The main idea is this: the following section presents the standard ITC contract, which provides a framework for an international contract for the manufacture of labour-based products. This is only a general framework and must be adapted to certain circumstances. The ITC model contract offers a series or “menu” of possibilities depending on the context and type of production. Many provisions may not be relevant to a particular contract and should, of course, be removed, if not relevant. Common production agreements, in which two or more parties agree on the conditions under which a product can be produced, can have significant benefits for consumers and markets. For example, companies can reduce costs that can be passed on to their customers by producing common goods. Joint production can also help companies pool complementary skills and know-how or invest together more than they could do individually, improving product quality or diversity. The following international sales clauses of the ITC model can be copied into the international contract of the ITC model:[1] If production is carried out jointly by two or more parties, this can be done either by a joint venture (i.e. a jointly controlled company) or by a more flexible form.

B cooperation, such as a “subcontract” that can be horizontal or vertical. Unless otherwise stated or agreed, the distinction between manufacturing as a sale/delivery and manufacturing as a service can be made as follows: toll manufacturing. In practice, a manufacturing services regime (i.e. for the predominant service elements) is sometimes referred to as “toll production.” Although “toll” is a concept of art in many sectors, there is no common understanding of what the term really means between sectors. Interchangeability of contractual clauses. Despite the difference in priority mentioned above in the long-term delivery agreement (order, optimization of preparation time and logistics optimization) compared to the manufacturing agreement (common improvement of the production and product process with a particular focus on IP rights), several contractual clauses are interchangeable between the two models. The itc long-term international model The clauses can be copied into the ITC international contract model: As mentioned above, when the contract is terminated or involves the creation or transfer of intellectual property rights or know-how, it is highly recommended to address this issue in the contract. By default, intellectual property rights are the property of the creating party, in cases where it is manufacturing, it is often the manufacturer. If the creation was paid for in whole or in part by the other party (the client), a redistribution of ownership or the granting of a license is necessary.