Test 3 Legal 4900

field of use limitations

- restrict the application for which the licensee may employ the IPR - EX: laser tech used by licensee for medical use, but licensor retains the use for communication and other uses.

Bank of America Nat'l Trust & Savings Assn. v. United States

BofA conducted general banking business in Thailand, Philippines, and Argentina and paid each place the associated taxes. BofA demanded a credit on its income tax returns but the IRS wouldn't allow it so Bank of America appealed to a trial commissioner and the Court of Claims. Decision: the US Court of Claims dismissed the petition for a tax credit.

entry process

CBP examines goods to determine whether any import prohibitions or restrictions apply to the goods, whether the goods are subject to any other laws or regulations, and whether any tariffs or import duties are due

INA Corp. v. Islamic Republic of Iran

INA acquired 20% of shares of Bimek Shargh, an Iranian insurance company. Iran's govt. then enacted a nationalization of insurance and credit enterprises law and wanted the shares back. INA sued for the value of shares plus the interest and legal costs. Decision: Iran-United States Claims Tribunal awarded INA the amount it sought plus simple interest of 8.5%

currency exchange rights

When a company negotiates with a soft currency foreign government in advance for preferential access to hard currency.

exclusive rights

When exploitation of a licensed IPR requires significant financial resources from a firm, they may seek _______ ______ to enhance chances of adequate return on investment; typically the licensor doesn't want to put all eggs in 1 basket though

active investment

investor has ownership interest as either a branch or subsidiary

export controls

laws and regulations that govern the control and licensing of certain goods and technology exported from the United States or released or transferred to anyone who is not a U.S. citizen or permanent resident, whether that person is within or outside the United States. It's administered by the Commerce Dept and is a tricky balance btwn national security and trade competition

passive investment

least regulated type of foreign investment because they do not raise speculation of outsider influence. either passive debt investment (loan to business) or passive equity investment (purchase equity interest in the foreign business

antiboycott

legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott

Licensing agreements

looks at the duration and term of license, field of use/what the product is used for, license fee as royalties or lump sum, the markets you are selling in (turf), and dispute resolution for the forum. Also looks at output restrictions and what choice of law will be used

Foreign Derived Intangible Income

lower taxes on US IP earnings

market access

many countries limit foreign investment, especially in national security interests. ex: Ports or defense industries are usually off limits. In US, CFIUS regulates companies buying an interest in a company and can review or block any transaction with foreigners that impacts national security.

currency risk

often borrow in home country's currency, it may fluctuate though. Foreign currency can devalue or hyperinflation could occur like with Zimbabwe

design patent

patents protecting the ornamental features of an article of manufacture. Lasts for 15 years and you have to create an article that is new or original

modern traditional theory

permits takings but imposes certain requirements on the nation exercising its takings power

tariff engineering

process of modifying or engineering a product prior to importation for the purposes of obtaining a lower rate of duty. You do things to try and get a tariff advantage

export credit agencies

promote investment from their own countries

commercial invoice

required for all shipments intended for sale or commercial use in the US

general rules of interpretation

rules found at the front of the tariff schedules and they help to classify goods

currency swap

simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. helps hedge against fluctuation risk

specific tariff rate

specified dollar amount per piece, or unit of weight or measure

dutiable status

the legal status of imported goods at the time of entry for purposes of compliance with the tariff and customs laws. Must list classification, customs value, and country/origin in order to decide how much to tax. There's the HTSUS (harmonized tariff schedule of the US) used around the world and there is a general rate of duty, as well as a special duties for trade preference nations

privitization

the national sovereign transfers a government owned asset to private parties

fluctuation risk

the possibility that the currency of the country in which the US investor has put its money will devalue against the US dollar. It's a type of currency risk

inversions

this led to ______ which are when companies move their headquarters out of the US

preferential rules of origin

those applicable to goods traded within a free trade area or customs union, or that receive preferential tariff treatment under trade preference programs for developing countries

tariff shift

transformation that takes a good from one tariff category into a completely different category. It's more objective and looks at a change in classification of the production of a good

notice of adjustment

when Customs at the port of entry determines that additional duties are owed, this is sent to the importer

geographical limitations

When the licensor agrees to provide services to facilitate the anticipated activities, such as assistance in setting up an assembly line or other training and technical support, this is one way it can restrict the licensee's use of the transferred IPR. e.g. within a specific nation

short supply controls

apply to certain foodstuffs, medicines, basic metals, or natural resources. It protects US economy from excessive foreign demand for scarce materials. ex: France and Germany put controls on PPE or US restricts weapons trade for dual use

franchise tax

impose taxes based on the franchiser's worldwide operations even if its local operations fizzle.

