SECTION 3 CONTRACTS FOR TECHNOLOGY TRANSFER
Article 342 Technology transfer contracts include contracts on patent transfer, contracts on transfer of the right to apply for a patent, contracts on transfer of know-how
and contracts on the licensing of patent exploitation.
A technology transfer contract shall be in written form.
Article 343 The scope of the exploitation of a patent or the use of the know-how by the transferor and the transferee may be agreed upon in a technology transfer contract
provided that no restriction may be imposed on technological competition and technological development.
Article 344 A contract for the licensing of patent exploitation shall be valid only within the valid period of the patent right. Once the patent right expires or it is
declared as invalid, the patentee may not conclude any contract with others for licensing of the exploitation of the said patent.
Article 345 The transferor of a patent exploitation licensing contract shall, according to the terms of the contract, permit the transferee to exploit the patent, submit the
technological materials relevant to the exploitation of the patent and provide necessary technical guidance.
Article 346 The transferee of a patent exploitation licensing contract shall exploit the patent according to the terms of the contract, and may not permit any third party
other than as provided for in the contract to exploit such patent, and shall pay the royalties according to the terms of the contract.
Article 347 The transferor of a know-how transfer contract shall, as agreed upon in the contract, supply technolgical materials, conduct technical guidance and ensure the
practical applicability and reliability of the know-how as well as undertake the obligation of maintaining confidentiality.
Article 348 The transferee of a know-how transfer contract shall use the know-how, pay the royalties and undertake the obligation of maintaining confidentiality according to
the terms of the contract.
Article 349 The transferor of a technology transfer contract shall guarantee that he/she is the lawful owner of the supplied technology and that the supplied technology is
complete, without mistakes, effective and able to accomplish the agreed goal.
Article 350 The transferee of a technology transfer contract shall, in conformity with the scope and the time period as agreed upon in the contract, assume the obligation of
maintaining confidentiality for the undisclosed part of the technology supplied by the transferor.
Article 351 A transferor failing to transfer the technology according to the terms of the contract, shall return part or total of the royalties and be liable for the breach
of contract. The party exploiting the patent or know-how exceeding the agreed scope, or unilaterally permit a third party to exploit the patent or use the know-how in
violation of the contract, shall cease the act of breach of contract and be liable for the breach of contract. A party violating the agreed obligation of maintaining
confidentiality shall be liable for the breach of contract.
Article 352 A transferee failing to pay the royalties according to the terms of the contract shall, make up such payment and pay the breach of contract damages as agreed
upon. The transferee refusing to pay the overdue royalties or the breach of contract damages, shall cease the exploitation of the patent or the use of the know-how, return
the technological materials and be liable for the breach of contract. A transferee exploiting the patent or using the know-how in a way exceeding the scope as agreed upon in
the contract, or permitting a third party to exploit the patent or use the know-how without the consent of the transferor, shall cease the act of breach of contract and be
liable for the breach of contract. A transferee violating the agreed obligation for maintaining confidentiality shall be liable for the breach of contract.
Article 353 Where the exploitation of a patent or the use of know-how by a transferee in accordance with the terms of the contract infringes upon the legitimate rights and
interests of others, the transferor shall be liable, except as otherwise agreed upon by the parties.