AUGUST – 2010 NEWSLETTER – 7 Tips for Outsourcing Electronic Assemblies or Devices

By April 26, 2017Article


By Jim Anderson

A major concern for many companies when they consider outsourcing the manufacturing of assemblies or devices they have developed or may be already manufacturing internally is the protection of the Intellectual Property (IP) they have invested in the development of their product. Here are some tips for you to consider for reducing your risk and protecting your investment.

1. The first step is standard due diligence on the outsource provider you’re considering. Things like how long have they been in business, how experienced are they in your product’s type of manufacturing, do they have a certified quality system, what is their delivery track record and how stable are they financially should be evaluated.

2. Are they receptive to Non-Disclosure agreements? In fact, are they really pro-active about these agreements?

3. Do they have an internal process for ensuring protection of information that is designated proprietary?

4. Are they involved in other market areas where equal caution is involved, such as government work covered by ITAR, and, if so, are they ITAR registered?

5. Are there any “company connections”, parent companies, subsidiaries, etc. where there could be a danger of your product being produced under a new name and then competing with you?

6. If you are going outside the USA to outsource your product, do you have an agreement that permits recourse in the United States legal system? Or, will you have to rely solely on the legal system where your product is produced?

7. Counterfeit parts and materials are a major concern today. Does the outsource provider take serious steps to prevent the use of counterfeits that could affect the performance of your product?

This is the initial newsletter in a series that will address issues and concerns with outsourcing.

Periodically we will be sending newsletters such as this that address assorted subjects connected with outsourcing to have product built or for engineering services. To receive these newsletters, click on the link below and insert the email address at which you would like to receive these newsletters.

To schedule a conversation or a meeting to discuss how ESAM protects your IP and ESAM’s other capabilities, contact one of our employees who handles your area listed below:

For AZ and  So. A, call Dianna Jones at 541-659-9162

For Parts of  No. CA, OR, WA and BC, call Chris Todd at 541-861-80

For  Parts of   No. CA, NV and UT, call Lane Lowe at 541-660-6145

For ID, call Erin Whitener at 208-550-1312

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