OEM Agreement Template: Manufacturing, IP and Quality Terms

OEM AGREEMENT FAQ

What is an OEM Agreement?

An OEM Agreement is a contract between a manufacturer and another company that allows the latter to sell products manufactured by the OEM under its own brand name or as part of its offerings.

Why is an OEM Agreement important?

It protects both parties by clearly defining product specifications, quality control, intellectual property rights, branding, and liability. It also prevents disputes over pricing, delivery, and exclusivity.

When should you use an OEM Agreement?

Use it whenever outsourcing the production of goods to a third-party manufacturer while maintaining control over branding and distribution. It is common in industries like electronics, automotive, and consumer goods.

What should an OEM Agreement include?

It should include product specifications, order procedures, minimum purchase commitments, delivery schedules, intellectual property protections, warranties, indemnification, and termination rights.

Is an OEM Agreement the same as a distribution agreement?

Not exactly. An OEM Agreement focuses on manufacturing products for another brand, while a distribution agreement regulates how products are resold and distributed. Often, both may be used together in supply chains.

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