（Adopted at the 19th Meeting of the Standing Committee of the Eighth National People's Congress on May 15， 1996 and promulgated by Order No. 68 of the President of the People's Republic of China on May 15， 1996）
颁布日期：19960515 　实施日期：19961001 　颁布单位：全国人大常委会

Contents

Chapter I General Provisions

Chapter II Organization and Implementation

Chapter III Guarantee Measures

Chapter IV Right of Technology

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted for the purposes of promoting the transformation of scientific and technological achievements into actual productive forces， regulating activities of such transformation， accelerating the progress of science and technology and expediting economic construction and social development.

Article 2 “Transformation of scientific and technological achievements” referred to in this Law means activities of conducting follow-up experiments， development， application and popularization of scientific and technological achievements of practical value， which have been made through scientific research and technological development， thereby developing new products， new techniques and new materials and forming new industries in order to raise the level of productive forces.

Article 3 Transformation of scientific and technological achievements should help improve economic and social results， protect environment and resources， and promote economic construction， social development and national defence construction.

Transformation of scientific and technological achievements should be based on the principles of voluntariness， mutual benefit， fairness， honesty and credibility. Profits and risks arising therefrom shall be shared according to laws or terms of contract. Intellectual property rights related to the transformation of scientific and technological achievements shall be protected by law.

Whoever engages in the transformation of scientific and technological achievements should abide by laws and maintain state interests， and may not infringe upon social and public interests.

Article 4 The administrative department in charge of science and technology， the planning department， the comprehensive economic administration department and other competent administrative departments under the State Council shall manage， guide and coordinate the work for transformation of scientific and technological achievements within their respective limits of functions as specified by the State Council.

Local people's governments at various levels shall be in charge of the management， guidance and coordination of the work for transformation of scientific and technological achievements within their respective administrative areas.

Chapter II Organization and Implementation

Article 5 The State Council and local people's governments at various levels should incorporate the transformation of scientific and technological achievements into the plan for national economy and social development， and should organize， coordinate and carry out such transformation of scientific and technological achievements.

Article 6 Competent departments under the State Council and people's governments of provinces， autonomous regions and municipalities under the central government shall periodically promulgate catalogues of scientific and technological achievements， as well as guides to major transformation projects for scientific and technological achievements， and shall give priority to the implementation of the following projects：

（1） those which can obviously raise the level of industrial technology and improve economic results；（2） those which can develop a large-scale industry and are competitive on the international market；

（3） those which can rationally develop and exploit resources， economize on energy， reduce the consumption and prevent and control environmental pollution；

（4） those which can develop an agriculture of high yield， high quality and high efficiency and promote the economic development in rural areas； or

（5） those which can accelerate the social and economic development in minority nationality regions， remote border areas and poverty-stricken areas.

Article 7 The state institutes policies and takes measures in order to advocate and encourage the adoption of advanced technology， techniques and equipment， and to improve constantly， restrict the use of or eliminate backward technology， techniques and equipment.

Article 8 For the implementation of major transformation projects for scientific and technological achievements organized by people's governments at various levels， open tenders may be invited by the departments concerned. The departments concerned shall provide the unit who has won the tender with financial support and other conditions stated at the time of inviting the tender.

Article 9 The holders of scientific and technological achievements may carry out the transformation of their achievements by any of the following means：

（1） carrying out such transformation with their own investment；

（2） transferring the scientific and technological achievements to others；

（3） authorizing others to exploit the scientific and technological achievements；

（4） using the scientific and technological achievements as the conditions for cooperating with others in carrying out the transformation； or

（5） making investment in the form of scientific and technological achievements at their appraised value， which may be converted into shares or capital contributions.

Article 10 For the purposes of adopting new technology， new techniques or new materials， or producing new products， enterprises may publish news by themselves or commission technological trade intermediary institutions to collect scientific and technological achievements they need， or to seek cooperators in the transformation of scientific and technological achievements.

Article 11 Enterprises have the statutory right to carry out the transformation of scientific and technological achievements whether independently or in collaboration with enterprises or institutions or other cooperators from home or abroad.

Through fair competition， enterprises may， independently or in collaboration with other units， undertake those projects for scientific research and technological development and for transforming scientific and technological achievements which the implementation is organized by governments.

Article 12 The state encourages such institutions as research and development institutions and higher learning bodies to cooperate with producing enterprises in carrying out the transformation of scientific and technological achievements.

Such institutions as research and development institutions and higher learning bodies may send in tenders for the transformation of scientific and technological achievements at the invitation of government departments concerned or enterprises.

Article 13 The state encourages agricultural research institutions and agricultural experiment and demonstration units to carry out the transformation of agricultural scientific and technological achievements independently or in collaboration with other units.

For the purpose of promoting the transformation of their own scientific and technological achievements， agricultural research institutions may trade in good varieties which they have studied and developed independently or in collaboration with other units and have undergone the examination and approval.

