Tools of Torture and Repression in South America manufacture and sale of pyrotechnic and riot control equipment and technology transfer.153 Venezuelan Military Venezuela Small and light arms. Small arms ammunition. Unmanned Industries – Compañía aerial vehicles. Alliance with Arsenal Industries 2000 C.A. for Anónima Venezolana the production, distribution and sale of protective clothing, de Industrias Militares handcuffs, extendable batons and other equipment.154 (CAVIM) Agreement with Spanish company Falken S.A. for the licensed production of chemical irritants, including CS grenades.155 Display of FAMAE equipment, including CS grenades and aerosol sprays. Memoria FAMAE 2013, p. 25 Licensed production Licensed production overseas156 is the process where a company in one country allows a second company in another country to manufacture its products under licence. The form these agreements take varies greatly, covering both tangible and intangible transfers. In some agreements, raw materials and/or parts are exported to the buyer country where they are used to assemble the product, while in others the product design and the expertise required to manufacture it are licensed out to the buyer who then manufactures the product from scratch. Several South American state-owned companies manufacture law enforcement equipment under licensed production agreements. Illustrative examples of licensed production agreements Peru: Spanish company Falken S.A. signed a contract with Peruvian state-controlled company FAME in 2010 for the production of law enforcement equipment and technology transfer. Falken’s contract with FAME ran from 2010-2015 and reportedly included a non-exhaustive 153 FAME S.A.C, Memoria 2010, p. 23. ‘CAVIM Y ARSENAL INDUSTRIES 2000 C.A Suscriben Alianza Para La Fabricación de Chalecos Antibalas Venezuela Defensa’, venezueladefensa.com, 21 June 2013 <http://www.venezueladefensa.com/2013/06/cavim-y-arsenal-industries-2000-ca.html> [accessed 1 June 2016]. 155 CAVIM, ‘FALKEN S.A’ <http://www.cavim.com.ve/index.php/alianzas/falken> [accessed 1 June 2016]. 156 Licensed production agreements are also often referred to as licensing manufacturing agreements, coproduction agreements and technology transfer agreements, although there are technical differences between each of these. 154 35