From time to time I get calls from start-up companies about to embark on manufacturing in China asking what they need to do “to protect themselves.”
I tell them about China NNN Agreements and how they can help prevent potential manufacturers from replicating their product. And I tell them about how important it is to have an China-specific Manufacturing Agreement with their Chinese manufacturer.
Then I tell them how if they do nothing else, they should immediately register their trademarks in China. This one usually surprises them and they often think I have misunderstood what they are planning for China. They at first do not understand why I am emphasizing the need for their securing a trademark in China when they have no plans to sell their product in China. I then explain the following to them:
China is a first to file country, which means that, with very few exceptions, whoever files for a particular trademark in a particular category gets it. So if the name of your company is XYZ and you make shoes and you have been manufacturing your shoes in China for the last three years and someone registers the XYZ trademark for shoes, that other company gets the trademark. And then, armed with the trademark, that company has every right to stop your XYZ shoes from leaving China because they violate its trademark.
Then they understand.