This thesis discusses the different aspects of licensing agreements to exploit patented technology. Such licencing agreements are important when considering technology transfers to developing countries. The study addresses whether the current Libyan legal framework is able to accommodate such licences in terms of preparing and drafting a patent licence and identifying the rights and obligations of the parties. The study finds that the licensing agreements and technology transfer agreements are not subject to special provisions under the Libyan legal system, and are regulated under the general provisions of contracting in the Libyan 'Civil Code 1953', which does not adequately deal with some of the typical terms of licensing agreements. The Libyan legislature, therefore, should find alternative approaches to overcoming the difficulties that arise.