Paragraph (1)
The cooperation may be effected in the following manners:
Subparagraph (1)
Licensing, which includes the following four arrangements:
Item (1)
Where the intellectual property rights or proprietary technology is owned by the National Defense Technology Institution, the Private Entity is authorized to use the property or technology within a specific period of time in an exclusive or non-exclusive agreement.
Item (2)
Where the intellectual property rights or proprietary technology is owned by the Private Entity, the National Defense Technology Institution is authorized to use the property or technology within a specific period of time in an exclusive or non-exclusive agreement.
Item (3)
Where the intellectual property rights or proprietary technology is jointly owned by the National Defense Technology Institution and the Private Entity, other National Defense Technology Institutions or Private Entities are authorized to use the property or technology within a specific period of time in an exclusive or non-exclusive agreement.
Item (4)
The National Defense Technology Institution and the Private Entity mutually authorize each other to use each other's patents, copyrights, proprietary technologies or other intellectual property rights within a specific period of time in an exclusive or non-exclusive agreement.
Subparagraph (2)
Joint Use: With the specific objective of developing national defense technology industry, the National Defense Technology Institution and the Private Entity agree to the joint use of the personnel, equipment or other resources of either party or both parties within a specific period of time to engage in joint research and development, production and manufacture, or maintenance activities.
Subparagraph (3)
Joint Venture: The National Defense Technology Institution and the Private Entity may jointly contribute to an investment in the form of technology or cash to set up a company which engages in research and development, production and manufacture, or maintenance activities relating to national defense technology industry. The shareholding of the National Defense Technology Institution shall be less than thirty-five percent (35%) of the company’s paid-up capital. Where the investment of the National Defense Technology Institution is in the form of cash, its shareholding shall be less than twenty percent (20%) of the company’s paid-up capital.
Subparagraph (4)
Share subscription: Where a company that engages in research and development, production and manufacture, or maintenance activities relating to the national defense technology industry issues new shares, the National Defense Technology Institution may participate in the subscription of such shares with technology or cash, and the restriction on its shareholding shall be the same as that in the preceding subparagraph.
Subparagraph (5)
Subsidy: With the specific objective of promoting the development of national defense technology industry, the National Defense Technology Institution and the Private Entity may jointly contribute to an investment in the form of cash, and the Private Entity will execute the project. There shall be a specific limit on the amount of investment contributed by the National Defense Technology Institution, and such amount shall be determined by the competent authority.
Subparagraph (6)
Joint contracting: The National Defense Technology Institution and the Private Entity may, based on the personnel, equipment, technology, cash or other resources owned by each other, agree to jointly contract the research and development, production and manufacture, or maintenance works relating to the national defense technology industry within or outside the country.
Subparagraph (7)
Industrial cooperation: When the procurement of military supplies requires certain percentage of domestic content, cooperation takes place in the form of technology transfer, investment, export assistance or other similar conditions.
Subparagraph (8)
Other cooperation arrangements approved by the competent authority.
Paragraph (2)
The amount of royalty for licensing as referred to in Subparagraph (1) of the preceding paragraph shall be determined based on the value of the rights or technology utilized.
Paragraph (3)
The term "other resources" as referred to in Subparagraph (2) of Paragraph (1) may include capital contribution in the form of technology or cash. However, when the National Defense Technology Institution makes cash contribution for the specific objective of joint production and manufacture or joint maintenance, the joint activity shall be limited specifically to military use.

Unless otherwise provided by the national defense policies, the cooperation items shall be selected according to one of the following principles:

Subparagraph (1)
Military weapons and equipments the need for which cannot be fulfilled by the National Defense Technology Institutions alone.

Subparagraph (2)
Items for which the National Defense Technology Institutions already possesses partial capability.

Subparagraph (3)
Items for which the National Defense Technology Institutions plans to build up capability, and for which there is a similar or complementary need.

Subparagraph (4)
Items related to the national defense technology industry which the Private Entities intend to engage in, and which have been found to conform to national defense requirements upon evaluation.

Subparagraph (5)
Technology, equipment or special resources which the National Defense Technology Institutions or the Private Entity already possesses or plans to establish, and which it may provide to its target of cooperation for the latter's use.

Subparagraph (6)
Items for which the research and development, production and manufacture, or maintenance and repair capability is increased and may produce an economies-of-scale effect after the cooperation; provided, however, that this provision shall not apply to a simple fitting, assembling and production situation.