bad faith

intentional wrongful behavior but also includes some negligence without a finding of intent

prior disclosure

A statute to encourage importers to voluntarily report their own possible violations of the customs laws

Base Erosion and Profit Shifting (BEPS)

A term describing tax avoidance strategies whereby corporations and investors shift their profits to jurisdictions with low tax rates. Instill a 10% min tax on large multinationals Use tax haven, inversion, profit shifting, and creative IP accounting ex: Apple

Huawei and ByteDance

Chinese companies that Congress is worried about. Lots of claims of China stealing Cisco source codes, Tappy for phones, etc. Over time, the National Defense Authorization Act was used to ban federal funding and grants if companies used Huawei tech.

United States vs Zhi Yong Guo

Chinese engineer purchased thermal imaging cameras and tried to smuggle them to China. They were charged with attempting to export controlled items without a license. Decision: affirmed the initial decision and said that the regulations for EAR are neither vague no complex

Compaq Computer Corp. Subsidiaries v. Commissioner of Internal Revenue

Compaq set up a PCA manufacturing subsidiary in Singapore to make the circuits for the PC's. Compaq bought the PCAs at market price in Singapore, but IRS thought there was too much profit for them because of Singapore's low taxes, so IRS argued a cost-plus approach should be used. Decision: The Tax Court found that Compaq satisfied the arm's length prices and ordered the IRS to reduce its deficiency notices.

Lacoste v. Crocodile International

Crocodile trademark confusion. Lacoste hadn't used a logo in 3 years and should've had the trademark removed. The case was dismissed. Also happened with Lacoste suing Hema the children's brand

dutiable value

Customs value of goods entered into any country must be reported by the importer-of-record to national customs authorities at time of entry

Operation Mega Flex

US seized Chinese shipments and made a big example of China and the illegal firearm suppressors, fake shoes, and herbal medicine pills

license

a limited permission to use the US firm's trademarks, copyrights, or know-how in making products for sale in the vicinity of the foreign company's country

tariff schedule

a listing of specific items, coded numerically and described by name or use

utility patent

a patent that protects the way an invention is used and works and has a broad range of potential applications. These patents protect a novel or useful process. Lasts for 20 years

drawback

a refund of duties already paid on imported goods when the goods are reexported or destroyed

manufacturing drawback

a refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years. Input product pieces, doesn't leave the country in the same condition as it arrived

sanction

a regulation that restricts or prohibits certain relationships with specified foreign countries, entities, or named individuals because of their support for things that the US doesn't support. Administered by the Treasury Dept

domestic or regional value content test

a type of value added test that requires some minimum percentage of the value of materials and direct processing operations be performed in a country in order for it to have originated there

inconvertibility insurance

aka Nontransfer insurance policy. investors purchase these policies to ensure against hard blockages. It's a type of political risk insurance

rejected merchandise drawback

allowed for imported merchandise that was shipped without consent, is defective, or does not conform to specifications or to samples

patent cooperation treaty

allows international registration of patents through WIPO

validated end user program

allows qualified exporters to preapprove shipments to foreign trusted customers, business partners, and subsidiaries of American companies of certain high technology or dual use items without the need for individual export licenses

binding ruling

also called a ruling letter, from Customs in advance of an entry. It represents the official position of customs with respect to the specific transaction for which it was issued.

