Outsourcing in China: Five Basics for Reducing Risk

When issues arise, they are able to do little or nothing to
protect themselves because they don’t have any legal foundation for security. The Chinese legal system has improved greatly over the last ten years and taking
a few basic legal steps will reduce your risk. The expense of such
protection is modest in comparison to protection it’ll provide.
The following five basic steps will greatly Lower Your issues with
1. Create and correctly register your intellectual property rights
The usa. If you don’t have a firm basis for the IP rights under
U.S. law, then you will have nothing to protect in China. Prior to going into
China, be sure your intellectual property is protected under U.S. lawenforcement.
Shield your new identity by registering and creating your signature,
motto and logo using the U.S. Patent and Trademark Office. Register your own
significant copyrights with the U.S. Copyright Office.

2. Register your trade marks in how to manufacture a product in china . Registration may shield your
Future access to the Chinese market, prevent the export of counterfeit goods
out of China, and prevent a competitor from registering your mark in China,
which will prohibit you in copying your own product from China.

3. Work with a written agreement to safeguard your understand how and trade secrets
in China. Small and medium organizations generally do not have a broad
portfolio of patents. Their valuable intangible assets typically are
their know how and trade secrets, which cannot be guarded by formal
registration. Such agreements can also address problems like non-competition and confidentiality. Without such a written
deal, no such security is offered.

4. Product Quality and Payment Terms. The guideline here is simple. Do not
Make final payment into a Chinese manufacturer and soon you are convinced you
is likely to soon be getting an punctually dispatch of the appropriate items and amounts at
the excellent standards you require. This usually means you must incur
inspection costs in China and give a very clear procedure
for dealing with those problems as they arise. You must take the effect on
this. You cannot rely upon your OEM manufacturer to get this done to you.

5. Small and
Medium sized businesses often enter OEM manufacturing transactions with
A very simple purchase order. This can be a blunder. The buy order will shield
The Chinese manufacturer, not you. Your protection depends on your securing
A composed OEM manufacturing deal with each Chinese manufacturer with
Which you deal. The ideal OEM agreement will address All the problems
Discussed previously while also addressing other basic legal issues such as
Jurisdiction and dispute resolution.
And English, as the Chinese language version will dominate in China.

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