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Dalian Municipality's Regulations on Technical Market
BY 2004-03-19 09:00:37

Dalian Municipality's Regulations on Technical Market

(Passed on June 27, 1996 at the 26th session of the Standing Committee of Dalian Municipal 11th People's Congress and ratified on July 28, 1996 on the 22nd session of the Standing Committee of Liaoning Provincial 8th People's Congress)

Chapter One General

Clause One: The present regulations are made in accordance with 《The Law of Progress in Science and Technology of the People's Republic of China 》,《Law of Technical Contract of The People's Republic of China 》and other related laws,rules and regulations in combination of the city's practical conditions, in order to speed up transformation of sci-tech achievements, promote the healthy development of technical market and protect the legal rights and interests of litigants in technical trade.

Clause Two: The present regulations are applicable to citizens, legal persons and other organizations that conduct technical trade and service thereof within the city's administrative region.
Technical trade includes technical development, technical transfer, technical consultation, technical service and other tech-related activities.
Technical trade service includes service for tech-trade places, brokerage service for tech trade, consultation service for tech trade, tech assessment service and tech information service,etc.

Clause Three: All technologies and tech information that are beneficial for economic construction, social development and technical progress, can enter technical market.
Technical trade is free from restriction on regions, professions, subordinate relations, nature of economy and professional range.

Clause Four: Dalian Municipal Science and Technology Commission is the department solely in charge of the technical market within the city's administrative region. The Dalian Municipal Technical Market Administrative Office under it is concretely responsible for the routine management of the technical market.
The sci-tech administrative departments of the people's governments at all counties (county-level cities), districts, Dalian Economic and Technical Development Zone, High-and-New Tech Industrialization Park and Jinshitan Resort Administrative Commission are responsible for the management of tech market in their own regions. Any of them who is authorized, can engage in confirmation and registration of technical contract.
Such departments as industry and commerce administration, technical supervision, finance, taxation, pricing and auditing, shall do a good job jointly in management of technical market according to their own duties.

Chapter Two Technical Trade

Clause Five: Technical trade activities shall abide by laws,rules and the present regulations and shall not be allowed to impair the public interests of the country and society. Technical trade is to conduct among litigants of tech trade in a principle of self-willingness, equality, mutual benefit with compensation, creditability and unanimous discussion.

Claus Six: Technical trade activities can be carried out in such forms as technology fair, bidding conference, business talks, info release, sci-tech market place, normal tech market, tech contract, tech share buying, technology introduction, organizing link-up of sci-tech research with production, technology auction and other forms. Planned sci-tech projects at all levels can enter tech market for open bidding which shall be conducted in principle of equality, optimalized selection and fairness.

Clause Seven: Departments and individuals who provide technical commodity goods to tech market, sja;; bear responsibility for the legality, reliability and authenticity of the technology they provided.
Litigant who knows clearly, or should know that the other party possesses illegally other's technology but still conducts tech trade with him(or her), is deemed to infringe the right and interests of the other's technology.

Clause Eight: Contract in written form shall be made for technical trade in a standard, unified technical contract copy. When technical contract is made, the seller of mediate of tech trade applies for confirmation and registration to the municipal technical contract registration organ, or technical contract registration organ entrusted by the municipal sci-tech administrative department. One contract shall not be allowed to register repeatedly. Technical contract registration organ shall check up the tech contract that applies for confirmation and registration within seven(7) days or thirty(30) days at most from date of receiving the application for confirmation and registration of the tech contract, in accordance with related stipulations of the country. The technical contract complying with conditions for confirmation and registration shall be registered and those not complying shall not be registered. Litigant having question as to the technical contract that fails to be registered, can apply for re-check-up to the municipal sci-tech administrative department within fifteen(15) days from receiving notice.
The making, execution, amendment, dismissal and settlement of dispute of technical contract shall be conducted according to 《Law of Technical Contract of the People's Republic of China》 and other laws, rules, regulations and stipulations.

Clause Nine: It is up to the litigants to discuss and determine the price, utilization expense or commission of tech trade projects; or they can be determined by discussion among litigants after assessment as intangible assets.
Legal holder of technology can price it and buy share with it from the other party of technical trade.

Claus Ten: Advertisement of technical commodity must comply with related stipulations, rules and regulations. Holder of technical project, who authorizes somebody else to design, make and issue advertisement, must be identical with related technical document , technical attest certificate and other verifications. Broker and distebutor of advertisement are not allowed to design, make, work of behalf of and distribute advertisement of technical commodity whose content is unreal and that is incomplete of certifying document.

Clause Eleven: The following activities are for bidden in technical trade activities:
1. Those that infringe other's intelligent property right and technical right and interests;
2. Those that grab other's technical secret;
3. Those that pass off as patented technology;
4. Those that make false advertisement and propaganda;
5. Those that gang up to invite bid and enter bid;
6. Those that sign technical contract by means of deception of coercion;
7. Those that are banned by national laws, rules and regulations.

Chapter Three Service for Technical Trade

Clause Twelve: Those engaged in activity of technical trade service shall follow the principle of justice, openness, fairness and objectiveness, authenticity and advocating science.

Clause Thirteen: The following conditions are required to possess by organs for technical trade service that are set up for the purpose to promote commercialization of sci-tech fruit and specially provide technical trade with site, brokerage, consultation, assessment, information and other activities:
1. To have organizational constitution and service standard;
2. To have professional technicians and managerial persons appropriate to service scope and scale;
3. To have fixed ;lace and necessary funds and facilities;
4. To have other necessary conditions specified by law and regulations.