reinsurance treaty

an agreement among insurance companies that spreads the risk among its members

franchising

an arrangement in which the licensor permits the licensee to sell certain goods under the licensor's trademark or service mark under the terms of a _____________ agreement

global supply chain

an integrated international network of logistics, communications, finance, and trade relationships designed to take a product from inception through production and delivery to customers

consolidated screening list

an online compilation of prohibited end users

boycott

an organized refusal of one or more nations, often backed by economic sanctions, to trade with 1+ other nations

political risk analysis

another type of proactive management. the enterprise retains a firm or its own personnel to analyze a host country's risk of nationalization/expropriation, as it would study any other business problem

port of entry

any place when customs or immigration authorities permit the entry of goods or people

priority claim

applicant business has up to 30 months after filing to begin the administrative processing (prosecution) of the application in the countries in which it wishes to obtain protection. This gives the applicant time to secure funding for the patent filing

dual use items

commercial items that may also have military, terrorist, or "proliferation" uses. Must get a license from Commerce BIS (Bureau of Industry and Security)

Automated Commercial Environment (ACE)

compliance system through which the trade community reports imports and exports, and the US government determines admissibility

soft blockages

delays in processing conversion requests by the local authorities

rules of origin

legal rules used to determine the country of origin of imported products

fundamental research

research in science, engineering, or mathematics, the results of which ordinarily are published and shared broadly within the research community, and for which the researchers have not accepted restrictions for proprietary or national security reasons

screwdriver plant

ship a product in pieces to your affiliate and then assemble it there for shipping. It's a type of transshipment pretending to have a substantial transformation

net book value

tax-related depreciation cost of assets without regard to whether there has been true depreciation in value.

country of origin

that country from which an imported good is said to have originated according to the specific legal rules called the rules of origin. It looks at the last place of substantial transformation.

informed compliance

the "softer" mechanisms designed to place the burden of voluntary compliance on importers

enforced compliance

the active investigation of customs violations and the prosecution of violators

export

the actual shipment or transmission out of the US in any manner to a foreign person to the US.

formal entry

the administrative process required to import goods into the customs territory of a country. It's big commercial shipments and you have to declare, insect, and pay duties

foreign availability

the controlled item, or one of comparable quality, is "available-in-fact" from non-US sources in sufficient quantities so that any attempt to control for national security purposes would be ineffective

tariff-shift rule

the country of origin is the last country in which all "inputs" (raw materials, component parts, etc.) in the finished product underwent a defined change in tariff classification.

barter

the direct exchange of goods and services for other goods and services

creeping expropriation

the effect of laws and regulations that subject the investor to discriminatory taxes, legislative controls over mgmt, price control, etc.

importing

the entering of goods into the customs territory of a country.

copyrights

the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit. Berne Convention allows for international recognition of _________. China is a problem, but they have been getting better after joining the WTO and TRIPS. _________ last the life of the creator + 70 years.

liquidation

the final computation and assessment of the applicable duty on entered goods by customs. Customs has 314 days to make final determination

extraterritorial jurisdiction

the idea of a nation being able to extend the power of its export control laws over its goods and tech once they have left its territory.

technology

the information necessary for the development, production, use, or operation of items in any form

foreign direct investment

the investor owns and actively controls the productive assets of ongoing business concerns in a foreign country. Can start a foreign business or subsidiary, invest in corporate stock, LLC's, or joint ventures in either direct or indirect ways

parallel exchange

the investors, all committed to the local incontrovertibility risk, spread that risk over a larger group, with the hoping of reducing the vagaries of local bureaucracy

ultimate purchaser

the last person in the US who receives an article in the form in which it was imported

principal use

the ordinary use to which articles of the same class and kind as those being imported are usually put and which is greater than any other single use of the article

buy-back agreement

the provider of the equipment or technology used in manufacturing will receive, as its payment, a portion of the goods manufactured by the supplier's equipment or the factory in which the equipment is installed

deemed reexport

the release or transfer of an item from someone who was licensed to receive it to a different foreign person

deemed export

the release or transfer of any item subject to control, including tech or software, to a foreign person in the US

Gray Market/ Parallel Trade

the resale of goods between countries without the authorization of the owner of the intellectual property (IP) rights associated with those goods. Companies often make cheaper products for developing markets

political risk

the risk that profits will be affected by changes in the host country's political structure or instability. Regimes change, priorities shift, and new legislation. It happens in even stable/developed nations. An extreme example is expropriation/nationalization/ and takings.

