The regulations (hereinafter "these Rules") are prescribed in accordance with the Paragraph 4 of Article 22 of the National Defense Law .

Paragraph (1)
Unless otherwise provided by treaties , agreements or national defense policies , priority shall be given to self-research and -development , self-production and -manufacture , self-maintenance and -repair of military weapons and equipment within the Republic of China (hereinafter "our country" , "ROC" or "Taiwan" , where appropriate) to meet national defense requirements by integrating the strength of the private sector . Where domestic supply is not possible and it is necessary to procure from abroad , technology transfer and certification shall be enforced with a view to developing the national defense technology industry .
Paragraph (2)
When integrating the strength of the private sector to engage in self-research and -development, self-production and -manufacture, self-maintenance and -repair, or technology transfer in accordance with the provision of the preceding paragraph, the cooperation or commissioning method shall be effectively used in the conduct thereof.

Paragraph (1)
The term "competent authority" as referred to in these Rules means the Ministry of National Defense.
Paragraph (2)
The term "Agencies-in-charge" as referred to in these Rules means the various authorities under the direct supervision of the Ministry of National Defense.

The term "National Defense Technology Institutions" as referred to in these Rules means organizations of various levels under the supervision of Ministry of National Defense conducting the activities with respect to the research and development, manufacturing or maintenance and repair relating to the national defense technology. industry.

The term "Private Entity" as referred to in these Rules means any corporation, partnership or sole proprietorship incorporated or established under the laws of the Republic of China (Taiwan, hereinafter "our country") or any foreign country, or any other domestic and foreign legal entity, organization or government authority, that may conduct the research and development, production and manufacture, or maintenance and repair activities related to the national defense technology industry.

The term "cooperation" as referred to in these Rules means the act of National Defense Technology Institutions and Private Entities in integrating the research and development, production and manufacture, or maintenance and repair resources owned respectively by one another, bearing the risks jointly, and sharing the benefits of integration.

The term "commissioning" as referred to in these Rules means the provision by the commissioning party of the research and development, production and manufacture, or maintenance and repair standards or other requirements to the commissioned party according to which the commissioned party will engage in actual research and development, production and manufacture, or maintenance and repair work at the budgeted expense of the commissioning party or at its own expense, and the commissioning party will, according to the result of the commission achieved or the volume of work completed, conduct a work completion inspection or make a remuneration payment to the commissioned party.

When a National Defense Technology Institution cooperates with a Private Entity, gives a commission to, or accepts a commission from a Private Entity, it shall abide by the following principles:
Subparagraph (1)
relevance to the national defense technology industry.
Subparagraph (2)
integration of the special resources of the private sector so as to attain the expected benefit.
Subparagraph (3)
positive implementation of the objective of transferring technology to domestic Private Entities.
Subparagraph (4)
the priority objective of the technology transfer relating to the military weapons or equipments procured abroad shall be the establishment of a domestic, independent maintenance and repair system.
Subparagraph (5)
items which are not urgently required for national defense shall be capable of promoting the upgrade or transformation of the relevant industry.
Subparagraph (6)
shall not affect the National Defense Technology Institutions' duties or the national security.
Subparagraph (7)
A Private Entity in the domestic manufacturing or processing industry which engages in production and manufacturing activities related to the national defense technology industry shall be a qualified factory; it is the same in the case of a foreign Private Entity.
Subparagraph (8)
Repeated investment shall be avoided.
Subparagraph (9)
In the case of items for which the National Defense Technology Institutions already possesses capability, priority may be given to the cooperation or mutual commissioning between institutions for such items after being reported to and approved by the competent authority, and there shall be no sub-contracting after the acceptance of a contract.
Subparagraph (10)
Private Entities in an unfriendly country or territory as determined by the government of our country shall not be the targets of cooperation or commission activities hereof.