Clause Fourteen: Application for confirmation of business qualification shall be submitted to the municipal sci-tech administrative department, by those who are to set up organs for technical trade service. The municipal Sci-tech administrative department shall make decision and notice litigant on date or within thirty (30) days at most from date of receiving application, and issue qualification certificate to the confirmed. Those that have not been determined within time limit, are deemed to be confirmed. Litigant who obtains qualification certificate, shall register and charter in industry and commerce administrative department as specified in the notions related stipulations.

Clause Fifteen: Broker who serves intermediately between the demander and supplier with technical information, shall handle related formalities in reference to stipulation specified in Clause Fourteen.

Chapter Four To Promote Development of Technical Market

Clause Sixteen: People's governments at all levels and department concerned shall strengthen cultivation and management of and giving instruction to technical market, and encourage qualified departments and individuals to set up standing technical market in multiple forms.

Clause Seventeen: Organized by both institutions and enterprises, technicians who are engaged in activities of technical development, technical transfer, technical consultation and technical service (referred to as 4 Tech's hereafter) in a collective way in work hours, may extract 25%-50% commission of the net income from the confirmed and registered. Under a prerequisite that technician has done his (or her) job on post and conducts 4 Tech's that do not infringe the economic and technical right and interests of his (or her) unit, all income shall be owned by the technician. The unit where the technician serves, shall collect appropriate expense for its data, material and equipment the technician made use. Technician engaged in above said 4 Tech's, shall pay tax according to law.

Clause Eighteen: The technical contracts signed by technical development organs in state-owned large-and medium-sized enterprises, may enjoy the favourable policy for technical market enjoyed by independent sci-tech research organs if their contracts have been confirmed and registered and ratified by financial and taxation departments.

Clause Nineteen: For less than 30,000yuan RMB of net technical income earned by civil sci-tech enterprise in 4 Tech's, enterprise income tax can be exempted for the time being if examined and ratified by financial and local taxation departments; for the part over 30,000yuan RMB enterprise income tax shall be paid according to law.
Their income from technical transfer is exempted from business tax if examined and ratified by financial and local taxation departments. Related taxation policies by the nation, province and municipality shall be executed to other organizations that are engaged in 4 Tech's.

Clause Twenty: The technical export contracts of institutions and enterprises shall be examined and ratified or kept on file by the Municipal Economic and Trade Commission. Income from their technical export contracts may by exempted from business tax if ratified by financial and local taxation departments; their income tax is executed according to related stipulation. Commission policy can be enjoyed as specified in Clause seventeen in the present regulations if confirmed by the municipal sci-tech administrative department.

Clause Twenty-one: Institutions and enterprises that signed technical contracts for introduction and application sci-tech achievements, if confirmed and registered, may extract once-for-all 3%-5% of net annual income from implementation of the technology to reward personnel concerned who have performed remarkably in implementation of the technology.

Clause Twenty-two: Units and individuals who have carried out the present regulations conscientiously, and have performed remarkably in work of technical market, are to be cited and rewarded by the people's governments at all levels or sci-tech administrative departments.

Chapter Five Rules For Penalty

Clause Twenty-three: Those who violated the present regulation, shall be warned, ordered to correct in limited period, or confiscated income earned illegally by the municipal sci-tech administrative department. Fine is imposed for one of the following behaviors apart from above said measures:
1. over 500yuan and less than 2000yuan fine is to be imposed to those who have not confirmed and registered their technical contract as specified, or forged and defrauded registration certificate for technical contract.
2. Over 500yuan and less than 5000yuan fine is imposed to those who set up technical trade service organs without qualification confirmation, of are engaged in technical trade certificate for technical trade service organs.

Clause Twenty-four: The municipal sci-tech administrative department shall dismiss the qualification for technical trade service of those who seriously violated the present regulations, harassed the order of technical trade market.

Clause Twenty-five: Those who violated stipulations in Clause Ten, designed, made, acted on behalf of and distributed advertisements of technical merchandises, whose contents are not real and certifying documents are not complete, shall be punished by industry and commerce administrative department.
Clause Twenty-six: Those who violated the stipulation in Clause Eleven, shall be punished by related department in charge;
Criminal responsibility shall be investigated and affixed by judicial organ according to law to those who committed crime.

Clause Twenty-seven: An administrative penalty decision shall be issued according to legal proceedings by the administrative organ if it is going to impose an administrative penalty. For a fine penalty, a fine receipt made and issued unifiedly by financial department, shall be used. All fine and the illegal earaing confiscated shall be submitted to financial department.

Clause Twenty-eight: Litigant enjoys the rights to appeal and defend for the administrative organ; those who refuse to accept the administrative penalty, have the right to apply for administrative reconsideration, of take legal proceedings.
Litigant impaired due to administrative penalty because of breach, given by administrative organ, has the right to claim compensation.

Clause Twenty-nine: Staff members of administrative organ, or managerial persons of technical contract registration organ, who neglected their duties, abused their power, or engaged in fraud for selfish end, shall be punished by departments where they work, or their superior departments; For serious case that constitutes crime, criminal responsibility shall be investigated and affixed by judicial organ.

Chapter Six Appendix

Clause Thirty: Dalian Municipal People's Government will make individual management methods according the present regulations.

Clause Thirty-one: Dalian Municipal People's Government is responsible to interpret concrete problems in application of the present regulation.

Clause Thirty-two: The present regulations is to be executed on August 30,1996.

(Editor:) (From:dalian-info.com)
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