International Business Law Exam 1

Trade

is the import or export of goods and services across national borders.

Importing

is the entering of goods into a country OR the receipt of services into a country.

Port

Is a place where ships load or unload

Service

is an intangible product, such as accounting, banking, consulting, legal advice, training, etc.

Intangible

means to not have a physical presence; it can’t be touched.

Trade in Services

is the providing of services to a customer in another country

Example: A U.S. company hires an Indian company to provide software development services. The Indian company does the work, and the U.S. company pays them.

Exporting

is the shipment of goods out of a country OR the rendering of services outside the country.

Usually the first step to engaging in international business

Rendering

is the act of performing something

Real Property

is land, and everything attached to the land itself.

Ex: the buildings on Mississippi State

Personal Property

is any property that is not real property and that is moveable.

Everything that is not land or buildings

Ex: computer, chairs, shoes, clothes

Intellectual Property

is a work that is the result of creativity to which one has rights.

Ex: A company creates a unique logo for its brand. The logo is protected by trademark law, so another company in another country cannot copy and use the same logo to sell similar products.

Intellectual Property Rights

are the legal rights stemming from intellectual activity in the industrial, scientific, literary, and artistic fields.

Industry

is the economic activity concerned with manufacture of goods in factories.

Industrial Intellectual property involves formulas or ways to make product; the intellect of the knowledge needed

Ex: Coke

Scientific Fields

Ways to make vaccines or formulas

Literary Fields

the content contained in the book (just the words)

Artistic Fields

a painting; artwork

Infringement

is a violation of the intellectual property rights of another.

You have the ability to keep people for abusing your right to your intellectual property

Ex: A company in China sells shoes using the Nike logo without Nike’s permission. This is trademark infringement.

Purpose of Intellectual Property Rights

if people keep stealing your work you wont know who the actual owner is and there is no real incentive to keep making it since others are copying

We want people to create stuff and not be afraid people will steal their work

License

is a grant of rights in that particular intellectual property.

Ex: A U.S. company lets a company in Japan use its brand name and technology to sell products in Japan. In return, the Japanese company pays the U.S. company a licensing fee or royalty

Licensing Agreement

is a contract where the intellectual property owner grants certain rights in that property to another party under specific conditions or for a limited time.

“You can use my brand or technology, but you have to pay me and follow my rules.”

Franchising

is a business arrangement that uses an agreement to license, control, and protect the use of the franchisor's patents, trademarks, and copyrights.

Franchisor

sells the right to a franchisee to sell its products or services using its intellectual property.

= The intellectual Property Owner

Ex: McDonalds

Franchisee

is granted legal permission to do business using a franchisor’s intellectual property

= Legally Allowed to Use Franchisor’s Intellectual Property

Patent

is intellectual property that allows its owner to exclude others from making, using, or selling an invention.

= Own rights to an invention

Example: McDonalds ice cream machine; McDonald’s creates a new ice cream machine and gets a patent so competitors cannot copy the machine.

Trademark

is a symbol, word, or words that legally represents a company.

= Business Logo

Copyrights

is the legal right to reproduce, publish, sell or distribute a creative work.

= McDonalds Jingle

Royalty Fees

is money paid by the franchisee to a franchisor for using the franchisor’s intellectual property.

International Intellectual Property Organizations

enforce national intellectual property rights and laws involving numerous countries.

World Intellectual Property Organization (WIPO)

assists various governments to work together in developing intellectual property policies.

Most Important International Intellectual Property Organization

Arbitration

is an alternative dispute resolution, instead of going to court.

In Geneva, Switzerland

World Trade Organization (WTO)

is the only global international organization dealing with rules of trade between countries, and it helps member countries assure a more uniform application and enforcement of the intellectual property laws.

Only International Organization Dealing with Rules of Trade Between Countries

Settlement

is an agreement that ends a dispute.

Foreign Direct Investment

involves the ownership, operation, or control of a business’s assets by an individual or corporation that is a resident of another country.

Home Country

is the country whose laws the investing corporation was created or headquartered under

Example:

Acme, Inc buys beta, Inc’s stock

Acme, Inc= Investing corporation

Host Country

is a country where a company that is based in another country does business activities.

Example:

Acme, Inc= in the United States

Beta, Inc= in China