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Why does the Industry and Commerce Bureau say it is illegal (counted as counterfeiting) if I am obviously producing it as an OEM?

First of all, the company must be the legal holder of the trademark and have a trademark registration certificate.

Secondly, you must provide a power of attorney to use the trademark.

If the Industry and Commerce Bureau still thinks there is a problem, you can provide them with arguments.

If they impose administrative penalties, you can file an administrative reconsideration and then file an administrative lawsuit.

Of course you have to be legal.

For example:

In the tricycle industry today, not only the models will be imitated, but even the brand names and trademarks will be copied. Falsely labeling one's life experience and subsidizing oneself are common tactics used by some "underground factories". Many consumers have no concept of OEM and regular vehicles. Some consumers regard OEM electric vehicles as regular vehicles because they simply cannot tell the difference.

Consumers will not look at whether there are regular manufacturer logos on the electric vehicle's motor, mudguard, and brake handle. They only need to look at the front and rear signs, and whatever brand is on it will be the brand. It’s hard to tell if these OEM electric vehicles are just based on their appearance. But in reality, the quality is much worse.

Extended information

1. Buyout method: The brand owner buys out the OBM manufacturer’s ready-made product design for a certain model, or the brand owner separately requires the ODM manufacturer to design a product solution for itself .

2. Non-buyout method: The brand owner does not buy out the design of a certain product model of the OBM manufacturer, and the ODM manufacturer can sell the design of the same model product to other brands at the same time without a buyout. When two or more brands share a design, the difference between the two brands' products is mainly in appearance.

Benefits

Compared to the buyer, the supplier is in a relatively passive position. However, the OEM approach is still profitable.

(1) Enter the international market and participate in international competition

In recent years, competition in domestic home appliance and other industries has become increasingly fierce, and the market has become saturated. In order to expand the market, some domestic manufacturing companies , and do OEM work for foreign brands. Enhanced corporate global awareness.

(2) Scale production, reduce costs

There is a widespread economy of scale effect in modern production, that is, as the scale of output expands, unit costs show a downward trend. This may come from the deepening of specialized division of labor and the sharing of fixed costs.

If the enterprise itself has excess production capacity, the effect of cost reduction will be more obvious. Participating in OEM supply means the expansion of output scale, which not only increases product sales, but also reduces costs.

(3) Learn from experience and improve management

Companies that provide OEM often play an important role in the product supply chain of OEM buyers. OEM buyers can play an important role in production management, marketing , has strong strength in product development and other aspects;

During the cooperation process, the OEM supplier can organize production according to the requirements of the buyer in terms of product quality control, success control, operating efficiency control, etc. Advanced organizational control comes from the accumulation of experience through "learning by doing" and improves the management level of enterprises.

(4) Product innovation, improve capabilities

If the OEM product is an innovative product, the supplier company can not only meet the needs of the buyer, but also use its own brand in the domestic and foreign markets. Sale. Either increase the length of the product line and launch new products; or deepen the depth of the product line and increase the variety of existing products. In any case, it increases the competitiveness of the company.

For buyers and sellers, the OEM method not only enjoys the overall competitive advantage of the product, but also has one of the most distinctive advantages, which is the flexibility of buyers and sellers to enter and exit the market. The contract can be terminated at any time whenever either party discovers a more profitable route. From this perspective, the OEM market is highly efficient.

(5) Saving sales investment

When an enterprise faces foreign markets, it is difficult to establish a completely independent distribution network due to the wide geographical area and different business habits of various countries.

But it would be much more convenient if we borrowed the sales force of foreign companies.

For example, Fujifilm, Ricoh, etc. have adopted the OEM method for their manufacturers and brokers in Europe and the United States, which reduces the friction in the operation of enterprises, reduces the large amount of sales funds that enterprises should invest, and makes enterprises Ability to adapt to operating overseas.

Reference materials

Baidu Encyclopedia - OEM production