Hi all…
My parter and I are are in the process of refining a product and signing an NDA agreement with a manufacture from China( Alibaba). Read the agreement and it’s pretty clear.
Any tips on things I should look out for or advise before signing?
Before signing the NDA with the Chinese manufacturer on Alibaba, ensure the agreement specifies clear terms on confidentiality, duration, and dispute resolution. Review it carefully to protect your product and interests…
Make sure you understand the scope of the agreement. What information is considered confidential? Does the agreement cover your product design, trade secrets, business plans, customer lists, or other sensitive information?
Check for any exceptions to confidentiality. The agreement may allow the manufacturer to disclose your confidential information in certain circumstances, such as if required by law or to protect its own interests. Make sure you are comfortable with any exceptions before signing.
Just remember that in NDA, especially with a Chinese company, is only worth the money you have to defend it. And with a Chinese company, even less.
1 Like
Thanks fellas, great tips!!
True… unless you’re a huge company, don’t bother to have NDA, it’ll just make things more complicated, nothing stops a manufacturer from copying the product and change slightest detail to make it even better than yours.
1 Like
Might be clear, however it does not hold water.
They will sell your product out the back door regardless.
Why, they know absolutely NOTHING can be done about it. Even if both parties are in the USA you better have at least $200,000 just to get an attorney to look at it. Now try to do this outside of your country and be able to prove it.
All you are doing is burning your cash to design and bring to market a product that in the long term will benefit them, not you.
If you are serious don’t list it on ebay or amazon, find an alternative way to sell it. When you hit the top 10 on amazon and ebay you will be done soon after.
2 Likes
I am afraid you are just wasting your money here. In China, such agreements and especially ones involving intellectual property is unenforceable.
As @skeeter says, even if this was in the US, litigation is expensive.
My advice is that you get a trademark and Brand Registry, this way you will be at least able to remove hijackers from your listings.
4 Likes
It’s better to have an NNN agreement with your supplier rather than an NDA agreement, an NNN agreement will be better than an NDA agreement to avoid your supplier from using/selling your product designs
2 Likes
To be honest, I assume you’re not a big company and just beginning with FBA on Amazon. NDA matters for huge companies with a smooth cash flow they got just to protect their product. With a Chinese company, it is no more that just a worth for the money. And in China, they know you are a small company, and you can’t stop them from reproducing by doing minor modifications and make it even better than than what they sold to you. China works for money only.
Lastly, alibaba trade agreement is more important than NDA. Pay your supplier using alibaba trade assurance and include the contract in that. This way supplier can’t mess with the quality and stuff if he does, alibaba will be there to defend you. You can write terms like better price, free production in case if defected units and lot more in that trade contract. That is more mandatory for a beginner than going for NDA.
You need NDA when you hire someone to work on your Amazon business so he doesn’t misuse your business.
3 Likes