An Original Equipment Manufacturer (OEM) agreement in the context of software licensing typically involves an arrangement where a software developer (the licensor) licenses its software to a hardware manufacturer (the licensee) to bundle and resell with the hardware manufacturer's products. This kind of agreement is common in the technology industry, and it's used to establish mutually beneficial relationships between software developers and hardware manufacturers. - For example, let's consider a company that manufactures computers—let's call them CompTech. CompTech produces a wide range of laptops but doesn't develop its own operating system or other software for the computers. On the other side, we have a company named SoftWork that has developed a popular operating system and a suite of productivity tools. - In this case, CompTech and SoftWork might establish an OEM agreement. Under this agreement, CompTech would license SoftWork's operating system and software to pre-install on its laptops before selling them to consumers. This way, CompTech can provide a full solution to its customers—hardware plus software—while SoftWork benefits by broadening its user base and gaining additional licensing fees. - In another scenario, imagine a gaming hardware company called GameMakers that creates high-end gaming consoles. GameMakers might enter into an OEM agreement with a company called PlayWrite that develops a popular game engine. GameMakers could license the PlayWrite game engine, allowing game developers to create games for the GameMakers console more easily.