What is OEM and ODM and OBM

By | March 23, 2016

ODM, namely Original design manufacture,which means that a vendor entrusted with design capability and technological level design and manufacture products based on another vendor’s specifications and requirements and authorization contract.

OBM, namely Original Brand Manufacturer,which refers to those specifically accept other enterprises’ OEM production requirements instead of creating their own brand.

OEM production, namely Original Equipment Manufacturer, also commonly known as Original Entrusted Manufacture,which means that the brand producers do not directly produce products, but by using their key technology grasped is responsible for the design and development of new products and control the sales channels, specific processing tasks would be done by the manufacturers entrusted by contracts,then buy the low-priced products and directly paste their own brand names on the product. This cooperation commissioned production refer to OEM ,the manufacturer undertaking the processing tasks is called OEM manufacturers, their products are called OEM products.

What the main differences between OEM and ODM is that the former get product design made by the commission- whether the overall design or by whomever – and the trustee shall not provide third party with the design of the product; the latter is the producers who design and manufacture , and the finished product is bought by others. Whether the producers can produce the product depends on whether the third-party buyout this design. OEM products are tailor-made for the brand vendor(not the manufacturer), requiring that the manufacturer could past the vendor brand name for the manufacturer’s business, but the producers shall not crown their names on the further production. ODM is based on whether the brand companies is able to buyout copyright of the product. If not, the manufacturer is entitled to their own production, as long as there is no recognition to the company’s corporate design. To put it plainly, the key difference between the OEM and ODM is who is eligible intellectual property of the product to be manufactured, and if the commissioning party own the intellectual property rights to the product, that is OEM; and if producers or manufacturer carry out overall design, that is ODM.

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