.S. Department of Commerce.
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Nttacn~:ent : z
Actlve Soviet Ucen:es In the United Steles'
Ted~nNpy
=ell Ye
One
Approx.
Surgical Stapling Instruments
U.S. Surgical Corp.
1964
3M
1979
Hydraulic Rock Crusher
Joy Manufacturing
1969
Pneumatic Underground Punch
"Hole Hog"
Evaporative Stave Cooling of
81ast Furnaces
Allied Steel b Tractor
Andco Engineering
1971
1972
Aluminum Silicon Alloy
Ethyl Corporation
1973
Production of Hollow Ingots by
Electroslag Remelting
Cabot
1973
Flux Cored Electrodes
Chemetron
1974
Magnetic Impact Bonding
Maxwell laboratories
1974
Drug Pyrroxan for Treating Central
Nervous System Disorders
.
American Home Products
1974
Ethnozin for Treating
Cardiac Arrest
Dupont
1974
Electromagnetic Casting of Aluminum
Kaiser Aluminum
1975
Carboxide Insect Repellant
Reynolds Aluminum
Alcoa
American Home Products
1975
In Situ Underground Coal Gasification
Texas Utilities Services, Inc.
1975
Carminomycin and Ftorafur
Anti-Cancer Agents
Bulat Process for Titanium Nitriding
Bristol Myers
Multiarc Vacuum Systems
1976
1979
Flash Butt Weldmg of Large
Diameter Pipes
Electromagnetic Casting of
Copper Alloys
J. R. McDermott
Olin Brass
1980
1980
Cone Crusher ~
Rexnord
1961
Air Column Separator
Air Products
1981
Medical Preparation Riocidin
Ciba Geigy USA
1982
8iodeQradable Polymer Pin
for Orthopedics
Medco
1982
%tails ollicenses sold through 1976 can be obtained in J.W. Kiser's Report on the Potential for
Technology Transfer Irom the Soviet Union to the United States, prepared for the U. S. Department
of State, Office of External Research, 1977. Copies can be obtained through Kiser Research, Inc.
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Remap (Fr)
Sace (I)
Mechanite NK)
Suh:er (Swi)
Rubery Owen NK)
British Rubber NK)
Integral (A)
Lucas NK)
Tejjin (Ja)
Toyo Engineering (Ja)
Union Carbide NS)
Vereinigte Kessehwerke (FRG)
Ahzthom (Fr)
Friedrich Kochs (1`RG)
Merloni (1)
Bosch (FRG)
Brown, Boveri (Swi)
Girling NK)
Hampden Industries NS)
Rocla Industries (Aul)
San Giorgio (n
Semperit (A) 1976
Fnurz von Furtenbech (A) 1977
Chaffoteaux et Maury (Fr) 1976
MAN (FRG) 1975
Standard-Elektrik Lorenz AG (FRG)
1975
AEG (FRG)
1977
Kiimmerling (FRG)
1977
Terosen (FRG)
1977
AGA Svetsprodukter (Swe)
1976
Vauxhall Motors NK)
1975
Drnt, Hellyer NK)
1976
Steiger NS)
1974
Berliet (Fr)
Bopp and Reuther (FRG)
British Petroleum NK)
Hitachi (Ja)
Gillette NS)
Marubeni-Ida (Ja)
Toray Industries (Ja)
Alsa Schuhbedarf (FRG)
1976
Steyer-Daimler-Poch (A)
1975
>~ ta~-
Cuuatry
Snle~+ LieeNS>` A~r~~~mENrs acTwew'
-I h? SoYIl73 AwD WESTF2tY r'r~~Y1s
Table A-29 (conr
Daaiptioe dthe
TocAeobp
Chemical treatment of steel strips
Furnaces for sulphur burning
Numerically controlled machine-tools
Modular switches
Motor vehicle brakes
Machine-tool heads
Resistors and cquipmrnt ~r their
manufacture
Coating of meta! sheets for motor
vehicles
Prefabricated houses
Electra-hydraulic cranes
f,Iyard.{fn~......___ . _ , 1~Z
