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]

See also

References

  1. ^ Mahan, Josh (12 February 2024). "OEM vs ODM: Manufacturing Key Differences". cc-techgroup.com. Archived from the original on 16 November 2025. Retrieved 15 November 2025.
  2. ^ "Choosing the Right Manufacturing Partner: OEM vs. ODM vs. OBM Explained". connectedsourcing.com. 27 June 2024. Archived from the original on 16 November 2025. Retrieved 15 November 2025.
  3. ^ Gilbourne, Adam (15 September 2025). "OEM vs. ODM vs. OBM – Key Differences Explained". easyimex.com. Archived from the original on 16 November 2025. Retrieved 15 November 2025.
  4. ^ World Intellectual Property Organization. (2022). "World Intellectual Property Report 2022: The Direction of Innovation" (PDF). WIPO.int. Geneva: World Intellectual Property Organization. p. 53. doi:10.34667/tind.45356. Retrieved 18 November 2025.
  5. ^ Ambashi, Masahito (2018). Innovation Policy in ASEAN (PDF). Economic Research Institute for ASEAN and East Asia. p. 229. ISBN 978-602-5460-03-6. Archived (PDF) from the original on 28 May 2025. Retrieved 18 November 2025.
  6. ^ "NVIDIA Partners with World's Top Server Manufacturers to Advance AI Cloud Computing". nvidia.com. 29 May 2017. Retrieved 18 November 2025.
  7. ^ "Despite sales decline, Nokia phones business saw its 1st positive earnings (EBIT) in Q4 2019". NokiaPowerUser.com. 31 March 2020. Archived from the original on 6 October 2025. Retrieved 15 November 2025.
  8. ^ "Intellectual Property Policy". inventec.com. Archived from the original on 19 November 2025. Retrieved 19 November 2025.
  9. ^ "Management of Intellectual Property". quantatw.com. Retrieved 19 November 2025.
  10. ^ Branstetter, Lee G.; Chen, Jong-Rong; Glennon, Britta; Zolas, Nikolas (August 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. Archived (PDF) from the original on 18 December 2025. Retrieved 18 November 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. JSTOR 48545558.
  12. ^ Perviz, Asmin. "Who really owns your IP? How to avoid the manufacturing outsourcing trap". www.escatec.com. Archived from the original on 13 January 2026. Retrieved 17 February 2026.
  13. ^ ""The Apple Patent Fight Between Apple and Samsung: Interviews with Korean and Korean-American Attorneys"" (PDF). Archived (PDF) from the original on 19 November 2025.
  14. ^ "Apple and Samsung, frenemies for life". Reuters. Archived from the original on 17 February 2026.
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