The competence and responsibilities of the competent authority are as follows:
Subparagraph (1)
Prescribing the policies, systems and medium- to long- term objectives for the cooperation or mutual commissioning between National Defense Technology Institutions and Private Entities to engage in research and development, production and manufacture, or maintenance and repair work.
Subparagraph (2)
Approving the medium- to long- term plans submitted by the Agencies-in-charge.
Subparagraph (3)
Overall management of the control and assessment of the performance of the cooperation or mutual commissioning between the National Defense Technology Institutions and Private Entities to engage in research and development, production and manufacture, and maintenance and repair work.
Subparagraph (4)
Management of information related to the cooperation or mutual commissioning between the National Defense Technology Institutions and Private Entities to engage in research and development, production and manufacture, or maintenance and repair work.
Subparagraph (5)
Approving the cooperation or mutual commissioning items which are controlled.
Subparagraph (6)
Interpreting, or making written requests for the interpretation of, the relevant laws and decrees.

The authority and responsibility of the Authority -in-charge are as follows:
Subparagraph (1)
Making recommendations on medium- to long-term objectives to the competent authority.
Subparagraph (2)
Submitting medium- to long-term plans for cooperation or mutual commissioning.
Subparagraph (3)
Approving work plans.
Subparagraph (4)
Reviewing and reporting control items for cooperation or mutual commissioning.
Subparagraph (5)
Approving cooperation or mutual commissioning items and the qualifications of Private Entities.
Subparagraph (6)
Establishing a list of the qualified commissioned Private Entities, and conducting periodic reviews to amend the same.
Subparagraph (7)
Issuing and canceling certificates of qualification, and reporting the same.
Subparagraph (8)
Directing, examining and approving research and development, production and manufacture, and maintenance related plans of agencies or units under them.
Subparagraph (9)
Supervising and controlling the relevant operations of agencies or units under them.
Subparagraph (10)
Drafting operating procedures.
Subparagraph (11)
Training professional personnel.

The authority and responsibility of National Defense Technology Institutions are as follows:
Subparagraph (1)
Making recommendations on medium- to long-term plans for cooperation or mutual commissioning.
Subparagraph (2)
Reviewing and submitting work plans.
Subparagraph (3)
Conducting preliminary review of cooperation or mutual commissioning items and the qualifications of Private Entities, and forwarding the cases for approval.
Subparagraph (4)
Collecting and analyzing cost data on research and development, production and manufacture, or maintenance items and forwarding the item data for approval.
Subparagraph (5)
Reviewing and reporting control items for cooperation or mutual commissioning.
Subparagraph (6)
Signing cooperation or mutual commissioning agreements.
Subparagraph (7)
Preparing relevant documents and materials.
Subparagraph (8)
Participating in, advising and controlling throughout the research and development, production and manufacture, or maintenance operations.
Subparagraph (9)
Assisting Private Entities in building domestic,independent research and development,production and manufacture, or maintenance systems through such methods as acquisition of technology transfer or certification.

With the view to effectively integrating the forces of various circles to jointly promote the works set out in these Regulations, bringing about the development of national defense technology industry, and accelerating the efforts to achieve the objective of independent national defense, the competent authority may, in coordination with the Ministry of Economic Affairs and National Science and Technology Council, undertake the following tasks:
Subparagraph (1)
Studying and planning cooperation or mutual commissioning projects relating to the development of national defense technology industry.
Subparagraph (2)
Investigating and creating database on research and development, production and manufacture, or maintenance capabilities of national defense technology industry products.
Subparagraph (3)
In charge of the assessment and certification affairs of national defense technology industry.
Subparagraph (4)
Handling industrial cooperation matters relating to procurement of military supplies from abroad.
Subparagraph (5)
Coordinating academic cooperation matters relating to national defense technology industry.
Subparagraph (6)
Other coordination and support matters relating to national defense technology industry.

The National Defense Technology Institutions may, for the purpose of engaging in the research and development work through cooperation or mutual commissioning as prescribed by these Rules, establish a Research Park.

Paragraph (1)
The ownerships of intellectual property rights arising from the research and development, production and manufacture, or maintenance works done through cooperation or mutual commissioning between a National Defense Technology Institution and a Private Entity in accordance with these Regulations shall be expressly stipulated in the agreement.
Paragraph (2)
If the intellectual property rights under the preceding paragraph belong to the Private Entity, the agreement shall expressly stipulate that the National Defense Technology Institution shall have gratuitous, global, non-exclusive and non-assignable rights to the intellectual property; provided, however, that this requirement does not apply if the rights are assigned to a National Defense Technology Institution under the competent authority which has no cooperation or mutual commissioning arrangement with the Private Entity.