How to PREVENT Suppliers From STEALING your Product Idea 💡
Summary
TLDRIn this informative video, Kian Gozari, with 12 years of experience in China's manufacturing industry, shares tips on protecting product ideas from supplier theft. He advises on non-disclosure agreements, emphasizes building trust, and stresses the importance of design patents for true innovation. Kian also discusses the value of maintaining a strong brand identity and the futility of trying to prevent all imitation in a competitive market.
Takeaways
- 📝 Get a supplier to sign an NNN agreement for significant innovations, but be aware it might not start the relationship on the right foot.
- 🤝 Prioritize building a relationship with your manufacturer, as trust can be a stronger deterrent to copying than legal documents.
- 🚫 Understand that competitors, not necessarily suppliers, are often the ones copying your product.
- 💡 Self-awareness is key; evaluate if your innovation truly warrants an NNN agreement or if it's just a minor tweak to an existing product.
- 🛡️ Consider design or utility patents for substantial innovations to legally protect your product globally.
- 🏭 Maintain a good relationship with your supplier as it can deter them from sharing your ideas with others.
- 🔍 Start by sharing a similar product with suppliers to gauge their capabilities without revealing your innovation initially.
- 🤔 Embrace the nature of the industry where imitation and innovation go hand in hand; use it as motivation for continuous improvement.
- 🎉 View product copying as validation of your success and a sign that you're creating desirable products.
- 🛠️ Invest in molds for your product, and ensure your logo is embossed to create a barrier to unauthorized copying.
- 🏆 Building a strong brand is the ultimate protection; focus on brand loyalty and community over just the product itself.
Q & A
What is the primary concern addressed in the video script?
-The video script addresses concerns about suppliers potentially stealing product ideas.
Who is the presenter of the video and what is his background?
-The presenter is Kian Gozari, who has been living and working in China for 12 years, designing, developing, sourcing, and manufacturing over two and a half thousand different products.
What is the first tip given by Kian to protect an innovative product from suppliers?
-The first tip is to get the supplier to sign a non-use, non-circumvention, and non-disclosure (NNN) agreement.
Why might an NNN agreement not be the best approach according to the video?
-An NNN agreement might not start the relationship off on the right foot and enforcing it can be expensive and time-consuming, especially if it requires suing the supplier in China.
What is the presenter's view on who is more likely to copy a product?
-Kian suggests that it's often a competitor who buys the product and sends it to another supplier to copy, rather than the original supplier.
What is the second tip provided for protecting an innovative product?
-The second tip is to get a design patent or a utility patent on the actual product to prevent anyone from copying it.
What does Kian suggest as a method to build trust with suppliers?
-Kian suggests sending an email to the supplier expressing the desire for a long-term relationship and asking for their trust not to share the design or product with others.
What is the presenter's advice on dealing with competitors who copy product designs?
-Kian advises to view it as validation of good work and to use it as confidence to develop more products, rather than letting it cause frustration.
What is the significance of investing in molds for a product according to the video?
-Investing in molds creates a high barrier to entry for others to copy the product, and it provides an opportunity to add a logo to the mold, making it unique and harder to replicate.
Why is building a brand considered a form of protection against product copying?
-Building a brand and community means that customers buy products because of the brand, not just the lowest price or the product itself, making it difficult for others to compete even if they copy the product.
What is the presenter's final advice on how to handle product copying?
-The final advice is to focus on creating a unique brand experience and community, as people can copy a product but they cannot copy the brand and the values it represents.
Outlines
📝 Protecting Your Product Ideas with Supplier Agreements
In the first paragraph, Kian Gozari, an experienced product developer and manufacturing expert based in China, addresses the concern of idea theft by suppliers. He suggests getting suppliers to sign a non-use, non-circumvention, and non-disclosure (NNN) agreement, but emphasizes the importance of building a relationship with the supplier over legal documents. Kian shares his experience, noting that most product copies come from competitors, not suppliers. He advises that an NNN agreement should only be used for groundbreaking innovations and recommends starting with trust and a simple request for confidentiality.
