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Product Development Agreement

From concept to Golden Sample — with full IP protection

Take your product from idea to production-ready sample with a comprehensive development agreement. Our guided process creates a bilingual agreement that protects your intellectual property, structures milestone payments, and ensures you receive all deliverables needed to move to manufacturing.

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Understanding Your Document

What is a Product Development Agreement?

A Product Development Agreement (PDA) is a comprehensive contract that governs the entire process of taking a product from concept to production-ready Golden Sample. Unlike a Manufacturing Agreement which covers ongoing production, a PDA focuses on the engineering and design phase — the NRE (Non-Recurring Engineering) work that must happen before you can manufacture at scale. This includes everything from initial design, prototyping, tooling development (if applicable), firmware/software development, compliance testing, and final Golden Sample approval. The agreement ensures you own all intellectual property created during development and receive all the source files, documentation, and samples needed to manufacture the product with any factory you choose.

What It's Used For

  • Developing a new product from scratch with a Chinese engineering partner
  • Creating molds, tooling, or production fixtures for a new product
  • Engineering a product based on your concept or reference design
  • Developing firmware or software for an electronic product
  • Adapting an existing product design for a new market or application
  • Creating production-ready documentation from a prototype

Key Features

  • Milestone-based NRE payments tied to specific deliverables
  • Automatic IP assignment to client upon payment (recommended)
  • Category-specific deliverable checklists (electronics, plastics, textiles, etc.)
  • Golden Sample definition and acceptance criteria by product type
  • Source file delivery requirements (CAD, Gerber, firmware source)
  • Background IP licensing provisions for pre-existing technology
  • IP Risk Assessment tool showing risk level of your choices
  • Performance standard options (results-based, best-efforts, hybrid)
  • Manufacturing rights and Right of First Refusal provisions
  • Termination clauses specifying return of materials and files

When You Need This Document

The Product Development Agreement comes after your initial NNN Agreement and before a Manufacturing Agreement. Use it when you've identified a development partner and are ready to invest in engineering and tooling. This is the critical phase where IP is created — getting the agreement right here protects you from the common scenario where a factory owns your designs because you never formally assigned the IP. Sign this agreement before making any NRE payments or sharing detailed specifications beyond what was covered by your NNN.

How It Works

Simple as 1, 2, 3

1

Define your project

Answer guided questions about your product category, development milestones, IP ownership, and deliverables. We customize the agreement to your specific project type.

2

We prepare your agreement

Your answers are transformed into a comprehensive bilingual agreement with proper IP assignment, milestone payments, and Golden Sample acceptance criteria.

3

Review and download

Check the IP risk assessment, review all terms, and download your professionally formatted PDF ready for signing.

No law degree required. We promise.

See It First

Peek before you leap

Not sure what you're getting? Take a look at a sample Product Development Agreement before you start. See exactly how your finished document will look.

We spent months developing a product with a factory only to discover they owned all the design files. This agreement would have prevented that nightmare. Now we use it for every new project.

J

Jason Lee

Hardware Startup Founder

The milestone payment structure was exactly what we needed. We could see progress at each stage and knew exactly what we were paying for. The IP risk assessment feature is brilliant.

R

Rachel Martinez

Product Development Manager

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