China Manufacturing Agreement Template
This provides a guarantee for the licensee for goods delivered. The duration of the warranty remains empty in our model, but 12 months are used regularly, although the exact period would depend on the nature of the merchandise and custom in this area. There is also compensation for the licensee if he is confronted with the claims of his clients. This clause sets the start and duration of the contract, which can be extended at the end of the period, unless it is terminated with a six-month period. In this type of OEM arrangement, intellectual property (IP) is generally clear: the buyer owns his brand (brands, logos and packaging) and the factory owns the product. Difficulties arise as soon as the product is adapted. Who owns the IP once the buyer has made changes to the product? An OEM agreement can shed light on this. As a general rule, the buyer tries to prevent the plant from using the adjustment when selling the commodity to third parties. And yet, our Chinese lawyers are constantly being questioned about “models” for themselves relatively complex Chinese agreements. We have been asked about joint venture agreements and our answer is: how can we provide you with such a proposal unless you know what the terms of this agreement will be? I think we have entered into joint venture agreements in which our client has contributed to the $20 million joint venture, and all they really wanted is guaranteed product pricing for the next 15 years, and we have entered into joint enterprise agreements in which our client has not provided money – only technology and equipment and , in return, 60% of the ownership of the joint venture and control of almost everything it does. Do you really think we have a model that covers all eventualities? The international standard for dealing with the above issues of intellectual property production is this: We have designed hundreds of China licensing agreements and manufacturing agreements and do not use any of them as a “model”. What we do is first gather the facts of our customers and find out which of our many contracts, if any, we should use as a model to create an essentially new contract for you. Most of the time, we draw sections of several contracts for a new highly customized contract.
Our agreements have been developed specifically for use in China, which means that they are bilingual agreements with Chinese as the official language. We generally design them (but not always) in accordance with Chinese law and we make sure that we design any provision that will benefit you as a foreign company that licenses its products or services in China or has its products manufactured in China. Our existing contracts are as close as possible to preparation, and it will make no sense for you to pay another lawyer who knows nothing about Chinese law to create a brand new English treaty that makes no sense to China.