inconvertibility risk

the risk that the government of a country with soft currency will hinder the foreign entrepreneur from trading the foreign currency back into US dollars. It's a type of currency risk

reexport

the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country or foreign person

diversion

the unlawful transfer, transshipment, or rerouting of controlled goods or technology from one destination to which the goods or tech were legally shipped to another destination who doesn't have the license to receive the items

Trading with the enemy

this act restricted trade with countries that were hostile to the USA during WWI. It's now limited to wartime use

Ferrostaal Metals Corp v US

unpainted steel sheets from Japan were galvanized in New Zealand and the Plaintiff listed the country of origin as NZ but Customs said the country of origin was Japan. Decision: Japanese steel that had been galvanized in NZ was substantially transformed so that it had become a product of NZ and wasn't subject to voluntary restraint agreements btwn the US and Japan

TRIPS (Trade-Related Aspects of Intellectual Property Rights)

updates the Paris and Berne treaties to provide state-state dispute resolution. It has escape clauses for research and public welfare. It also regulates geographical indications like Champagne only allowed if from France town. US doesn't recognize it

national security controls

used to prohibit the export of goods or technology that would make a significant contribution to another country's military that would be detrimental to the U.S.'s national security.

private political risk insurance

2 markets - Lloyd's of London and other private syndicates Private has less regulation but is more expensive. They pool money from investors to insure specific projects.

same-condition drawback

A drawback of duties paid on imported goods that are re-exported in the "same condition" as they were imported, provided they were not significantly altered. It's rejected merchandise that is being sent back

export management and compliance program

A mandatory program in an organization that states the compliance policies of a company in writing, involving senior managers as well as personnel at all levels.

grant back

A provision under which any improvements by the licensee of a license agreement is granted back to the licensor

ADC Affiliate et al. v. The Republic of Hungary

ADC were a foreign entity that invested in the expansion of an airport in Hungary. The Gov or Hungary owned the airport and it enacted a decree resulting in the privatization of the airport and terminated ADC's long term leases, so they sought to recover their investment. Arbitration occurred over the unlawful expropriation because the airport boomed after receiving ADC's investments. Raised questions of compensation based on time of taking or time of award.

profit margin preservation

AKA unitary index adjustment, it's the price or payment to the foreign investor will be adjusted periodically to maintain the same profit margin

OFAC (Office of Foreign Assets Control)

Administers and enforces economic and trade sanctions against foreign countries and terrorist organizations. It deals with issues of enemy companies or countries. You can get off the list eventually.

Tax Cuts and Jobs Act

An Act to provide budget resolution that represented changes to individual and business tax rates. US corporation rate dropped to 21%, no tax for repatriating foreign dividends (so just 1 time payment on accumulated earnings),

New Zealand - Comite Interprofessionel du Vin de Champagne v. Wineworths Group, Ltd.

An Australian company sought to sell sparkling wine in NZ and the package contained the word champagne on it, even though it was made in Australia. Decision: The court prohibited Australia defendants from using the word champagne in New Zealand

prior approval

An advance approval from a regulatory agency in the gov

Export Control Classification Number (ECCN)

An alpha-numeric code, e.g., 3A001, that describes an item and indicates licensing requirements. All ECCNs are listed in the Commerce Control List (CCL) (Supplement No. 1 to Part 774 of the EAR).

customs broker

An authorized agent, licensed by federal law, to act for and on behalf of importers in making entry of goods.

Kirksaeng v. John Wiley and Sons

Cornell student buys Thai textbook and resells to US students. SCOTUS says that's fine because of the first sale rule

export administration regulations

Department of Commerce control over dual-use goods/software/technology predominately civilian in nature but may include military applications. Requires you to check Commerce Control List and Commerce Country Chart to make sure you can export products to a certain country. Also there's I.T.A.R. for International traffic in arms regulations.

substitution drawback

Duties paid on imported goods may be received by a U.S. firm that imports goods and then exports other goods of the "same kind and quality " Fungible goods (those that are interchangeable goods)

essential character

If two or more headings or subheadings each describe only certain materials or components in composite goods, the article must be classified under the heading that describes the material or components that give the article its ______ ______

counterpurchase agreement

Involves the sale of goods to a buyer, often a foreign government, which requires as a condition of the sale that the seller buy other goods produced in that country

Apple vs samsung electronics

Jury awarded Apple money for Samsung infringement. Apple asked for more money but it was declined and Apple was hurt because Samsung now only had to pay half of what they were originally told to pay.

