In today’s unpredictable economic landscape, small businesses are finding themselves needing to pivot quickly—especially when it comes to sourcing materials, components, or finished goods from international suppliers. Whether you’re exploring new suppliers in response to tariffs, shipping disruptions, or rising costs, it’s essential to understand the legal considerations tied to importing. One area that is often overlooked—but can carry enormous long-term consequences—is intellectual property (IP) protection.
Here’s what small businesses need to keep in mind when shifting their supply chains and exploring international imports:
1. Understand the IP Landscape of Your Target Country
When working with overseas suppliers, you must understand how intellectual property rights are recognized and enforced in their jurisdiction. Not all countries afford the same level of protection as the United States. Some may not enforce trademarks or patents in the way you expect, which can put your product designs, logos, or proprietary formulas at risk of being copied or counterfeited.
Tip: Before engaging a new supplier, work with a legal team to review the IP laws in that country and consider registering your IP rights there as well.
2. Vet New Suppliers Thoroughly
In the rush to meet demand or cut costs, some businesses enter into supplier agreements without fully vetting the other party. This can lead to major IP theft, subpar production, or exposure to counterfeit goods entering your supply chain.
Tip: Conduct due diligence. Ask for references, certifications, and previous work samples. When possible, use sourcing agents or partners with boots on the ground in the supplier’s country.
3. Use Detailed Contracts to Protect Your IP
It’s not enough to have a basic purchase order. When working with international suppliers, you need robust contracts that include:
- IP ownership clauses stating that any tooling, designs, or product iterations developed remain your property.
- Non-disclosure agreements (NDAs) to prevent suppliers from sharing or using your proprietary information.
- Jurisdiction clauses that specify which country’s laws will govern disputes.
Tip: Don’t rely on templates. Work with an attorney to draft supplier agreements customized to your business and your products.
4. Watch Out for “Shadow Manufacturing”
This occurs when a factory uses your designs or product specs to produce extra units they then sell under a different label—often at lower prices. It’s a direct threat to your brand and can undercut your market.
Tip: Ask your legal team about putting enforcement mechanisms in place—like product serialization or audit rights—to identify and address this kind of behavior quickly.
5. Account for Tariffs, Regulations, and Import Restrictions
In a shifting geopolitical climate, trade policies can change quickly. What may be a viable sourcing option today might become cost-prohibitive tomorrow due to new tariffs or import bans.
Tip: Stay informed about evolving U.S. import policies and make sure your contracts allow for renegotiation or termination if conditions change dramatically.
6. Register Your IP in the U.S.—and Beyond
If your product is entering international markets, it’s important to register your patents, trademarks, and copyrights not just in the U.S., but also in countries where you manufacture or sell your products.
Tip: Consider a global IP strategy, especially if you anticipate expanding into new markets or manufacturing in multiple countries.
Reach Out to RSB’s Business Law Division
Navigating international imports and protecting your intellectual property requires more than a savvy business plan—it demands legal foresight. At Rogers Sevastianos & Bante, our business law team helps small businesses craft smart contracts, secure IP protections, and respond proactively to supply chain shifts.
Don’t wait until there’s a problem. Contact us today to schedule a consultation and ensure your business is protected every step of the way.
Disclaimer: The information in this blog is for general informational purposes only and does not constitute legal advice. Every legal situation is unique, and you should consult an attorney for personalized guidance on your specific circumstances.