Intellectual Property Law and R&D Contracts Law Assignment

Facts of the Case:

On the Dubai Automotive Technologies Conference that took place from 5-8 October 2021, theEgyptian software engineer Ahmed Mohamed presents a paper on his new software that contains arevolutionary algorithm which recently got patented in Egypt. He also makes clear at the conferencethat his research is just one step on his research agenda and that he is determined to develop thesoftware further for concrete applications. Ahmed Mohamed works for the Egyptian University ofAdvanced High Technology Research (EUAHTR) in New Giza, where he is the head of a softwareresearch group of five scientists. Xi Pao Liu, chief automotive engineer with the Chinese car producerStar Car Automobiles in Shanghai, is very impressed by Ahmed's presentation. His company is currentlylooking for ways to develop a car that can drive autonomously. Xi Pao Liu is convinced that Ahmed'ssoftware will be of great help in advancing the development process. Xi Pao Liu therefore advancesAhmed and offers him to work as consultant for Star Cars Automobiles. Ahmed is reluctant to acceptthe position since on the one hand he is employed by the university which might not allow him thisarrangement and on the other hand, he did not develop the software alone but with his team.Therefore, Ahmed suggests to develop the software adaption with respect to the specific cars of StarCars Automobiles in form of a R&D project conducted jointly between Star Cars Automobiles andEUAHTR. Ahmed makes clear that the programming of the software can be done on the premises ofEUAHTR in New Giza. For implementing the software, it would be required for Ahmed Mohamed andtwo members of his team to travel to the production site of Star Cars Automobiles in Shanghai for fourweeks, which is estimated to cost approximately 250.000 LE. Ahmed Mohamed and Xi Pao Liu agreeto discuss further details in a Zoom meeting scheduled for 20 October 2021. In this meeting, they agreethat the joint project shall start on 1 March 2022 and shall have a duration of two years. Furthermore,it is agreed that Ahmed's team will dedicate 20% of its total capabilities to the project. The personnelcost for this is calculated at 1.200.000 LE. Xi Pao Liu on behalf of Star Cars Automobiles makes clearthat the company wants the upgraded software not to become available to any competing autoproducers, but rather to be the sole company producing cars with this new feature. Star CarsAutomobiles estimates that the market value of a car with the new feature will be 25% higher thantheir current comparable models, and envisages to sell the cars with the new feature at this increasedprice. Ahmed Mohamed declares on behalf of EUAHTR that after completing the project, he and histeam want to use the advanced software for further research and teaching purposes. AhmedMohamed and Xi Pao Liu contact their respective legal departments to draft an appropriate contractualagreement.

Questions:

1. Which appropriate contractual agreement will the lawyers suggest?
2. Between which parties shall such contractual agreement be concluded?
3. Which aspects (e.g. financing, IP issues, confidentiality, use of facilities etc.) will be particularlyrelevant for EUAHTR to be in the contract? How will the university want them to be regulated?Explain why!
4. Which aspects (e.g. financing, IP issues, confidentiality, use of facilities etc.) will be particularlyrelevant for Star Cars Automobiles to be in the contract? How will the company want them tobe regulated? Explain why!
5. Which other elements (e.g. governing law, disputes, term etc.) should be included in thecontractual agreement? What could they look like? What problems might arise? Explain!

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