But first,

What is intellectual property and how do you protect it? 

Intellectual property refers to the creation of ideas or concepts by a person or company – such as trademarks, patents, copyrights and business secrets.

In reference to the manufacturing of your hardware products – everything from the conceptual idea, to the engineering drawings to the logos and packaging are referred to as intellectual property in this case.

So let’s dig right into it.

First of all, you’ll want to make sure you’re partnering with the right contract manufacturer for your project. This is no easy task by any feat. Lucky for you, we’ve framed up a great guide on How to Find A Manufacturer For Your Hardware Products. However, this is only solves part of your problem. The wider challenge is to ensure there are preventative measures that are in places should things ever get out of hand.

• Sign a Non-Disclosure Agreement (NDA)

Wikipedia frames up an excellent definition for what an NDA is.

“A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA) or secrecy agreement (SA), is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties.”

If your product is unique, it is more than likely that your chosen manufacturer will ask you to share engineering drawings or samples so that they may evaluate the product to be able to quote you accurately.

While an NDA may not necessarily be the easiest to enforce in a country or legal system which is unknown to you, it does create a sense of security for you (the buyer), and clarifies your intent to the supplier for ensuring there is confidentiality for product/conversation in question. We will explain more on this later.

• Register Your Patent/Trademark/Copyrights

Reality is an NDA is never going to be a fool proof way to prevent manufacturers/suppliers from misusing your intellectual property. On a bad day, things do go wrong and when this happens it is likely that the person or company that has leaked your IP, will likely do so knowingly and under the belief that you do not have the resources and capacity to follow up with legal action.

Your strongest and most powerful option is to register patents, trademarks and copyrights in your target selling markets. For example, if you intend on selling your hardware product primarily in United States and United Kingdom, you would need to ensure that your intellectual property is registered with the relevant authorities in these countries.

What this does is it prevents the manufacturer/supplier or any other party who manages to get their hands on your IP from selling it legally in your target markets. Yes, there is always going to be a likelihood that counterfeit or knock-off products find their way onto the grey market through backdoor channels – however you will be able to take legal action relatively easier having the right legal tools in place.

• Spread Your Risk

Lastly, a common tactic many small businesses and start ups employ is reducing their risk by spreading their production across multiple manufacturers/suppliers. For example, if you have a product that is an assembly of several parts – one option may be that you break up the production of this by assigning different manufacturers for each component, and ultimately assemble the final product yourself.

Ofcourse there are ramifications for this; you may struggle to ensure the product quality and visual appearance is standardised across the multiple suppliers. There is also a likelihood that your costs may shoot up for the same product given that each manufacturer needs to take into account their fixed costs for each manufacturing run.

Ultimately this is a choice you will need to make – but nonetheless, it stands as an option.

Conclusion

So to summarise – we’ve covered what intellectual property is and why it’s important to understand your rights. The pros and cons of NDAs and why you should not take them for granted. Protecting your brand, and right to sell your IP in your own target markets. Lastly, mitigants you can take to spread your risk.

At the end of the day, there will always be a greater risk associated with contract manufacturing over manufacturing in house, but with the correct precautionary steps taken and a carefully drawn up risk management plan, you can be sure to avoid landing yourself in trouble.

Nidhi Exports are OEM Hardware Manufacturers who have been in the game for over 3 decades. While we do not manufacture everything in house (which is something we are open about with our customers), we do have the networks, resources, experience and capability to deliver top quality custom manufactured products for our customers, fast and to their expectations.

Respected as one of the top precision turned parts manufacturers in India, Nidhi Exports have a strict intellectual property policy where we take the privacy of our customers very seriously. This is why you will find no mention of who our customers are on our website or otherwise – another reason why we are regarded so highly in the field of contract manufacturing, and why our customers often prefer us over our China custom manufacturing competition.

If you’re in the market for an OEM Hardware Manufacturer or custom manufacturing & engineering services who will respect your rights and look after your needs, let us show you why we are the right contract manufacturer to help take your project to the next level.

Reach us via our contact us page or message us on Live Chat to get the dialogue started for your contract manufacturing needs today.

The post How do I keep my intellectual property safe when working with OEM Manufacturers in China or India? appeared first on Nidhi Exports.

