Many small and medium sized businesses that engage in OEM
manufacturing/outsourcing in China fail to take the steps necessary to
protect themselves. When problems arise, they might do little or nothing to
protect themselves because they have no legal basis for protection. The fact is that outsourcing disputes must be resolved in China, under the Chinese legal system. The Chinese legal system has improved greatly over the past ten months and grasping
a few basic legal steps can greatly reduce your risk. The cost of such
protection is modest compared to the protection it will provide.

The following five basic steps will greatly reduce your problems with
Chinese manufacturers, while improving your chances of recovering should any
problems arise.

1. Create and properly register your intellectual property rights in
the United States. If you do not have a firm basis for your IP rights under
U.S. law, you will have nothing to protect in China. Before you go to
China, be sure your intellectual property is protected under U.S. law.
Protect your brand identity by making and registering your trademark,
slogan and logo with the U.S. Patent and Trademark Office. Register your
important copyrights with the U.S.