At Our Man in Beijing, we set up an NDA with every supplier before forwarding our client’s intellectual property. Our non-disclosure agreements for potential suppliers are bilingual (Chinese & English) and we double-check that each supplier signs and stamps the document with the government issues Chinese company chop. To briefly introduce the company chop in China: it is the most important tool and legal foundation for any organization. A document that has the company chop is legally binding by Chinese law. The chop serves as an equivalent to the business owner’s signature.
What is an NDA?
It’s a legal agreement between parties. This agreement protects traded secrets from being stolen, misused or distributed to third parties that are not involved in the agreement. These secrets can be product designs, concepts or other related intellectual property.
Unfortunately, Chinese manufacturers tend to have a bad reputation when it comes to intellectual property. In recent years, rule of law in China improved and foreign companies have won legal disputes about intellectual property. The danger is very real though; if you do not have such agreements in place with suppliers, as without the legal foundation, there is no barrier for suppliers (or even supplier’s employees) to potentially copy or steal your ideas. At OMiBJ, we advise all our clients to have a legal foundation in place and advise where necessary. With our bilingual NDA, your IP will have legal protection.
Does an NDA work in China?
NDA’s do work in China if written in Chinese and according to the laws and regulations of the PRC. We have over 10 years of experience dealing with Chinese factories and the tricky aspects of intellectual property rights in China. With OMiBJ at your side, you can rest assured that we will represent your investment and property accordingly. Prior to receiving any documents (product drawings, IP’s, 3D designs, etc.), we set up NDAs between our customers and our company, which also binds us to honor the confidentiality of our clients designs and property.