Legal Question in Business Law in China

Business pattern being Mfg. overseas
HI,
I am starting a small business. I need a Mfg in Taiwan to make the product because no one in the USA makes it.
The design is the secret BUT if the company I hire to make the item starts making the item they will run me right out of business nedless to say may not even make my items that my custumers have already ordered.
Can yo tell me what document I must get or cold get that can deter this activity if I have the Mfg. sign it.
thanks

Asked on 11/01/07, 10:14 am

2 Answers from Attorneys

Daniel Pepper Pepper Law Group, LLC

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Re: Business pattern being Mfg. overseas

Unless you have applied for, or have received a patent for the design, you run the inherent risk of the manufacturer misappropriating your design. You can certainly put together a non-disclosure and non-compete agreement with the manufacturer, but enforcing these terms in the event of a breach is extremely difficult (especially with a Taiwanese company).

There are some other ways you can tackle the problem. Feel free to contact my office to discuss further.

Answered on 11/01/07, 10:26 am

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