Basics of Manufacturing Non-disclosure Agreements in China

Page 1. ContractsIn today’s blog post we are going to take a closer look at different contracts and agreements that help European companies to protect their precious IP in China. In particular, you will learn more about non-disclosure agreements and non-use, non-disclosure and non-circumvention agreements. 

Introduction: contracts in China

Many SMEs view Chinese manufacturers as cheap, technically-skilled, attractive options for manufacturing their products and as such pursue partnerships with them. While Chinese manufacturers can be the key to the products needed to give your company worldwide reach, China—like all countries—can be home to unscrupulous merchants with a taste for IP theft. As such, tailoring contracts to suit your intellectual property rights (IPR) is an important way to ensure that your company’s specific intellectual property assets are adequately protected when dealing with Chinese manufacturers. In particular, this article will address use of so-called NDAs (non-disclosure agreements) and NNNs (non-use, non-disclosure, and non-circumvention agreements) to protect an SME’s trade secrets—“any non-public technical or business information with commercial value that is guarded by confidentiality measures.”

What are NDAs and NNNs?

At its core, a non-disclosure agreement (NDA) between an SME and a Chinese manufacturer is an agreement which states that once the SME reveals its trade secrets to the Chinese manufacturer, the manufacturer will refrain from disclosing those secrets to anyone else. Once a secret loses its secrecy—once it is revealed to the public—it no longer has any kind of legal protection and, most likely, will lose its economic value. That is why NDAs are go-to contracts for any SME which seeks to use a Chinese manufacturer. Otherwise, the manufacturer could reveal the SME’s trade secrets, making those secrets impossible to protect and capitalise on. Continue reading “Basics of Manufacturing Non-disclosure Agreements in China” »

IP Considerations in South-East Asia for the Food and Beverages Industry

gi-pictureIn today’s blog post we are taking a closer look at the IP protection in the food and beverage sector in South-East Asia, a sector that has recently seen a  lot of attention from the European SMEs as it offers many promising business opportunities. In this blog post you’ll learn more about branding, protecting your product packaging and protecting your authentic products from specific geographical region with Geographical Indications. 

South-East Asia is home to more than 600 million people and it is the third largest market in the world, with ten countries integrated in a common market under the ASEAN Economic Community. South-East Asia also has high economic growth between 3-10 percent per annum, which is driven primarily by consumption, due to the large population and a growing middle-class.

With higher disposable incomes and increasing health-consciousness, today’s consumers in South-East Asia are seeking healthier food and beverage choices. They tend to look for higher quality products, including those imported from overseas. This has opened up a range of attractive opportunities for European as European products are generally considered to be of high quality. However, diversity and regulatory affairs can sometimes be challenging in various local markets. South-East Asia has a wide mix of cultures, religions, customs, culinary preferences, and demographics that greatly impacts the F&B sector. For example, Indonesia and Malaysia have large Muslim populations, which could provide many business opportunities for halal-certified F&B products manufactured in Europe. Conversely, there are limited opportunities for imported wines and spirits in Indonesia and Malaysia due to the religious limitations on alcohol consumption.

European SMEs should, however, not forget to pay attention to protecting their IP, because despite the fact that most South-East Asian countries have good IP laws and regulations in place, IP infringements are relatively commonplace throughout South-East Asia. Well-managed IP is often a key factor for business success and neglecting these rights could be costly. Thus, a comprehensive IPR strategy is needed, when entering South-East Asia’s markets. Continue reading “IP Considerations in South-East Asia for the Food and Beverages Industry” »

Cleantech in Thailand: Some IP Considerations for the Rapidly Developing Market

clean-techIn today’s blog post we are taking a closer look at the IP protection in Cleantech industry in Thailand, which has in recent years attracted the attention of European SMEs as the market is offering many promising opportunities.

As Thailand is one of the leaders in South-East Asia region in terms of renewable energy solutions, especially connected to solar power, but also to biomass and hydropower, its market attracts cleantech companies from over the world. Given Thai government’s ambitious plan of achieving a 25% energy consumption from renewable energy sources by 2021[1], and the fact Thailand’s energy consumption is predicted to jump by 75% over next two decades[2], Thai cleantech market is expected to offer promising opportunities for European SMEs whose top-notch technology is especially sought after.

