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Law of the Peoples Republic of China on Technology Contracts (2)          【字体:
Law of the Peoples Republic of China on Technology Contracts (2)
更新时间:2007-5-2
    @@ Article 21. The following technology contracts shall be void:
 (1) those that violate the laws or regulations or infringe upon
state interests or public interests;
 (2) those that illegally monopolize technology or impede its progress;
 (3) those that infringe upon the lawful rights and interests of
others; and
 (4) those that are concluded by means of fraud or duress.
 Void  contracts  shall  have no legally binding force from the time
they are concluded.  Where  a contract is void in part while the
validity of the rest of the contract is not affected thereby, the rest
shall remain valid.
 @@ Article 22. Any person who concludes a technology contract
that violates  the  laws  and regulations or infringes upon state
interests or public  interests  and  engages in illegal activities
shall be investigated according to law for administrative liability or
criminal liability.
 @@  Article  23. A technology contract may be modified or rescinded
through consultation and agreement between the parties.
 With  respect  to  technology  contracts  approved  by relevant
authorities, consent  of the original approval authorities shall be
obtained for their modification or rescission.
 @@  Article  24.  If,  as a result of the occurrence of any of the
following circumstances,  the performance of a technology contract
becomes unnecessary or impossible, either party shall have the right
to notify the other party of the rescission of the contract:
 (1) the other party has breached the contract;
 (2) an event of force majeure has occurred; or
 (3)  the technology which is the object of a technology development
contract has been made public by others.
 @@ Article 25. Modification or rescission of a technology contract
shall not affect the rights of the parties to claim compensation for
their losses.
 @@  Article  26.  Within  the  validity  period of a technology
contract, no party  may,  without  the consent of the other party,
transfer all or a part of its contractual rights or obligations to a
third party.
CHAPTER III TECHNOLOGY DEVELOPMENT CONTRACTS
 @@  Article  27.  Technology  development  contracts refer to
contracts concluded  between parties for the purpose of conducting
research in and development  of  new technologies, new products,
new processes and new materials as well as their systems.
 Technology  development  contracts  include commission development
contracts and cooperative development contracts.
 @@ Article 28. Commission development contracts refer to contracts
under which  one  party commissions the other party to undertake
research and development.
The main obligations of the commissioning party shall be:
 (1)  to pay funds and remuneration for research and development
according

to stipulations of the contract;
 (2)  to  provide  technical  materials  and original data and to
accomplish coordinated undertakings according to stipulations of the
contract; and
 (3) to accept the result of research and development according to
schedule.
 The  main  obligations  of  the  party  undertaking research and
development shall be:
(1) to work out and implement research and development plans;
(2) to use research and development funds in a rational way; and
 (3)  to  complete research and development work and deliver the
results according  to  schedule,  to provide relevant technical
materials  and necessary  technical  guidance,  and  to help the
commissioning party master the results of research and development.
 @@  Article  29.  If  the  commissioning  party  breaches  the
contract and thereby  causes  a  standstill, delay or failure in
research and development work, it shall pay breach of contract damages
or compensate for the losses.
 If  the party undertaking research and development breaches the
contract and thereby  causes  a standstill or delay in research and
development work, it shall  pay  breach  of contract damages or
compensate for the losses besides adopting  remedial measures and
continuing  the  performance  of the contract; if  research  and
development work fails as a result of the breach, it shall refund all
or  part of the research and development funds and remuneration
received, and pay breach of contract damages or compensate for the
losses.
 @@  Article  30.  Cooperative  development  contracts refer to
contracts concluded  between  parties for the purpose of jointly
carrying out research and development.
  The  main  obligations  of  each  party  to  a  cooperative
research and development contract shall be:
 (1)  to  make  investment  according to the stipulations of the
contract, including contribution of technology as investment;
 (2)  to  take  part in research and development according to the
division of work stipulated in the contract; and
 (3) to cooperate and coordinate with other parties to the contract.

 @@  Article  31. If any party to a cooperative development contract
breaches the  contract  and thereby causes a standstill, delay or
failure in research and  development work, it shall pay breach of
contract damages or compensate for the losses.
 @@  Article  32.  The  principles  governing the ownership and
sharing  of  technological  achievements  obtained  in  performing
technology development contracts shall be:
  (1)  With  respect  to  inventions  and  creations  made  in
execution of a commission for development, the right to apply for a
patent shall,unless otherwise provided in the contract, belong to
the party that undertakes research and development. 

If the party
that  undertakes research and development is granted a patent right
for the inventions or creations, the commissioning party may exploit
that patent without paying a fee.
 If  the  party that undertakes research and development assigns the
right to apply  for a patent for its inventions or creations, the
commissioning party may have priority to acquire such right.
 (2)  With  respect  to  inventions  or  creations made through
cooperative development, the right to apply for a patent shall,
unless otherwise provided for in the contract, be jointly owned by
the parties that carry out  the cooperative development. If one
party  assigns its part of the jointly owned right to apply for a
patent, the other party or parties may have priority to acquire such
right.
 If  one  party  to a cooperative development contract declares
that it renounces  its  part  of  the joint right to apply for a
patent, the other party  may apply for it alone or the other parties
may apply for it jointly. If a patent for the invention or creation
is granted, the party that has renounced its right to apply for the
patent may exploit the patent without paying a fee.
 If one party to a cooperative development contract does not agree to
apply for a patent, the other party or parties may not apply for it.
 (3)  The  right to use non-patent technological achievements made
through commission  development  or  cooperative  development, the
right derived to transfer  them,  and the methods of distributing
benefits from them shall be stipulated  by  the  parties in the
contract. In the absence of contractual stipulations, each party
shall  have  the right to use and transfer the achievements, except
that  the  party undertaking research and development under  a
commission  development  contract  may not transfer the results of
research  and  development  to a third party before delivering them
to the commissioning party.
 @@  Article  33. The liability for risks involved in a failure or
partial  failure  in  research  and  development  caused  by
unsurmountable technical difficulties  occurring  in  the  process
of  performing a technology development contract shall be stipulated
by the parties in the contract. In the  absence of contractual
stipulations, such liability shall be rationally shared by the parties.
 When  one  party  discovers  that the situation mentioned in the
preceding paragraph  is likely to cause a failure or partial failure
in research and development, it shall promptly inform the other party
of the situation and take appropriate measures to reduce losses; if
one party fails to promptly inform  the  other  party  and take
appropriate measures and as a result the losses are aggravated, it
shall bear the liability for the aggravated part

