Upload
kartik
View
222
Download
0
Embed Size (px)
Citation preview
8/14/2019 Legal Frame-Work for IB
1/41
Presented by: Vaishali SharmaLecturer MBA IBE
8/14/2019 Legal Frame-Work for IB
2/41
Laws of the land directly affect the IB wherever theyoperate .Therefore IB managers should be aware ofthe legal systems the laws that are in force invarious foreign countries in addition to their Home
country as well as Host country.
8/14/2019 Legal Frame-Work for IB
3/41
CommonLaws
TheocraticLaws
Civil Laws
8/14/2019 Legal Frame-Work for IB
4/41
Originated in England & therefore known as EnglishLaw.
Traditions , customs, culture , precedent & usageare the bases for common law. Courts interpret thelaw according to the situations & incidents .Theselaws are in force in various countries. Such as
USAHONG KONG
UK
8/14/2019 Legal Frame-Work for IB
5/41
Common law is based on Tradition and Precedents.
Tradition is the legal history of a country.Precedents are the decisions made in previous
cases by judges.
A judgment given in particular case becomes theprecedent to be followed in similar cases in thefuture.
The system is Hierarchical the decisions of thehigher court must be followed by the lower court.
8/14/2019 Legal Frame-Work for IB
6/41
Civil law is older than the common law andoriginated in ancient Rome. Over 80 Countriesincluding
This systems is also known as CODIFIED LAW isbased on the detailed set of law organised intocodes.
The judges relied on the these detailed codes ,rather than on tradition , precedent , customs.
GERMANY FRANCE JAPAN RUSSIA
8/14/2019 Legal Frame-Work for IB
7/41
Civil law is based on how the law is applied tofacts.
8/14/2019 Legal Frame-Work for IB
8/41
It is based on religious.Most widely practicedtheocratic law system isIslamic law found inMuslim countries whichaccount for about 25% of
the world populationHindu law and Jewish lawwere in vogue up to 20thcentury.
Islamic law is known asSharis (Gods rules) & isbased on the
Holy Kuran
The Sunnah the decisionsor sayings of ProphetMohammed
The writings of Islamicscholars who devise rulesby analogy from theprinciples establishes in theKoran and the Sunnah
The consensus of Muslimscountries legalcommunities.
8/14/2019 Legal Frame-Work for IB
9/41
Muslims countries is the blend of the Islamic lawsand a Common or Civil system.
Islamic law is more a moral code than a
Commercial wiew
Islamic law prohbits taking and giving of interest .
8/14/2019 Legal Frame-Work for IB
10/41
National laws affect all local business activities
National laws affect cross border activities
International treaties and conventions may governsome cross border transactions.
8/14/2019 Legal Frame-Work for IB
11/41
Starting a
Business
Entering and
enforcing
contracts
Hiring and
firing local
workers
Closing down
the business
8/14/2019 Legal Frame-Work for IB
12/41
AUSTRALIA COMMON(ENGLISH)
2 2 402
CANADA COMMON(ENGLISH)
2 3 127
CHINA CIVIL(GERMAN) 11 46 135
GERMANY CIVIL(GERMAN)
9 45 1,341
FRANCE CIVIL
(FRENCH)
10 53 663
INDIA COMMON(ENGLISH)
10 88 239
JAPAN CIVIL
(GERMAN)
11 31 3,518
8/14/2019 Legal Frame-Work for IB
13/41
AUSTRALIA COMMON(ENGLISH)
11 320 1,623
CANADA COMMON(ENGLISH)
17 425 6,065
CHINA CIVIL
(GERMAN)
20 180 268
GERMANY CIVIL(GERMAN)
22 154 1,483
FRANCE CIVIL
(FRENCH)
21 210 896
INDIA COMMON(ENGLISH)
22 365 444
JAPAN CIVIL(GERMAN)
16 60 2,223
8/14/2019 Legal Frame-Work for IB
14/41
AUSTRALIA COMMON(ENGLISH)
365 18
CANADA COMMON(ENGLISH)
292 4
CHINA CIVIL (GERMAN) 946 18
GERMANY CIVIL (GERMAN) 437 8
FRANCE CIVIL (FRENCH) 876 18
INDIA COMMON(ENGLISH)
4,123 8
JAPAN CIVIL (GERMAN) 216 4
8/14/2019 Legal Frame-Work for IB
15/41
8/14/2019 Legal Frame-Work for IB
16/41
Intellectual property rights is a legal concept that confersrights to owners and creators of the work, for theirintellectual creativity.