A. Bourjois & Co. v Katzel

Katzel bought quantity of power and sold in France with packing that was similar to A. Bourjois already registered trademark. A Bourjois was granted preliminary injunctions (hurts U.S. consumers because products are more expensive)

Diamond vs Chakrabarty

Living, man-made micro-organism is patentable subject matter as a "manufacture" or "composition of matter" within the meaning of the Patent Act of 1952. The fact that the organism sought to be patented as alive is no bar to patentability. Decision: he was initially denied the patent but Supreme Court said bacteria was patentable

mobile communication service inc. vs WebReg, RN

Mobile Comm. Service, AKA Mobilcom said that WebReg, RN had infringed on its trademark by creating the website "mobilcom.com" even though there was no right or interests in that name, but rather in bad faith. Decision: WebReg, RN had to transfer the website to Mobilcom. Cybersquatting laws are now in place to protect URL's of trademarked company names

notification registration

More open to technology transfers Countries with general acceptance of transfer make exceptions for heightened concerns like technology agreements between foreign companies and their controlled subsidiaries

United States vs Mousavi

Mousavi immigrated to US from Iran. He was audited and had an unreported income from a Kuwait company to help him develop his business in Iran. He didn't have a license and was convicted for violating a US embargo. Decision: affirmed the previous ruling and said that the gov doesn't have to prove that the defendant knowingly violated a specific provision of the law

National Thermal Power Corp. v. The Singer Co.

National Thermal Power Corp. entered contract to supply certain equipment and projects in India. Singer sought international arbitration under ICC rules in London and won and then sought to enforce the award in India. Despite the contract's adherence to "international arbitration", the whole court had to be retried in India under the Indian Arbitration Act Decision: National legislation may supersede contractual provisions that the arbitrator is called on to interpret. The whole case had to be retried in India.

W.S. Kirkpatrick v. Environmental Tectronics Corp.

Nigeria awarded W.S. Kirkpatrick a military contract instead of Environmental Tectronics Corp (ETC). ETC investigated the circumstances of the award and learned that the winner had bribed key gov officials for making the decision. Decision: The US Supreme Court affirmed the Court of Appeals decision and allowed ETC to proceed with its lawsuit against Kirkpatrick.

substantial transformation

Occurs when the original article loses its identity as such and is transformed into a new and different article of commerce having "a new name, character, or use" different from that of the original item

United States v. Mandel

The defendants were charged with exporting high tech equipment illegally without a license. The gov said that a criminal defendant couldn't challenge the Secretary of Commerce's decision to place a commodity on the control list. Decision: reversed and remanded. The decision to put an item on the control list is not subject to discovery by the defendants and aren't material and the courts will not inquire into the national security policy reasons for control

conscious avoidance

The exporter purposely avoided learning the truth about an end user or destination - information that might have had a bearing on his or her license application

intellectual property rights

The legal protection of the original works of inventors, authors, creators, and performers under patent, copyright, and trademark law. Such rights became a contentious area of trade negotiations in the 1990s.

transaction value

The price actually paid or payable for the merchandise when sold for export to the US, including container costs, commission, and any value or royalty fee

Otter Products, LLC v. United States

There wasn't a clear designation of what a phone case should be taxed as. Customs classified the Otterbox phone cases as brief case with a 20% duty while Otterbox said they should be charged at 5.3% instead; Decision: the court agreed with Otterbox's arguement

non-preferential rules of origin

Those applicable to imports of DEVELOPED countries that will receive normal tariff treatment.

yarn forward

Trade rule that allows duty free access into the US market if apparel was made of yarn and fabric produced in one of the countries that are members of the free trade block (i.e., NAFTA, CAFTA). It looks at where the yard was first used to make the clothing

