Recently I spoke with an entrepreneur in my hometown who is sourcing packaging in China for his startup. This post contains his questions and my answers, together with additional questions from a number of my prior speaking engagements. What advice do you have regarding dealing with sourcing in China in the current environment? Recognize Your
Our international manufacturing lawyers work with many experienced and really good international product sourcing consultants. These consultants are usually really good for the following reasons: They know the ins and outs of what it takes to succeed in buying products from foreign countries. They know the ins and outs of how to find good companies
Foreign companies see China as increasingly risky and they are looking to move out or reduce their footprint there.
U.S. and European companies that manufacture in China are typically concerned about their Chinese factory or some local competitor stealing their design yet are far too relaxed about protecting their trademarks.
China is responding to its ongoing tension with the US and EU in some surprising ways – including setting up manufacturing and distribution hubs in Mexico and increasing its involvement in Latin America. What does this have to do with your business? More than you think.
Joint ventures with China factories are seldom a good idea.The better way to handle these relationships is usually with a China-centric distribution agreement that sets forth sales goals and allows you to walk away if your Chinese factory does not meet those goals. It usually makes sense to have a trademark licensing agreement with your distributor as well.
Are you a good candidate for moving your manufacturing from China to Mexico?
The topic of this post is on the need to make sure your contracts with your overseas product manufacturers line up with your contracts with your product buyers.
Western managers with China experience know the challenges (and risks) that come with cross-border negotiations. Those considering a move to Mexico will have to navigate a new set of cultural adjustments.
Where there is no Chinese patent protection, it is perfectly legal for an unrelated Chinese factory to knock-off the product. Only some form of patent can stop the knock-off. That is, absent patent protection, a knock-off does not constitute infringement. So where no invention patent applies, a design patent is a powerful tool. If the design is registered as a patent, the owner of the patent can prevent any other factory in China from making a product using that design. The patent owner can also register with customs, preventing the export of the knock-off product.