Such rights can be granted for areas related to literature,
music, invention etc, which are used in the businesspractices. In general, the intellectual property law offersexclusionary rights to the creator or inventor against anymisappropriation or use of work without his/her priorknowledge.
Intellectual property law establishes an equilibrium bygranting rights for limited duration of time.
8/14/2019 Legal Frame-Work for IB
17/41
The WIPO convention lays down following list of the activities orwork which are covered by the intellectual property rights -Industrial designs
Scientific discoveries
Protection against unfair competition Literary, artistic and scientific works Inventions in all fields of human endeavor Performances of performing artists, phonograms and broadcasts Trademarks, service marks and commercial names and
designations
All other rights resulting from intellectual activity in theindustrial, scientific, literary or artistic fields
8/14/2019 Legal Frame-Work for IB
18/41
Copyright, one of theform of intellectualproperty right, offers
exclusive rights forprotecting theauthorship of original& creative work likedramatic, musical
and literary in nature.Symbolized as ""
A patent is termedas the exclusionaryrights given by the
government or theauthorizedauthority to itsinventor for a
particular durationof time, in respectof his invention.
http://www.indianindustry.com/intellectual-property-rights/patent.htmlhttp://www.indianindustry.com/intellectual-property-rights/copyright.html8/14/2019 Legal Frame-Work for IB
19/41
The trademark or trade mark,symbolized as the and ,is the distinctive sign orindication which is used forsignifying some kind ofgoods or/and services and is
distinctively used across thebusiness organization or byan individual for identifyingand uniquely classifying thesource or their productsand/or services amongconsumers and making adistinction of its products orservices from the otherentities.
Trade secret points towards aformula, pattern, anyinstrument, design which iskept confidential andthrough which any businessor trade can edge over itsrival and can enjoy economicgain. Trade secrets can beanything from a chemicalcompound, manufacturingprocess, design or preservingmaterials or even a list ofconsumers or clients. It is also
known as "confidentialinformation" or "classifiedinformation".
http://www.indianindustry.com/intellectual-property-rights/trade-secrets.htmlhttp://www.indianindustry.com/intellectual-property-rights/trade-secrets.htmlhttp://www.indianindustry.com/intellectual-property-rights/trade-secrets.htmlhttp://www.indianindustry.com/intellectual-property-rights/trademark.html8/14/2019 Legal Frame-Work for IB
20/41
The utility model is the intellectual property right forprotecting the inventions. It is somehow described asthe statutory monopoly which is bestow upon for thefixed duration of time in exchange to the inventor forthe offering of the sufficient teaching of the invention
and permitting the other person, possessing theordinary skills of the relevant art, of performing theinvention
http://www.indianindustry.com/intellectual-property-rights/utility-model.htmlhttp://www.indianindustry.com/intellectual-property-rights/utility-model.html8/14/2019 Legal Frame-Work for IB
21/41
Geographical Indication (GI) signifies to the name or sign,used in reference to the products which are corresponding tothe particular geographical area or somewhat related to theorigin like town, region or nation. Thus GI grants the rights toits holder which acts as the certification mark and shows that
the specified product consists of the some qualities and isenjoying good reputation due to its origin from the specifiedgeographical location
39 Geographical Indications products have been registered
since September, 2003. These include Darjeeling Tea,Chanderi Saree, Pochanpally Ikat, Solapur Chaddar, MysoreSilk, Kullu Shawl, Bidriware, etc.
8/14/2019 Legal Frame-Work for IB
22/41
Industrial design rights are defined as the part of theintellectual property rights which confers the rights ofexclusivity to the visual designs of objects which aregenerally not popular utilitarian. It safeguards theappearance, style, design of the industrial object such
as spare parts, textiles, furniture
8/14/2019 Legal Frame-Work for IB
23/41
A UN agency, namely, World Intellectual Property Organization
(WIPO) based in Geneva administers treaties in the field ofintellectual property. India is a member of WIPO.
Department of Industrial Policy & Promotion is the nodalDepartment in the Government of India for all mattersconcerning WIPO.
India is also member of 2 major treaties, namely, ParisConvention for the Protection of Industrial Property (relating topatents, trademarks, designs, etc.) of 1883 and the BerneConvention for the Protection of Literary and Artistic Works
(relating to copyright) of 1886. Apart from these, India is also amember of the Patent Cooperation Treaty (PCT) which facilitatesobtaining of patents in several countries by filing a singleapplication.
http://www.wipo.int/http://www.wipo.int/8/14/2019 Legal Frame-Work for IB
24/41
India is also a member of the World Trade Organization(WTO).
The WTO agreement, inter-alia, contains an agreement on IP,namely, the Agreement on Trade Related Aspects ofIntellectual Property (TRIPS).
