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  • 1.  Legal manufacturer applicability

    This message was posted by a user wishing to remain anonymous
    Posted 30 days ago
    This message was posted by a user wishing to remain anonymous

    A manufacturer of medical devices is contemplating to sell the intellectual property and commercialization rights of a medical device to another company. However, the original developer will continue manufacturing the device for the new owners.

    Who is the Legal manufacturer? Is it the original developer that will continue manufacturing the device, or the new company as the device owners?

    What determines the legal manufacturer role and is that a constant in all territories or is it different in the USA vs EU vs APAC?

    Thank you all in advance!



  • 2.  RE: Legal manufacturer applicability

    Posted 28 days ago

    Hi Anon,

    the details what makes out a legal manufacturer and how the responsibilities between legal manufacturer and contract manufacturer are handled differ between jurisdictions (and sometimes you might have additional roles like local representatives or license holders). For the EU the entitiy labeled on the device as manufacturer would be the mainly responsible legal manufacturer that needs to show sufficient control over its contract manufacturers.

    Best regards

    Christoph



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    Christoph Kiesselbach
    Schrack & Partner
    Reutlingen
    Germany
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  • 3.  RE: Legal manufacturer applicability

    Posted 25 days ago

    Hi Anon:

    I agree with Christoph on this one - no easy answers. Each jurisdiction defines different roles. One thing to consider is who is current design authority: you, the original developer, someone else? In short you really need to look at the all the contracts and produce a Responsibility Assignment Matrix (RAM) sometimes called a  RACI (responsible, accountable, consulted or informed) matrix; then map this onto to legal roles defined in the US QSR, UK MDR and EU MDR ... at least that would be my approach.

    Lastly, if you are confident, do bring an external advisor on-board. If nothing else, it helps to show that even if a regulatory decided you have it wrong, it could show you went the "extra-mile" and had no mal-intent.

    Tricky regulatory problems make us grow! Enjoy!

    Neil



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    Neil Armstrong FRAPS
    MeddiQuest
    Peterborough UK
    Waterford Ireland
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  • 4.  RE: Legal manufacturer applicability

    Posted 27 days ago

    There is a difference between the role of the producer and that of the legal manufacturer. As Christoph Kiesselbach says, these difference vary per market. In general, a legal manufacturer can outsource production. That producer will be a critical supplier and this should be covered in the quality management system. But the ultimate responsibility of the safety and performance of the device lies with the legal manufacturer. 

    By the way, the legal manufacturer may even sell the IP and commercial rights to someone else, and still remain the lagel manufacturer. It all depends on details in the agreement. 



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    Ronald Boumans
    MDR Expert
    Super PRRC
    Netherlands
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  • 5.  RE: Legal manufacturer applicability

    This message was posted by a user wishing to remain anonymous
    Posted 26 days ago
    This message was posted by a user wishing to remain anonymous

    Hello Anon

    It depends on how the two companies write the agreement.

    One common arrangement is where the new owner receives whatever exists in the way of design history files, technical documentation files, 510(k)'s, etc., and becomes responsible for registration, CE-marking, and so on, while the original company takes the role of contract manufacturer / actual manufacturer. The new responsible manufacturer may have the ability to make design changes as needed, and transfer those changes to the contract manufacturer. Or the original company may be engaged as a contract designer to make design changes, assuming they still have those skills and haven't stripped down to only manufacturing.




  • 6.  RE: Legal manufacturer applicability

    Posted 26 days ago

    Hello Anon,

    Generally, whichever company's name is listed on the label of the finished device would be considered the (legal) Manufacturer, though as said this can differ by region and what is stated on the label.  As an example, in the United States the product labelling could say "Manufactured for Company A" so Company A is completely responsible for a quality and regulatory aspects, Company B would be the one actually making the device.  Though I would say whosever name is listed on the device label in most jurisdictions would be considered the legal manufacturer taking on all responsibilities of quality and regulatory requirements.

    This means the name listed on the device label can not say, "Oh, well we do not really make the device, so it is not our problem," which is a big misconception in the industry.  The (legal) Manufacturer does have the responsibility so a producer or company making the device would be considered a supplier - even a Contract Manufacturer - still a supplier.  So in your scenario, there will probably need to be multiple agreements generated or even some three-way agreements while the transition activities occur.



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    Richard Vincins ASQ-CQA, MTOPRA, RAC
    Principal Strategy Consultant
    NAMSA
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