Subparagraph (7)
Items which are needed for purposes of improving the performance or quality of the current produrcts for military use or common military and civilian use, renewing the current technology, reducing costs, or enhancing the added value.

Subparagraph (8)
Common military and civilian technological items which can induce the National Defense Technology Institutions, or assist the essential goods industry, to upgrade and develop.

Subparagraph (9)
Policy items which have been approved by the competent authority.

Paragraph (1)
When a National Defense Technology Institutions cooperates with a Private Entity to engage in research and development, production and manufacture, or maintenance and repair activities related to the national defense technology industry, it shall select the target which is most beneficial to it according to the following principles:

Subparagraph (1)
The Private Entity possesses special technology, capability or resources which conform to the relevant development requirements of the national defense technology industry.

Subparagraph (2)
The National Defense Technology Institutions possesses special technology, capability or resources which may be used by the Private Entity for the development of common military and civilian technology.

Subparagraph (3)
The Private Entity has strong technological capability which suffices to accept the authorization or certification of the original manufacturer so as to establish an independent research and development, production and manufacture, or maintenance and repair system for military supplies procured from abroad.

Paragraph (2)
The term "technological capability" as referrng to in the preceding paragraph involves special technology, certification qualification, research and development and innovation, quality control, cost control, brand name management, operation flexibility, sales channels, materials supply management, special project planning and management, etc.

Paragraph (3)
The term "resources" as referring to in the first paragraph covers manpower, financial strength, material assets, knowledge and information.

Paragraph (1)
A National Defense Technology Institutions shall review and submit a proposal of all items for which cooperation engagement is possible, of concrete information such as the order of priority for the execution of such items, and of suggested medium- and long-term plans, for presehting to the authority-in-charge for the latter examination and compilation of medium- and long-term plans.

Paragraph (2)
The National Defense Technology Institutions shall, in accordance with the requirements of the medium- to long-term plans or special projects, prepare and submit a work plan to the competent authority for the record purposes. When the National Defense Technology Institutions and the authority-in-charge are the same agency, the working plan shall be approved by the competent authority.

Paragraph (3)
When the National Defense Technology Institutions has selected its target of cooperation in accordance with the work plan, it shall act according to the following procedure:

Subparagraph (1)
Public Display: Including a planning display and a special project display. The display notice shall be published in a government gazette or newspaper, and publicized on internet..

Subparagraph (2)
Cooperation Plan: The cooperation plan shall be delievered in writing by the Private Entity, and shall set out the special technology, in details capability and resources, the suggested cooperation items, concrete facts of compliance with the provisions of these Rules, and other coordination matters as required by the authority-in-charge.

Subparagraph (3)
Formation of Evaluation Committee: There shall be at least seven members on the evaluation committee, composed of personnel dispatched by the authority-in-charge and the National Defense Technology Institutions. The number of participants from the National Defense Technology Institutions shall not be more than half, and, if necessary, the competent authority may dispatch personnel to participate. The meeting method shall be used to make resolutions of the evaluation committee, and a resolution may be passed by a majority vote of the members present at a meeting attended by a majority of the committee members. The evaluation committee may retain attorneys, accountants, or other specialists to serve as its advisors.

Subparagraph (4)
Mutual Visits: The authority-in-charge or the National Defense Technology Institutions and the Private Entity shall dispatch personnel to visit each other, and, if necessary, the competent authority may dispatch personnel to participate in such visits.

Subparagraph (5)
Review Meeting: The evaluation committee shall, according to the content of the cooperation plan submitted by the Private Entity and the results of the mutual visits, summon an review meeting in order to resolve whether the National Defense Technology Institutions shall proceed with the cooperation [project].

Subparagraph (6)
Approval: The resolution of the review meeting shall be submitted to the authority-in-charge to obtain the latter's approval, and, after the approval, it shall be reported to the competent authority for record purposes. Where the evaluation committee is formed by the authority-in-charge, its resolution shall be submitted to the competent authority to obtain the latter's approval.

Subparagraph (7)
Execution of Agreement: The National Defense Technology Institutions shall execute a cooperation agreement with its cooperation target.

Paragraph (2)
Where the cooperation [project] is classified as "confidential" or above, the provision of item 1 of the preceding paragraph shall not apply.