This Agreement made protection of intellectual property anenforceable obligation of the Member States. TRIPSAgreement sets out minimum standards of intellectualproperty protection for Member States.
India has complied with the obligations contained in the TRIPSAgreement and amended/enacted IP laws.
8/14/2019 Legal Frame-Work for IB
25/41
A growing risk of IB is the violation of IPR. Forpopular products , like Music , software andMovies , there are often more counterfeit productsthan genuine ones in the market.
On April 26, 2007, World Intellectual Property Day,a total of 120,000 illegal discs were destroyed in apublic show in China
8/14/2019 Legal Frame-Work for IB
26/41
8/14/2019 Legal Frame-Work for IB
27/41
8/14/2019 Legal Frame-Work for IB
28/41
8/14/2019 Legal Frame-Work for IB
29/41
Products must adhere to certain safety standardsas prescribed by product safety laws. Firms and itsexecutives hold responsibility under productliability when injury , death or damage is caused by
usage or consumption of a product . These lawsand standards are more comprehensive in the USAcompared to other countries
8/14/2019 Legal Frame-Work for IB
30/41
Labor legislation are enacted in various countries ,mostly based on the resolutions of theInternational labour Organization .
These legislation prescribe the minimum wages ,trade unions activities , employee-employerrelations , collective negotiations , recruitment &employment practices , stipulating regarding
working conditions , employee benefits regulations& modalities of prevention & settlement ofindustrial disputes
8/14/2019 Legal Frame-Work for IB
31/41
8/14/2019 Legal Frame-Work for IB
32/41
Nike a sub-contracted its manufacturing operations inVietnam . The operations employed 25,000 employees andmost of them are young women. Their wages as low as $40 amonth and the working conditions in the factories were quiteinferior .Nike practices were widely criticized by Media.Consequently , Nike hired Andrew young former US
Ambassador to UN enquire into the working conditions ofemployees and present a report Mr. Young did not conductdetailed study but reported that Nike was doing good job intreating the workers . Mr Young was criticized widely for hisimproper reporting . Then Nike joined a task force includingindustry leaders , HR groups that resulted in reaching an
accord for payment of local minimum wages in foreignfactories and establishment of Fair labour Association tomonitor the wages and the working conditions .
8/14/2019 Legal Frame-Work for IB
33/41
Later , Nike announced a no of initiatives and incentives toemployees working with its contractors . It was widelycriticised that the Fair Labour association was not anindependent body & the labour practices in Nike were unfaireven during 2001.
8/14/2019 Legal Frame-Work for IB
34/41
8/14/2019 Legal Frame-Work for IB
35/41
8/14/2019 Legal Frame-Work for IB
36/41
8/14/2019 Legal Frame-Work for IB
37/41
The Chinese manufacturers are slowly making inroads inthe Indian market. Like some other consumer products,the Indian toys are now out from the shelves ofshopkeepers. The inexpensive Chinese toys have replacedthem fully. The Indian middle class, which used to thinkLeo and other branded toys out of their range, are nowbuying these Chinese toys. The wholesaler and retailershere claim that at least 80 per cent of the toys market hasbeen taken over by the Chinese producers. They say theIndian manufacturers who initially tried to face them bylowering their price and focusing on quality, are now
selling the Chinese toys themselves. A large number ofIndian manufacturers have already closed their units.
Mr Rajiv Kumar Kurera of Jagdamba Traders, said, TheChinese are offering a large variety of battery operatedtoys at less than half the price of Indian toys. One couldpurchase a big toy car Next Power for just Rs 80 thatwould not be available for even Rs 250 from the localmanufacturers. A simple mobile toy which would be soldby Indian manufacturer for Rs 20 to Rs 25 per piece wouldbe sold for just Rs 10 to Rs 12 by their Chinese
counterparts
8/14/2019 Legal Frame-Work for IB
38/41
In general copyrights are protected for literary &artistic works extending 70 years after the authorsdeath.
Trademarks can be protected indefinitely if theycontinue to be distinctive .
Inventions , Industrial designs & trade secrets are
protected through patents for a finite period ,usually 20 years
8/14/2019 Legal Frame-Work for IB
39/41
Govt. could deny patent protection on certaingrounds (public order or morality) or for certaininventions (surgical methods )
If the patent holder abused the rights granted bythe patent ( such as refusing to supply the productin the market ) the Govt could under prescribedconditions , issue compulsory licenses that allowedcompetitors to produce the product.
8/14/2019 Legal Frame-Work for IB
40/41
8/14/2019 Legal Frame-Work for IB
41/41