OEM is the abbreviation of English Original Equipment Manufacturer, which originally means "product equipment manufacturer". It refers to a modern and popular production mode in which the purchaser provides equipment and technology, the producer provides manpower and space, the purchaser is responsible for sales and the producer is responsible for production. But at present, in China, it mostly refers to the way that the purchaser provides the brand and authorization, and entrusts the domestic enterprise manufacturers to produce the products with the brand.

2. The essence of 2.OEM production

From the legal attribute, OEM is a contract. The so-called contract refers to the contract in which the contractor completes the work and delivers the work results according to the requirements of the ordering party, and the ordering party pays the remuneration. In the contract, the party who completes the work and delivers the work results is called the contractor, and the party who accepts the work results and pays the remuneration is called the ordering party. In OEM production, the enterprise with brand or trademark right is the ordering party, and the OEM enterprise is the contractor. Raw materials can be provided by the ordering party or used by the contractor according to the ordering party's requirements. The contractor shall complete the production of related products according to the requirements of the ordering party, and add the trademark logo that the ordering party is destined to add, and the ordering party shall pay the corresponding remuneration to the contractor according to the agreement.

The contents of the contract should be as detailed as possible and the language should be accurate.

A contract is an agreement that clarifies the rights and obligations of both parties. If there is a dispute in the future, the contract text is the most important evidence to solve the dispute. In OEM, many times both parties do not attach importance to the conclusion of the contract, and both parties only agree verbally. In order to avoid unnecessary disputes in the future, both parties should conclude a relatively perfect contract as far as possible. The name, domicile, subject matter, quantity and quality of the subject matter, source and quantity of raw materials, quality requirements, remuneration, contracting method, time limit, place, contract performance method, acceptance method, product standards, etc. of both parties shall be specified in the contract, especially the liability for breach of contract. In the event of a dispute, it is easy for both parties to determine who should bear legal responsibility according to the terms of the contract.