OEM In China: Trademark Tips For International Traders

In China, a local original equipment manufacturer (OEM) will make products for a foreign trademark proprietor or entity with the authorisation to use its trademark and then export the finished products.

The products are processed and labelled according to the requirements of the foreign party. All the products will be delivered to the foreign party or designated consignees, who then pay processing fees to the Chinese manufacturers. Products under OEM for export do not enter the Chinese market.

Due to the thriving OEM business in China, trademark infringement issues arise. It happens that a foreign party who has the trademark rights in its local area and/or in other foreign countries may not have any trademark rights in China.