how licensing contract shall, in accordance with the agreement, provide technological materials, give
technological guidance, guarantee the prac cal applicability and reliability of the technology, and perform
con den ality obliga ons.
The con den ality obliga ons provided in the preceding paragraph shall not restrict the licensor from
applying for a patent, unless otherwise agreed by the par es.
Ar cle 869 A transferee in a technological know-how transfer contract or a licensee in a technological knowhow licensing contract shall, in accordance with the agreement, exploit the technology, pay the transfer fee
and royal es, and perform con den ality obliga ons.
Ar cle 870 A transferor in a technological transfer contract or a licensor in a technological know-how
licensing contract shall guarantee that he is the lawful owner of the technology provided therein, and
guarantee that the technology provided is complete, errorless, e ec ve, and capable of achieving the goal as
agreed by the par es.
Ar cle 871 A transferee in a technology transfer contract or a licensee in a technological know-how licensing
contract shall, in accordance with the scope and me limit agreed by the par es, perform his con den ality
obliga on regarding the part of the technology provided by the transferor or licensor that have not been
disclosed to the public.
Ar cle 872 A licensor who fails to license the technology in accordance with the agreement shall refund the
royal es in part or in full and bear default liability. A licensor who exploits a patent or technological knowhow beyond the agreed scope, or, without authoriza on, allows a third person to exploit the patent or u lize
the technological know-how in breach of the agreement shall stop his breaching act and bear default liability.
He shall bear default liability if he breaches the con den ality obliga on as agreed.
Where a transferor is liable for breach of contract, the provisions of the preceding paragraph shall be applied
muta s mutandis.
Ar cle 873 A licensee who fails to pay royal es in accordance with the agreement shall make up for the
payment of royal es and pay the liquidated damages. Where the licensee fails to do so, he shall stop
exploita on of the patent or u liza on of the technological know-how, return the technological materials,
and bear default liability. Where a licensee who exploits the patent or u lizes the technological know-how
beyond the agreed scope, or allows a third person, without authoriza on, to exploit the patent or to u lize
the technological know-how, he shall stop his breaching acts and bear default liability. The licensee who
breaches the con den ality obliga on as agreed shall bear default liability.
The provisions of the preceding paragraph shall be applied muta s mutandis to a transferee who shall bear
default liability.
Ar cle 874 Where the exploita on of a patent or u liza on of a technological know-how by the transferee or
the licensee in accordance with the agreement infringes upon the lawful rights and interests of another
person, the liability therefor shall be borne by the transferor or the licensor, unless otherwise agreed by the
par es.
Ar cle 875 The par es may, in compliance with the principle of mutual bene t, agree in the contract the
method for sharing any subsequently improved technological product obtained in exploita on of the patent
or u liza on of the technological know-how. Where there is no agreement on such method or the
agreement is unclear, if it cannot be determined according to the provisions of Ar cle 510 of this Code, the
subsequently improved technological product made by one party may not be shared by any other party.
Ar cle 876 The relevant provisions of this Sec on shall be applied muta s mutandis to the transfer and
licensing of the exclusive rights to layout-designs of integrated circuits, rights to new plant varie es,
computer so ware copyrights, and other intellectual property rights, and the like.
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