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Law of the Peoples Republic of China on Technology Contracts (1)          【字体:
Law of the Peoples Republic of China on Technology Contracts (1)
更新时间:2007-5-2
  1987.11.01
STANDING COMMITTEE OF THE NATIONAL PEOPLE'S CONGRESS
LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON TECHNOLOGY CONTRACTS
 (Adopted at the 21st Meeting of the Standing Committee of the
Sixth National  People's  Congress on June 23, 1987, promulgated by
Order No.53 of the President of the People's Republic of China
on June 23, 1987, and effective as of November 1,1987)
CONTENTS
CHAPTER I GENERAL PROVISIONS
CHAPTER II  THE  CONCLUSION,  PERFORMANCE,  MODIFICATION  AND
RESCISSION OF TECHNOLOGY CONTRACTS
CHAPTER III TECHNOLOGY DEVELOPMENT CONTRACTS
CHAPTER IV TECHNOLOGY TRANSFER CONTRACTS
CHAPTER V TECHNICAL CONSULTANCY CONTRACTS AND TECHNICAL SERVICE
CONTRACTS
CHAPTER VI  ARBITRATION  AND LITIGATION CONCERNING DISPUTES OVER
TECHNOLOGY CONTRACTS
CHAPTER VII SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PROVISIONS
 @@  Article  1.  This  Law  is  formulated  with  a  view to
promoting  the development  of  science  and technology, enabling
science and technology to render  better  service  to  socialist
modernization,  ensuring the lawful rights  and  interests  of the
parties  to  technology  contracts,  and maintaining the order of
technology markets.
 @@ Article 2. This Law shall apply to contracts concluded between
legal persons,  between  legal persons and citizens, and between
citizens  for  establishing  relations  of  civil  rights  and
obligations  with  respect to technology  development,  technology
transfers,  technical  consultancy and technical services, but not
to  contracts to which a foreign enterprise, organization or individual
is a party.
 @@  Article  3. The conclusion of a technology contract must comply
with the laws  and regulations, facilitate the progress of science
and technology, and  accelerate the application and dissemination
of the achievements of science and technology.
 @@  Article 4. The conclusion of a technology contract must adhere
to the principles  of voluntariness and equality, mutual benefit and
compensation, and honesty and creditability.
 @@  Article  5.  If  the  contents  of  a technology contract
involve the security  or vital interests of the state and need to be
kept confidential, the matter shall be dealt with in accordance with
the relevant provisions of the state.
 @@  Article  6.  Technological achievements obtained by a person in
carrying out  a  task  of  the unit to which he belongs or mainly
through using the technological  and  material  means of such a
unit  shall be job-related technological achievements. The right to
use or to transfer a job-related technological achievement shall
belong  to the unit, which shall have the right  to  conclude
technology  contracts  concerning  such a technological achievement.
The  unit  shall  rew

ard  the individuals who accomplished the
technological  achievement  on  the  basis of the proceeds realized
from the use and transfer of such an achievement.
 The  right  to  use and transfer a non-job-related technological
achievement shall  belong  to the individuals who accomplished it,
who  shall  have  the right  to  conclude  technology  contracts
concerning such a non-job-related technological achievement.
 Where application for a patent is filed or a patent right is granted
for a job-related  or  non-job-related  technological achievement,
the relevant provisions of the Patent Law shall apply.
 An  individual  who  has accomplished a technological achievement
shall have the  right to be named as such in the documents related to
the technological achievement and the right to receive certificates of
honour and awards.
 @@  Article  7. The competent departments under the State Council
and the people's  governments of provinces, autonomous regions or
municipalities  directly  under the Central Government shall, as
required by state interests or public interests, have the authority
to  decide  on  the  dissemination  for wider  application  by
designated  units  of  non-patent  technological achievements that
are  of  great significance and belong to units owned by the whole
people within their system or under their administration. A unit using
such  technological  achievements  shall commit itself to keep the
technological  achievements  confidential  and shall pay a use fee
according to  the  agreement between the two parties. If the two
parties can not reach an agreement, the authorities that have made the
decision shall determine a reasonable use fee.
 Non-patent  technological  achievements  of  collectively  owned
units  or individuals  that  are  of  great significance to state
interests or public interests and need to be applied on a wider
scale shall be handled by making reference to the provisions of
the preceding paragraph after the competent departments under the
State Council have obtained approval from the State Council.
 @@  Article  8.  The  administrative  authorities in charge of
technology contracts shall be specified by the State Council.
  CHAPTER  II  THE  CONCLUSION,  PERFORMANCE,  MODIFICATION  AND
RESCISSION OF TECHNOLOGY CONTRACTS
 @@  Article  9.  The conclusion, modification and rescission of a
technology contract shall be conducted in written form.
 @@  Article  10. A technology contract shall be formed once the
parties have signed  their names and put their seals on it. Contracts
subject to approval by  the  relevant  authorities pursuant to the
provisions of the state shall be formed upon such approval.
 @@  Article  11. Parties to a technology contract may stipulate the
guaranty for  the  contr

