This post sets out the four most important steps you should take to protect your IP from China. These steps will minimize the likelihood of you having a China IP problem and maximize your chances of prevailing should such a problem actually arise.
A few weeks ago, we did a webinar on moving manufacturing from China to Mexico. To watch the webinar, go here. To see the Powerpoints from the webinar, go here.
During the webinar we promised to post answers answers to questions we were asked but were unable to answer during the webinar. The below are an initial set of questions and answers. We will follow up with a part 2, with more questions and answers, in a few days. These questions are in no particular order. We received a number of questions that were very particular to a company or an industry and we will not be answering those questions on here, but if you email us, we will do so to the extent possible.
For reasons that ought to be apparent to anyone who reads the news, our China lawyers have of late been getting many emails from foreign companies looking at shutting down their China WFOE or just flee from China. Reduced to their essence, these emails usually focus on one of the following questions:
1. How do I do it correctly?
2. If I don’t do it correctly, what are the possible repercussions? Will I be safe in China?
We answer both questions in this post.
China WFOE Closures Are Increasing China WFOE closures/shutdowns are rising due to China’s economic slowdown, its deteriorating relations with the rest of the world, and the difficulty and risks of sending people to China. There is an old saying about how lawyers do well in good times and in bad times, just not in times
How to handle China factory disputes is a question our international manufacturing lawyers have been getting a lot of lately. Many China factories are in deep trouble due to declining sales stemming from the US-China Cold War, from its energy issues, and from its declining economy. I say this not just because of the economic statistics everyone sees, but also on the steady stream of emails our international manufacturing lawyers are getting from foreign companies reporting the usual range of problems whenever China’s factories are suffering. See China’s Slowdown and You.
In this post, we explain what Sinosure is, how Sinosure works, what causes Sinosure to put foreign companies in its crosshairs, why Sinosure is so dangerous, and, how to fight back and win against it.
How to protect your molds and tooling when manufacturing overseas
About a year ago, I spoke at a Berkeley Law School class regarding hostage taking in China. I presume I was brought on to speak about this because I helped Professor Chris Carr write an academic article on hostage taking in China, Commercial Hostages: Local vs. Foreigner Business Disputes in China. At my Berkeley talk,
The above is a direct quote from a client for whom my law firm is now in the process of helping his company move its production from China to Mexico. He said this about China and Mexico, right after setting saying that he “is done with China” because his company is unable to sell a
Got an email the other day enclosing a link to a Globe and Mail article, Vancouver miner says China trying to steal Xinjiang gold mine, and stating the following: I literally chuckled when I read this. Only for the reason that it pretty much checked off every point you have warned about. They certainly would