1. You currently have a product or product range that you either manufacture yourself or you have manufactured by a contract manufacturer. Whether it be that you are looking to reduce costs, or whether it be that you aren’t happy with your existing vendor, you are now in a position to find a new manufacturer for your hardware products.
2. You have a newly developed product or prototype that you’re now wanting to get manufactured. You have no idea where to start and so you’ve found yourself on Google looking for answers.

This article aims to enlighten and enrich the minds of both audiences. So let’s get started…

Now days, with the power of the internet it is fairly easy to source most things. A few clicks here and there and boom you’ve ordered yourself a brand new mobile phone at half the cost of what it is at the local retail store. You’re absolutely ecstatic and super proud of yourself for finding such a bargain. Until ofcourse, the courier arrives and you unwrap your new purchase to find a cheap knock off phone that is not what was described in the online listing. You jump online to contest your purchase and you find the seller has closed shop – and you’re confronted with the dreaded 404 page – website not found. You’ve been scammed!

Much in the same way, the experience of finding a reputable manufacturer that you can trust to deliver a high quality end product while respecting and protecting your intellectual property, is quite painstaking and cumbersome. However you can ease the pain and simplify the process by bearing in mind a few important points

1. Know What You’re Looking For

The first step in finding a manufacturer for your products is to know what you are looking for. Ideally you will have a design or prototype ready accompanied with both 3D CAD renders and 2D engineering drawings. You will have some knowledge of the manufacturing processes and techniques required to produce your product. You will know whether there are any specific certifications that your product will need to be able to have it sold in-market, and you may also have an idea of the type of facilities and capabilities your manufacturer might need.

2. Finding The Right Partner

If you take a look today on Alibaba.com or GlobalSources.com you will find hundreds if not thousands of suppliers who claim to be able to manufacture your products at dirt cheap prices. They will come with fancy profiles, and product photos that look legitimate. However, buyer beware for what is too good to be true – usually is. There is about a 55% chance that you will actually be speaking with a legitimate factory when you connect with prospect manufacturers over such platforms. Many times, you will run into ‘middlemen’ or ‘traders’ who are simply agents that have ties with real factories. These middlemen or traders will present themselves as companies however in reality they will be 1-2 guys sitting in a room who will take a cut for every new deal they bring in for the actual factory. So what can you do?

1. Pick up the phone and ask questions – there is no better way to flesh out and get a sense of who you’re dealing with than getting on the phone and speaking directly with the prospect. Ask them about their business, their history, size and leadership, their processes, who they work with, where they are based, how they treat intellectual property, how they work, what are their minimum order quantities like, what are their standard shipping and payment terms, and are they insured? Don’t be afraid to get technical either.
2. Ask for photos of the factory.
3. Ask to sight certifications.
4. Ask for product samples to be sent to you.
5. As a test of legitimacy, ask if it would be possible to visit their factory – even though you may never intend to go, this question will separate the wannabe’s from the real deals.

3. Looking For Scale

Many manufacturers look for customers that will keep their factory running. If the factory is not running, it is losing money and that is not good for business. As such, many manufacturers will have an inclination towards working with customers that have products that will be purchased in large volumes on a regular basis so as to keep their factories operating at capacity.

You’ll want to keep this in mind when looking for the right manufacturer to suit your project. Going with the biggest and best is not always desirable as this comes with it’s own set of challenges. Generally the larger the manufacturer, the greater the inflexibility. It takes longer to turn the gears which make a bigger company tick, and as such, a bigger manufacturer may not be able to give your project the attention it deserves.

On the flipside, if you go with someone too small and inexperienced – you could end up getting no where or with a product that doesn’t meet your expectations. It is therefore even more important that you question your prospect manufacturer thoroughly to ensure they have the capabilities and experience to meet your expectations.

4. It’s Not All About Price!

There are two breeds of manufacturers that can be found on platforms like Alibaba.com and GlobalSources.com. Those that want to work with you and grow with you, and those that simply want to trade goods for a given price. We call the later type – price sellers, and effectively if you are to work with this group, you are termed a ‘price buyer’. This is not necessarily a bad thing, but you need to be sure you know what you’re in for.

When it comes to price buying and selling, you have to remember a very simple rule – “you get what you pay for”. You will find several sellers online that will claim to give you the same product at 30% the cost of what competitors might be selling it for – yet when you transact with said suppliers, 90% of the time these products will be full of defects, packaging will be a miss, and the production quality will be poor. When you pick up the phone to the manufacturer to contest your purchase, you’ll be met with hold music and support tickets that go round and round in circles.

