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Provisional Regulations of the State Council on Technology Transfer

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by the two
parties:
 (i)  whether the parties each require to be informed in detail
of any ongoing improvements to the technology in question;
 (ii) whether the technology may be transferred to a third party;
 (iii)  standards and method for acceptance of the transferred
technology; and
 (iv)  whether pre-payment of a fee for instruction in the rudiments
of the technology is demanded.
(4) Rights and Interests in Technology Transfer
 Technology  used  in research and development under the plans of the
Sate or those  of  a  relevant  high  level  authority may, in
addition  to being disseminated for application in accordance with the
provisions of the plan, be  transferred in accordance with these
Regulations by the unit responsible for the technology. Income from
such  transfers  shall belong to that unit. Personnel  directly
involved  in  the  research  and development of the technology in
question shall be rewarded.
 Income  derived  from the transfer of technology resulting from
research and development  carried out under the plan of a particular
unit shall belong to that unit. Personnel directly involved in the
research and development of the  technology  in question shall be
rewarded.  Personnel  who  contribute by initiating  research and
development project proposals in response to marked demands, and who
actively work to complete them, shall be rewarded more liberally.
 Personnel  who  contribute  by  assisting  the transferee in a
technology transfer to fully grasp the transferred technology shall be
rewarded  in  the  same  way  as  those  personnel who directly
participate in the research and development of the technology.
 Providing  they  perform  their  own  job  well  and  do not
violate  the technological  rights  or interests of the unit, the
income derived from the transfer  of  technology  resulting from
individual research and development by personnel may be returned
to  those personnel or to the team. If materials or equipment of
the unit were used, a fee for use shall be paid in accordance with
the  prior  agreement with the unit. The rights and interests with
regard to technology researched and developed on commission from
another unit shall be handled in accordance with the provisions of the
commission contract.
(5) Payment of Technology Transfer Fees
 Lump  sum technology transfer fees paid by units under the ownership
of the whole  people or by collectively owned units shall be paid out
of management fees  and,  where the amount is relatively large,
may  be amortised by instalments.  Where  the  fee  comprises a
percentage of increased sales or profit, it shall be paid out of
the  increased  pre-tax  profit after the implementation  of the
technology. In the case of a unit under the ownership of 

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