Abstract: Developments in science and technology is very significant in the efforts to improve life standard, civilization and human dignity as well as providing benefits to the community, state and nation. The nature of the implementation of national development is an integral to human development and the entire people of Indonesia, not only as efforts to create an atmosphere which is able to generate enthusiasm and interest but also to encourage the birth of a work and or new findings which can be used as supporting national development. Each country has its own technique in technology transfer arrangement in accordance with the level of its technological advances. There are countries that have advanced level of technology which are still underdeveloped. Technology transfer needs to be done to obtain all the economic benefit of the nation. Technology transfer mechanism also includes international trade transactions which depends on the political and economic situation as well as the level of technological advancement of the country concerned. In this connection, it should be studied carefully to provide input to the government in creating legal rules that govern the economic field. The main problem to be studied is the license agreement on the transfer of technology between the recipient and the donor/owner of the technology in relation to the Patent Law.