Protect IP When Sourcing Your Products from China

Today, when information can be freely shared and spread so quickly, it can be quite a challenge to protect product ideas and other intellectual properties (IPs). Whether you’re just starting a small business venture or running a large corporation, protecting your IP should definitely be among your top priorities. And the road towards IP protection begins with learning more about it.

What is intellectual property?
Simply put, intellectual properties are ideas, concepts, and bodies of work that result directly from creative thought. Perhaps the best examples are manuscripts, product designs, blueprint of inventions, and business names/logos. Protecting these properties means blocking anyone else from taking them, claiming them as their own, and unfairly benefitting from them without acknowledging you as the rightful source and owner.

How do you protect IP?
There are several steps you can take towards protecting your IPs. By taking these steps, you save yourself from having to deal with issues of IP theft. And should such an issue arise, you’ll know you are adequately covered.

Record your idea in detail and make sure each document (drawings, descriptions, etc.) is properly dated and signed.

1. Record your idea
Make sure your idea is recorded in writing and that the record contains all information about the concept, down to the minutest detail. If the idea involves the creation of a product, be sure to create detailed drawings of the product and include a detailed description as well. These documents will help prove that you’re the one who worked on the idea from the start, in case someone challenges your ownership of the IP. Of course, you also have to make sure each document reflects the date when it was prepared, plus your signature.

2. Register your idea
Contact an IP attorney and seek assistance in getting your idea registered. It isn’t enough to have a detailed and dated record of your work; you have to make sure it is registered and distinguished from similar ideas. You should also think of where you plan to get your product (if the IP is an invention or new product design) made and where you plan to sell it; you may have to consider overseas laws and regulations, especially as regards IP protection.

3. Apply for a trademark
If your IP is a new product, you may also want to consider giving it a name (brand) and logo to truly set it apart from the competition. You should then register an original trademark for your brand and logo. Not only will this set you apart from the competition, it will also help you promote your product once it hits the market. You should also make sure all documentation of your product contains the correct copyright symbols to further enhance your IP ownership.

4. Get a patent
Patents may cost as much as $200,000. However, if you’re sure you have a truly groundbreaking idea, the investment may well be worth it in the long run. Patent protection covers a wide variety of product ideas and designs.

5. Keep it a secret
Coming up with a groundbreaking idea is indeed exciting, and it is understandable that you’d want to share the good news to as many of your family and friends as you can. But it is imperative for you to keep mum about it until you’ve adequately secured your IP. Never promote an idea in any public forum before you manage to secure protection. And be very careful on whom you trust with knowledge about the idea; until it is properly protected, anyone can take your idea and claim it as their own. If you have business partners to whom you need to disclose information about your new idea, it is often advisable to seek assistance from an attorney and get all parties to sign non-disclosure agreements.

As mentioned earlier, you’ll have to take some extra steps if you plan to take your business overseas. Say, for example, you plan to get your product developed and mass produced in China. You’ll have to make sure you get IP protection for your product idea with coverage that is applicable in China. Remember that a US trademark or patent will not protect your product in China. So, how do you ensure protection for you IP in China? Here are a few tips:

1. Contact a legal counsel and work on an overall IP protection strategy with his assistance.
2. Review China’s core IP laws and regulations, as well as other laws and regulations impacting the country’s IP environment (i.e. Labor Contract Laws, Corporate Income Tax Laws, etc.).

Be sure to review China’s core laws and regulations governing intellectual property rights as well as other laws that impact IP.

3. Contact the Intellectual Property Office (IPO) in China and seek assistance in securing copyrights, patents, and trademarks there.
4. Balance market opportunities with IP protection needs. You may want to consider keeping vital designs and technologies, while bringing to China only those IPs that support your business in the country.
5. Be very careful in choosing business partners in China and be sure to closely monitor their work on a regular basis. Make sure the business entities you choose to work with view IP in the same way you do, and be sure to include IP protection clauses in all of your contracts with your Chinese partners.

The good news is that China has made some significant efforts to better protect IP rights and enforce IP protection laws and regulations. In fact, the country’s IP laws and regulations have increasingly reflected international standards in recent years. This isn’t to say that there are no longer any serious issues and challenges to be faced by foreign businesses with transactions in China as regards IP protection, but it has become a little easier to prevent IP problems and handle IP infringement issues, should they arise.

To successfully do business in China, you have to make sure your IP protection strategy realistically reflects the nature and the extent of issues and problems you are likely to face. Your strategy should also include a realistic assessment of your business goals and available resources. As long as you are able to do this, your intellectual properties should be safe enough, and you should be able to enjoy all the benefits working with a Chinese manufacturer has to offer. If you more questions about IP protection, contact AsianProSource today, we’ll gladly answer any questions you may have.