articles — manufacture

Protecting your IP when manufacturing in China.

The fear is real; the folklore isn't helpful. The protections that work are specific, boring and mostly signed before your drawings ever move.

skeelx — 23 aug 2026 · 5 min read

First, the caveat that matters: this is practical guidance from the manufacturing side, not legal advice — engage a specialist IP lawyer for your situation. What follows is the set of protections that do real work in practice, roughly in the order they should happen.

China is first-to-file. Act like it.

In China, trademark and design rights generally belong to whoever registers first — not whoever used the name or shape first. The classic horror story isn't theft of a secret; it's a brand discovering its own name was registered in China by someone else, sometimes a counterparty, entirely legally. If your product or brand has a future involving China — manufacturing there counts — talk to counsel about registering the trademark and any registrable designs early, before the first supplier conversation if you can.

NNN, not NDA

The Western NDA travels badly: it protects disclosure, is usually drafted in English under a foreign jurisdiction, and misses the failure modes that actually happen. The instrument built for this context is the NNN agreement — non-disclosure, non-use, non-circumvention: the counterparty may not share your information, may not use it to make products for anyone including themselves, and may not go around you to your customers. Drafted properly — in Chinese, governed by Chinese law, enforceable where the counterparty's assets are — it changes the incentive math. Signed before drawings move, not after.

Own your tooling, in writing

The moulds you paid for should be yours: named in the purchase order or a tooling agreement, with ownership, storage and the right to remove them stated plainly. Without that line, "your" tooling is a fact of goodwill, and moving suppliers later can mean paying for the same steel twice. This is a paragraph of prose that saves five figures, and it's standard practice on our manufacturing programs.

Share what the job needs, structure the rest

A supplier needs the drawings for what they make — rarely the whole product. Where a design genuinely warrants it, segment: sensitive subassemblies from one supplier, commodity parts from others, final assembly where you control it. Add the quiet hygiene: drawings watermarked and versioned, samples logged, and a paper trail that would make any later dispute short. Segmentation costs coordination, so it's a judgement call, not a default — most products need a good NNN and tooling clause more than they need cloak-and-dagger.

The honest hierarchy

In practice, protection ranks like this: registrations first (they're cheap relative to the alternative), NNN terms before disclosure, tooling ownership in the order, segmentation where justified — and, underneath it all, a supplier relationship where the factory earns more by keeping you than by burning you. Contracts set the fences; a well-run program with staged payments and inspections is what keeps everyone inside them.

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