Article 14 For a job-related scientific and technological achievement of practical value， which has been made by as tate-maintained research and development institution or a higher learning body， if such a unit fails to carry out the transformation of the achievement in time， persons who have accomplished the achievement and other participants in the work may carry out the transformation of the achievement according to an agreement concluded with the unit to which they belong and enjoy the interests as agreed upon， but they are not allowed to change the ownership over the job-related scientific and technological achievement. The unit should give support to the transformation of the scientific and technological achievement.

Persons who have accomplished a job-related scientific and technological achievement or the person in charge of are search subject may not hinder the transformation of the job-related scientific and technological achievement， and may not infringe upon legitimate interests of the unit by appropriating the job-related scientific and technological achievement and relevant technical data.

Article 15 A unit which has made a scientific and technological achievement， a unit which is responsible for the transformation and a unit which intends to make investment in the transformation should conclude a contract to stipulate for rights and risks shared among the parties before they start cooperation in follow-up experiments， development， application， manufacture and management of the scientific and technological achievement.

Article 16 Testing and evaluating scientific and technological achievements in the transformation activities must be based on the principles of fairness and objectivity. It is prohibited to provide false testing results or false evaluation certificate.

Where state-maintained research and development institutions or high learning bodies， or state-owned enterprises cooperate with enterprises， other organizations or individuals from abroad in transforming scientific and technological achievements， such achievements must be subject to evaluation according to relevant state provisions.

If the cooperation with foreign parties in transforming scientific and technological achievements involves state secrets， prior approval shall be obtained through statutory procedures.

Article 17 Markets or institutions established according to law to engage in technological trade may conduct the following activities to promote the transformation of scientific and technological achievements：

（1） introducing and recommending advanced， ripe and practical scientific and technological achievements；

（2） providing information regarding finance， technology and environment and other relevant information required for the transformation of scientific and technological achievements；

（3） engaging in technological trade； and

（4） providing other consultancy service for the transformation of scientific and technological achievements.

Article 18 An intermediary institution engaging in agency or intermediary service or other paid service for technological trade must take out a business licence according to relevant state provisions. Personnel acting as a broker in such an institution must procure a qualification certificate according to relevant state provisions.

Article 19 The state encourages enterprises， institutions and rural scientific and technological economic cooperation organizations to conduct pilot trials， industrial tests and agricultural experiments and demonstrations and other activities of technological innovation and service.

Bases for pilot trial， industrial test or agricultural experiment and demonstration， which are used for the transformation of scientific and technological achievements， and other institutions engaging in technological innovation and service may conduct the following activities：（1） putting new products and new techniques to pilot trials and industrial tests；

（2） making coordinated development and technological innovation of scientific and technological achievements for a region or an industry in order to develop systematic and engineering technology to satisfy the social need；

（3） providing technology or technical service for small- or mediate-size enterprises， rural enterprises and rural scientific and technical and economic cooperation organizations； and

（4） providing comprehensive and systematic service required for the transformation of scientific and technological achievements and the establishment of related enterprises.

Capital construction of bases and institutions mentioned in the preceding paragraph shall be incorporated into the relevant national or local plans with the approval of the department concerned under the State Council and people's governments of provinces， autonomous regions and municipalities directly under the central government.

Article 20 Experimental products developed through the transformation of scientific and technological achievements may， with an approval of the competent department， be placed on trial sale within a specified period of time according to state provisions governing trial sale products. Products manufactured or marketed on trial basis should meet national standards regarding technology， quality， safety and health.

Chapter III Guarantee Measures

Article 21 National financial appropriations for science and technology， fixed assets investment and technological transformation should include a proportion for the transformation of scientific and technological achievements. National financial appropriations for the transformation of scientific and technological achievements shall be mainly used for guide funds， interest discount on loans， subsidies， and venture investment as well as other funds for the transformation of scientific and technological achievements.

Article 22 The state institutes a policy on tax preferences for the transformation of scientific and technological achievements. The State Council shall formulate specific measures therefor.

Article 23 The financial institutions of the state should give support to the transformation of scientific and technological achievements by granting credits and loans， and should increase loans for the transformation gradually.

Article 24 The state encourages the establishment of funds or venture funds for the transformation of scientific and technological achievements， which are raised from the state， localities， enterprises， institutions and other organizations or individuals， in order to finance the transformation of scientific and technological achievements of high investment， high venture and high yield， and to help accelerate the industrialization of major scientific and technological achievements.

The establishment and use of funds and venture funds for the transformation of scientific and technological achievements shall be subject to relevant state provisions.

Article 25 The state promotes the establishment and development of scientific and technological information networks， and sets up information and data banks of scientific and technological achievements in order to provide service for the whole country with information regarding scientific and technological achievements.

