An original equipment manufacturer, OEM, agreement is used by a company that takes components of products from one or more companies in order to build one product which it then sells under its own 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 term original equipment manufacturer is a broad one which describes the combination of relationships within the following parties:. Since the dynamics of OEM are always changing, some OEM relationships fail to meet the official definition of this term. In the past, OEMs were always direct customers of the manufacturers. In these scenarios, the buyer-seller dynamics generally prevailed.
In recent years, both OEMs and the manufacturers have concluded that the customer of the OEM is the party that causes the flow of profits into the OEM and then to the manufacturer. It is important to work out the issues of control and branding at the outset of forming an OEM agreement. One tough issue in particular when creating an OEM agreement is the issue of brand identity. It is necessary to consider the implications, including the following:. These questions must be answered and resolved before the final OEM agreement is drafted in order to ensure the parties are in agreement.
Previously, OEM was a term that referred to the company that was credited with building a specific product, when that product was subsequently sold to other companies for the purpose of reselling and rebranding the product.
As years have gone by, however, the term OEM has now become a label that is used to describe multiple companies and the relationships within them. These relationships commonly overlap within companies with the purpose of bringing IT products to the market. Ambiguous relationships are formed within these companies, due to the blurred lines between product designers, resellers, and product manufacturers.
Although some OEMs build completed items for a VAR to place in the market, generally, the OEMs do not play a large role in determining the aspects of the finished product. One example of this type of relationship includes that of an OEM of individual electronic components and another company, such as Samsung or Sony which then assembles these parts in order to make its own product, such as an HDTV.
Another example would include a company that makes buttons and then sells part of the product fasteners with customized lettering to Ralph Lauren.
In the past, OEMs typically focused their efforts on sales between one business to another, while VARs engaged in marketing to the outside public or other users. Now, an increasing number of OEMs have decided to sell their services or parts to consumers directly. This, in a way, makes these companies a VAR. One example of this is a person who can build computers on their own computer by purchasing graphics cards and processors directly from Intel or another retailer that stocks these products.
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OEM Agreement: Everything You Need to Know An original equipment manufacturer, OEM, agreement is used by a company that takes components of products from one or more companies in order to build one product which it then sells under its own brand and company name. The term original equipment manufacturer is a broad one which describes the combination of relationships within the following parties: IT hardware vendors Component markers like microprocessor manufacturers and software vendors Channel partners like resellers and distributors What is an OEM?
It is necessary to consider the implications, including the following: Should the OEM product get publicity? Will the buyer acknowledge through advertising that the product is to come from another source? Is the seller allowed to publicize the fact that the technology has been outsourced to another, established brand? How do OEMs Work? Was this document helpful? Share it with your network!A premium membership for higher-level suppliers. Relevancy Transaction Level Response Rate.
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Sourcefire designs, develops, manufactures and sells certain network security products, software and services. Nokia desires to license certain of Sourcefire's software products for the purpose of reselling such software products as embedded applications within certain of Nokia's hardware platforms to end users and to also resell certain of Sourcefire's hardware appliances to end users; and.
This Agreement consists of this cover page the " Cover Page " and the attached Terms and Conditions and any exhibits attached thereto, which are incorporated herein by reference. Sourcefire, Inc. The following terms shall have the following meanings:. Sourcefire Appliances will not include Nokia Hardware and will not be considered Products.
Nokia shall be solely responsible for configuring, assembling, manufacturing, marketing, packaging and shipping all Products. Reselling Sourcefire Appliances. Nokia Obligations. Sourcefire will initially provide training to Nokia's personnel pursuant to a "train-the-trainer" form of training model regarding the marketing, sales and support of the Sourcefire Software and Sourcefire Appliance with the requirement that Nokia subsequently be responsible for training all Nokia and Distributor personnel responsible for marketing, sales and support of Sourcefire Appliances and the Products.
Nokia's obligation to provide POS information will be subject to any limitations imposed by applicable privacy Laws. Sourcefire will provide reasonable cooperation and assistance to Nokia in connection with such marketing programs. Mutual Obligations. Mutual Assistance. Nokia agrees that Sourcefire's provision of Maintenance Releases and Technical Support to Nokia depends upon Nokia's timely cooperation and assistance as Sourcefire or an End User may reasonably require.
Similarly, Sourcefire agrees that Nokia's provision of Technical Support to End Users depends upon Sourcefire's timely cooperation and assistance as Nokia or an End User may reasonably require. Each party shall notify the other of any known violations by an End User of any agreements relating to the use of a Sourcefire Appliance, Sourcefire Software or the Products, and shall provide reasonable assistance in verifying the facts surrounding such violations.
Inventory Upgrade. With respect to the Sourcefire Software, Sourcefire will deliver the upgrade or replacement via a new copy of the golden master of the Sourcefire Software and, with respect to the Sourcefire Appliance, the upgrade or replacement will be made available directly to End Users via a software download at Sourcefire's expense.
Government End Users. Nokia hereby irrevocably assigns to Sourcefire all right, title and interest in and to the Sourcefire Derivatives including all Intellectual Property Rights therein that may inure to Nokia or that Nokia is deemed to obtain pursuant to this Agreement.
