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Law of the Peoples Republic of China on Technology Contracts (3)          【字体:
Law of the Peoples Republic of China on Technology Contracts (3)
更新时间:2007-5-2
   @@  Article  40.  A transferor that breaches a contract shall
bear the following liabilities:
 (1)  if it fails to transfer the technology in accordance with the
contract, it  shall,  in addition to returning part or all of the use
fees, pay breach of contract damages or compensate for the losses;
 (2)  if it exploits the patent(s) or uses the non-patent technology
beyond the  scope stipulated in the contract, or unilaterally permits,
in violation of  contractual  stipulations, a third party to exploit
the patent(s) or use the non-patent technology, it shall stop its
contract-breaching  acts  and  pay breach of contract damages or
compensate for the losses; or
  (3)   if   it   violates  the  obligations  of  maintaining
confidentiality stipulated  in  the contract, it shall pay breach
of contract damages or compensate for the losses.
 @@  Article  41.  A transferee that breaches a contract shall
bear the following liabilities:
 (1)  If  it  fails  to  pay  the use fees in accordance with the
contractual stipulations,  it shall make up such payment(s) and, in
addition,  pay  breach  of  contract  damages  according  to the
stipulations of the contract. If it fails to pay such overdue use fees
or to pay breach of contract damages, it must stop exploiting the
patents or using the non-patent technology, return the technical
materials,  and pay breach of contract damages or compensate for the
losses;
 (2)  If it exploits the patents or uses the non-patent technology
beyond the scope  stipulated  in the contract, or permits, without
the consent of the transferor,  a  third  party to exploit the
patents or use the non-patent technology,  it  shall  stop  its
contract-breaching  acts  and  pay breach of contract damages or
compensate for the losses; or
  (3)   If   it   violates  the  obligations  of  maintaining
confidentiality stipulated  in  the contract, it shall pay breach
of contract damages or compensate for the losses.
 @@  Article  42.  If  the  exploitation of a patent or the use of
non-patent technology  by  the transferee in accordance with the
stipulations of a contract leads to an infringement upon the lawful
rights  and  interests of others, the transferor shall bear the
liabilities.
 @@  Article 43. The parties may, in accordance with the principle of
mutual benefit,  stipulate  in a contract the methods of sharing
technological achievements  obtained from follow-up improvements made
in  the exploitation of  a  patent  or  the  use of non-patent
technology. In the absence of such contractual stipulations, neither
party shall have the right to share the technological  achievements
made  by the other party from follow-up improvements.
 CHAPTER V TECHNICAL CONSULTANCY CONTRACTS AND TECHNICAL SERVICE
C

ONTRACTS
 @@ Article 44. Technical consultancy contracts refer to contracts
under which  one  of the parties undertakes to provide for the
other  party feasibility   studies,   technological   forecasts,
special   technical  investigations,  and  analytical  evaluation
reports regarding a specific technological project.
 @@  Article  45. The main obligations of the commissioning party
under a technical consultancy contract shall be:
 (1)  to  elucidate  the  questions posed for consultation and to
provide,  in accordance  with  the stipulations of the contract,
technological background information as well as the relevant technical
materials and data; and
 (2)  to accept from the consulting party the result of its work and
to pay the remuneration according to schedule.
 The  main  obligations of the consulting party under a technical
consultancy contract shall be:
 (1)  to  complete  consultation  reports  or answer questions
from  the commissioning party according to schedule by utilizing
its  technical knowledge and in compliance with the stipulations of the
contract; and
 (2)  to  provide  consultation reports that meet the requirements
stipulated in the contract.
 @@  Article  46.  If  the  commissioning party under a technical
consultancy contract  fails  to provide necessary data and materials
in accordance with the stipulations of the contract and thereby
affects the progress and quality  of  work, it shall not claim the
refund of the remuneration already paid and shall pay the outstanding
remuneration in full.
 If  the  consulting  party under a technical consultancy contract
fails to provide its consultation report according to schedule or
if the report provided does not conform to the stipulations of the
contract, it shall reduce  or  forfeit  its  remuneration and pay
breach of contract damages or compensate for the losses.
 Any losses resulting from the decisions made by the commissioning
party under  a  technical consultancy contract on the basis of the
consultation reports  and  advice  of  the consulting party that
meet the requirements stipulated  in  the contract shall, unless
otherwise  stipulated  in the contract, be borne by the commissioning
party.
 @@ Article 47. Technical service contracts refer to contracts under
which one  of  the parties undertakes to solve particular technical
problems for the  other party by utilizing its technical knowledge,
excluding  contracts  for  surveying,  designing,  building  and
installation of construction projects and processing contracts.
 @@  Article  48. The main obligations of the commissioning party
under a technical service contract shall be:
 (1)  to  provide  the servicing party with work facilities and to
accomplish  coordinated   undertakings  in  ac

