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The OEM licensing agreement exists between the different parties to deal with issues of branding, confidentiality, payment, quality assurance and timing. Read 4 min While there is much to consider, entering into an OEM licensing agreement can be a strategic way to grow your business if you ask the right questions. In addition, the manufacturer of silencer finally does not have many inputs (if ever) in terms of the final design of the car, and Microsoft is probably not too interested in the color of the computer. If the silencer doesn`t work or Microsoft Office doesn`t work properly, it`s up to Honda or Best Buy to make the necessary repairs. The OEM license agreement ensures that the silencer or software was properly manufactured and then properly installed by Honda or Sony. The two issues before such an agreement is reached are: If you are able to enter into an OEM licensing agreement, there are many factors to consider. While this type of B2B relationship can be very valuable in helping you grow your business, you will also want to make sure that you protect its brand carefully. This applies to all parties involved. The two main sectors where an OEM is a candidate are the automotive industry and the technology industry. For example, if you buy a new Honda from a licensed Honda dealership, the silencer may not have been manufactured by Honda, but by an external OEM. Another example is to buy a Sony computer from Best Buy that is already installed with Microsoft Windows.

Microsoft is then the OEM. Save my name, email address and website in this browser for the next time I will make a comment. While an OEM is primarily interested in its relationship with its professional clients, it is sometimes possible for individuals to purchase items directly from the OEM. For example, if you are someone who knows a lot about cars and has the ability to do repairs yourself instead of going to a mechanic, you can buy this silencer or a new radio directly from the manufacturer. As a result, consumer relations are an increasingly important area for companies that may otherwise be considered OEMs.