China Wholesale Survival Strategy: Fighting Against Patent Trolls

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If you are in the business of importing China wholesale goods and then reselling them to consumers in your region, then you certainly need to find out a point or two about patents and intellectual property rights. Following all, the last thing you want to do is be totally unprepared when a person comes up and sues you for copyright infringement because your China export goods when in fact they have little tono legal right to do so.

What Are Patent Trolls?

The far more formal term of a patent troll is a patent assertion entity (PAE), though patent troll is a far more apt term considering their modus operandi. These trolls stake a claim to patent rights but do not really manufacture the goods or solutions where these patents are to be used. They then go around obtaining people or organizations ‘infringing on their patents’ and then threaten them with legal action unless they license the technology.

Why Do They Matter?

Easy: they can force you to spend cash from your China Wholesale enterprise, especially if sales have been brisk. Patent trolls typically go for businesses that are carrying out effectively, threatening them to spend a licensing fee or else face a court hearing. Patent trolls can effectively shut down your organization if you never know how to handle them effectively – especially if they sniff out that you resell imports from China.

Fighting Patent Trolls: Maintaining Clean

The first thing you need to do is to in no way get branded stuff for resale.Reputable China Wholesale suppliers in no way claim to sell products from a key brand. Samsung, Apple, Sony, Panasonic, Microsoft, HP – these organizations have their personal distribution channels and never rely on wholesalers to get their products around. Your greatest bet is to look for China white-label suppliers. These organizations supply products that you can legally rebrand and sell under a totally different name.

Fighting Patent Trolls: Know Your Goods

It is your responsibility to choose products that are not breaking copyright – even if they are white-label products. Patent trolls and reputable patent owners alike keep a sharp eye out for China products, so it will be up to you to locate hardware (and software) that are not entirely identical to competing products. It could be a discomfort taking into consideration the sizes of China bulk orders, but it is an essential evil when fighting patent trolls.

Fighting Patent Trolls: Keeping Low

Patent trolls only hit enterprises they know of and think have a chance at winning in court, which is why they scrutinize all new products that are becoming advertised. This is why you want to steer clear of over-marketing the technical specifications of your China imports in the course of a advertising and marketing campaign. Hold the descriptions fleshed out sufficient to entice consumers, but skip out on the specs that will reveal the technology powering your devices.

Fighting Patent Trolls: Measure Your Responses

If you do obtain a notice from a patent troll concerning copyright infringement, do not right away send a reply. The first thing you need to do is to recognize whether the claim has merit or if it is merely a frivolous attempt at extortion.If the claim has merit and you actually are infringing copyright, then settle. If you actually believe that the claim has no merit, then merely ignore them when preparing your legal defenses.

Fighting Patent Trolls: Discovering Allies

If you are lucky then the patent troll will lose interest and move on from your China Wholesale business. If the patent troll singles you out and continues to pester you, then try other organizations that were sued by this patent troll. Your competitors can turn out to be your greatest close friends in this case, and you can pool your resources to finance a far better legal defense to cover you all. You can even turn to government agencies like the FBI with extortion claims if the patent troll threatens you with ‘harassment’ lawsuits if you refuse to cooperate or sign a non-disclosure agreement. By the way, go public with these claims and NEVER sign an NDA. Patent trolls operate greatest in the dark and will do everything to steer clear of public exposure, so drag them out in the open when you can. You may well even locate far more allies that are getting hit by these exact same patent trolls!

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