Dealing with Chinese Factories: Protecting your IPR – Basics
Protecting your IPR with small and large factories alike is always an issue in China. You can be assured that most of these factories only do business with foreign entities and foreign markets but a sample of your product will more than likely end up in their showroom as an example of their work.
There are no strong legal frameworks as yet in China to protect your brand from being picked up by others and produced by the factory for sale in other territories and markets. We have all heard stories of similar SME produced products being sold under a different brand in another country unbeknownst to the original purchaser/customer. It is your brand, your design and it should remain in your hands which territories your designs and products go to. You need to stay in control of all relevant production documentation in order to prevent this.
A good working relationship with the production facility can help build trust and confidence. However there is still nothing stopping your product from ‘falling off the back of a truck’ or leaving through the back door. In this case, the saying ‘imitation is the best form of flattery’ is untrue. You want to be in control of your product and brand development and it’s no-one else’s place to take your designs.
As mentioned in previous articles there is no strong legal framework yet in China to protect you from copyright infringement, especially if it is a new market product. Getting components made in several different places and assembled in another is a solution many adopt but this can get very expensive.
An NDA doesn’t hold strong between an International client and a Chinese supplier but having one certainly doesn’t hurt. Having a 3rd party representing you on the ground in China looking out for your product and brand, applying pressure on the manufacturer and supplier to keep your product trade secrets under wraps can help eliminate and reduce the chances of copyright infringement.
For more information on protecting your brand and products, visit our official website for a free sourcing and IPR protection quote.