cordance  with  the
stipulations of the contract; and
 (2)  to accept the result of work from the servicing party and
to pay remuneration according to schedule.
 The  main  obligations of the servicing party under a technical
service contract shall be:
 (1)  to  accomplish  services stipulated in the contract and solve
technical problems according to schedule and to guarantee the quality
of its work; and
 (2)  to  impart  to the other party its knowledge concerning the
solution of technical problems.
 @@  Article  49. If the commissioning party under a technical
service  contract  breaches the contract and thereby affects the
progress and quality of the work, or fails to accept the result of
the work from the servicing party or fails to accept it according
to schedule, it shall pay the remuneration in full.
 If  the  servicing  party  under  a technical service contract
fails  to accomplish its services in accordance with the stipulations
of the contract, it shall forfeit its remuneration and pay breach
of contract damages or compensate for the losses.
 @@  Article  50. Unless otherwise provided for in the contract,
any new technical  achievements  made by the consulting party or the
servicing party in performing a technical consultancy contract or
a technical service contract by utilizing the technical materials and
work facilities provided by the commissioning party shall belong
to the consulting party or the servicing  party,  and  any  new
technical  achievements  made  by  the commissioning  party  by
utilizing  the  results  of work of the consulting party or the
servicing party shall belong to the commissioning party.
 CHAPTER  VI  ARBITRATION  AND LITIGATION CONCERNING DISPUTES OVER
TECHNOLOGY CONTRACTS
 @@  Article  51. If a dispute arises from a technology contract, the
parties may  resolve  it  through  consultation or mediation. If
the parties are unwilling to resort to consultation or mediation,
or if consultation or mediation fails, they may, in accordance with
the arbitration clause in the contract or a written arbitration
agreement  reached  after  the  dispute arises,  apply  to  an
arbitration institution designated by the state for arbitration.
 If  one party fails to carry out within the prescribed period an
arbitration award made by an arbitration institution, the other party
may apply to the people's court for compulsory enforcement.
 If  the parties have not included any arbitration clause in the
contract and have  not reached any written arbitration agreement
subsequent  to the occurrence of the dispute, a suit may be brought in
the people's court.
 @@  Article  52. The limitations of action for bringing a suit
and the period  for  applying  for arbitration in connection with
disputes arising

 from  technology  contracts  shall be one year,
computed from the date on which the party knew or should have known of
the infringement on its lawful rights and interests.
CHAPTER VII SUPPLEMENTARY PROVISIONS
 @@  Article  53.  Technology  contracts concluded after this Law
goes into effect shall not be governed by the Economic Contract Law.
 @@ Article 54. The department in charge of science and technology
under the  State  Council  may, on the basis of this Law, formulate
rules for its implementation,  which  shall go into effect after
being submitted to and approved by the State Council.
@@ Article 55. This Law shall go into effect as of November 1, 1987.

ONTRACTS
 @@ Article 44. Technical consultancy contracts refer to contracts
under which  one  of the parties undertakes to provide for the
other  party feasibility   studies,   technological   forecasts,
special   technical  investigations,  and  analytical  evaluation
reports regarding a specific technological project.
 @@  Article  45. The main obligations of the commissioning party
under a technical consultancy contract shall be:
 (1)  to  elucidate  the  questions posed for consultation and to
provide,  in accordance  with  the stipulations of the contract,
technological background information as well as the relevant technical
materials and data; and
 (2)  to accept from the consulting party the result of its work and
to pay the remuneration according to schedule.
 The  main  obligations of the consulting party under a technical
consultancy contract shall be:
 (1)  to  complete  consultation  reports  or answer questions
from  the commissioning party according to schedule by utilizing
its  technical knowledge and in compliance with the stipulations of the
contract; and
 (2)  to  provide  consultation reports that meet the requirements
stipulated in the contract.
 @@  Article  46.  If  the  commissioning party under a technical
consultancy contract  fails  to provide necessary data and materials
in accordance with the stipulations of the contract and thereby
affects the progress and quality  of  work, it shall not claim the
refund of the remuneration already paid and shall pay the outstanding
remuneration in full.
 If  the  consulting  party under a technical consultancy contract
fails to provide its consultation report according to schedule or
if the report provided does not conform to the stipulations of the
contract, it shall reduce  or  forfeit  its  remuneration and pay
breach of contract damages or compensate for the losses.
 Any losses resulting from the decisions made by the commissioning
party under  a  technical consultancy contract on the basis of the
consultation reports  and  advice  of  the consulting party that
meet the requirements stipulated  in  the contract shall, unless
otherwise  stipulated  in the contract, be borne by the commissioning
party.
 @@ Article 47. Technical service contracts refer to contracts under
which one  of  the parties undertakes to solve particular technical
problems for the  other party by utilizing its technical knowledge,
excluding  contracts  for  surveying,  designing,  building  and
installation of construction projects and processing contracts.
 @@  Article  48. The main obligations of the commissioning party
under a technical service contract shall be:
 (1)  to  provide  the servicing party with work facilities and to
accomplish  coordinated   undertakings  in  ac

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