🛡️ Securing Your Innovations with Patents and Strong Supplier Relationships
The second paragraph focuses on the importance of obtaining design or utility patents to protect innovative products globally. Kian advises that a good relationship with suppliers can prevent copying, as they value the relationship and trust more than a one-time profit from selling to competitors. He also discusses the strategy of sharing a similar but not fully innovative product with multiple suppliers to gauge their capabilities before revealing the actual innovation to the chosen one. Kian encourages viewers to subscribe for more insights and mentions his various offerings, such as sourcing platforms and coaching.
🤝 Building Trust and Brand Strength as Protection Against Copycats
In the final paragraph, Kian discusses strategies for dealing with product copying, including sharing a similar product with suppliers to protect the truly innovative aspects, having a mindset that imitating is part of the industry, and using product molds with embossed logos as a barrier to entry. He stresses that while others may copy a product, they cannot replicate a brand, and building a strong brand and community is the ultimate defense. Kian wraps up by inviting viewers to engage with him on social media and explore his sourcing platform and agency.
Mindmap
Keywords
💡Supplier
💡Non-Disclosure Agreement (NDA)
💡Innovation
💡Design Patent
💡Relationship Building
💡Mold
💡Brand
💡Imitation
💡Community
💡Packaging
💡Influencer
Highlights
The importance of having a supplier sign a non-use, non-circumvention, and non-disclosure (NNN) agreement to protect your product idea.
The necessity for an NNN agreement to be enforceable in both English and Chinese, including the supplier's company stamp.
The emphasis on building a relationship with your manufacturer over the use of NNN agreements to start a business relationship on the right foot.
The reality that competitors, not suppliers, are often the ones copying products by sending them to other suppliers.
The high cost and difficulty of enforcing NNN agreements in China, including hiring a Chinese lawyer and navigating unfamiliar laws.
The suggestion to use NNN agreements only for groundbreaking innovations and to be self-aware of the actual innovation level of your product.
The recommendation to send an email to suppliers expressing the desire for a long-term relationship and trust in handling your product design.
The advice to obtain a design or utility patent for real innovations to protect against global copying.
The significance of having a good relationship with your supplier to deter them from copying your product due to the value of the relationship.
The strategy of sharing a similar product, not the innovation, with multiple suppliers to get quotes and narrow down to a preferred supplier before revealing the innovation.
The mindset that imitating and innovating on top of products is part of the industry's nature and should not be a concern if done in a competitive manner.
The perspective that being copied is validation of your product's success and should be taken as a confidence booster for further innovation.
The suggestion to invest in molds for your product as a barrier to entry and a way to add your logo to the product shape.
The importance of having an embossed logo on molds to prevent others from copying the product shape.
The ultimate defense against product copying is building your own brand and community, which cannot be replicated by others.
The role of packaging as a significant way to showcase your brand to your audience and the importance of investing in it.
The call to action for viewers to engage with the content, like the video, subscribe, and follow on social media for more insights.
