A major concern for OEM manufacturing executives when working with EMS and ODM providers is management and protection of intellectual property (IP). In general, most EMS and ODM providers understand the legal ramifications of protecting the OEM customer’s IP and have sound processes in place. But it still makes sense for OEMs to have a working IP playbook strategy.
While IP violations cannot be completely eliminated, steps can be taken to ensure EMS / ODM providers have the proper processes in place to protect its OEM customer’s IP.
Additional steps and ownership definitions of shared IP are especially needed in the case of OEMs working with EMS / ODM providers in joint development manufacturing (JDM) models. (Read: Differences between EMS, CEM, ODM, JDM providers)
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What follows are some tips for OEMs when working with EMS / ODM providers to help OEM executives protect their IP.
OEM prep before starting EMS / ODM programs
In my previous article focused on the EMS / ODM site visit when evaluating EMS / ODM providers, I mention OEMs can observe and verify an EMS / ODM provider’s internal processes for protecting IP during such site visits.
Do you notice any documents marked ‘confidential’ left in open areas like meeting rooms, test labs, on the production floor… Do you notice any customer-specific proprietary information left on whiteboards in the meeting rooms…
Ensure all patents (to be filed, pending, awarded) and their applicable countries are clearly written into the design and manufacturing agreements.
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