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Implementing Regulations of the Law of Technology Contracts of the Peoples Republic of China (4)

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return the royalty paid and pay default fines or compensate for the
losses.
If the non-patent technology fails to meet the contractual technical
standards, the transferor party should pay default fines or compensate
for the losses.
If the transferor party breaches the secrecy obligations prescribed in
the contract or leaks technological secrets, thus causing losses to the
transferee party, the transferor party should pay default fines or
compensate for the losses.
Article 77 If the transferee party of a non-patent technology transfer
contract fails to perform the contract, that party should pay default
fines or compensate for the losses in compliance with the provisions of
Article 41 of the Technical Contract Law.
Should the transferor party fail to pay royalty two months after the due
date, the transferor party has the right to cancel the contract. The
transferee party should pay the royalty retroactively and pay default
fines or compensate for the losses caused thereby to the transferor
party.
If the transferee party breaches the contractual secrecy obligations and
leaks technological secrets, thus causing losses to the transferor
party, that party should pay default fines or compensate for the losses.
Article 78 The "follow-up improvement" mentioned in Article 43 of the
Technical Contract Law refers to renovation or improvement on the
objective patent technology or non-patent technology made by one party
or jointly by the two parties within the validity period of the
technology transfer contract. For reciprocal use of improved technology,
a separate contract should be signed.
Article 79 The provisions concerning the non-patent technology transfer
contract are applicable to a technology transfer contract for an
invention or creation after the application for a patent is filed and
before the application is made public. The transferee party should
undertake the obligations to keep it secret and not to obstruct the
transferor party from applying for patent.
After the patent application is made public, the performance of the
original contract may be referred to the provisions of the patent
execution licence contract.
Upon the approval of the patent application, the original contract
becomes  a patent execution licence contract and the  provisions
concerning the patent execution licence contract apply.
If the application for patent is rejected after being made public, the
original contract is terminated at once. If the application for patent
is rejected when it is not made public, the original contract still
stands.
        CHAPTER V TECHNICAL CONSULTATION CONTRACT
Article 80 The contracting parties may conclude a technical consultation
contract on the analysis, argumentation, eva

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