Legal basis: Civil Code of People's Republic of China (PRC).
Article 843 A technology contract is a contract concluded by the parties for technology development, transfer, licensing, consultation or service, stipulating the rights and obligations of both parties.
Article 844 The conclusion of a technology contract shall be conducive to the protection of intellectual property rights and the progress of science and technology, and promote the research, development, transformation, application and popularization of scientific and technological achievements.
Article 845 The contents of a technology contract generally include the name of the project, the content, scope and requirements of the subject matter, the plan, place and method of performance, the confidentiality of technical information and materials, the ownership of technical achievements and the way of profit distribution, the acceptance criteria and methods, and the interpretation of terms and conditions.
Technical background information, feasibility study and technical evaluation report, project task book and plan, technical standards, technical specifications, original design and process documents and other technical documents related to the performance of the contract may be taken as an integral part of the contract according to the agreement of the parties.
Where a technology contract involves a patent, it shall specify the name of the invention-creation, the applicant and patentee of the patent, the date of application, the application number, the patent number and the validity period of the patent right.
Article 846 The terms of payment for the price, remuneration or royalties of a technology contract shall be agreed upon by the parties, which may be lump-sum payment or lump-sum payment, royalty payment or royalty payment plus prepaid royalties.
Where it is agreed to pay the royalties, the royalties may be calculated according to a certain proportion of the product price, new output value, profit or product sales after the patent is implemented and the technical secrets are used, or by other agreed means. The proportion of royalty payment can be fixed, increasing year by year or decreasing year by year.
If the use fee is agreed, the parties may agree on the method of consulting the relevant accounting accounts.