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r/alibabar/alibaba· u/Chris-flow· 12d ago 35

Alibaba manufacturer stealing exclusive molds. Not much leverage what to do?

Investor summaryNeutral

Entrepreneur complains an Alibaba supplier stole their exclusive molds to sell as white-label, but lacks leverage.

Post body

Hey everyone,

Im launching a business (its in the incontinence niche for context).

I recently paid £10K for molds for a new style of product. All under the impression it was an exclusive mold.

I have a message from them clearly stating:

The terms of this mutual guarantee are as follows:

1、First and foremost, the mold shall be for your exclusive ownership and use only.

2、The final products manufactured from the mold must comply fully with the dimensions and specifications outlined in the design drawings.

I also have signed mold spec sheets stated on there it was an exclusive mold for us only.

Anyways, i discovered today they have several alibaba listings of our unique product. They even went as far as creating all new graphics advertising white label servicing of it.

I don't have much leverage. I don't want to waste startup capital on fighting this. I should probably just move on, an alibaba manufacturer cant create demand like our brand can. Still, its very disappointing this breach of trust.

Anyone any wise words of advice? Or similar experiences.

Thanks in advance!

Chris

Discussion · top comments15 selected
u/prestigesourcing 6· 12d ago

Some people store the molds off-site from the factory - it can be a right pain and costly but can prevent such issues.

In terms of your contract/agreement with them, is it bilingual and is the factories stamp/seal on the agreement? If so you would have grounds to make both a IPR complaint with Alibaba to remove the listings and potentially seek damages for breach of contract.

u/Emergency-Review-633 5· 12d ago

Exactly. As a Chinese lawyer, I completely agree.

u/Dapper_Reserve_4416 3· 12d ago

Apply for design patents in the target market

u/Jackster22 3· 12d ago

You have zero control over a foreign company doing this when they don't play by the same rulebook.

You only have to look into the history of Chinese engineering over the past 30-50 years to see that everything they have designed and built has been copied off the technology and development that the west has handed to them.

This is just another Monday for them.

If you want protection from this, don't cheap out and do it locally instead.

Won't stop them from getting a hold of your end product and copying it but you did just willingly send them the blueprints... That is on you.

u/Professional_Ruin941 2· 12d ago

As a Chinese reader reading this comment, I find it hard to put my mixed feelings into words. On one hand, we in China enjoy improved quality of life brought by such convenience; on the other hand, such acts are truly outrageous. All I can do is refrain from doing the same myself.

u/Jackster22 2· 12d ago

As a westerner, I don't hold it against you guys one bit. 100% the west's own fault for shooting it's self in the foot.

u/Cap_Black_Beard 3· 12d ago

What I do is have them add a logo or initials in the mold. They can still produce items without it, but at least it makes it tougher

u/Crazy_Ad3336 2· 11d ago

This isn’t much different than how the West invaded other countries, stealing resources, killing the indigenous, raping the women, enslaved the natives, etc., at least there is no bloodshed with what the Chinese are doing now.

Not that I am condoning the violation of intellectual property rights, I am just pointing the hypocrisy of the people from the West for all the horrific things they have done to be able to built their empires but now crying about the Chinese stealing intellectual property.

u/LewisWhatsHisName 2· 11d ago

This is why I don't do anything custom through there. I'm sure there's plenty of manufacturers who will respect your IP, but there are enough who don't to make me not want to risk it.

I'm looking at doing craft kits soon, and will probably go about it by having someone like Vistaprint do my printing, and then get the supplies and assemble everything myself

u/Next_Worldliness_842 2· 11d ago

I also encountered the same issue as you, spend few thousands usd on doing the mold, and they copied my design..

The first sample is not up to my expectation and I revised the design, pay for the new mold.. 2 months passed, my sample is still not ready yet, but on their website i saw they using my design with some modification!

Chatted with alibaba service chat, they told me to report to Alibaba IPP, i will be reporting soon after the manufacturer send out the sample to my freight, hope they can do something..

u/ScarDependent8928 2· 11d ago

Situations like this show why protecting tooling and IP is crucial when working with Alibaba manufacturers Even with written agreements enforcement can be difficult across borders Many businesses mitigate risk by using NNN contracts splitting design ownership and working with trusted suppliers while building strong brand differentiation over time carefully

u/davidicon168 2· 11d ago

We’re engaged in what has been 10 years of court battles over a local contract we signed. Lawyers were present and we even have the opinion of court on our side but the defendant has died and transferred all the assets to his wife. So there’s nothing to collect. The other defendants liquidated the assets and transferred the assets to another company once the judgement was rendered.

u/Ramboo4ever 2· 12d ago

最好的方法之一,还是申请外观专利,让他们盗用你模具生产出来的产品无法在美国或者欧洲销售。不过有些供应商,只是用你的模具作为案例去展示产品,不一定去生产你的产品,所以很难举证

u/Frequent-Log1243 1· 9d ago

Try getting the listing removed from Alibaba

u/Global_Ebb7331 1· 9d ago

You've actually got way more leverage here than you think because Alibaba takes contract and IP breaches seriously to protect international buyers. File an official complaint through the Alibaba IPP (Intellectual Property Protection) Platform and upload your signed mold spec sheets and chat screenshots; Alibaba will straight up take down their listings and penalize their account for violating an exclusive design agreement. Hope this helps and all the best with your launch!