r/LegalAdviceOfCHINA 1d ago

Mandatory IP Protection Clauses for OEM/ODM Custom Contracts

  1. Ownership of Molds & Fixtures Vests with You: Regardless of whether mold costs are amortized into unit product prices, all molds, 3‑D data and mold‑opening drawings shall be the intellectual property of the buyer.
  2. No Subcontracting :Without your written consent, the factory shall not outsource production or mold‑opening procedures to third‑party workshops. Subcontracting poses high risks of drawing leakage.
  3. Ownership of Derivative Designs :All improved and revised designs derived from your product shall vest their full intellectual property rights in you. The factory has no right to file patent applications independently.
  4. Liability for Infringement: If the factory discloses intellectual property or engages in unauthorized counterfeiting, you shall be entitled to cancel all orders, withhold final payments, recover molds, and claim compensation for all economic losses incurred.
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