Original design manufacturer

An original design manufacturer (ODM) is a company that designs and manufactures a product for another company; this is in contrast to an original equipment manufacturer (which manufactures a product to the specifications of another manufacturer) or an original brand manufacturer (which designs and manufactures its own products).[1][2][3] Some ODMs begin as OEMs and eventually become OBMs.[4] Some manufacturers may fit multiple categories, with a portion of revenue attributable to each kind of work.[5]

Examples

  • Foxconn, Inventec, Quanta Computer, and Wistron were named by Nvidia as ODM partners using its HGX reference architecture and design guidelines in 2017.[6]
  • Nokia (HMD) relies on ODMs for its post-2016 phones; in late 2019, it switched from relying on only one ODM to multiple ODMs.[7]
  • Samsung designs and manufactures some OEM-used SSDs and DIMMs, and such SSDs and DIMMs are rebranded by upstream companies such as Dell.
  • MSI designs and manufactures some NVIDIA based graphics card, and such graphics cards are rebranded by upstream companies such as Dell.
  • ZOTAC designs and manufactures some NVIDIA based graphics card, and such graphics cards are rebranded by upstream companies such as Lenovo.

Intellectual property

ODMs create their own intellectual property and patent it.[8][9] Most of their patents are filed in the US, China, and Taiwan. In 2020, all of the top ten electronics ODMs in the world (by revenue) were Taiwanese.[10] When it comes to intellectual property, design's legal status under intellectual property law has remained unstable for three centuries, shifting between patents and copyright.[11] Many original design manufacturers have what are called ODM agreements. In an agreement, unless one explicitly purchases the IP, the manufacturer retains it. This means they can sell the same product to competitors.[12] Real-world examples include Apple and Samsung, when Apple at one time relied on Samsung for component manufacturing, until Samsung started launching its own smartphone. After years of court battles and huge amounts of money paid in damages, many learned that it is better to define IP boundaries.[13][14] Many business-to-business sites like Amazon and Alibaba.com have taken measures to counter fake goods from shopping sites, creating methods where brands can file intellectual property infringement complaints. This helps to identify sellers of illegal merchandise, although there still might be certain loopholes where counterfeiters can still thrive.[15]

See also

References

  1. ^ Mahan, Josh (12 Feb 2024). "OEM vs ODM: Manufacturing Key Differences". cc-techgroup.com. Retrieved 15 Nov 2025.
  2. ^ "Choosing the Right Manufacturing Partner: OEM vs. ODM vs. OBM Explained". connectedsourcing.com. 27 Jun 2024. Retrieved 15 Nov 2025.
  3. ^ Gilbourne, Adam (15 Sep 2025). "OEM vs. ODM vs. OBM – Key Differences Explained". easyimex.com. Retrieved 15 Nov 2025.
  4. ^ "World Intellectual Property Report 2022: The Direction of Innovation" (PDF). WIPO.int. Geneva: World Intellectual Property Organization. 2022. p. 53. doi:10.34667/tind.45356. Retrieved 18 Nov 2025.
  5. ^ Ambashi, Masahito (2018). "Innovation Policy in ASEAN" (PDF). ERIA.org. Economic Research Institute for ASEAN and East Asia. p. 229. ISBN 978-602-5460-03-6. Retrieved 18 Nov 2025.
  6. ^ "NVIDIA Partners with World's Top Server Manufacturers to Advance AI Cloud Computing". nvidia.com. 29 May 2017. Retrieved 18 Nov 2025.
  7. ^ "Despite sales decline, Nokia phones business saw its 1st positive earnings (EBIT) in Q4 2019". NokiaPowerUser.com. 31 Mar 2020. Retrieved 15 Nov 2025.
  8. ^ "Intellectual Property Policy". inventec.com. Retrieved 19 Nov 2025.
  9. ^ "Management of Intellectual Property". quantatw.com. Retrieved 19 Nov 2025.
  10. ^ Branstetter, Lee G.; Chen, Jong-Rong; Glennon, Britta; Zolas, Nikolas (Aug 2021). "NBER Working Paper No. 29117, Does Offshoring Production Reduce Innovation: Firm-Level Evidence from Taiwan" (PDF). NBER.org. National Bureau of Economic Research. p. 10. Retrieved 18 Nov 2025.
  11. ^ Teilmann-Lock, Stina (2017). "Industrial Property or Artistic Property? Design, Intellectual Property Law and the PH Lamp". Journal of Design History. 30 (4): 408–419. ISSN 0952-4649.
  12. ^ Perviz, Asmin. "Who really owns your IP? How to avoid the manufacturing outsourcing trap". www.escatec.com. Archived from the original on January 13, 2026. Retrieved 2026-02-17.
  13. ^ ""The Apple Patent Fight Between Apple and Samsung: Interviews with Korean and Korean-American Attorneys"" (PDF). Archived (PDF) from the original on November 19, 2025. {{cite web}}: line feed character in |title= at position 51 (help)
  14. ^ "Apple and Samsung, frenemies for life". Archived from the original on February 17, 2026.
  15. ^ Wang, Yue. "Alibaba's Struggle For E-Commerce Legitimacy Is Undermined By Fake Gucci And Refugee Boats". Forbes. Archived from the original on 2025-07-21. Retrieved 2026-02-17.
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