Outsourced Manufacturing and Trade Secrets: Controlling the Manufacturing Process (Part 8)

Outsourced Manufacturing and Trade Secrets: Controlling the Manufacturing Process by David L. Cohen

Last time, I discussed outsourced manufacturing as well as the process and personnel. Now, I continue the discussion by exploring control over transactions and products as it relates to IP protection.

Establishing and Maintaining Oversight

Requiring the manufacturer to maintain a designated facility for all work involving the transaction can reduce the risk of violations and simplify the monitoring and protection of the company’s IP. In all cases, the company should reserve the right to frequently audit the manufacturer’s facilities. If possible, the scope of these audit rights should extend enterprise-wide to ensure protection and containment of critical information. Read more

Outsourced Manufacturing and Trade Secrets: Manufacturing Process & Personnel (Part 7)

Outsourced Manufacturing and Trade Secrets: Manufacturing Process & Personnel (Part 7) by David L. Cohen

After deciding on the basic corporate or contractual structure, the company should decide how best to strategically divide the manufacturing process. In the outsourced manufacturing context, the best process involves not only efficient manufacture, but also the most effective process to mitigate potential trade secret risks. Read more

Outsourced Manufacturing and Trade Secrets: Transaction Structure & Contract (Part 6)

Outsourced Manufacturing and Trade Secrets: Transaction Structure & Contract by David L. Cohen

Transaction Structure

Once the company selects a potential outsourced manufacturing partner, it should design a transaction structure that reinforces its commercial expectations and the manufacturer’s contractual obligations. Specifically, the company should structure the outsourced manufacturing transaction in a manner best suited to protect the company’s key intellectual assets (both registered IP and unregistered IP like trade secrets and know-how). Transaction structure considerations include both the particular corporate and contractual form of the relationship, and how the company will delegate the manufacturing process to the outsourced manufacturer. Read more

Tech’s Frightful Five and Their Allies Come to Brussels

Tech’s Frightful Five and their Allies Come to Brussels by David L. Cohen

Over the past 100 years corporate America has become quite sophisticated in how it lobbies the US Federal and State government and regulators.   While the messages being promoted may differ, lobbying for corporate interests as diverse as tobacco, sugar (and here), firearms, the environment, fossil fuels, health insurance (and here), financial regulation, and many other fields has become a major business in Washington and around the country.  Indeed, some have argued that the sheer scale of corporate lobbying has allowed it to conquer democracy in America.

It is no surprise, then that Tech’s Frightful Five (Apple, Alphabet/Google, Amazon, Facebook and Microsoft) have become masters of the lobbying game in America.

Read more

Tech’s Frightful Five and Their Allies Come to Brussels

Tech’s Frightful Five and their Allies Come to Brussels by David L. Cohen

Over the past 100 years corporate America has become quite sophisticated in how it lobbies the US Federal and State government and regulators.   While the messages being promoted may differ, lobbying for corporate interests as diverse as tobacco, sugar (and here), firearms, the environment, fossil fuels, health insurance (and here), financial regulation, and many other fields has become a major business in Washington and around the country.  Indeed, some have argued that the sheer scale of corporate lobbying has allowed it to conquer democracy in America.

It is no surprise, then that Tech’s Frightful Five (Apple, Alphabet/Google, Amazon, Facebook and Microsoft) have become masters of the lobbying game in America.

Read more

Outsourced Manufacturing and Trade Secrets: Due Diligence (Part 5)

Outsourced Manufacturing and Trade Secrets: Due Diligence by David L. CohenPerhaps the single most important part of outsourced manufacturing is to select a trustworthy partner. A company should not enter into any transaction unless it has a good basis to believe that the manufacturer will be an acceptable partner. This requires rigorous due diligence, including:

  • Background checks of the manufacturer’s principal officers, directors, and key personnel.
  • Audits of the manufacturer’s financial statements.
  • Inspections of the manufacturer’s facilities.
  • Investigations of the manufacturer’s supply chain and trading partners.

Read more

Outsourced Manufacturing and Trade Secrets: Internal Controls (Part 4)

Outsourced Manufacturing and Trade Secrets: Internal Controls by David L. CohenWhen a company, for the soundest of business reasons, is exploring placing its crown jewels, its intellectual assets, in the hands of a third party, proper internal controls are vital.

A company’s internal controls may help to ensure proper:

  • Vetting and selection of the prospective manufacturer during the due diligence process.
  • Negotiation of the outsourced manufacturing relationship.
  • Management of the outsourced manufacturing transaction and relationship with the manufacturer.

Read more

Outsourced Manufacturing and Trade Secrets: Risks & Benefits (Part 3)

Outsourced Manufacturing and Trade Secrets: Risks & Benefits by David L. CohenNearly all manufacturing processes involve a significant number of intellectual assets. These assets may include registered intellectual property (designs, patents, copyrights, or trademarks) or unregistered trade secrets, know-how, confidential information, or other intangibles. Read more

Outsourced Manufacturing and Trade Secrets: Outsourced Manufacturing (Part 2)

Outsourced Manufacturing and Trade Secrets: Outsourced Manufacturing by David L. Cohen

There are two common categories of outsourced manufacturing: toll manufacturing and contract manufacturing. While both these manufacturing options have distinct and clear characteristics, their strategic advantage is their ability to provide customers with valuable ways to save both time and capital on their product line development. Read more

Using IP to Access Funding

Very interesting study from the UK Intellectual Property Office and the British Business Bank about using IPR (at least in part) as collateral for business loans.

Very odd, however, is that there is NO mention of trade secrets at all.  Which is quite surprising actually.  While analyzing trade secrets usage as collateral is (understandably) more challenging that for registered IPR, not to even mention it seems like a major flaw in the study.

Regardless, the conclusion seems promising and there is a lot of data included in the annexes to review.

Although there remain significant challenges to the
development of a sustainable commercial IP-backed loan
product, the lower rates of default and loss amongst
IP-rich firms suggests lenders could at least lower the
cost of lending to IP-rich firms, stimulating demand for
debt in this segment. Likewise there are opportunities to
stimulate the supply of finance by supporting the use of
intangible assets as collateral

https://www.british-business-bank.co.uk/wp-content/uploads/2018/10/502-IP-Report_singles.pdf