Original Equipment Manufacturer (OEM) Agreements are structured for the sale of computer hardware systems and products using intermediaries (resellers). A key variable common to these arrangements is product definition and packaging. Some arrangements are simply agreements allowing product to be resold at fixed minimum pricing. Other arrangements allow the product to be integrated with the reseller product, or sold as part of a total package involving other products. Marketing and distribution rights is a second important variable, involving defined markets, territories, customers and trademark licensing and advertising limits. Distribution fees and royalties are usually a function of sales. End-user arrangements are usually pre-defined, with warranties limited and indemnifications favoring the OEM.
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