State Council, PRC Regulations for the Administration of Technology Import and Export (2nd Revision)

Accordingly, these provisions are not included in the 2019 version of the Regulations:

If the use of the technology provided by the licensor by the licensee of a technology import contract in accordance with the contract infringes upon the lawful rights and interests of a third party, the liability shall be borne by the licensor (third paragraph, Article 24).

During the valid term of a technology import contract, the fruits of improvements to the technology shall belong to the party making the improvements (Article 27).

A technology import contract may not contain any of the following restrictive clauses:

(1)  requiring the licensee to accept attached conditions that are not indispensable to the import of the technology, including the purchase of technology, raw materials, products, equipment or services that are not essential;

(2)  requiring the licensee to pay royalties or to undertake relevant obligations for the technology when the valid term of the patent has already expired or the patent has been declared to be invalid;

(3)  restricting the licensee from making improvements to the technology provided by the licensor or restricting the licensee from using the improved technology;

(4)  restricting the licensee from acquiring from other sources technology similar to, or in competition with, the technology provided by the licensor;

(5)  unreasonably restricting the channels or sources from which the licensee purchases raw materials, parts and components, products or equipment;

(6)  unreasonably restricting the quantity, type or sale price of the products manufactured by the licensee; or

(7)  unreasonably restricting the export channels of the products manufactured by the licensee with the imported technology (Article 29).

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