Laws that affect international business This project has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use that may be made of the information contained therein. Project number 2016-1-LT01-KA202-023149

Laws That Affect International Business In this module: Laws and regulations in foreign countries Intellectual Property of your business Intellectual Property of other businesses INCOTERMS Case study - INCOTERMS® 2010 Scenarios Activity – Trademark registration

Laws and regulations in foreign countries When starting your business abroad or doing business in an international setting, it is wise to consult with a an attorney or lawyer based in the country you are doing business. Also check the country’s: Tax laws Customs regulations Import restrictions Corporate organization requirements Agency/liability laws

Intellectual Property of your business Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. When dealing with particularly innovative products, Intellectual Property is important to consider! This can be protected in law by: Patents Copyrights Trademarks

Intellectual Property of your business Intellectual Property enables businesses to use it to: Create differentiation and add value Command higher prices and sustained demand through brand loyalty, new and/or improved features, captivating designs Attract and pursue partners and investors Access new markets, but also generate new sources of revenue through licensing and other partnerships.

Intellectual Property of your business Intellectual property rights are only valid in the country or region in which they have been granted. That’s why applying for such rights in other countries is important if there is a plan or a possibility to go international.

Intellectual Property of your business Main routes when applying for Intellectual Property National route Apply in each country, pay fees, translate into national languages.

Intellectual Property of your business Regional route Apply for more than one country at once via: • Benelux Office for IP (TM and Designs) • African Regional Industrial Property Office (ARIPO) • Eurasian Patent Office • European Patent Office • Office for the Harmonization of the Internal Market (TM and Designs) • Organisation Africaine de la Propriété Intellectuelle (OAPI) • Patent Office of the Cooperation Council for the Arab States of The Gulf

Intellectual Property of your business International Route WIPO = global forum for intellectual property services, policy, information and cooperation and administers international registration of marks, designs and patents.

Intellectual Property of other businesses Today, the most common source of unintentional copyright violation is the Internet. There is a common misperception that any material posted on the Internet is free for others to use and copy. To the contrary, copying any material from a third party website, including text, photos, graphics is unlawful.

INCOTERMS INCOTERMS is a set of standardized terms used in international trade. If your company trades on an international basis, or either ships or receives shipments from an overseas market, then you should be aware of the INCOTERMS = International Commercial Terms of Trade.

INCOTERMS Incoterms are rules of trade that essentially dictate the exact delivery terms between two parties. How the goods will be delivered Who pays Who is responsible for insurance Who handles specific procedures (like loading and unloading)

INCOTERMS INCOTERMS include 11 rules divided in 2 classes: Terms for any mode of transportation Terms for sea and inland waterway transportation

INCOTERMS Categories of INCOTERMS E terms (EXW) The minimum obligation for the seller: making its goods available at their premises in order for the buyer to collect. F terms (FCA, FOB, FAS) The seller delivers the goods to a carrier appointed by the buyer. The seller will arrange and pay for delivery of goods to the carrier, but the buyer pays for everything after that.

INCOTERMS C terms (CFR, CIF, CPT, CIP) D terms (DAT, DAP, DDP) The seller has to contract for carriage, but does not assume the risk of loss or damage after the shipment. D terms (DAT, DAP, DDP) The seller bears all risk involved in bringing the goods to the buyer.

INCOTERMS Are you having a small (start-up) business? If yes, it is very important to: Know the INCOTERM rules Realise that the main benefit of INCOTERMS is to reduce risk. It’s always wise have a clearly-written contract to reduce any misunderstandings.