Steller (FRG) 1!7
(Swe) 1975
(SWe) 1976
Clark Equipment NS) 1972
International Harvester NS) 1974
Westinghouse NS) 1974
Grneral Electric NS) 1976
Compagnie generate de TSF (Fr)
Philips (I~ - - __
L'Air Liquide (Fr)
A.G. Kuhnle, Kopp do Kausch
(FRG)
Mchem Products NK)
Chembau Zieren (FRG)
Fujitsu (Ja)
Lsostat (Fr)
Knorr-Bremsrn (FRG)
Line (Fr)
Precis (Fr)
Pro Finish Metals NS)
Tchersmachiner (Swe)
Xegglound and Sioner (Swe)
rCau A oe wur fie)
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USSR
(distributed
by industrial
sectors)
AMoootlve
To8liatti8rad automotive
plant - Positork automatic
r~?tion device
Hosiaess Fgalpment
Electric typewriters
Olympia Werke (FRG)
(announced July 1974)
C>deasicab coil PetrachemkaM
Aromatic
Arco Chemical (US)
11 /72
Chloropropene monomer
BP Chemicah International (UK)
on butadirne base
3/73
Reinforced plastic foil
Ewald Darken (FRG)
8/73
Alpha calcium-sulphate
fi
i
Gebr. Giufini ~'RG)
9/74
semihydrate re
n
nS
HiSlt solid latex
International Synthetic Rubber NK)
3/73
Acetic acid
Lummus Co. and Motwnto
12/73
Automatic zinc-removirtS devices
Montedison ~
12/72
used in electrolysis
i
h
C
(US
U
10/72
n8
Isocyanate ptocess
n
o.
)
pjo
200 cm. ractor for production
of susperttion PVC
C7remische Werke
Huels AG (FRG)
4/73
"Pattex" contact filue
Hrnkel do Co. (FItG)
S/7S
Polymerisation a,ent Liladox,
Kemanord (Swe)
7/7S
i
id d
i
i
b
vat
ve
er
a percar
on
c ac
"Hetanal", a herbicide
Scherirr~ AG (FRG)
S/75
for turnip and beet fields
Porous material
L'Air liquide (Fr)
7/76
for acetylene books
Synthesized standard uses
Seitetsu Ka4aku Ko`yo pa)
3/77
Gssratrsxtlota
Roadbuikiirr4 and paving
equipment
Gossamer Goods
Stainlaa steel razors
Wilkinson Sword (UK)
8/73
Padlocks and mortise locks
WBrtsili (Fin)
8/76
Phaofiash tuba
Hellmann (FRG)
11/76
Automatic lin
Thermistors p
Photo4raph c
Electric stove
Conversion a
roiled steel
Direkt reduct
tq be used
Steil structur
misnufactw
W D~
sled tsar
Ab ve ma'
Uniiversal prr
ble p
minium
uurufact~
Air prehaters
Krallanla,err Heidelberz (FRG) 2/73
for power stations
Et
yl-renze
Axial bellows for
power static auldrons
Kuhnk, Kopp R Kausch (FRG ~2
G
dessic~
burs
Cassette ma
net ha+d
Woltdand Bo4en (FRG) S/74
g
Hish-volta8e powerline
General Gbk NS) 2/77
Oi
drilling
insulatan materiah
w-r~ ct~w
c~~
 DBA (Fr) 1 /76
Olympia Werke (FRG)
(announced July 1974)
creoicala
Arco Chemical NS) 11/72
BP Chemicals International NK)
Ewald Dorken (FRG) 8/73
Gebr. Giulini (FRG) 9/74
International Synthetic Rubber NK)
3/73
Lummus Co. and Monsanto 12/73
Montedison (I) 12/72
Upjohn Co. NS) 10/72
Chemische Werke
Huels AG (FRG) 4/75
Henkel do Co. (FRG) S/75
Kemanord (Swe) 7/75
Schering AG (FRG) S/75
L'Air lpuide (Fr) 7/76
Seitetsu Kagaku Kogyo (Ja) 3/77
CMI com? Ns) lonb
Wilkinson Sword NK) 8/73
Wiirtsilii (Fin) 8/76
Bellmann (FRG) 11/76
KraRanlagrn Heidelberg (FRG) 2/73
Kuhnle, Kopp ~ Kausch (FRG)
Wolfgang Bogen (FRG) S/74
General Cabk NS) 2/77
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