Article 29. If the commissioning party is in breach¹ of contract, thereby² causing disruption, delay or failure of the research and development work, it shall pay a penalty or damages.

    If the party undertaking³ the research and development is in breach of contract, thereby causing disruption, delay or failure of the research and development work it shall, in addition to adopting remedial measures for the continued performance of the contract, pay a penalty or damages. Where failure of the research and development is caused, the party shall refund⁴ all or part of the fee or remuneration for research and development and shall pay a penalty or damages.

    Article 30. A co-operative development contract refers to a contract concluded between parties for the purposes of joint⁵ research and development.

    The primary obligations of all parties to a co-operative development contract shall be:

    (1) To invest (including the provision of technology as investment) as stipulated⁶ by the contract;

    (2) To share research and development work as stipulated by the contract; and

    (3) To co-operate and co-ordinate with the other parties to the contract

    Article 31. If any one of the various parties to co-operative development is in breach of the contract, thereby causing disruption, delay or failure of the research and development work, it shall pay a penalty or damages.

    Article 32. The principles of ownership and sharing of technical results arising out of the performance of a technology contract are as follows;

    (1) The right to apply for patent of a discovery or invention which results from commissioned development shall, unless otherwise stipulated by the contract, lie with the party which undertook the research and development. If the party which undertook the research and development obtains patent rights, the commissioning party may implement⁷ the patent free of charge.

    If the party which undertook the research and development transfers its right to apply for patent of its discovery or invention, the commissioning party may have the right of first refusal of such transfer.

    (2) The right to apply for patent of a discovery or invention which results from co-operative development shall, unless otherwise stipulated by the contract, lie jointly⁸ with the parties to the joint development. If one party transfers its joint rights of patent application, the other party or parties may have the right of first refusal of such transfer.

    If one party to co-operative development declares the relinquishment⁹ of its jointly-held patent application right, the other party may submit a sole application, or the other parties may submit a joint application. Once a patent right is granted, the party which relinquished¹⁰ its patent application right may implement the patent free of charge.

    If one party to a co-operative development does not agree to the patent application, the other party or other parties shall not be allowed to submit a patent application.

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