licensing agreements begin to have a markedly exclusive effect on lt. The same thing happens when the restrictions on branches of Industry or old firms which have longstanding contracts are analysed. There are of course. hypotheses about behaviour which need more exhaustive analysis. However, the exclusive characteristics of technology agreements can hardly be desired. The Important conclusion Is that the three types of restrictions above Interact and lead to the same results. Finally. there Is a fourth limitation also stipulated In licensing contracts, which tends to prevent members of staff disclosing technology to one another and restricts their joining competing firms. This limitation which Is perhaps difficult to Implement In practice but Is found In many countries similar to the following: • (the local firm) must use alI the means at Its disposal to prevent Its staff from entering the service of another company making the products licensed, for five years after termination of the contract•(29). • confidential Information wit I only be accessible to those employees whose work requires their knowing It, and (the I lcensee) must be sure that they do not reveal It to unauthorized third partles•(30). These clauses are undoubtedly difficult to Implement since they usually contradict legal measures In force In the recipient countries. At all events, when the contract Is dra~n up the fl~m granting the license creates some mechanism whereby It can restrict the possible development of future competitive firms, thus achieving a market structure wlhln which It can enjoy monopolistic revenue. It may be thought, a priori, that not only clauses referring to a firm's staff are difficult to Implement. The clauses 29. Contract for manufacture of flbrocement articles. 30. Text from contracts for production of paint and parts of stairs. 1S described under the four types of restrictions may be equally difficult. Thus technology contracts may lead to legal conflict• 
**Analysis**
The text discusses licensing agreements and their restrictive clauses, which have an impact on the behavior of firms and employees. The text highlights the exclusive nature of these agreements and how they can lead to monopolistic revenue. The focus is on the contractual agreements and their effects on the market structure.

**Category**
Industry, International trade