Article 41. If the transferee is in breach of contract, it shall undertake liability as follows:

    (1) If it fails to pay the fee for use as stipulated by the contract, it shall make up the fee and, in addition, pay a penalty as agreed in the contract. If it fails to make up the fee or pay a penalty, it must cease to work the patent or to utilize the non-patented technology, return the technical data and pay a penalty or damages.

    (2) If it works a patent or utilizes non-patented technology beyond the scope stipulated in the contract, or if it, without the agreement of the transferor, grants licence to a third party to work the 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 it is in breach of the contractual obligation of confidentiality, it shall pay a penalty or damages.

    Article 42. If the violation of another person's legitimate rights or interests is caused by the transferee's working of a patent or utilization of non-patented technology, the transferor shall undertake liability.

    Article 43. The parties may, in accordance with the principle of mutual benefit, stipulate in the contract a method of sharing ongoing improvements to technical results following the working of a patent or the utilization of non-patented technology. If the contract contains no stipulation, no one party has the right to share the ongoing improvements to the technical results of another party.

    CHAPTER V

    Technical Consultancy Contracts And Technical Service Contracts

    Article 44. A technical consultancy contract refers to a contract concluded for the supply by one party to another party of feasibility evidence, technical calculations and the findings of specialist technical surveys and analysis and evaluation relating to specified technical project.

    Article 45. The primary obligations of commissioning party in a technical consultancy contract shall be:

    (1) To clearly state the problem for consultancy and to provide technical background material and relevant technical data and figures as stipulated by the contract;

    (2) To accept on time the results of the work of the advising party and to pay remuneration.

    The primary obligations of the advising party in a technical consultancy contract shall be:

    (1) To utilize its own technical knowledge to complete a consultancy report as stipulated by the contract or to answer the questions of the commissioning party;

    (2) To submit a consultancy report which meets the requirements stipulated in the contract.