Therefore, your manufacturing agreement must be clear that you own the intellectual property of the manufactured product. In addition, the agreement should also state that you grant them a license to use your intellectual property exclusively for the purpose of manufacturing the product during the term of the contract. We see him every day. Frankly, the Chinese don`t care. They know that such provisions make no sense in China, and they also know that a misspelled and misspelled common law treaty is virtually unworkable in China. So they usually sign without comment, because they know that the foreign side has simply caused itself problems. For example, a U.S.-designed contract often contains several pages in which liability for a warranty is defused. The U.S. guarantee right is broad; China`s right to guarantee is narrow. U.S.

warranty damage is high; The damage to the Chinese warranty is minimal. Under Chinese law, you cannot circumvent your basic warranty obligation. Therefore, the whole exercise does not matter under Chinese law and such a provision is not applied in China. The result is, at best, an ambiguous contract and, in the worst case, an unenforceable contract. In Japan, a domestic company will normally oppose these provisions. In China, the Chinese side will often sign only because it knows that it is dealing with a company that knows nothing about China and that the provisions in China are meaningless. Q: Do Chinese lawyers design contracts in English or do they check them most of the time? Your manufacturing contract should be tailored to what you charge the manufacturer of its work to avoid confusion as to who can do what. You can only make the manufacturer: The scope of the commitment determines what your manufacturer can and cannot do.

So it`s important to think about what you want before you change the agreement. When negotiating your manufacturing contract with a Chinese manufacturer, the best way to avoid litigation is to clearly explain what you and the other party agree. When negotiating your contract, you must take into account, among other things,: 2. A company wanted us to enter into a supplier contract with its new Chinese manufacturer on terms “somewhat similar” to those of the distribution contract they provided us. On other issues, we learned that they had used this distribution agreement with their other Chinese suppliers, but they had doubts about their effectiveness. Not only was this distribution agreement misspelled for China, but it was also a totally erroneous agreement. It constituted a relationship in which the American company acted as a distributor of the product of the Chinese company, if in reality all the United States.