The simple way to ensure you are getting what you’re paying for is to ask for samples. Do not fall prey to ‘we will give you a better price’.

5. Protecting Your Intellectual Property

Last but not least, you’ll want to make sure that the partner you work with can be trusted with your intellectual property.

Are they going to take your product and sell it to the next 10 odd people that want to buy it?

Are they going to take your designs, modify them and then pass them onto the next prospect buyer?

The reality is, irrespective of legally binding agreements, patents and trademarks – Murphey’s law states that if “something can go wrong, it will go wrong.” In countries like China and India, where labour is cheap and manufacturing overheads are low – you will find hundreds of prospect manufacturers for your products – however they may not all be as honest and transparent as the next. This is where you will need to carry out a bit of your own due diligence in ‘sizing up’ who you’re actually getting in business with.

It is better to avoid situations where your IP is at risk by ensuring you pick the right manufacturing partners. Ask yourself, do they have the same values as you do? Do they speak openly and honestly? Do they do what is right? Are they willing to open up and admit to their mistakes? Are they transparent in how they work? Many of these questions will only be answered once you get into an open dialogue with the manufacturer – however you should bear them in mind so that you know you can work towards building trust with the prospect.

Conclusion

By now you will have gotten a good understanding of the type of questions you will need to be asking your prospect manufacturer and the key points that you’ll need to bear in mind when looking for the right partner. You will know that it’s not all about price, and that finding a good manufacturer is a bit like finding a good business partner – you need to make sure you understand them and they understand you, expectations are clear up front and that you operate with each other’s’ best interests at heart. These facts and points of consideration will hopefully now allow you to make the right choices when choosing a manufacturer for your hardware products.

Nidhi Exports are an OEM Hardware Manufacturer based in Haryana, India. With over 30 years experience operating across Architectural, Agricultural, Building, Fire Safety, Scaffolding, and Trailer industries, Nidhi Exports today is the one stop shop manufacturer of choice for several leading brands globally.

When searching for brass fittings suppliers or brass manufacturers in India, Nidhi Exports is a top contender. Nidhi Exports also ranks highly amongst ss nut bolt manufacturers, stainless steel bolts and nuts suppliers and aluminium manufacturers in India.

If you are on the lookout for OEM brass parts manufacturers, aluminium die casting manufacturers or stainless steel fasteners manufacturers in India, get in touch with Nidhi Exports via the contact us page to learn how Nidhi Exports can help you grow your business. You can also learn more about Nidhi Exports and it’s history here.

The post How to Find a Manufacturer for Your Hardware Products appeared first on Nidhi Exports.

There are several reasons why brands, distributors and manufacturers choose to have other manufacturers produce their products, for example – to reduce costs of manufacturing, to allow focus of efforts and resources on sales and marketing, to leverage trade tariffs and government subsidies, or to enable the production of specific products without the need to buy and invest in complex manufacturing equipment and facilities. Ultimately, many of these reasons tie back to driving down the cost of production by leveraging economies of scale that the original equipment manufacturer is able to achieve.

Original Equipment Manufacturing is a form of Contract Manufacturing. This is where the hiring firm, or in our case the brand, distributor or manufacturer approaches the manufacturer or OEM with a pre-established design or prototype. The contract manufacturer then quotes the hiring firm for the manufacturing costs associated to manufacture their product. These costs may include additional design, tooling, raw material and labour costs. Contract manufacturers will then typically package and ship products in either a finished or semi-finished state to the desired destination.

There are further advantages for brands, distributors and manufacturers to work in this way – especially in countries where the costs of hiring skilled labour and training them is high. Hiring firms can leverage the advanced skills, quality and focus of the contract manufacturer to improve and innovate their products while keeping costs down.

Nidhi Exports are an OEM Hardware Manufacturer providing cost effective, high quality manufacturing solutions for Brass, Aluminium & Steel die cast and forged hardware products. With over 30 years experience developing custom engineering solutions and serving as a contract manufacturer for leading hardware brands globally across multiple industries, Nidhi Exports are today recognised as a leading precision components manufacturer and hardware manufacturer in India.

You can learn more about Nidhi Exports here or get in touch with us directly via the contact us page.

The post What is an Original Equipment Manufacturer (OEM)? appeared first on Nidhi Exports.