Many domestic enterprises (OEM) have undertaken OEM processing business from foreign enterprises, but there have also been many cases where products were seized by customs due to suspected trademark infringement. When signing a contract for entrusted processing (OEM production), OEM manufacturers need to prevent the risk of trademark infringement from the following aspects:

(1) Confirm whether the entrusting party is the legal trademark owner or the authorized licensor , if the entrusting party is the authorized licensor, written permission from the trademark registrant is also required;

(2) Confirm whether the entrusting party’s OEM trademark is registered in China;

(3 ) If other companies have already registered the OEM trademark, they should first communicate with the trademark holder and sign a formal written document;

(4) Clearly agree on the trademark rights defect warranty clause in the contract, Clarify the commitment of trademark responsibilities. The specific clauses are as follows:

The client guarantees that it has ownership or the right to license the trademark used on the goods it requires to be processed, and guarantees that it requires the use of the trademark on the goods it processes. The trademark used does not infringe the trademark exclusive rights of others. If the entrusted party suffers losses when a third party claims rights when using, selling, or exporting products bearing the trademark, or is subject to administrative penalties by the industrial and commercial departments or customs departments, etc., the entrusting party shall compensate the entrusted party for all losses caused thereby.