ABSTRACT

An Original Equipment Manufacturer (OEM) Agreement involves an arrangement where one party, sometimes called the supplier, furnishes technology to the other party, the OEM, for combination with other technology for redistribution as a complete product to customers, end users, and so on. OEM agreements are written from either the perspective of the OEM, the party making the distribution of the finished product, or the supplier, the party furnishing one or more pieces for incorporation into the finished product. The parties frequently have divergent interests. The OEM wants broad distribution rights, strong protections from claims of intellectual property infringement relating to the supplier’s technology, the right to potentially distribute the finished product under a private label arrangement, clear support obligations, and so on. Since a business may find itself serving in either the position of a supplier or OEM, the following provides a discussion of the key issues presented to both parties in these engagements.