The OEM license agreement exists between the different parties to deal with brand, privacy, payment, quality assurance, and timing issues.4 min in addition, the muffler manufacturer ultimately doesn`t have much influence (if any) on the final design of the car, and Microsoft probably isn`t too interested in the color of the computer. If the muffler does not work or Microsoft Office does not work properly, it is the responsibility of Honda or Best Buy to carry out all necessary repairs. The OEM license agreement ensures that the muffler or software has been properly manufactured and then properly installed by Honda or Sony. What you should ask yourself before entering into such an agreement is that if you are able to enter into an OEM license agreement, there are many factors to consider. While this type of B2B relationship can be very valuable in helping you grow your business, make sure you`re also paying attention to protecting your brand. This applies to all parties involved. While there are many things to consider, entering into an OEM licensing agreement can be a strategic way to grow your business if you ask the right questions. An original equipment manufacturer (OEM) is a company that manufactures parts that can then be marketed to another manufacturer. For example, if companies A make cables that can be used as phone chargers and companies B equip mobile phones that supply companies A`s cables when purchasing their phones, then company A is an OEM.

Company A will manufacture the cables using the branding and specifications indicated by Company B. While Company B will eventually focus on a consumer relationship, Company A, as an OEM, focuses on a business-to-business (B2B) relationship; their consumer is another business. Unable to subscribe to the email address. Please try again. While an OEM primarily deals with their relationship with their business customers, it is sometimes possible for individuals to buy items directly from the OEM. For example, if you are someone who knows a lot about cars and has the option to make repairs instead of going to a mechanic, you can choose to buy this muffler or a new radio directly from the manufacturer. As a result, consumer relations are a growing sector for companies that might otherwise be considered OEMs. The two most important sectors in which an OEM is a candidate are the automotive industry and the technology industry. For example, if you buy a new Honda from a licensed Honda dealer, the muffler may not have been manufactured by Honda, but by an external OEM.

Another example is if you buy a Sony computer from Best Buy, which already has Microsoft Windows installed. Microsoft is then the OEM. Learn more about FindLaw`s newsletters, including our terms of service and privacy policy. This website is protected by reCAPTCHA and Google`s privacy statement and terms of use….