INTERNATIONAL MANUFACTURING CONTRACTS
INTERNATIONAL PRODUCT DEVELOPMENT
If you are going to work extensively with a foreign manufacturer to have it help you develop a new product, you probably are going to need a product development agreement. These agreements cover the cost and procedure for developing a product. Many companies fail to enter into this kind of agreement only to discover later that their foreign manufacturer owns “their” product IP or the moulds or the tooling at the end of the process.
OEM (ORIGINAL EQUIPMENT MANUFACTURER)
An original equipment manufacturer, OEM, the agreement is used by a company that takes components of products from one or more companies to build one product which it then sells under its brand and company name. A value-added reseller (VAR) is the term for the second firm involved because by incorporating features of the service and augmenting the product, value is then added to the original product.
The VAR generally works closely with the OEM. The OEM will customize designs based on the specific needs and requests of the VAR company. Tuton consulting connects its clients with the best possible manufacturer to finalize their project.