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The Civil Code of the Russian Federation

(with the Additions and Amendments of February 20, August 12, 1996,
October 24, 1997, July 8, December 17, 1999, April 16, May 15,
November 26, 2001, March 21, November 14, 26, 2002,
January 10, March 26, November 11, December 23, 2003)

Part II
Section IV
Chapter 38
Performance of Research and Development and Technological Works

Chapter 38. Performance of Research and Development and Technological Works

Article 769. Contracts for the Performance of Research and Development and Technological Works


1. Under the contract for the performance of research and development and technological works the executor shall be obliged to carry out scientific research, specified by the customer's technical assignment, while under the contract for the development and technological works he shall be obliged to develop the sample of a new product, elaborate design documentation or new technology for it, whereas the customer shall undertake to accept the work and pay for it.
2. The contract with the executor may cover both the entire cycle of research, development and manufacture of the sample of the new product and its particular stages (elements).
3. Unless otherwise stipulated by the law or the contract, the risk of accidental impossibility of executing contracts for the performance of research and development and technological works shall be borne by the customer.
4. The terms and conditions of the contracts for performance of research and development and technological works shall correspond to the laws and other legal acts on exclusive rights (intellectual property).

Article 770. The Performance of Works


1. The executor shall be obliged to carry out scientific research in person. He shall have the right to draw third persons in the fulfilment of a contract for scientific research works only with the customer's consent.
2. During the performance of development or technological works the executor shall have the right, unless otherwise stipulated by the contract, to draw third persons in its execution. The rules for the general contractor and subcontractor (Article 706) shall be applicable to the relations between the executor and the third persons.

Article 771. The Confidentiality of Information Which Constitutes the Subject of the Contract


1. Unless otherwise stipulated by the contracts for the performance of research and development and technological works, the parties thereto shall be obliged to ensure the confidentiality of information relating to the subject of the contract, the progress of its execution and the obtained results. The scope of information recognized as confidential shall be determined by the contract.
2. Each party shall undertake to publish information to be recognized as confidential and obtained during the performance of the work only with the consent of the other party.

Article 772. The Rights of the Parties to the Results of the Works


1. The parties to the contracts for the performance of research and development and technological works shall have the right to make use of the works, including those amenable to legal protection, within the framework of the contract and on its terms and conditions.
2. Unless otherwise stipulated by the contract, the customer shall have the right to make use of the results of the work given to him by the executor, including those amenable to legal protection, while the executor shall have the right to use the obtained results of the works for his own needs.

Article 773. The Executor's Obligations


The executor shall be obliged to take the following measures under the contracts for the performance of research and development and technological works:
to perform the works in keeping with the technical assignment agreed upon with the customer and to turn over to the customer their results within the period fixed by the contract;
to coordinate with the customer the necessity for the use of the results of intellectual activity that belong to third persons and the acquisition of rights to their use;
to remove the defects, made through his fault, in the fulfilled works with his own forces and at his own expense, if they can involve departures from the technical and economic parameters, envisaged by the technical assignment or the contract;
to inform forthwith the customer about the ascertained impossibility to receive the expected results or about the inexpediency of continuing the work;
to guarantee to the customer the transfer of the results which have been received under the contract and which do not break the exclusive rights of other persons.

Article 774. The Customer's Obligations


1. In contracts for the performance of research and development and technological work the customer shall be obliged to undertake the following measures: to give to the executor information needed for the fulfilment of the work;
to accept the results of the fulfilled works and to pay for them.
2. The contract may also provide for the obligation of the customer to give to the executor a technical assignment and to agree with him the programme) technical and economic parameters) or the topics of the works.

Article 775. The Consequences of the Impossible Attainment of Results of Scientific Research Works


If in the course of scientific research works it is found out that it is impossible to attain results owing to the circumstances that are beyond to executor's control, the customer shall be obliged to pay for the value of the works carried out before the ascertainment of the impossibility to obtain results, envisaged by the contract for the performance of scientific research works, but not over and above the corresponding part of the price of the work, indicated in the contract.

Article 776. The Consequences of the Impossible Continuation of Research and Development and Technological Works


If during the performance of research and development and technological works it is found out that the impossible or inexpedient continuation of the works has arisen not through the fault of the executor, the customer shall be obliged to pay for the expenses incurred by the executor.

Article 777. The Liability of the Executor for the Breach of a Contract


1. The executor shall be liable to the customer for breaking the contracts for the performance of research and development and technological works, unless he proves that such breach has taken not through the fault of the executor (Item 1 of Article 401).
2. The executor shall be obliged to reimburse the losses caused by him to the customer within the limits of the cost of the works in which defects have been discovered, if the contract provides that they are subject to compensation within the limits of the total cost of the works under the contract. The lost profit shall be subject to compensation in cases stipulated by the contract.

Article 778. Legal Regulation of the Contracts for the Performance of Research and Development and Technological Works


The rules of Articles 708, 709 and 738 of this Code shall be applicable accordingly to the dates of the fulfilment of works and to their price, and also to the consequences of the customer's non-appearance for the receipt of the results of the works.
The rules of Articles 763-768 of this Code shall be applicable to the state contracts for the performance of research and development and technological works to meet state needs.

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