What does OEM mean?

OEM is to produce on behalf of others. That is, the original equipment manufacturer (= original equipment manufacturer), or OEM processing, that is, OEM production, and then sold under the brand name of other companies.

OEM is a common phenomenon in China, which can be understood as the general trend of separation of production and marketing in the international division of labor environment. But relatively speaking, although the main engine factory can avoid many distractions in sales and concentrate on the production under orders, it can't share the brand value.

Therefore, in the international division of labor, the client is still in a subordinate position and the profit rate is low. For example, the Foxconn labor incident can be understood as OEM, with low passive profits, which actually sacrificed the rights and interests of most bottom-level workers.

Extended data

Cause of infringement:

1, lack of sound legal norms

Since the implementation of 1983, the Trademark Law has been revised by 1993, but in the era of rapid economic development, all kinds of new situations and new problems appear constantly.

The Trademark Law only stipulates trademark infringement in general, without specifying the specific rights and obligations of the entrusting party and the processing contractor in the licensing process, which leads to the lack of clear legal basis for investigating trademark infringement in the licensing process.

2. The patent awareness is not strong.

Trademark owners or legitimate users have weak consciousness, weak strength and improper methods to protect the exclusive right to use registered trademarks. Although many enterprises or industries have jointly established anti-counterfeiting organizations, they have not been well United with government functional departments, judicial departments and consumer groups, and anti-counterfeiting behavior is one-sided, local and transient.

3. Insufficient supervision.

Trademark infringement in licensing processing, especially in layer-by-layer transfer processing and foreign trade processing business, involves a wide range, spans many fields, is difficult to investigate and takes a long time. Due to the restriction of local interests and other factors, it is difficult to fully implement the punishment.

Baidu encyclopedia -OEM