Transcripts
so you've come up with the next best
product in the world but you're
concerned that your supplier might steal
your idea well this is the video for you
[Music]
yes yes and welcome back to the official
assortment key on YouTube channel if
you're new to the channel my name is
Kian gozari and I've been living and
working in China for the past 12 years
in that time I've designed development
source and manufactured over two and a
half thousand different products visited
more than 500 factories and attended
more than 20 Canton fairs that's led me
to work for different brands retailers
and licenses such as the NBA the
Olympics the United Nations Ministry of
Defense plus Amazon Shopify Sellers and
a bunch of big box retailers in the UK
Europe and the US
if you're new to the channel I would
greatly greatly appreciate if you could
smash that like button and subscribe so
you can stay up to date on the latest of
what's happening in China now let's get
into the video okay so tip number one
and this is probably the most obvious
one is get your supplier to sign a n n
agreement now this is a non-use
non-circumvention and non-disclosure
document but for this document to be
enforceable it has to be written in both
English and Chinese and you need to get
um the their company stamp or their
company chop uh stamped on a document as
well a word of caution with this like in
all my years of developing manufacturing
products uh I've only got my suppliers
to sign one nnn document and it's
because if you've seen much more content
before I always prioritize the
importance and preach the importance of
building a relationship with your
manufacturer now if you give your
supplier an nnn document that's like you
telling them hey I want you to
manufacture my products but I don't
trust you and you might copy me so I
need you to sign this document it
doesn't necessarily start your
relationship off on the right food and
the other thing is most people think
their supplier is going to copy them but
in actual fact it's a competitor which
buys your product sends it to another
supplier and that other supplier then
copies you so it's quite often not your
actual supplier that you need to be
worried about essentially the nnn is a
piece of paper it's very expensive to
enforce because for you to actually
enforce it means that you'll have to go
and sue your supplier in China you have
to hire a Chinese lawyer it can be a
very expensive and time-consuming
process in a country where you don't
necessarily know the law so it's not
really going to be worth it for you now
I would only say using nnn agreement if
you've developed and invented the next
microwave or the next electric
toothbrush which can clean all sorts of
other things at the same time this has
never been seen before so I have to
protect this idea that's fair enough but
you have to be very self-aware of what
is actually your Innovation if you've
just slightly changed the design of a
product or you've changed the pattern of
it or you've changed the material or
you've made it a little bit larger for a
different Market or whatever that
doesn't necessarily require
um and in an agreement so just be
self-aware do you really need it have
you brought something to the market of
real Innovation if you have then go for
it and if not just work on building that
relationship send an email to the
supplier to say hey I really value uh
working with you for the long term I'll
look forward to developing many
different products with you I would
really appreciate your trust in this
matter and not share this design or
product with any other customer that
would be greatly appreciated please
confirm in writing and then that's just
same then them you think to them hey I
trust you please don't violate the trust
and then that's the start of your
relationship and that's the way I
proceed with that one okay so tip number
two which is the ultimate form of
protection this is what I think everyone
should be doing in the first instance is
that if you do have something of real
Innovation that you want to protect get
a design patent or a Utility Patent on
your actual product so that no one can
actually copy you so and if you get that
as a worldwide patent if anyone wants to
sell your product in China Australia
Japan USA UK Europe well you can legally
take them off sale because you have that
design patent of that product now if you
don't get a design patent then that
probably means that the Innovation
wasn't large enough for you to get the
supplier to sign in in an agreement so
if you feel like you've brought
something of real Innovation get a
design patent so your product design is
protected from not only your supplier
but from the rest of the world as well
so tip number three to prevent you from
getting your product design copied is
have a good relationship with your
supplier if you've seen much of my
content before I preach the importance
of building a relationship so why would
your supplier copy you if they're very
good friends with you they don't want to
take out one of their customers which is
also one of their good friends so the
better relationship that you have the
more open they are with you the less
they're likely to want to take any of
your product ideas and quite a lot of
your suppliers don't even sell products
themselves as well and if they do have
other customers they don't go sharing
your private information with their
other customers as well because they
don't want to damage your relationship
and they don't want to lose you as a
customer your orders are the most
important thing to them and they would
not risk and jeopardize that hey guys if
you are getting value from this video
I'd greatly appreciate it if you can
smash that like button real quick and if
you could tap the Bell ding ding to be
notified when I bring you new videos
like this
and remember I do have loads of cool
things for you down in the links them in
the description down below this against
the cool stuff sourcing platform
sourcing agency masterminds one-on-one
coaching all that sort of fun stuff so
check out the links in the description
down below and let's get back to the
video okay so tip number four right if
