Legal basis:
Article 216th of the Criminal Law of People's Republic of China (PRC), if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also or only be fined.
Article 873 of the General Principles of the Civil Law of People's Republic of China (PRC), 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 be liable for breach of contract. The transferee shall bear the liability for breach of contract with reference to the provisions of the preceding paragraph.