Because of the abundance of renewable energy sources, including sun, hydropower, and biomass, the country could become a true renewable energy powerhouse. Cleantech companies focused on solar energy, biosphere alternative energy systems, energy conservation and efficiency can find promising business opportunities in Thailand because these areas are also receiving the lion’s share of Thai government’s investments on renewable energy.

European cleantech companies should, however, pay attention to protecting their IP rights when planning their business strategy for the Thai market, because IP infringements are still relatively common in the country. Furthermore, cleantech industry tends to have high level of collaboration and licensing which make IP ownership the centerpiece of the business strategy.  Well-managed IP is often a key factor for business success and neglecting to register IP rights in Thailand could easily end SMEs’ business endeavor in the country. Thus, a robust and integrated IPR strategy is needed, when entering Thailand’s market. Continue reading “Cleantech in Thailand: Some IP Considerations for the Rapidly Developing Market” »

The Next Vintage: The Future of Wine Anti-Counterfeiting; Advice from our Experts

Corks smallToday’s blog post will sum up our Wine series that we have been running for the past couple of weeks and discusses the future of IP protection in the wine industry.

Wine counterfeiting in China is at a critical stage for the European wine industry. In recent years we have had a taste of what Chinese consumption means to the European producers, with over a quarter of a billion litres of European wine consumed annually by what represents only a fraction of the potential market in China. As the market moves from commodity and gift wines to drinking ‘table’ wine, so do the counterfeiters, flooding supermarkets and restaurants with wines bearing (often validly registered) appellation marks which have no connection to the liquid inside the bottle.

Chinese palates are at a crucial developmental stage, and exposure to poor quality counterfeits of European wine not only damages profits, but also poisons the reputation of European producers in the Chinese marketplace. Competition with domestic producers is already fierce, and Europe’s wine industry can no longer afford to stand by and let this threat go unchallenged.

As we saw in our ‘Terroir IPR’ articles, producers do not stand alone in the fight against counterfeiting, and national agencies such as INAO, as well as regional regulatory bodies such as the CIVB are in working to register GIs and combat the most obvious fraudsters. These two organisations are a minority however, and their pockets alone are not deep enough to fund a comprehensive campaign. Without support of more organisations, and ultimately the producers they serve, they can only do so much to slow the poisonous effects of counterfeiting in China. Continue reading “The Next Vintage: The Future of Wine Anti-Counterfeiting; Advice from our Experts” »

IPR Protection in China for the GNSS Technologies

technology-2082642_1280Driven by consumers’ obsession with smartphones, China’s market for GNSS technologies offers promising business opportunities for European SMEs whose top-notch technology is highly sought after in China. European SMEs wishing to do business in China should however be aware of the fact that IP infringements are still relatively common in China and thus a comprehensive IP strategy is needed in order to succeed in China’s market. Today’s blog post, thus, offers an overview of IP protection tools in China, focusing especially on the GNSS technologies.  

GNSS and China

In an increasingly technologically advanced and interconnected world, technology utilising GNSS has risen year on year, with both entirely new applications being developed along with improvements and adaptations to existing technologies.

At present there are two globally operating GNSS systems; the United States’ Global Positioning System (GPS), and the Russian Global’naya Navigatsionnaya Sputnikovaya Sistema or (GLONASS) system. There are also two GNSS systems currently under development; Galileo, a European Union-led initiative and the expansion of the Chinese BeiDou system to the global Compass Navigation System. Both of these systems currently provide incomplete or regional coverage and are scheduled to be fully operational globally by 2020.

GNSS technology has a wide range of applications including LBS, maritime transport, public regulated services, road transport, agriculture, surveying, aviation, civil protection and timing and synchronisation.

These technologies depend on a number of factors, including ‘availability’ i.e. the percentage of time the minimum number of satellites are in view, ‘indoor penetration’ i.e. the ability of signal to penetrate inside buildings, location accuracy, continuity of service and signal reliability. Success in the GNSS market depends on the successful exploitation of technology to maximise the success of devices abilities to transmit and receive in line with these dependant factors. This makes protection of IPR crucial to maintaining market advantage and adequate returns on research investment. Continue reading “IPR Protection in China for the GNSS Technologies” »