of the losses.
CHAPTER IV TECHNOLOGY TRANSFER CONTRACTS
 @@  Article  34.  Technology transfer contracts refer to contracts
concluded by  parties with respect to the transfer of patent rights,
the transfer of rights to apply for patents, the licensing of patent
exploitation, and the transfer of non-patent technology.
 @@  Article  35.  Technology transfer contracts may stipulate the
scope of patent  exploitation  or  of  the  use  of non-patent
technology  by  the transferor  or  the transferee, except that no
restriction  on  technological  competition  or  technological
development may be placed in any contract clause.
 @@  Article  36.  The  contracts concluded for transferring patent
rights or rights  to  apply  for  patents shall comply with the
relevant provisions of the Patent Law.
 @@  Article  37.  The main obligations of the transferor under a
contract on patent exploitation license shall be:
 (1) to permit the transferee to exploit the patent within the
scope stipulated in the contract; and
 (2)  to deliver the technical materials related to the exploitation
of the patent and to provide necessary technical guidance.
 The  main  obligations of the transferee under a contract on
patent exploitation license shall be:
 (1)  to  exploit the patent within the scope stipulated in the
contract, and not to permit any third party, except as provided for
in the contract, to exploit such patent; and
(2) to pay use fees according to the stipulations of the contract.
 @@  Article 38. Technology transfer contracts involving patents
shall indicate the titles of the inventions or creations, the names of
the patent applicant and patentee, the filing date of the application,
the application number, the patent number and the term of validity of
the patent right.
 A  contract  for  patent exploitation license shall be valid only
within the duration  of  that patent right. Upon the termination or
invalidation of the patent  right,  the patentee may not conclude
with others any contract for patent exploitation license.
 @@  Article  39.  The  main obligations of the transferor under a
non-patent technology transfer contract shall be:
 (1)  to provide technical materials and technical guidance according
to the stipulations of the contract;
 (2)  to  guarantee  the practical applicability and reliability
of the technology; and
 (3)  to  undertake the obligations of maintaining confidentiality
stipulated in the contract.
 The  main  obligations  of  the  transferee under a non-patent
technology transfer contract shall be:
 (1) to use the technology within the scope stipulated in the contract;
 (2) to pay use fees according to the stipulations of the contract; and
 (3)  to  undertake the obligations of maintaining confidentiality

stipulated in the contract.

to stipulations of the contract;
 (2)  to  provide  technical  materials  and original data and to
accomplish coordinated undertakings according to stipulations of the
contract; and
 (3) to accept the result of research and development according to
schedule.
 The  main  obligations  of  the  party  undertaking research and
development shall be:
(1) to work out and implement research and development plans;
(2) to use research and development funds in a rational way; and
 (3)  to  complete research and development work and deliver the
results according  to  schedule,  to provide relevant technical
materials  and necessary  technical  guidance,  and  to help the
commissioning party master the results of research and development.
 @@  Article  29.  If  the  commissioning  party  breaches  the
contract and thereby  causes  a  standstill, delay or failure in
research and development work, it shall pay breach of contract damages
or compensate for the losses.
 If  the party undertaking research and development breaches the
contract and thereby  causes  a standstill or delay in research and
development work, it shall  pay  breach  of contract damages or
compensate for the losses besides adopting  remedial measures and
continuing  the  performance  of the contract; if  research  and
development work fails as a result of the breach, it shall refund all
or  part of the research and development funds and remuneration
received, and pay breach of contract damages or compensate for the
losses.
 @@  Article  30.  Cooperative  development  contracts refer to
contracts concluded  between  parties for the purpose of jointly
carrying out research and development.
  The  main  obligations  of  each  party  to  a  cooperative
research and development contract shall be:
 (1)  to  make  investment  according to the stipulations of the
contract, including contribution of technology as investment;
 (2)  to  take  part in research and development according to the
division of work stipulated in the contract; and
 (3) to cooperate and coordinate with other parties to the contract.

 @@  Article  31. If any party to a cooperative development contract
breaches the  contract  and thereby causes a standstill, delay or
failure in research and  development work, it shall pay breach of
contract damages or compensate for the losses.
 @@  Article  32.  The  principles  governing the ownership and
sharing  of  technological  achievements  obtained  in  performing
technology development contracts shall be:
  (1)  With  respect  to  inventions  and  creations  made  in
execution of a commission for development, the right to apply for a
patent shall,unless otherwise provided in the contract, belong to
the party that undertakes research and development. 

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