act.  A contract with a third party as the
guarantor shall be formed  upon  the  signing  and sealing of the
contract by the guarantor and the guaranteed party.
 @@  Article  12. The price or remuneration and the means of payment
shall be agreed upon by the parties to a technology contract.
 @@  Article  13.  A  party  may entrust an agent to conclude a
technology contract  on  its  behalf. The entrusting party shall
issue  a power of attorney to the agent. The agent shall conclude the
contract in the name of the entrusting party and within the scope of
authority delegated to him by the entrusting party.
 @@  Article  14.  Intermediary  agencies that provide services
for  the conclusion  of  technology  contracts shall comply with
the  relevant  provisions  of  this  Law  and  adhere  to  the
principles  of  honesty and creditability, and may collect reasonable
fees.
 @@  Article 15. The provisions of a technology contract shall be
agreed upon by the parties, and shall normally contain the following:
(1) title of the project;
(2) contents, scope and requirements of the object;
(3) plan, schedule, time limits, place and manner of performance;
(4) maintenance of confidentiality of technological information and
materials;
(5) liability for risks;
(6) ownership and sharing of technological achievements;
(7) standards and methods of inspection and acceptance;
(8) price or remuneration and means of payment;
(9)  breach  of  contract  damages or methods for computing the
amount of compensation for losses;
(10) methods for settling disputes; and
(11) interpretation of terms and technical expressions.
 Background  materials  on the technology, reports on feasibility
studies  and technological  appraisal,  project  descriptions  and
plans,  technological standards,  technological  norms,  original
designs  and documents on technological  processes,  as  well  as
blueprints,  charts,  data  and photographs,  etc.  ,  that are
pertinent to the performance of the contract may,  by agreement
between the parties, become an integral part of the contract.
 @@  Article 16. As soon as a technology contract is formed according
to law, it shall have legally binding force, and the parties shall
fully perform the  obligations  agreed  upon in the contract. No
party may unilaterally modify or rescind the contract.
 @@  Article  17.  If  a  party to a technology contract fails to
perform the contract or its performance of the contractual obligations
does not conform to the agreed terms, which constitutes a breach of
the contract, the other party  shall  have the right to demand
performance  of the contract or adoption of remedial measures, and
it shall also have the right to claim compensation for its losses.
 The liability for compensatio

n of a party that breaches a contract
shall correspond  to  the  losses suffered by the other party as a
result of the breach, but may not exceed the losses that the party
responsible for the breach should have foreseen at the time of
concluding the contract.
 The  parties  may  agree  in  the  contract that when one party
breaches the contract,  it shall pay a certain amount of breach of
contract damages to the other party; they may also agree upon the
methods of computing the amount of compensation to be paid for losses
caused by a breach of contract.
 The  party  that  has  suffered losses due to the other party's
breach of contract  shall  promptly  adopt appropriate measures to
prevent  the losses from  being  aggravated,  if  it  fails  to
promptly adopt such appropriate measures and as a result the losses
are aggravated, it shall not have the right to claim compensation for
the aggravated part of the losses.
@@ Article 18. If all parties are in breach of a technology contract,
each party shall bear its liability commensurately.
 @@  Article  19. If a party fails to perform its obligations
under  a  technology  contract  for  reasons  attributable  to
authorities  at  a  higher level,  it  shall,  according  to
stipulations  of the contract, pay compensation to the other party
or adopt other remedial measures, and then the authorities at a higher
level shall be responsible for dealing with the losses thereby suffered
by the former.
 @@  Article  20.  If  a  party is prevented from performing a
technology contract  by  force majeure, it shall be exonerated from
the liability for its failure to perform the contract.


ard  the individuals who accomplished the
technological  achievement  on  the  basis of the proceeds realized
from the use and transfer of such an achievement.
 The  right  to  use and transfer a non-job-related technological
achievement shall  belong  to the individuals who accomplished it,
who  shall  have  the right  to  conclude  technology  contracts
concerning such a non-job-related technological achievement.
 Where application for a patent is filed or a patent right is granted
for a job-related  or  non-job-related  technological achievement,
the relevant provisions of the Patent Law shall apply.
 An  individual  who  has accomplished a technological achievement
shall have the  right to be named as such in the documents related to
the technological achievement and the right to receive certificates of
honour and awards.
 @@  Article  7. The competent departments under the State Council
and the people's  governments of provinces, autonomous regions or
municipalities  directly  under the Central Government shall, as
required by state interests or public interests, have the authority
to  decide  on  the  dissemination  for wider  application  by
designated  units  of  non-patent  technological achievements that
are  of  great significance and belong to units owned by the whole
people within their system or under their administration. A unit using
such  technological  achievements  shall commit itself to keep the
technological  achievements  confidential  and shall pay a use fee
according to  the  agreement between the two parties. If the two
parties can not reach an agreement, the authorities that have made the
decision shall determine a reasonable use fee.
 Non-patent  technological  achievements  of  collectively  owned
units  or individuals  that  are  of  great significance to state
interests or public interests and need to be applied on a wider
scale shall be handled by making reference to the provisions of
the preceding paragraph after the competent departments under the
State Council have obtained approval from the State Council.
 @@  Article  8.  The  administrative  authorities in charge of
technology contracts shall be specified by the State Council.
  CHAPTER  II  THE  CONCLUSION,  PERFORMANCE,  MODIFICATION  AND
RESCISSION OF TECHNOLOGY CONTRACTS
 @@  Article  9.  The conclusion, modification and rescission of a
technology contract shall be conducted in written form.
 @@  Article  10. A technology contract shall be formed once the
parties have signed  their names and put their seals on it. Contracts
subject to approval by  the  relevant  authorities pursuant to the
provisions of the state shall be formed upon such approval.
 @@  Article  11. Parties to a technology contract may stipulate the
guaranty for  the  contr

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