| Abstract: | Legal context: It is no secret that IP in China is a challenge. However, commercialactivity in or with China is now predictable enough that companiescan, and should, plan for it by taking control of their supplychain. This requires a combination of legal and practical measures.This article sets out some of these steps. Key points: In order to minimize the risks of IP leakage their supply chainsin China, there are three key stages of protection: (i) Pre-sourcing;(ii) Negotiating strong contracts with suppliers; and (iii)Managing the relationship with your supply chain. Practical significance: If your clients do business in China or source products fromhere and cannot answer the following questions, their IP isat risk of infringement. They need to take steps to proactivelymanage their supply chain. - Do your clients know which factoryis producing their products?How many links are in your clientssupply chain, each one increasingthe chances for IP infringement?
- Do your clients' agreements with their suppliers adequatelyprotect their IP?
- Have your clients taken steps to prevent‘midnight productionruns’ and ‘backdoor sales’by their suppliers?
- How is the IP being provided to them?Do your clients need togive them everything for production?
- What steps have been taken post-production to ensure thatyourclients' suppliers don't continue to manufacture theirproducts?
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