@@ 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
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