Larry Advised an Australian Client on Mold Commissioned Development and Supply Agreement with a Chinese Factory

In July 2024, an Australian company sought to engage a Chinese factory to manufacture a product according to its specifications, turning its innovative designs into reality and subsequently mass-producing the products for supply to Australia. To protect its intellectual property rights and to facilitate the transaction as soon as possible, the Australian company reached out to the team of lawyer Larry Zhou at Landing (Shenzhen) Law Offices. The client needs assistance in drafting a mold-commissioned development and supply agreement to ensure robust protection of its intellectual property and to prevent the factory from making alterations to the mold or claiming joint ownership of the mold's intellectual property.

Upon formally accepting the client’s engagement, Larry Zhou’s legal team meticulously reviewed the transaction background based on the client's needs. While reviewing the quotation documents between the Australian company and the Chinese factory, our attorneys identified a critical clause stating that the document would supersede any terms or conditions in other signed agreements. This clause posed a risk that future agreements between the Australian company and the factory could be rendered invalid. Therefore, our attorneys immediately alerted the client to this risk and provided expert guidance on negotiating with the factory to remove the problematic clause from the quotation documents, ensuring the protection of the client’s interests and the validity of subsequent agreements.

In terms of intellectual property protection, our attorneys tailored specific provisions to effectively safeguard the Australian company’s interests. Moreover, the team meticulously crafted the agreement, focusing on key aspects of the production and delivery process. This included clearly defining the obligations of the entrusted party, product specifications, payment terms, delivery times, and liability for breach of contract, among other core content.

Ultimately, after several rounds of communication and detailed revisions, the parties successfully finalized and signed the agreement. The Australian company expressed strong satisfaction with the professionalism and thoroughness of the legal services provided by Larry Zhou’s legal team throughout the process.