legal ground
Article 872 of the Civil Code of People's Republic of China (PRC), if the transferor 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 be liable for breach of contract. Where the transferor is liable for breach of contract, the provisions of the preceding paragraph shall apply mutatis mutandis.