Sourcefire hereby irrevocably assigns to Nokia all right, title and interest in and to the Nokia Derivatives including all Intellectual Property Rights therein that may inure to Sourcefire or that Sourcefire is deemed to obtain pursuant to this Agreement.
The parties shall jointly conduct all testing that is necessary to determine if the Sourcefire Software, when combined for use as part of the Product, operates in accordance with the mutually agreed upon functionality levels contemplated for commercial release. Use of Trademarks. Neither party will at any time contest or aid in contesting the validity or ownership of any trademark of the other party or take any action in derogation of the other party's rights therein, including without limitation, applying to register any trademark, trade name, domain name, service mark or other designation that is confusingly similar to any trademark or domain name of the other party.
Ownership by Sourcefire. All references in this Agreement to the "purchase" of software shall mean the obtaining of a license to use the Sourcefire Software or the Sourcefire Appliance, and all references to "sale", "selling", "resale" or "reselling" of software shall mean the granting of a license to use the Sourcefire Software or the Sourcefire Appliance.
Any rights in the Sourcefire Software or Sourcefire Appliances not granted herein are hereby expressly reserved by Sourcefire. Ownership by Nokia. Nokia agrees to comply with the requirements in this Agreement and the licenses applicable to each Open Source Program included with the Sourcefire Software.
Nokia further acknowledges and agrees that rights attached to certain Open Source Programs are separate from and do not depend on the Open Source Programs being part of the Sourcefire Software.Business textbooks often refer to OEMs as "contract manufacturers. The genesis of the term OEM comes from the Dutch phrase, "onder eigen merk" which, loosely defined, simply means "under own brand.
The term is flexible, but OEM usually refers to manufactured products in major industries. Yet it could also mean a company that makes the ingredients that go into a fast food milkshake, for example. A VAR is a company or business that buys the OEMs component, part or product, and either improves on it or adds even more components to increase its value and ultimately sell it to customers directly.
OEMs most commonly sell their products business to business, while VARs most commonly sell to consumers or other end-users. So-called "principal" companies can call OEM products, parts, and components as their own, after signing a resell document giving a company the right to resell an OEM product. There's no doubt that OEMs are widely used by manufacturers across the global business landscape. Yet there are additional reasons why companies like to partner up with OEMs.
For instance, when a manufacturer or other business does business with an OEM, they receive a precision product component that meets their exact demands and conditions for production, delivery and management. Adding value to your product. OEMs also provide a good return on investment to their business partners.
Their parts, components and products extend the life of the partnering company's product, thus maintaining top performance and saving money with replacement parts, thus increasing the company's financial bottom line.
The OEM develops a product, part or component, and sells the product to a principal partner, who resells the product, usually directly to the public, under its own brand.
The principal partner does have some flexibility in dealing with OEMs. For example, a principal partner can structure a deal where it has an option to only work with selected products and under flexible terms.
Under that arrangement, the reseller can elect to purchase specific components, or can have the OEM manufacturer complete products for it to resell. These products come in plain boxes and aren't for sale, by and large, in retail outlets.
That scenario is changing, though, as online retailers are beginning to market OEM products directly to end users for a discounted price. Auto enthusiasts rebuilding a new car or technology lovers who buy parts to build their own customized computer are good examples of end users who buy parts, often online, direct from retailers.
In certain manufacturing markets, especially the auto industryconsumers have two choices when looking to make repairs on a product or a vehicle - take it to the original manufacturer who can guarantee OEM parts or take it to an independent aftermarket shop or service center.
In most cases, the original manufacturer's shop or service center will offer original parts it's often a selling point for them while the aftermarket service provider will offer aftermarket or secondary parts and components.
Aftermarket service providers don't have a direct channel to OEMs, and thus often depend on parts and components made by third-party manufacturers. Here are some pros and cons to mull over when weighing OEM versus aftermarket service and product providers.
For example, you can elect to choose an OEM to build your products or, in certain situations, opt for an original design manufacturer ODM. Let's say you're a manufacturer with an idea for a product and you need help in developing that product. While you have the projects specs and a blueprint that outlines the idea, the OEM can be brought on board to manufacture some or all of the product, and you have to do is brand it and sell that product to the public.Sometimes the recommendation is for a person who is applying for a new job in your industry.
Other times it may be for a business you have worked with that is looking to build its client base. It's flattering to be asked.
Compliment or Praise a Product or Service Supplier • Letter Templates and Guide
It always feels good to help someone you have a professional relationship with. However, there are some things you should know about writing a business recommendation letter. So, be sure to find out what your employer's policies are before consenting. Many organizations also have references go through human resources HR approval process. Check with your company's policies before proceeding. This is an example of a reference letter for recommending professional services.
Download the business reference letter template compatible with Google Docs and Word Online or see below for more examples. Daniel has been working for my law firm for the past fifteen years as our accountant and bookkeeper. His knowledge and attention to detail have aided in keeping our company on track during the recent recession and through a major restructure. He is not only thorough but also easy to work with and always willing to take the time to discuss my concerns and respond to questions.