I've got something of real Innovation or
maybe just a slight little tweak but I
need to go and talk to 10 different
suppliers or whatever to get the best
price and to find out what their
capabilities are but I don't want to
share my Innovation so what I would do
is I would take a product similar to
what my Innovation is so let's say for
example I've got a outdoor camping stool
right which is a tripod stool and it's
got a really cool handle on the sides
which I've no one's ever done before so
what I would do is I would take that
tripod camping stool without the handle
on the site and I would share that with
my different suppliers and I would get
the prices samples quotations analyzer
communication how many years I've been
in business what certifications they've
got all that sort of stuff and narrow it
down from 10 suppliers to five to maybe
examples from three and then I would
select my favorite supplier one once
I've selected that favorite supplier now
I'm going to share with them my
Innovation so I didn't actually have to
share it with those 10 suppliers I still
found a similar product narrowed it down
and when I got my favorite supplier
which is the one I'm most likely to work
with now I've shared my Innovation so
those other suppliers never saw the
Innovation only the supplier which I
actually ended up working with the other
thing tip number five is more of a
mindset thing imitating and innovating
on top of products is kind of the nature
of the game like
how did you get the idea for the product
you're developing right now you
essentially saw something out there
you're like I can improve that a little
bit I can change something I can tweak
something and I can bring out an Xbox
best version so I'm going to study my
competition I'm going to make sure I'm
better and I'm going to bring out that
next iteration so if someone does that
to you and sees your product and makes a
small tweak to it don't get concerned
because that's just the nature of the
game that we play in and leading on from
that tip number six is that if someone
does copy a product and let's say they
don't make any changes but you just copy
your product it's validation that you're
good at what you do and once that
happens enough times like it used to
really bother me I would lose sleep over
it and that was many years ago but now
when it happens I don't actually care I
don't mind because that's just the
market telling me that I'm good at what
I do and it gives me more confidence
into developing more products because I
know people want to copy it I know
people are keeping an eye on what I'm
doing so that just gives me more
confidence developing the next products
so just allow it to feed your ego rather
than to piss you off so tip number seven
seven tip number seven is invest in
molds for your product so if it is a
depending on what the product things
that might require a mold whether it's
like plastic steel metal whatever it may
be if it's a new shape or anything like
that
I might require a mold now molds can be
expensive and this therefore causes a
high barrier to entry so either from
your supplier or from any other customer
if let's say if you're still worried
about your supplier who might copy you
now the cool thing about molds is that
it's your custom shape so you have the
opportunity to add your logo onto the
mold so think of any like backpack for
example on the buckles on the shoulder
strap you will see a Nike logo or you'll
see a North Face logo so no one can
really copy their buckles because it's
got their logo on it so if someone if
that factory was to take the mold for
North Face and sell to someone else they
can't because the North Face logo is on
it so make sure if your product has a
mold that you put your logo on the mold
but the most important thing is that
make sure that your mold is embossed not
debossed because if it's debossed it
means your logo is going Inward and it
means they can fill it in but if it's
embossed it means your logo is going to
stick out which means that they can't
fill it in so definitely see if you can
add them all to your product if a mold
was required make sure your logo is
embossed now tip one eight probably one
of my favorites as well is that people
can copy your product but they cannot
copy your brand so ultimate
defensibility is building your own brand
building your own Community now
your customers will buy your products
because they like your brand not
necessarily because it's the cheapest
price so if someone copies your product
they might be able to offer at a
slightly lower price but if their brand
doesn't resonate with that audience then
they're always going to choose you now
look at what you're wearing right now
look what's in front of your desk look
what's in front of you what do you see
there which is a brand that you like
with everything that's in front of you
or what you're wearing what is it that
you bought because we like that brand
and what is it that you bought because
it was a low price so think about that
with your products what experience are
you creating what brand are you building
what community have you got how are you
adding values to that community and
packaging is one of the most important
ways to show your brand to your audience
as well so are you investing in your
packaging are you investing in your
experience what influencers are you
working with how are you promoting your
brand who are you giving your products
to so always think about those sort of
things because people can copy a product
but they cannot copy your brand so guys
I hope you liked that video as well make
sure we stay in touch let's keep in
communication on social on Instagram you
can find me I am Kian underscore JG I've
also got a Facebook group called
sourcing with Kian definitely check that
out it's a really cool Community where
if you have any questions on supply
chain you can post it there as I said
I've also got sourcing platform sourcing
agency which can be found in the link in
the description down below plus loads of
other cool stuff so let's stay in touch
let's stay connected and I will see you
guys on the next video
[Music]
thank you
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