Chapter IV Right of Technology

Article 26 Where a unit having accomplished a scientific and technological achievement cooperates with other unit in the transformation of the achievement， they should stipulate for the right to the achievement in the contract according to law. If they fails to agree upon such stipulations in the contract， the parties shall specify the right under the following principles：

（1） If no new invention-creation develops in the course of the cooperation， the right to the achievement shall belong to the unit having accomplished the achievement；

（2） If a new invention-creation develops in the course of the cooperation， such a new invention-creation shall be owned by all cooperators； or

（3） If a scientific and technological achievement is made in the course of the cooperation， any of the parties shall have the right to exploit the achievement， and the transfer of the achievement shall be subject to the consent of all parties.

Article 27 Where a unit having accomplished a scientific and technological achievement cooperates with other unit in the transformation of the achievement， all cooperators shall enter into an agreement on preserving technological secrets. Any of the parties may not disclose or allow others to exploit the technology by breaking the agreement or disregarding the requirement of the owners of the right to preserve the technological secrets.

Technological trade markets or intermediary institutions shall bear the obligation to preserve technological secrets known from the parties in providing agency or intermediary service.

Article 28 Enterprises and institutions should establish and improve their protective systems for technological secrets in order to keep their own technological secrets confidential. Staff members should observe protective systems for technological secrets in their units.

Enterprises and institutions may enter into an agreement with participants in the transformation of scientific and technological achievements that they should preserve technological secrets of their units when they are on job， or within a specified period of time after they leave their posts， or leave their posts as veteran cadres， or retire. No person concerned may divulge technological secrets of his unit or engage in activities of transforming the same scientific and technological achievement as did when he was in his original unit by breaking the agreement.

Staff members may not transfer job-related scientific and technological achievements without authorization or in disguised form.

Article 29 Where a unit having accomplished a job-related scientific and technological achievement transfers the achievement to others， it should set aside a proportion not less than 20 percent of net income devised from such a transfer to grant prizes to persons who have made significant contributions to the accomplishment and transfer of the achievement.

Article 30 Where an enterprise or institution has succeeded in the transformation of a scientific and technological achievement， which has been made through research and development independently or in collaboration with other units， and put it into operation， it should set aside a proportion not less than five percent of newly added profit derived from the exploitation of the achievement during a successive period of time from three to five years to grant prizes to persons who have made significant contributions to the accomplishment and transfer of the achievement.

Joint stock enterprises may， in accordance with relevant state provisions， convert rewards or prizes into shares or capital contributions to grant to persons who have made significant contributions to research and development and transformation of scientific and technological achievements. The holders are entitled to share profits in proportion to shares or capital contributions.

Chapter V Legal Liability

Article 31 Anyone who， in violation of the provisions in this Law， obtains awards and a honourable title， cheats another one out of his money， seeks illegal gains by resorting to fraud in the transformation of scientific and technological achievements， shall be ordered to make correction， deprived of the awards and honourable title， with his illegal gains confiscated， and imposed upon a fine. If economic losses have been caused to others， he shall bear civil liability for compensation according to law. If a crime has been constituted， criminal liability shall be investigated according to law.

Article 32 Anyone who， in violation of the provisions in this Law， intentionally provides false appraisal results and evaluation certificates when appraising or evaluating scientific and technological achievements， shall be ordered to make correction and given warning， with his illegal gains confiscated. The organizers of appraisal and evaluation institution shall be imposed upon a fine. If the circumstances are serious， his business licence and qualification certificate shall be revoked. If economic losses has been caused to others， he shall bear civil liability for compensation according to law.

Article 33 Personnel of administrative departments in charge of science and technology of people's governments at various levels and other competent departments who neglects his duty or practises favoritism for personal gains， shall be imposed upon disciplinary sanction； if a crime has been constituted， he shall be investigated for criminal liability according to law.

Article 34 Anyone who， in violation of the provisions in this Law， appropriates the scientific and technological achievement of another person by resorting to instigation， stealing， promising of gain， coercion or other means and thereby infringes upon his legitimate rights and interests， shall bear civil liability for compensation according to law and may be imposed upon a fine； if a crime has been constituted， he shall be investigated for criminal liability according to law.

Article 35 Where anyone of staff members， in violation of the provisions in this Law， divulges technological secrets of his unit， or transfers a job-related scientific and technological achievement without the authorization or in disguised form， or where any of participants in the transformation of scientific and technological achievement， in violation of the agreement concluded with his unit， engages in activities of transforming the same scientific and technological achievement as did when he was in the original unit during the specified period of time after he leaves his post， or leaves his post as a veteran cadre， or retires， he shall bear legal liability according to relevant provisions.

Article 36 An intermediary institution engaging in agency or intermediary service for technological trade， or personnel acting as a broker， who deceives principals， or conspires with one of the parties to deceive the other party， shall be ordered to make correction and given warning， bear civil liability according to law， with illegal gains confiscated， and imposed upon a fine. If the circumstances are serious， its or his business licence and qualification certificate shall be revoked according to law. If a crime has been constituted， he shall be investigated for criminal liability.

Chapter VI Supplementary Provisions

Article 37 This Law comes into force as of October 1， 1996.