The International Legal Environment

The Legal Environment

I. PHILOSOPHICAL BASES OF LAW 1) Common Law 2) Code Law

II. INTERNATIONAL LEGAL FORCES 1) Laws Against Bribery / Corruption - U.S. Foreign Corrupt Practices Act (1997) 2) Laws Regulating Competitive Behavior - Anti-trust

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Deterrents to Litigation

● Fear of creating a poor image and damaging public relations

● Fear of unfair treatment in a foreign court

● Difficulty in collecting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration

● The relatively high cost and time required when bringing legal action

● Loss of confidentiality

Irwin/McGraw-Hill

7-6

The Legal Environment

3) Product Liability

4) Intellectual Property

5) Recourse

- Arbitration

- “International Law”

International Dispute Resolution

• Conciliation or Mediation

• Arbitration

• Arbitration Centers

• Arbitration Clauses

• Enforcement of Arbitration

• Litigation

Patent LawThe United States vs. Japan

SOURCE: Crossing-borders 7-4, p.175.

United States Japan

Protects individual inventors.

Patent applications are secret.

Patents granted in up to 24 months.

Patents valid for 17 years from date issued.

Promotes technology sharing.

Patent applications are public.

Patents granted in 4 to 6 years.

Patents valid 20 years from application date.

Rating For the Level of Intellectual Property Protection in Various Countries ( Minimum = 0…10 = Maximum )

Country Patents Copyrights Trademarks Trade SecretsArgentina 3.8 5.7 7.1 4.4

Brazil 3.3 5.2 3.3 3.3

Canada 8.1 7.7 9.0 7.8

Chile 5.7 5.7 7.6 7.8

China 2.4 2.9 6.2 3.3

Germany 8.6 8.6 9.0 10.0

India 3.3 5.7 3.8 3.3

Israel 7.1 7.1 8.6 8.9

Mexico 3.3 7.6 3.8 3.3

New Zealand 7.1 8.1 9.5 7.8

Philippines 7.1 6.2 7.6 7.8

South Korea 3.3 4.8 3.8 3.3

Singapore 7.1 6.7 8.6 5.6

Thailand 2.4 4.8 6.7 5.6

United States 9.0 8.1 9.0 7.8

Source: Adapted from Belay Seyoum, “The Impact of Intellectual Property Rights on Foreign Direct Investment,”

Columbia Journal of World Business, 31 (Spring 1996), p.56.