Odm Agreement Template

With this type of arrangement, the obvious question is who owns the design of the product? Both the foreign buyer and his foreign factory claim ownership of the design with contradictory arguments. The foreign factory will agree to manufacture the product on an exclusive basis for the foreign buyer, but the foreign buyer does not have the right to have the product manufactured by a third-party factory. This position can be an unpleasant surprise for the foreign buyer, especially when his foreign factory suddenly announces that it will double the price of manufacturing the product. These problems can become even more complex if the product contains a technology or is based on a technology that clearly belongs to the foreign factory. In this mindset, the factory will often indicate that the buyer can go anywhere he wants to make his own part of the buyer`s product design, but no third-party factory can use the factory`s proprietary technology in the manufacturing process. (See also “Supply Chain Management Liability Indicators and Metrics”) The terms of the ODM contract in primary contractual service contracts should be detailed but not product-specific, so that after signing agreements, no further revisions will be necessary if product changes occur over time. . . .