Article 38. A technology transfer contract which involves a patent shall clearly specify¹ the name of the discovery or invention, the patent applicant² and the patentee, the date and number of the application and the period of validity of the patent right.

    A contract of licence to work a patent shall be valid³ only for the term of validity of the patent right. Upon the expiry of the validity of the patent right, or following declaration of the patent right as invalid⁴, the patentee shall not conclude with another person a contract of licence to work the said patent.

    Article 39. The primary obligations of the transferor in a contract for the transfer of non-patented technology shall be:

    (1) To provide technical data and carry out technical guidance as stipulated⁵ by the contract;

    (2) To guarantee the applicability and reliability⁶ of the technology;

    (3) To undertake the obligation of confidentiality⁷ as stipulated by the contract.

    The primary obligations of the transferee in a contract for the transfer of non-patented technology shall be:

    (1) To utilize⁸ the technology within the scope stipulated by the contract;

    (2) To pay fees for use as stipulated by the contract;

    (3) To undertake the obligation of confidentiality as stipulated by the contract.

    Article 40. If the transfer is in breach⁹ of contract, it shall undertake liability as follows:

    (1) If the party does not transfer the technology as stipulated by the contract it shall, in addition to refunding¹⁰ all or part of the fee for use, pay a penalty or damages.

    (2) If the party works a patent or utilizes¹¹ non-patented technology beyond the scope stipulated in the contract, or breaches¹² the contract by the unauthorized granting to a third party of licence to work the said patent or utilize the non-patented technology, it shall cease the action which is in breach of contract and shall pay a penalty or damages.

    (3) If the party is in breach of the contractual obligation of confidentiality, it shall pay a penalty or damages.

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