Electronic Export Information (EEI)

US electronic form completed by the exporter used for export control purposes and to compile official US export statistics. It's required for each export shipment leaving the US

Carl Zeiss, Inc. v. United States

Zeiss imported microscopes, stands, and accessories for neurological use. Customs classified them as a photographing machine whereas Zeiss disagreed and said it was a medical or surgical apparatus. Decision: the court held for the government because of the rule of relative specificity was better applicable under what Customs had declared the microscopes as. Stereoscopic compound microscope won because it was more specific.

source

______ of funds when taxing someone, it's important to determine tax rate credits. Foreign tax credit with US charges 35% and France charges 25% tax, so US charge 10% tax to make up for missing percent.

contract manufacturing

a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas

soft currency

a currency that is not easy to exchange for currencies of other nations

civil customs fraud

a far more serious case of fraud than negligence. It occurs where there is a clear and convincing evidence that the importer knowingly made a materially false statement or omission while entering or attempting to enter goods in the US. Criminal fraud is when there is evidence/proof

countertrade

a form of trade in which all or part of the payment for goods or services is in the form of other goods or services

royalty

a license for a fee that is granted to a foreign company

composite goods

articles made of different materials or components

import substitution rights

available when the new venture will manufacture a product in the soft-currency country that the nation had previously imported

ad valorem tariff rate

based on a percentage of the value of the articles imported

IEEPA (International Emergency Economic Powers Act)

broad executive power to seize assets or impose trade embargoes

Geneva act

central registration for design patents and lasts for 15 years.

transshipment

changing country of origin to avoid tariffs and quota limits. You cross borders to get a tariff advantage. ex: China moves products through Vietnam to get a tariff advantage

compound tariff rate

combination of both ad valorem and specific rates

foreign trade zones

designated geographic region through which merchandise is allowed to pass with lower customs duties (taxes) and/or fewer customs procedures. It's legally defined sites, like warehouses or manufacturing facilities, that are operated pursuant to legislation and under gov license, that are legally outside the customs territory of the country they are in. It saves time and allows you to assemble, repackage, and export without paying duties.

trade creditors

entities that sell supplies or services to the venture should try to buy locally in local currency; retain hard-currency for repatriation

comity

good relations among nations

buy american act

gov procurement preferences based on "substantially all" (50% Use content and assembled in USA) then trump proposed an even higher % of requirements for material made in USA to 95%

US vs Golden Ship Trading Co.

t-shirt company claimed to operate a factory in the DR, but the t-shirt body was made in Chine and the sleeves were attached in the DR with a "made in Dominican Republic" label. The lady/Ms. Wu relied on the info provided by the exporter rather than looking. She didn't exercise reasonable care. Decision: Ms Wu failed to exercise reasonable care and verify the documents and customs could assess a penalty.

nationalization

taking an entire industry or natural resource as part of a plan to restructure the nation's economic system.

expropriation

taking of an isolated item of property. Potential investors fear the potential for gov takings. FSIA means foreign govs often are immune from suit in US Courts. get assurances with Bilateral Investment Treaties, and is becoming a common part of FTA's. Often use arbitration with ICSID as a venue

Better Home Plastics Corp. v. US

Better home plastics corps imported shower curtains and Customs classified the shower curtains as curtains and interior blinds, whereas Better Home Plastics argued that the classification should be based on the inner plastic liner for kitchenware and toilet articles. Decision: Better Home Plastics were misassigned under interior blinds and are instead the household article of plastic. The rule of relative specificity doesn't apply here because the shower liner imparted the essential character to the set

briggs and stratton corp v. baldridge

Briggs was blacklisted because it had been dealing with Israel in the Arab League's eyes. Brigg's argued that because of US regulations, they were blacklisted and this affected its worldwide sales. Decision: the antiboycotting regulations were upheld by the court despite the difficulties of compliance

In re independent service organizations antitrust litigation CSU et al. vs. Xerox Corp