Michaela created and implemented many successful campaigns for us from July to January Her design software expertise coupled with her collaborative and innovative spirit made her the go-to expert for our most significant projects.
She single-handedly took our Twitter following from 1, to over 52, in just three months by using forward-thinking strategies. She was detail-oriented, organized and always open to constructive feedback, making our business relationship both effortless and pleasant.
I recommend Michaela for any role through which she can contribute her remarkable creativity and dedication. If hired, I am confident that she would take your marketing efforts to new heights. The candidate should be someone you know fairly well and with whom you have recently worked. For example, you likely can't provide a recommendation for someone you worked with ten years ago or with whom you only worked for a month.
You should know the candidate in a role which allows you to write a meaningful reference. For example, if you have worked with the person as a freelance writer but he's now starting a dog walking business, you can't attest to his skills in another realm.
If he wants to start a dog walking business, he should already have a steady clientele who can genuinely vouch for his abilities.
OEM Meaning & Definition
Write the letter only if you can honestly offer a positive reference. If you have nothing positive to say about their performance, do the honest thing and say you're unable to contribute.
If you feel obligated to give an excuse for why:. Though you may feel awkward or guilty, trust your intuition. Besides, an unauthentic letter will serve neither the applicant nor their potential employer well.
6+ Official Distributor Letter Examples – PDF
Avoid saying something that is strictly opinion — it might work against someone being considered for future employment and could potentially result in legal problems for you and your company. You should be able to support it with outside recognition or an award that her work received.
If you cannot, you might say, "Louisa consistently produced great content for us. In the same vein, avoid exaggerated and overly positive statements.
If you build someone up too much, the letter might not carry any weight with future clients or employers. Introduce yourself in the opening paragraph to set up your position and your relationship to the candidate.
Let the reader know why you qualify to prepare such a letter. Confirm facts about the candidate and where he is currently employed if he is :. Use the final paragraph to add any additional examples or anecdotes as you see fit. Lastly, close by offering to answer any further questions or provide follow-up information.OEM Agreement. Sample 1. Sample 2. The Original Equipment Manufacturer Agreement, dated as of October 31, by and between Parent and Company shall be in full force and effect.
The parties shall use their best efforts to negotiate and execute, within thirty 30 days of the Effective Date, an OEM agreement the terms of which shall include a the appointment of Inrange as a nonexclusive worldwide OEM distributor of Ancor's standard products; b pricing for such products on a most-favored customer basis with respect to other OEM distributors purchasing similar volumes of such products, and c other customary and reasonable terms to be mutually agreed by the parties.
All primary correspondence to OEM with respect to this Agreement shall be sent to the Minnesota address. For purposes of this Agreement, the definitions below apply to the respective capitalized terms. As promptly as practical following the Closing, Bentley and Intergraph shall enter into a MicroStation OEM Agreement consistent with the terms set forth in that certain letter of intent dated April 20, between Bentley and Intergraph.Showing that you are in compliance with rules and regulations might appear complex.
You should write a compliance letter after being notified of violating a requirement or rule. If you receive official notice of a violation by a board, business or governmental entity, address it as soon as possible to avoid any penalties. The best way to do this is through a letter showing that you are either in compliance or that you intend to remedy the situation immediately. Before writing your letter, be sure to review the appropriate rules and regulations to determine if you actually are in compliance or not.
You want to make sure you have your facts straight before stating your case. Format a compliance letter as you would any other letter. Include your name and contact information on the top, along with the date.
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Address the letter to the person at the organization who either requested the letter or who is in charge of monitoring compliance. In the body of the letter, start by providing an overview of the issue to ensure that the receiver of the letter clearly understands the topic.
The most important part of a compliance letter is stating how you are in compliance with a policy or rule. Writing a successful compliance letter involves stating the rule at issue and providing examples of how you comply with that rule. When possible, include the rule or policy number so that the reader can refer directly to it in a document. Then, provide support for how you comply with that rule, using additional documentation if necessary.
If you must take action to be compliant with the rule, note that as well. Explain how and when you will become compliant. Address each rule in its own paragraph. This helps you to organize your thoughts and makes it easier for the reader to see how you are in compliance.
A compliance letter should be more formal than an average letter. You do not want to be argumentative or accusatory. The letter should be clear and easy-to-follow. To ensure that it makes the points you want, have someone else look it over. A person unfamiliar with the issue should be able to read your letter and understand your intention.
Rule 4. Plants on balconies. While my plant did begin to grow over the side of the balcony, it is indeed a potted plant. The attached photo shows that.
I will trim back the plant by the end of the week and be sure to keep it trimmed to avoid this issue in the future.
BBQs on balconies. The BBQ currently on my balcony is being stored for a family member. It has not been, and will not be, used.
Please let me know if I can answer any further questions or provide any other documentation. A successful compliance letter should address the rules being violated, present necessary evidence and be professional and polite. Leslie Bloom earned a J. She is a licensed attorney who has done advocacy work for children and women.
She holds a B. Reviewed by: Melissa McCall, J. A compliance letter template can help you organize your letter. Here is an example:.