By Dr. iur. Günther Jaenicke, Dr. iur. Erich Schanze LL.M., Wolfgang Hauser LL.M. (auth.)
The 3rd Uni ted countries convention at the Lawof the ocean is getting ready principles a long way the institution of a global felony regime governing the exploration and exploitation of the assets of the overseas seabed. The Draft conference at the legislation of the ocean (Informal textual content) of 27 August 1980 which has to date been the results of the negotiations through the previous classes of the convention, presents for a so-called "parallel method" below which a global "Enterprise" as weIl as nationwide deepest or state-owned businesses should be granted entry to the assets of the overseas seabed lower than the keep an eye on of a world Seabed Authority. The Draft conference additionally envisages the condusion of three way partnership agreements among the overseas firm and nationwide businesses or consortia, and encourages such cooperation via provide ing numerous incentives. Such joint ventures will most likely play a big half in making the overseas company operative within the early years of its lifestyles. on the convention matters were expressed no matter if and whilst the company as a newcomer will be capable of begin seabed mining and to compete successfully with the nationwide businesses. The Draft conference presents for a couple of methods and capability to permit the firm to strengthen its technological and monetary functions for deep sea mining as early as possible.
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Extra info for A Joint Venture Agreement for Seabed Mining
Article 16: Transfer of Technology: Equipment, Services and Know-how. . . . . . . . Article 17: Transfer of Technology: Training by the Operating Company . . . . . . . . . .. Article 18: Transfer of Technology: Training by the Investor. . . . . . . . . . . . . . . Article 19: Default and Force Majeure .............. Article 20: Dispute Settlement . . . . . . . . . . Article 21: Applicable Law ........................ Article 22: Renegotiation. . .
13 para. 12 of the Convention. Commentary, Part B, Artic1e 3. This Article corresponds to Part A, Article 7. Since we assume that the Investor will be involved in commercial transactions with the Operating Company, the Authority and the Investor have to agree on special monitoring rights with respect to these transactions. The problem of arm's-length transactions is dealt with in the general manner outlined in Annex IIf, Article 13, para. 9. The Authorit)r is given the power of final determination of an adequate price in accordance with general pricing principles.
Our assumptions about the capital required are taken from the Aachen/Battelle studyand serve illustrative purposes only. To avoid the delicate negotiation problem of the valuation of the prospected area and the contributions through rendering R & D and other development costs of the sea-bed mining technology, we have inserted a clause which excludes these items from the initial capital valuation. Past expenses for R & D on the Investor's side will be considered in his fiscalliability to the Authority (Part B, Article 2).
A Joint Venture Agreement for Seabed Mining by Dr. iur. Günther Jaenicke, Dr. iur. Erich Schanze LL.M., Wolfgang Hauser LL.M. (auth.)