Comments on: What to do if a competitor in Asia orders your product

By: Paul

Paul — Sun, 10 Jan 2010 13:42:37 +0000

This is an interesting topic since I am an American living in China. If the company is based in Hong Kong you may have more power over them to keep them from copying your product without giving you any of the credit or royalties. You might also contact the US Consulate in HK since they have an office that handles US-China business and manufacturing.

Make no mistake though that Chinese manufacturers will steal a product idea including putting “Made in the USA” lables on things marketed within China and the rest of Asia.

They presently do it with such high profile items as cars and DVDs, so clothing lines would be no big deal. The Chinese have also figured out that most westerners want to produce their product so much that they will enter into deals where the westerner gets screwed.

If this ends up as a licensing deal then you will need someone here that can not only speak two languages fluently but can also access sales records so you do not get shorted. I guarantee that if there is a way to not pay you the Chinese will figure out how to do it. And some areas of the country are worse than others when it comes to dishonesty. Just proceed slowly.

By: Vesta

Vesta — Mon, 15 Jun 2009 19:32:04 +0000

“I’m not sure it would have occurred to me to think that the firm in Asia might be looking to expand on a business that is already working for them by adding a new widget to their arsonal.”

Renee, it could be that the other widget isn’t working as well as they might like, precisely because this other widget is better . . .

By: Kathleen

Kathleen — Thu, 11 Jun 2009 16:55:36 +0000

I forgot to mention, it may be better to be a good sport and fill the order because you'll have a legal record of the sale rather than forcing them to work around you. The key reason is a basis for claim under the Economic Espionage Act of 1996 but I plan to discuss more of that in today's entry. Just wish I knew more about the ins and outs of negotiating a deal like this. One important matter: I would own the "asia" url as a condition and just let them use it. I would try to get as much information about their arrangement with your competitor as possible because while this could end up being an opportunity for you, you don't want to be foolish either.

By: Julian Hill

Julian Hill — Thu, 11 Jun 2009 14:30:41 +0000

Great points! I read the scenario and thought it seemed fishy but everything you mention makes sense. I remember in high school taking some French exchange students shopping. They wanted Levi’s to take home. Its easy to forget sometimes that like Americans see European products as sophisticated a lot of other countries view American products that way.

By: carissa

carissa — Thu, 11 Jun 2009 13:16:24 +0000

We had a “competitior” buy our product and I sent the friendly email to her simply indicating that we knew who she was. She is now more of a colleague than a competitor.

By: Renee

Renee — Thu, 11 Jun 2009 03:46:03 +0000

So great to see this perspective on a topic that definitely interests me from an intellectual property standpoint. I’m not sure it would have occurred to me to think that the firm in Asia might be looking to expand on a business that is already working for them by adding a new widget to their arsonal.
Makes my MBA brain purr like a kitten. I strongly suggest that Rebecca follow Kathleen’s excellent advice.

By: Dawn B

Dawn B — Thu, 11 Jun 2009 00:24:52 +0000

Thank you very much for this post. I thought you would surely have a lot of insight to offer. The situation seems so fishy yet like you said, if they just wanted to knock off the product it is simple enough to buy under a name that doesn’t tip anyone off. Looking forward to part 2.

By: Elaine Good

Elaine Good — Thu, 11 Jun 2009 00:06:29 +0000

Fascinating! Thanks for this, Kathleen!