Manufacturing in China means sharing designs, specifications and know-how with a third party. Most losses are not dramatic thefts. They are quiet failures of paperwork that were avoidable. These seven steps cover the ground that matters most.
- File before you share. Register trademarks, patents and key copyright in China before sending drawings, samples or brand assets to a supplier.
- Use an NNN agreement, not a standard NDA. It should cover non-disclosure, non-use and non-circumvention, be written in Chinese with an English version, be governed by Chinese law, name a Chinese court or arbitration body, and set out specific liquidated damages.
- Check your partner. Verify business licences, visit the factory, ask for references and find out whether it also makes for your competitors.
- Put IP into the manufacturing contract. Say who owns designs, tooling and improvements, restrict sales to others, and give yourself audit and termination rights.
- Limit what each supplier sees. Where possible, split components between suppliers and keep final assembly or the most sensitive know-how under your control.
- Record your rights with customs once registrations are granted, so counterfeit goods can be stopped at the border.
- Monitor and act quickly. Watch marketplaces and new trademark filings, and collect evidence early. Speed usually decides how much you can recover.
Where brands usually slip
The most common gap is timing: samples and designs go out first, and filings follow later. The second is the contract, which often says nothing about who owns the brand in China. Fixing both before production starts costs far less than fixing them afterwards.