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China Wholesale Survival Technique: Fighting Against Patent Trolls

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If you are in the business of getting wholesale electronics products and then reselling them to shoppers in your local area, then you undoubtedly have to find out a point or two about patents and intellectual property rights. Right after all, the last thing you want to do is be entirely unprepared when someone comes up and sues you for copyright infringement because your China export products when in fact they have little tono legal right to do so.

What Are Patent Trolls?

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

Why Do They Matter?

Simple: they can force you to spend cash from your China Wholesale business, specifically if sales have been brisk. Patent trolls typically go for companies that are carrying out nicely, threatening them to spend a licensing charge or else face a court hearing. Patent trolls can properly shut down your organization if you never know how to handle them properly – specifically if they sniff out that you resell imports from China.

Fighting Patent Trolls: Maintaining Clean

The initial thing you need to do is to by no means import branded stuff for resale.Genuine China Wholesale suppliers by no means claim to sell merchandise from a main brand. Samsung, Apple, Sony, Panasonic, Microsoft, HP – these firms have their own sales channels and never rely on wholesalers to get their merchandise around. Your greatest bet is to look for China white-label suppliers. These firms offer merchandise that you can legally rebrand and sell under a different name.

Fighting Patent Trolls: Know Your Merchandise

It is your responsibility to choose merchandise that are not breaking copyright – even if they are white-label merchandise. Patent trolls and genuine patent owners alike keep a sharp eye out for China imports, so it will be up to you to discover hardware (and application) that are not completely identical to competing merchandise. It may possibly be a discomfort considering the sizes of China bulk orders, but it is a necessary evil when fighting patent trolls.

Fighting Patent Trolls: Keeping Low

Patent trolls only hit enterprises they know of and believe have a possibility at winning in court, which is why they scrutinize all new merchandise that are being advertised. This is why you need to stay away from more than-marketing the technical specifications of your China imports during a marketing and advertising campaign. Keep the descriptions fleshed out adequate to entice shoppers, but skip out on the specs that will reveal the technology powering your products.

Fighting Patent Trolls: Measure Your Responses

If you do acquire a notice from a patent troll concerning copyright infringement, do not immediately send a reply. The initial thing you need to do is to determine whether the claim has merit or if it is just a frivolous attempt at extortion.If the claim has merit and you really are infringing copyright, then settle. If you actually think that the claim has no merit, then just ignore them as preparing your legal defenses.

Fighting Patent Trolls: Finding 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 discover other firms that had been sued by this patent troll. Your competitors can become your greatest pals 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 every little thing to stay away from public exposure, so drag them out in the open when you can. You may even discover a lot more allies that are being hit by these same patent trolls!

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