This is where an NNN helps because the agreement includes: the Knockoffs of China come in many different forms, and can influence large and small businesses. The factories will manufacture products physically similar to those of leading brands. A strong NNN agreement will completely limit your Chinese manufacturer to their idea or product. The NNN agreement contains not only secrecy provisions, but also provisions that deter a Chinese producer from abusing sensitive private information he has collected as a result of his cooperation with the overseas company. The next “N” in a Chinese agreement on the NNN is secrecy. In most cases, you don`t have to pay attention to your Chinese counterpart making your secrets public, because it usually has no interest in leaving the general public to its good cause, because it normally wants to use your idea or concept for its own purposes. But as we mentioned above, that`s usually all an NDA can accomplish, and it generally can`t do it in a Chinese context. Below are some pitfalls for the unwary that could derail your efforts towards an effective NNN agreement: the second fundamental problem with the typical NOA agreements is that they are not applicable in China. Chinese law protects trade secrets and contracts that protect NNNs. But if such a treaty is to be effective in China, it should be written in Chinese, subject to Chinese law and applicable exclusively in a Chinese court. See China NNN Agreements: Do Them Correctly or Walk Away. What you need is something that clearly prevents your Chinese counterpart from using all the information you give it (whether it`s a trade secret or not) to compete with you. And that something must also be designed to link it to both the reality on the ground in China and the reality of the Chinese courts.
What you really need instead of an NDA is an NNN agreement that works for China and usually requires – among other things – this: as it is almost impossible, you can write a provision in which the main company is held responsible for any violation of the agreement by one of its subcontractors. The confidentiality agreement is generally used in the United States to protect confidential information in potential partnership and negotiation discussions, engagement work, licensing partnerships, mergers and acquisitions, and other business environments where confidentiality is the priority. Since then, China`s legal system has operated in a way that contrasts with other parts of the world.