International Marketing Ch. 7

Commercial law in Sweden (Marketing laws)

Sweden ban on all tv ads to children

Common Law

tradition, past practices, & legal precedents set by courts through interpretations of statutes, legal legislation, and past rulings *derived from English law *found in England, US, Canada *ownership of intellectual property determined by first user

Prior use

whoever can establish first use is considered rightful owner *used in common law countries (U.S.)

Arbitration

when conciliation fails: parties select an informed outside party to determine judgement *Formal- decisions made are enforceable by law (mini-court) *International Chamber of Commerce (ICC) has been successful

U.S. Laws that Apply in Host Countries

*Foreign Corrupt Practices Act *Antiboycott Law *Extraterritoriality of U.S. Laws

Trade-Related Aspects of Intellectual Property Rights (TRIPs)

*part of WTO *sets standards of protection for a full range of intellectual property rights

Other issues related to cyberlaw

*writers could face libel suits in countries with laws restrictive of free speech, etc. *when and where taxes are collected --never sure where business is happening w/ e-commerce *contractual validity of e-commerce contracts always disputed

Cyberlaw & Related issues

-many issues b/c no laws regarding internet yet, for now companies have to rely on individual-country laws *too many differences in global laws to create uniform internet law

Commercial Law in China (marketing laws)

China does not allow "offensive" ads such as tampons & foot ointment to be aired during 3 meal times

4 major legal systems

Common law, Code law, Islamic law, Marxist-Socialist Tenets

Bases for legal systems

Even though a country's laws may be based on one of the 4 major legal systems, its individual interpretation may vary significantly *marketer must anticipate different laws regulating business, regardless of the legal system of country

Extraterritoriality of U.S. Laws

Foreign governments fear the influence of American government policy on their economies through U.S. MNCs *US companies must abide with US law even abroad *Conflicts arise when host gov't requires joint ventures to do business w/in the country & US restricts it b/c of anticompetitive effects

Commercial law in Austria (marketing laws)

Free gifts & coupons prohibited in Austria

The Inter-American Convention

Includes most of the Latin American nations and the U.S.

Marxist-Socialist Tenets

Law is subordinate to prevailing economic conditions *private ownership, contracts, due process, & other legal mechanisms developed in order to conduct int'l business and trade *China & Russia hampered by not having heritage of legal commercial code to build on

Foreign Corrupt Practices Act

Markes it illegal for companies to pay bribes to foreign officials, candidates, or political parties -debates whether or not puts US businesses at disadvantage *bribery is customary in many other countries *seems as if US MNCs are still thriving, however big fines placed on US comps violating FCPA

Commercial law in Greece, Norway, Denmark, Austria, & Holland (Marketing laws)

Restrict ads directed at kids

International dispute resolution

Three ways to deal with international disputes: Conciliation - get someone else to do it Arbitration - formal organization decides Litigation - seek settlement

Antiboycott Law

U.S. companies are forbidden to participate in any unauthorized foreign boycott. Required to report any request to cooperate with a boycott. *response to Arab League boycott of Israeli businesses -comps not complying w/ this boycott are blacklisted from trade w/ Arab league

National Security Laws

US firms, their foreign subsidiaries, or foreign firms that are licensees of US technology cannot sell a product to a country which could affect national security of the US *responsibility extends to final destination of product

Litigation

all else fails; lawsuit *high costs, very public, takes a long time, damages reputation, unfair treatment in foreign courts

Code Law

based on an all-inclusive system of written rules of law *laws divided into commercial, civil, and criminal codes *Derived from Roman law *Found in Germany, Japan, France, etc. *Ownership of intellectual property determined by first to register it

Cybersquatters (CSQs)

buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, etc, and hold them until they can be sold at an inflated price *register well-known brand or trademark that misdirects person to CSQs site or to competing site on purpose

Dual-purpose technologies

can only be exported if intent of buyer is for nonmilitary use

International Conventions

designed for mutual recognition and protection of intellectual property rights *The Paris Convention *The Inter-American Convention *The Madrid Agreement

European Patent Convention (EPC)

established a regional patent system allowing any nationality to file a single international application for a European patent

Countries often disagree on the _______ _______ __ ____________ _______ _________

extent of protection of intellectual property *Japan believes technology should be shared to benefit whole country *US strong advocate of protection

Patent Cooperation Treaty (PCT)

facilitates the process for application for patents among its member countries

Green Marketing Legislation

focus on environmentally friendly products and product packaging and its effect on solid waste management. *Germany passed strict laws *EU created "eco-label" awarded to products that meet standards

The Madrid Agreement

includes 26 European countries

The Paris Convention for the Protection of Industrial Property

includes U.S. & 100 other countries *requires each member country to grant to citizens of other member countries the same rights under patent law as its own citizens enjoy.

Islamic Law

interpretation of the Koran *religious duties & obligations also emphasizes ethical, moral, social issues *overall objective is social justice- enhance equality of society *prohibits payment of interest *no investments in alcohol, gambling, and casinos

Conciliation

non-binding agreement between parties to resolve disputes by asking 3rd party to mediate differences *Conferences are confidential: chinese prefer this

WIPO (World Intellectual Property Organization) of the UN

responsible for the promotion of the protection of intellectual property

Protection of Intellectual Property Rights

rights in one country does not mean rights in another country

Counterfeiting and Piracy

software, music and movie piracy common b/c of ease to reproduce & distribute over internet *major problem in pharmaceuticals

Registration

the first to register a trademark is considered the rightful owner *used in code-law countries *legal mcdonalds restaurants in Jordan but real mickey d's doesn't own it