The duration of secrecy, non-use and non-circumvention could go beyond the termination of the contractual relationship itself. Remember that once you have entered into a suitable NNN agreement and you are able to successfully find a Chinese manufacturer with whom you will feel comfortable, you will need to change in addition to a manufacturing agreement or an OEM (Original Equipment Manufacturer) agreement for the actual production, which will contain more detailed provisions regarding the manufacturing process itself. While these agreements can be very effective if they are well established and enforced, it is almost pointless to have a Western-style NDA in China. What is it? Their NNN agreement must normally be in writing to be enforceable in a Chinese court with jurisdiction over the Chinese defendant. This means that Chinese law should be the current legislation, chinese language should be the relevant language, and exclusive jurisdiction should rest with a Chinese court with jurisdiction over your Chinese counterparty. The main reason for this China-oriented approach is that you need to be able to act quickly against your Chinese counterpart if it violates its NNN agreement with you. For the following reasons, any other approach will not make the agreement enforceable or delay enforcement for so long that the agreement will become unusable If you prohibit a Chinese company from using your protected information, the Chinese smart company will not directly violate the prohibition on non-use. Instead, they will share the protected information with someone in their “group” and then deny violating the prohibition on non-use because they did not directly use the protected information. For this reason, it is important to understand the nature of the group you are dealing with and to specify in writing that: 1) disclosure within the group is expressly prohibited and 2) in the event of an infringement by a group member, the company that signed the agreement and made the disclosure is fully liable, no matter what.
If I were you, I would consider getting your product manufactured elsewhere as soon as possible, and we can also help you and make sure that you will prevent this IP theft from happening again in the country where you are going to manufacture your product. Relocation of your production from China: the first decisions. If you want to relocate your production elsewhere, we must first consider whether you can claim ownership of the form they claim to have worked on for you and whether it makes economic sense to do so. . . .