• Cosmetics- private label manufacturing

We are a new brand for Natural and Organic Skincare products.At the moment we are planning for third party manufacturing services .Can you pls advise what is the legal way to proceed on this and how do we form a Non Disclosure Agreement where all the risks related to production are being covered by them.Since we will be creating our own formulae we will also want an exclusivity that those formulates are not used for any other party 
In addition to it what all is being added in this contract?? We would also want to know how they cover themselves with testing parameters etc .
Asked 4 years ago in Business Law

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14 Answers

Dear Sir/Madam,

It is suggested that you get the process and product patented so that it can't be copied by any other person without your consent. You may also obtain the trade mark and copy right in this respect. Thereafter, you are suggested to enter/include the suitable clauses in your agreement with the third party for whom you are developing the product ot prevent copy of your products and prevention of your rights.  

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

You need to go for contract between them and you as per The Drugs and Cosmetics Act, 1940. And register the agreement with the Registrar as per the Industrial Dispute Act and Company Act. There are various Forms that needs to be fill-up between Manufacture and Marketed by, Produce by, and Product made in which city etc.

Ganesh Kadam
Advocate, Pune
12986 Answers
262 Consultations

Please enter into a MOU and and within a year NDA for the terms and conditions wish to carry out with your frenchies at Pan India or State level as per the choice between both of you.


FDA license is necessary for productions, distribution and use within or outside the State or at Pan India.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Have to patent your formula to restrict infringement and use by third party. Without patent formula can be use by others.

You can only restrict the party without whom you are making an agreement, In that parties are agree that the secodn will not use for any other party and of violation this clause, secodn party will compensate the first party with this much amount and damages incurred.

Further, formula may have already tested and passed in the laboratory,accident if any and risks related to production shall bear by them, this will include in agreement but product will sell in your name and goodwill, post production manufacturing risk will face by you.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22971 Answers
31 Consultations

This has to be drafted with utmost care after discussing all the detail in this regard.

You can get in touch with me to proceed further.

Swarupananda Neogi
Advocate, Kolkata
2973 Answers
6 Consultations

You can engage lawyer from this website for drafting NDA 

there should be clause that third party would be liable for damages in case they violate terms of agreement 

 

3) there should be clause that manufacturing activities would be done for your company only 

4) there should be arbitration clause for resolution of disputes 

Ajay Sethi
Advocate, Mumbai
96707 Answers
7795 Consultations

1. Under the provisions of "Master's Liability", the co. who sells product under its Brand, is the chief culprit for any untoward /adverse affects of the product.

2. The contract co. who formulates /produces the product under directions from the Brand Co., is also liable, but the Brand Co. shall be held vicariously liable for all purposes (Criminal, Civil & Consumer court abilities etc.... )

 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

You need to draft a detailed non disclosure agreement with the said party including all the averments related to your services and skills. You need to contact me separately for the said drafting if required

Prashant Nayak
Advocate, Mumbai
32359 Answers
199 Consultations

Hi

Since you wish to engage a third party for manufacturing of your natural and organic skin care products, you should consider the following

a) Contract Manufacturing agreement - This agreement contains very important clauses such as quantity to be delivered, quality, test reports, intellectual property , indemnity, liability, NDA etc. About 60 different parameters are covered under contract manufacturing agreement including raw materials,acceptable quality criteria , rejections etc. 

b) Coming to Confidentiality, Non Disclosure and indemnity thereof- Though these are covered in general under Contract Manufacturing Agreement, it is always better to enter in to these specific agreement so as to cover the promoters, employees and contract workers of Third Party service providers so that your formulae is protected at all points of time.

Please note both the above agreements warrant that you consult a lawyer of your choice who can 

a) Understand your product.

b) Understand your process 

c) Take your inputs on what process/raw material/formulation which should be under your total control and what processes can be outsourced to third party manufacturer with protection of Contract manufacturing agreement, Confidentiality, Non Disclosure and Indemnity thereof. 

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

A detailed agreement can be obtained by contacting the particular lawyer on this website 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

All kinds of cosmetic manufacture whether handmade or factory made needs permission and license from Drug Control And Environmental Regulations. 

If you manufacture or market cosmetics, you have a legal responsibility for the safety and labeling of your products.

apply a copyright notice to it in order to be protected by copyright. Your product is included in this protection,and it is immediately copyrighted as soon as it is produced.

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

You can take a patent on your formula before making any contract with third party manufacturer. 

You can ask them to provide exclusive manufacturing for your company only and non disclosure of formula to third party. 

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

You first get your patent registered for your product which will be a patent protection.

Since you will be the basic manufacturer, you need not reveal the formula used in the manufacturing process.

The NDA and other working conditions may be drawn by an agreement with the conditions therein , if necessary get it registered to make it more effective legally and then proceed with the proposed business under the guidance of an expert advocate for the initial set up.

T Kalaiselvan
Advocate, Vellore
86908 Answers
2330 Consultations

You have to take license from the government under the drugs and cosmetics act. As you have a formula for the products take patents if you want to.

A NDA should be made and registered with the factory.

A contract should be made.

Rahul Mishra
Advocate, Lucknow
14103 Answers
65 Consultations

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