China Product Development Agreement (Bilingual English + Chinese)

When a Chinese factory develops your product — all IP, molds, and source files go to you. Not them.

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The factory developed your product. Who owns it?

In China, if there's no written agreement saying otherwise, the factory that develops your product may own the IP — and can legally develop the same product for your competitors. This happens constantly. The fix is a Product Development Agreement signed before development begins.

What's inside

  • IP assignment — all designs, specifications, CAD/CAM files, patents, and trade secrets explicitly assigned to buyer from creation
  • Tooling and mold ownership — buyer's property from payment; factory is custodian; daily RMB penalty for non-delivery of tools and digital files
  • CNIPA registration cooperation — factory must cooperate with registering designs in buyer's name in China
  • Prototype acceptance and milestone framework
  • Confidentiality covering all development work
  • Factory cannot develop the same or substantially similar product for any third party
  • Technology export compliance (for China-to-foreign IP transfer)
  • 19 bilingual articles, 3 working exhibits, company chop signature block

China Product Development Agreement — $47

Get the Template — $47

These contracts are based on real agreements I used in my own Chinese factory deals. I'm not a lawyer — which is why I priced them fairly. They worked for me. They can work for you.

⚠️ Professional template, not legal advice. Have a qualified PRC or HK lawyer review, especially the Chinese text which governs. All sales final.

Common Questions

Why do I need a special agreement for product development in China?

When a Chinese factory develops a product, tooling, or design for you, Chinese law may default ownership to the factory — not you — unless a written agreement explicitly assigns all IP and materials to you. Without this agreement, the factory can legally develop the same product for your competitors.

What IP does this agreement cover?

The agreement covers all developed IP: product designs, technical specifications, CAD/CAM files, tooling, molds, prototypes, patents (design and utility), and trade secrets created during the development engagement. All of it is explicitly assigned to the buyer from creation.

How does tooling ownership work under this agreement?

Tooling and molds paid for by the buyer are the buyer's property from the moment payment is made. The factory holds them as a custodian. The buyer has the right to demand physical delivery of the tooling and all digital source files (CAD/CAM), backed by a daily RMB penalty for non-delivery.

What about CNIPA registration of designs I develop in China?

The agreement includes an obligation for the factory to cooperate with CNIPA (China National Intellectual Property Administration) design and utility patent registration in the buyer's name. CNIPA recordal is constitutive for registered rights in China — without it, you may not be able to enforce design ownership.

You might also need:

China NNN Agreement — $47 (use before development begins)
China OEM Supply Agreement — $57 (use when moving to production)
The China Contracts Vault (all 5) — $197