1. The International Legal Environment

2. 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

3. 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

4. The Legal Environment 3) Product Liability 4) Intellectual Property 5) Recourse - Arbitration - “International Law”

5. International Dispute Resolution Conciliation or Mediation Arbitration Arbitration Centers Arbitration Clauses Enforcement of Arbitration Litigation

6. Patent Law The United States vs. Japan SOURCE: Crossing-borders 7-4, p.175. United StatesJapan 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.

7. Rating For the Level of Intellectual Property Protection in Various Countries ( Minimum = 0…10 = Maximum ) CountryPatentsCopyrightsTrademarksTrade Secrets Argentina 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.