Legal basis: Article 87 1 of the Civil Law, the transferee of a technology transfer contract and a technology licensing contract shall, according to the agreed scope and time limit, undertake the obligation of confidentiality to the transferor and the undisclosed secret parts of the technology provided by the transferor.
Article 872 of the Civil Code If the licensor fails to license the technology as agreed, it shall return part or all of the royalties and bear the liability for breach of contract; Where a third party is allowed to exploit a patent or use a technical secret beyond the agreed scope in violation of the agreement, it shall stop the breach of contract and bear the liability for breach of contract; Anyone who violates the agreed confidentiality obligation shall bear the liability for breach of contract.
Where the transferor is liable for breach of contract, the provisions of the preceding paragraph shall apply mutatis mutandis.
Article 873 of the Civil Code If the licensee fails to pay the royalties as agreed, it shall pay the royalties and liquidated damages as agreed. Those who fail to pay royalties or liquidated damages shall stop exploiting patents or using technical secrets, return technical materials and bear the liability for breach of contract; Where a third party is allowed to exploit a patent or use a technical secret beyond the agreed scope without the consent of the licensor, it shall stop its breach of contract and bear the liability for breach of contract; Anyone who violates the agreed confidentiality obligation shall bear the liability for breach of contract. The transferee shall bear the liability for breach of contract with reference to the provisions of the preceding paragraph.