What is this?
A Non-disclosure, Non-use and Non-circumvention Agreement (NNN) is a type of confidentiality agreement used in business dealings with Chinese companies, particularly Chinese manufacturers.
“Non-disclosure” means the counterparty cannot disclose any confidential information you provide. “Non-use” means the counterparty cannot use your IP for any purposes other than for your benefit under the contract. “Non-circumvention” means your manufacturing contractor may not circumvent you and sell to your customers directly, usually at a lower price.
For this contract drafting service, a vetted, experienced English-speaking lawyer with first-hand experience in China will draft the NNN Agreement for you in both English and Chinese versions. It is a “must have” for compliance reasons if your company considers engaging a Chinese company to manufacture based on your design and use your IP.
Booking this service is very simple. Simply provide your and your counterparty’s business names and contact information. The English and Chinese versions of the agreement will be delivered to your Trustiics dashboard in 5 business days once all necessary information is received by the lawyer.
Value and Benefits
High-quality and reliable: the agreement will be tailor-made to suit your situation by a lawyer with solid experience advising international clients protecting their IPs and business secret in China
Fast and efficient: service provided by a vetted, experienced legal professional within five business days and sent directly to your dashboard
Convenient and worry-free: you don’t need to worry about making an international wiring payment. You don’t pay until the lawyer delivers the service
Transparent and affordable: The price for such a service provided by top-tiered lawyers in China is transparent and competitive. Pay-as-you-use, and there is no subscription fee or retainer fee
Secure: all the data and information are transported on the secured Cloud operated by Amazon Web Service in North America
Private and direct: one-on-one communication and messaging available with the lawyer through your private dashboard and all your documents will always be on AWS accessible from anywhere in the world
Typical Use Scenarios
You should have a China NNN Agreement signed when you engage a third party to:
manufacture your products in China based on your design or IP; or
manage your supply chain in China which will involve your licensing or disclosing your IP and product design to such third party in China
One of the following lawyers will provide the service after the request is placed.
Phil has over 10 years of experience and advises international businesses, including Fortune 500 companies, large financial institutions, private equity funds as well as fast-growing SMEs on their China-related legal issues.
Sylvia has over 15 years of experience and has advised many international companies in their China-related investments, transactions, compliance and regulatory challenges and daily operational legal issues under Chinese law.
Frequently Asked Questions
What is an NNN? Is it the same as an NDA?
Both NDA (Non-Disclosure Agreement) and NNN (Non-Disclosure, Non-Use and Non-Circumvention Agreement) are commonly used by foreign companies in China to protect their confidential information. NNN Agreements are usually used in business relationships with local manufacturers or supply chain management, and NDAs are used in business relationships that involve the disclosure of non-public and proprietary information.
Compared to a non-disclosure agreement, an NNN Agreement also includes non-use and non-circumvention clauses, which are designed to prevent your contracted manufacturers in China from using your IP for their own benefits or selling to your customers.
If I signed an NDA, do I still need an NNN?
If you are dealing with an OEM or ODM in China, you should consider signing an NNN Agreement. Compared to using a template or the NDA you use in the U.S., Canada or another country, only an NNN Agreement drafted by a vetted and experienced lawyer in China can protect your interests.
Why do I need a lawyer to draft the NNN instead of using a template from the internet?
Contracts prepared by a lawyer with first-hand experience in the market where your business happens can protect you against risks, but a template cannot. Laws and regulations, course of business dealings, and local practice change from time to time. Contracts need to be customized to reflect the risks your business may face.