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When developing a new product, sourcing components is an unavoidable step, but one that opens the door to serious intellectual property (IP) risks. How much information is too much to share with your suppliers? And what can you do to prevent them from copying your ideas or competing with you?
In this episode of China Manufacturing Decoded, Adrian and Renaud break down the real-world challenges that innovators face when working with overseas suppliers, particularly in China, and share practical tactics for protecting your designs, your product concept, and ultimately, your business.
Episode Summary
- 01:31 – Why Sourcing Creates IP Risks
Sourcing standard parts carries little risk, but sourcing for innovative products requires revealing information that may be used against you if not protected properly. - 07:02.243 – Real-World Example of IP Theft via ODM
A real scenario shows how ODM suppliers can take a customer’s product idea, develop it, and sell it to other clients, cutting out the originator entirely. - 16:02.066 – Mitigating Risk When Volumes Grow
As your order volumes increase, component suppliers may grow curious about your end product. Renaud recounts a case where a supplier tried to spy on a factory to uncover the product. - 21:06.054 – The Ideal of Keeping Suppliers in the Dark
Many founders imagine sourcing from suppliers who have no idea what the final product is. While possible, this rarely works in practice without significant effort and risk.
…These are just a selection of the points covered. Listen to the podcast in full for the entire episode.
Conclusion
Sourcing components doesn’t have to mean giving away the keys to your product. As this episode shows, protecting your IP is about more than just legal safeguards—it’s about smart decisions in how and what you share, who you work with, and how your supply chain is structured.
Related content…
- Chinese Copycats: A Real Problem For Entrepreneurs?
- Will A China NNN Agreement Protect Us If We Start Assembling Products There?
- Learn about the importance of a manufacturing agreement/contract
- Listen to our podcast series about Vetting Chinese suppliers
- IP Protection For Manufacturers. Keep Component Suppliers In The Dark
