Cosmetics OEM might encounter legal risks

At present, the cosmetics generation of processing enterprises in the common legal risks mainly include: lack of contract legal risk, risk of infringement of intellectual property law, not the record of legal risk, legal risk, leak non-standard packaging labeling laws, etc. ( A) generation of processing enterprises did not sign a written contract with the client's legal risks as a result of a weak consciousness of law or legal risk management ability is weak, the enterprise itself have some cosmetic generation of processing enterprises in the process of the business did not sign a contract with the client, cause in the process of implementation, there are no rules, guild regulations or family relations to maintain cooperation, dispute, cannot provide favorable evidence to protect their legal rights, lead to greater legal risk. ( 2) If the other people's trademark, copyright and used as a generation of processing, the processing result in cosmetics companies to the delegate that infringes on another person for trademark, copyright and intellectual property rights, the illegal tools produce fake and inferior products, and bear legal responsibility. Because cosmetics processing enterprise itself does not enjoy generation processing products of intellectual property rights, also means that companies for clients is true enjoy the generation of processing products related to intellectual property rights has the problem of asymmetric information. Once the generation of processing problems of infringement of third party intellectual property rights products, cosmetics, generation of processing enterprises will be involved in a series of intellectual property disputes, there is the risk of a claim. ( 3) generation of processing enterprises in order to profit, in the case of product not recorded or not complete for the record, the generation of processing, face administrative punishment or civil compensation legal risk. Some of the generation of processing products need to pass the record or obtain relevant administrative licensing, production and sales. The most typical examples of cosmetics. The special use cosmetics need to put on record to go on sale, and the special use cosmetics shall obtain relevant approval number. In OEM legal relationship, cosmetics generation of processing enterprises also have the duty to put on record. If it is not fulfilling the obligations, cosmetics generation processing enterprises on the one hand, face the risk of fundamental breach of contract, on the other hand, once the product into consumers' hands, may be the consumer demand the compensation of 10 times the price. ( 4) generation of processing enterprises often contact to the product information, many belong to the commercial secrets of clients, companies or employees because it is a secret, cause leaks of the legal risks cosmetic processing enterprises in the generation processing production, may come into contact with the client's business secret. In addition, the delegate in order to maintain its own brand value, sometimes don't want to be the product of cosmetics manufacturer generation of processing enterprises, and then write it into the confidentiality clause. Therefore, cosmetics generation of processing enterprises must abide by the relevant confidentiality obligations. In the labor contracts with its employees, cosmetics and processing enterprise must be in the labor contract reflects the relevant confidentiality obligations, to reduce the possibility of a breach of confidentiality obligations. ( 5) generation of processing enterprises in accordance with the applicable trade mark labels, carried out in accordance with the law on product product component identification, risk of administrative punishment law. OEM generation of processing in the trademark label should strictly abide by the 'product quality standard', 'anti-unfair competition law' and other laws and regulations. Product identification shall be true, accurate, and may not mark misleading or false product identification, not fake or pretend to be a registered trademark, may not forge or falsely use another producer authentication marks or other product quality marks. OEM products and on the inside and outside the packaging shall be consistent with an annotation, may not contradict each other. Product identification by using text should comply with the law. In the domestic sales of the products shall strictly, using the Chinese annotation on export OEM products can be used according to the provisions of the agency appointment contract related text annotations. should according to law, the state. Otherwise, in violation of the provisions of law about trademark label, will bear corresponding administrative liability, civil liability and criminal liability.
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