Managing Infringement Risks Across the Supply Chain: A Legal Shift in China

WISECODE Take

Many business owners mistakenly believe that securing trademark registrations in China is enough. However, China's revised trademark regulations, recent Supreme People's Court decisions, and updated trade secret rules show that IP defense has shifted from paper filings to active supply chain management. This change increases operational risks for brand owners who rely on Chinese manufacturers or franchisees, as courts now hold higher standards for infringement within the supply chain. Every node in the manufacturing process can become a potential leak. While businesses operating solely in Taiwan remain unaffected, those with cross-border operations must review their agreements; IPManagement's trade secret management setup service can help build these practical safeguards. We suggest two actions: first, revise manufacturing agreements with stricter IP clauses; second, implement access controls on key manufacturing steps to prevent single-source exposure. Supply chain security is only as strong as its weakest link, and integrating legal terms into daily operations is the key to navigating cross-border regulatory shifts.