International Marketing: Chapter 7 Key Concepts  Bases for legal systems  International legal dispute situations  Jurisdictional clause  Conciliation/mediation, arbitration, litigation  Intellectual property rights  International conventions  Commercial law within countries  U.S. laws apply in host countries  Emerging issues in cyberlaw

Bases for Legal Systems u Common Law u Civil or Code Law u Islamic Law u Marxist-Socialist Law

International Legal Dispute Situations Between Governments Between a Company and a Government Between Companies

How is Legal Jurisdiction Determined? u Location of the contract agreement u Location of contract performance u Ideally: jurisdictional clause in contract

How are International Disputes Resolved? u Conciliation or Mediation u Arbitration u Litigation

Conciliation or Mediation u Agreement between two parties to resolve the dispute by asking a third party to mediate the differences u A friendly negotiation u NOT legally binding

Arbitration u An agreement between two parties to resolve the dispute by selecting an informed, third party to determine the merits of the case and make a judgment u Legally binding u Many formal arbitration groups exist u A good idea for your jurisdictional clause

Litigation u Take the case to the courts u High costs u Frustrating delays u Damages your company image u This should be the last resort!

Intellectual Property Rights u Companies spend millions of dollars establishing brand names or trademarks to symbolize quality and design and to entice customers u Millions are spent on research to develop products, processes, designs, and formulas u U.S. companies estimate annual loss of $100 Billion

International Conventions (Mutual Recognition & Protection) u Three major international conventions –Paris Convention for the Protection of Industrial Property –Inter-American Convention –Madrid Arrangement u World Intellectual Property Organization (WIPO) –Protection and administration of multilateral treaties u Patent Cooperation Treaty (PCT) u European Patent Convention (EPC) u The Trade-Related Aspects of Intellectual Property Rights (TRIPs)

Commercial Law Within Countries Marketing Laws Green Marketing Legislation Antitrust

U.S. Laws Apply in Host Countries Foreign Corrupt Practices Act National Security Laws Antitrust Laws Antiboycott Law Extraterritoriality of U.S. Laws

Emerging Issues in Cyberlaw Cybersquatters Taxes Jurisdiction of Disputes Validity of Contracts