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China Outsourcing: Five Foundations for Risk Reduction

2019-05-16 Business No comment

Many small and medium-sized companies engaged in OEM
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  China's manufacturing/outsourcing failed to take the necessary measures
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  protect yourself. When problems arise, they can do little or no
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  Protect yourself because they have no basis for legal protection. In fact, under the Chinese legal system, outsourcing disputes must be resolved in China. China’s legal system has greatly improved and developed over the past decade.
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  Some basic legal steps can greatly reduce your risk. Such cost
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  Protection is modest compared to the protection it will provide.

The following five basic steps will greatly reduce your problem
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  Chinese manufacturers should improve your chances of recovery
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  problem appear.

1. Create and properly register your intellectual property
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  United States. If your intellectual property does not have a solid foundation
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  Under US law, you have nothing to protect in China. Before you go
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  China, please ensure that your intellectual property is protected by US law.
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  Protect your brand identity by creating and registering your trademark.
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  The slogan and logo of the US Patent and Trademark Office. Register your
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  Important copyright of the US Copyright Office. Carefully identify and
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  Protect your trade secrets, proprietary information and knowledge.

2. Register your trademark in China. Registration can protect you
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  Entering the Chinese market in the future to prevent the export of counterfeit goods
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  From China and prevent competitors from registering your trademark in China,
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  This will prohibit you from exporting your own products from China.

3. Use a written agreement to protect your proprietary technology and trade secrets
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  in China. Small and medium-sized companies usually do not have a wide range of
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  Patent portfolio. Their most valuable intangible assets are usually
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  They know how to trade secrets and cannot be formally protected
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  registered. However, Chinese law allows companies to sign contracts
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  Protect their informed and trade secrets through contracts. Such agreements can also address issues such as non-competition and confidentiality. No such written
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  Agreement, no such protection.

4. Product quality and payment terms. The rules here are simple. Do not
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  Final payment to your Chinese manufacturer until you have confidence in yourself
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  Ship the right items and quantities on time
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  The quality standards you need. This usually means you have to bear
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  China's inspection fees and clear procedures
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  Handle these issues when these issues arise. You must take the lead
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  This one. You cannot rely on the OEM manufacturer to do this for you.

5. Use a comprehensive OEM agreement with each manufacturer. Small and
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  Medium-sized companies often conduct OEM manufacturing transactions with OEMs
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  A simple purchase order. This is a mistake. Purchase order will be protected
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  Chinese manufacturer, not you. Your protection depends on your safety
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  OEM manufacturing agreement with each Chinese manufacturer
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  You traded. The ideal OEM agreement will solve all problems
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  Discussed above, but also solved other basic legal issues.
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  Jurisprudence and dispute resolution. The agreement should be Chinese
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  And English, as the Chinese version will be controlled in China.

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