Yes, we can assist you to draft a bilingual NNN agreement or full manufacturing contract with an NNN section.
‘NNN’ stands for:
- Non-use – the supplier cannot use your IP in any way, for any purpose
- Non-disclosure – the supplier cannot make public your IP or share with others (such as a friend’s factory, or via unauthorised subcontracting) except in very specific cases
- Non-circumvention – the supplier cannot start making your products themselves and selling (usually at a lower price) to steal your customer base
It is bilingual and calls for enforcement in China, where your Chinese suppliers are more likely to have assets.
(We are not lawyers, but this template has worked well in the past for our other clients. And, of course, you can have it reviewed by your lawyer.)
Some suppliers are reluctant to sign a strong NNN agreement at the quotation stage. Our NNN is very protective but does not call for a set amount of damages (that’s an example of a clause that tends to frighten suppliers away).
Then, at a later stage, the NNN section of the manufacturing agreement (when the time comes to plan for manufacturing) is typically stricter, and that tends to be better accepted by suppliers.