All our contracts are written in Mandarin Chinese with a useful double English translation. An NNN agreement must include a specific contractual damage clause that a Chinese court can and will enforce by ordering the seizure of the defendant`s assets. However, caution is warranted, as china`s legal system does not allow punitive damages and does not allow for significant indirect damages. It is therefore important to set the contractual damage at an amount that adequately compensates for the damage resulting from a breach of contract. This NNN agreement was prepared by a team of Chinese and international lawyers and has been in use for more than five years. It is written in double English/Chinese translation and is constantly refined and updated based on customer feedback and changes in the Chinese legal system. We are very confident in the applicability of this treaty in China. Second, the NNN agreement must be drafted in such a way that the Chinese company is genuinely concerned that its breach of the agreement will have immediate and negative effects. The first step is to make the NNN agreement enforceable as described above. The second step is to ensure that the NNN agreement provides for contractual damages of a certain amount of money for each breach. NDA agreements focus on the protection of trade secrets. For a trade secret to be a protectable asset, the information must remain secret. For this reason, NDA agreements are designed to prevent the disclosure of a trade secret to the public.
The NDA agreements are therefore narrowly aimed at preventing the making available to the public of classified information. Of course, because U.S. companies typically focus on maintaining their domestic intellectual property portfolio, they tend to believe that they can rely on a single NDA agreement written in English, governed by U.S. law and enforceable exclusively in a U.S. city and state. But for the following two reasons, this type of NDA is worthless in China. One of the reasons the NNN agreement is so effective is that it provides for lump sum damages instead of an injunction application. Not all Chinese subcontractors sign the agreement Once you have purchased the template, you will receive a download link where you can fill in the required fields, all of which can be filled in in English without the need for translation. If at any time you are confused, you can read our document guide or contact us for help.
If your product is fully developed and you only use a Chinese factory to put it into production, you may not need to add such an agreement. This NNN Agreement is written in English and Chinese, is governed by Chinese law and is enforceable in Chinese courts. 1. Confidentiality Agreement – China NDA or more comprehensive China NNN agreement – this prevents the provider from sharing your intellectual property, using it to compete with you or reaching your customers behind your back. Note that it is important to keep penalties reasonable. The non-circumvention provisions of the agreement prohibit the Chinese manufacturer from copying your product, bypassing your business, and selling the product directly to your own customers. This is where an NNN helps, as the agreement includes: Non-disclosure agreements are meant to protect a company`s trade secrets from the public. Nothing more. If you can`t afford to pay a lawyer and want to use an NNN agreement as a tool to use your negotiations, get our bilingual template, which also includes other templates.
✔ Chinese NNN contract templates well formulated in 4 versions applicable to your specific situations, depending on whether you or your counterpart are a company or an individual. ✔ Detailed instructions on how to use NNN contract templates. ✔ What if you need extra help? A non-disclosure agreement is a legal document and is generally used in Western countries to protect confidential information between a potential partnership, relationship, negotiations, mergers, acquisitions, and all types of businesses. Our Chinese bilingual NNN agreement template is available as part of the PRO array template package. First, what is the difference between a Non-Disclosure Agreement (NDA) and a Non-Disclosure, Non-Use and Non-Circumvention Agreement (NNN)? Based on your signature on the document, this means that you consent to any changes, whether you are actually aware of them or not. Are non-disclosure agreements (NDAs) inadequate in China? It`s understandable that if you don`t understand English, you`d prefer your NNN to be written in English or a language you know. One of these glaring differences is the Non-Disclosure Agreement (NDA), also known as a confidentiality agreement or confidentiality agreement. One thing to avoid when creating your template for a restricted avoidance agreement is to write it only in English. For all the reasons that have been written so far. If you find that the NNN agreement does not meet your needs, we will grant you a discount equal to the price you paid for your NNN agreement template, which can be used for any other service or template on our website up to 6 months after the purchase of the document.
This offer has no conditions or fine print, just contact our support team with an explanation of what you need and we will issue your discount code. If you do not obtain consent from the Chinese manufacturer for each individual subcontractor and require each of them to sign your NNN agreement, it is possible that one of them will use and exploit your confidential information. For 99% of you reading this, I bet you`re not ready to go to China and fight in a Chinese court to enforce your agreement. Chinese NNN Reference Template: Download Chinese/English NNN If you are writing an NNN agreement from scratch, pay attention to the potential pitfalls of that agreement, especially if you are drafting an agreement for the first time. The same translation issues that have already been mentioned apply if you choose to use two different languages as the official interpretation of the NNN agreement. In early 2021, Dan Harris wrote in China Contract Drafting Scams: From Bad to Much Worse about how Chinese lawyers at our law firm have seen a massive increase in the number of people drafting NNN deals for foreign companies since COVID, intentionally or negligently giving Chinese companies a full and free license to steal the foreign company`s intellectual property. who believes they have an agreement to protect their intellectual property. Your manufacturing agreement strictly defines the benefits of your collaboration and relationships with customers and suppliers, and there is no room for explanation on the supplier side. The NNN Agreement contains not only confidentiality provisions, but also provisions prohibiting a Chinese manufacturer from misusing confidential information it has received as a result of its employment relationship with you. The second fundamental problem with typical NDA agreements is that they are not enforceable in China.
Chinese law allows the protection of trade secrets and contracts that ensure the protection of NNN. But for such a contract to be effective in China, it would normally have to be drafted in Chinese, subject to Chinese law, and enforceable exclusively in a Chinese court. .