NNN deep dive · IP flagship · OEM / customs.
“NNN” is not a Chinese statute. It is a contract package: the factory may not use your design except to fill your orders, may not disclose it, and may not go around you to your customer or mould shop. A standard US NDA usually covers only secrecy and names a California court — so it fails the week a clone ships. Use a Chinese-language instrument, the factory’s registered name and chop, a PRC court or CIETAC seat, and liquidated damages a judge might keep. Sign HQ’s NDA if you must, but make the China text prevail for China manufacture. NNN does not replace a China trademark application.
At a glance
| Question | Short answer |
|---|---|
| Is NNN a legal term in China? | No. It is a drafting nickname for three covenants. |
| Is an NDA enough for a factory? | Almost never — non-use and non-circumvent are the missing teeth. |
| Can I sign both? | Yes. China text should prevail for PRC manufacture. |
| Does NNN replace a trademark? | No. File the mark before the gold sample. |
| English + California venue? | Usual unenforceable pack against a PRC factory. |
Scope and legal framework
Civil Code (contracts, confidentiality, damages). Parties may agree non-use, non-disclosure and non-circumvention. Liquidated damages are reviewed for excess. Trade-secret rules in the Anti-Unfair Competition Law sit underneath, but you still want a written factory covenant.
Civil Procedure / arbitration practice. A California exclusive-venue clause is why these files never launch. Name a PRC court at the factory or CIETAC/SHIAC and a China service address.
Practical workflow
- Identify the legal entity that will actually run the line — not the trading cousin.
- Draft Chinese prevailing text with the three covenants and a realistic liquidated-damages number.
- Chop the contract before any drawing pack or mould deposit.
- File China trademarks (and design patents if they matter) in parallel.
- Keep a paper trail of what was disclosed on which date.
Common mistakes
- HQ legal “we always use our NDA.”
- Chop from the wrong company in the group.
- Waiting to file the trademark until after the first PO.
Action checklist
- Business-licence name = chopped name.
- Non-use + non-circumvent + non-disclose all present.
- PRC forum and Chinese prevailing language.
- TM search/file before gold sample.
- No drawings until the chop is wet.
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