CSU sued Xerox saying that Xerox violated antitrust laws by refusing to sell patented parts and copyrighted manuals to license copyrighted software. The court said Xerox's refusal to sell or license its parts didn't violate antitrust laws

henrietta locks

Cancer cells removed during treatment at Johns Hopkins and they were used to create an immortal cell line for medical research. 11,000 patents have been filed and ________ was never informed or compensated

biopiracy

Extracting plants and animals indigenous to the emerging nation for research, alter the plant or animal, and then obtain patents related to this research without providing the host country with compensation or affordable access to the inventions

FRAND

Fair, reasonable, and non discriminatory Reduces the risk of patent "hold-up" and perceived advantages of litigation

Nissan Motor Mfg. Corp., U.S.A. v. United States

Nissan imported production machinery of industrial robots and automated systems to assemble and test in the US assembly plant. If the machinery was unsatisfactory then it was replaced and scrapped; however, Customs said that the production equipment was not "merchandise" as ruled under the FTZ act, and was therefore taxable. Decision: machinery entering a FTZ for use in manufacture and assembly of automobiles is not "merchandise" and can still be taxed. Production equipment usage constitutes consumption

deferral principle

Parent companies are not taxed on the income of a foreign subsidiary until they actually receive a dividend from that subsidiary. Don't pay US taxes until repatriation

cybersquatting

Registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.

Made in the USA

Regulated by FTC not by customs to make sure there's no false advertising. It's mandatory for textiles or for cars you have to label the % of assembly disclosure.

tied-purchase clause

Requires franchisee to buy certain goods from franchiser

customer restrictions

Restrictions on who can sell to, such as wholesalers only. AKA output restrictions

OBB Personenverkehr AG v. Sachs

Sachs sued OBB after she tripped and fell as she attempted to board the train in Europe. She bought the Eurail pass in U.S. and claimed she was not warned about the unsafeness of the train and the company breached many duties to keep it in fit condition. OBB claimed sovereign immunity and moved to dismiss the case for lack of subject matter jurisdiction. Decision: Sachs was denied her claim; she tried to make it on the basis that it was commercial activity but it didn't work

multilateral sanctions

Sanctions imposed by more than one country. Are usually more successful that those without universal support. They are rarely successful and can hurt innocent citizens and can drive countries to trade with bad actors

language politics

Situation found in regions of a few countries where laws require that companies conduct business in a certain language

TVBO Production Limited vs Australia Sky Net Pty Limited

TVBO, a Hong Kong company, owned Chinese miniseries called Twin of Brothers and they alleged that four respondents worked together to intercept and rebroadcast the show to Australia without permission. Decision: The court found the defendants guilty of copyright infringement and granted TVBO its requested relief

Global Intangible Low-Taxed Income (GILTI)

Tax very large foreign earnings and assume profit sharing

right of priority

The date of an applicant's foreign application is deemed to be the same as the date of the applicant's original application on the same invention, so long as the foreign application was filed before the first anniversary of the original application. This prevents the "first to file" issue for patents

rule of relative specificity

if an article can be classified under two or more headings or subheadings, it must be classified under the one that most specifically-most narrowly-describes the article with the greatest degree of accuracy and certainty

counterfeit goods

imitation goods that are sold illegally that are typically lower quality

trade secrets

important part of manufacturing process, especially tech and pharma. Countries that don't produce much IP are less likely to respect it. China is in transition for the right direction now.

wholly obtained

means that it was wholly the growth, product, or manufacture of one country. This is common for agricultural products

paris convention

multilateral agreement to respect foreign patent filings

transfer pricing

multinational corps often do business with their subsidiaries

madrid protocol

now allows international recognition of trademarks

hard blockages

occur when the foreign government passes a law that prevents conversion or transfer

informal entry

personal and commercial shipments valued at $2,500 or less may be cleared through this process. low value items

traditional theory

prohibits all takings of foreign property

patent

protection for new inventions that must be new, involve a new inventive step (nonobvious), and are capable of industrial application (usefulness).

currency inconvertibility

reciprocal arrangement between buyer and seller for the sale of goods or services intended to minimize the flow of foreign exchange from buyer's country

geographic indications

refers to where a product particularly wine or liquor is marketed by reference to a geographic region