Power tools for negotiating international business deals:
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Format: | Buch |
Sprache: | English |
Veröffentlicht: |
Alphen Aan Den Rijn
Kluwer Law International
2008
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Ausgabe: | 2. ed. |
Schriftenreihe: | Kluwer Law International
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Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | XIII, 220 S. |
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Datensatz im Suchindex
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adam_text | Titel: Power tools for negotiating international business deals
Autor: Klotz, James M.
Jahr: 2008
Table of Contents
Preface xv
Acknowledgments xvii
Introduction xix
Chapter 1
The Basics of International Business Deals 1
I. How to Disclose Confidential Information without Losing It 1
A. What Kind of Information Is Confidential? 1
B. When Does Confidential Information Cease Being
Confidential? 2
C. Restricting the Use of the Confidential Information 2
D. What Law Applies to the Confidential Information;
Whose Court Gets to Hear Any Dispute? 3
E. When Not to Sign 3
F. What Happens if There Is No Confidentiality Agreement? 4
n. The Next Step in an International Deal: How to Sign
a Letter of Intent 5
A. The Letter of Intent 5
B. Introducing the CISG to Determine Intention 6
HI. How to Make Offers and Quotations to International Customers 8
IV. Avoiding the Spectre of Antitrust 10
V. The Negotiation Issues Common to All International Deals 12
A. How to Negotiate Which Law Applies to the Transaction 12
B. How to Avoid the Automatic Application of the CISG
to International Sales 13
vi Table of Contents
C. Negotiating the Methods for Resolving Disputes 15
1. Negotiating Where to Sue or Be Sued 15
2. Mediation as a Pre-court or Pre-arbitration Alternative 16
3. The Intricacies of Choosing Arbitration as
a Method of Resolving Disputes 17
D. Specific Arbitration Issues to Negotiate 18
1. Where Should the Arbitration Take Place? 18
2. How Many Arbitrators Should There Be and
Should They Have Special Qualifications? 19
3. Ensuring that English Is the Language of Arbitration 20
4. Obtain a Waiver of Sovereign Immunity 20
5. Avoid Punitive and Treble Damages 21
6. Make Sure that the Arbitration Is Confidential 21
E. Who Are the Parties to the Agreement? 21
F. Why Bother with Introductory Paragraphs (Recitals)
to International Agreements? 22
G. What Happens When the Other Party s Language
Is Not English? 23
H. What Does an Entire Agreement Clause Mean? 24
I. Assigning the Agreement to Third Parties 24
J. How Are Notices to Be Sent to Each Party? 25
K. Issues in Signing and Dating the Agreement 26
L. The Disasters Caused by Force Majeure Clauses
and Unexpected Disasters 27
1. What Kind of Events Should Excuse Non-performance? 28
2. What Kind of Events Are Unacceptable to Excuse
Non-performance? 30
3. What Happens When a Force Majeure Event Occurs? 30
M. How to Deal with Changes in Circumstances 32
N. How to Deal with Changes in Local Laws 33
VI. The Unsavoury Request: How to Deal with Bribes 33
Chapter 2
Negotiating International Sales of Goods and Services 41
I. What Exactly Are the Goods Being Sold? 42
A. The Quality of the Goods: What Does 95% Pure
Really Mean? 42
B. The Quantity of the Goods: What Does At Least
One Hundred Tons Mean ? 44
U. The Trade Terms Needed to Negotiate a Sale 45
A. EXW (Ex Works): The Bare Minimum 46
B. The F Terms: FCA, FOB and FAS: Clear the
Goods Ready for Export 47
1. FCA ( Free Carrier ) 47
2. FAS ( Free Alongside Ship ) 47
Table of Contents vii
3. FOB ( Free on Board ) 48
4. Variations of the FOB Term 49
C. The C Terms: CIF and Others: Seller Ships
the Goods 50
1. CFR: Cost and Freight 51
2. CPT: Carriage Paid to... 51
3. CJP: Carriage and Insurance Paid to... 51
D. The D Terms: Seller Delivers the Goods to the
Buyer s Home 51
HI. Making the Price Work: How to Maintain Flexibility
in the International Aspects of Pricing Goods 52
A. What Is the Actual Price of the Goods? 52
B. Negotiating Adjustment Mechanisms to the Price 52
C. The Roller Coaster of Currency Fluctuations 54
D. Running Afoul of Exchange Controls 54
E. Who Pays the Taxes and Duties? 55
1. NAFTA Preferences 56
2. Pricing Foreign Goods Lower than Domestic
Price: The Pitfalls of Dumping 57
F. Who Pays for Packing and Labelling of the Goods? 58
TV. North American Export Permits, Import Controls and
Commercial Invoices 59
A. Export Controls: Who Gets the Permit? 59
B. Import and End-Use Certificates 60
V. Import Controls: Do I Need a Permit? 60
A. Import Restrictions 60
B. What Needs to Be in the Commercial Invoice? 61
VI. Additional Documents Required by an International
Buyer of Goods 61
A. Government Documents 61
B. Certificates of Origin 63
C. Certificates of Quality 63
VIJ. How to Get Paid for Goods in an International Sale 64
A. Cash in Advance vs. Open Account 65
B. Documentary Collection 67
C. Understanding Letters of Credit 67
D. Specific Issues to Be Negotiated in a Letter of Credit 71
1. Transferability and Middlemen 71
2. Getting Timely Bank Confirmation 72
3. Revolvability 73
4. When Does the Letter of Credit Expire? 73
5. Allowing Quantity Tolerances and Partial Deliveries 73
6. Are Photocopies and Faxes Permitted? 74
7. Getting the Required Level of Detail 74
8. Irrevocability 74
viii Table of Contents
9. Ambiguous Words Have Meaning in a Letter
of Credit 74
10. Payment in Excess of the Letter of Credit 75
E. Using Performance Bonds and Standby Letters of Credit 75
VOL Key Issues to Negotiate for the Delivery of the Goods
or Services 76
A. Fixing Delivery Dates 76
B. Fixing Delivery Quantities 77
C. When Does Delivery Occur? 77
D. Restocking Charges 78
E. Avoid the Obligation to Fulfil All Orders 78
F. Using Rolling Schedules to Meet Supply Requirements 78
G. Compelling Pre-notification of the Intended Delivery Date 79
H. What Happens if the Buyer Does Not Take Delivery? 79
LX. The Business Issues of Transfer of Title and Risk 80
A. Why Retain Title with a Romalpa Clause? 80
B. Avoid Title Where There Are Environmental or
Tax Concerns 80
C. Who Disposes of Defective Goods? 81
X. What Is a Bill of Lading and Why Do I Need to Know
Anything about It? 81
XI. Negotiating the Right Kind of Insurance 83
A. Insurance for When the Goods Are Damaged or Lost 83
1. The Difference between an Open Cover Policy
and a Special Cargo Policy 83
2. All Risks Does Not Mean All Risks! 84
B. Insurance for When the Goods or Services Cause
Damage or Injury 85
XII. Negotiating Inspection Rights 85
A. Inspecting the Goods before They Are Delivered 86
B. Inspecting the Goods after They Have Been Delivered 87
XHJ. Selling Goods or Services with Warranties 89
A. What Warranties Should the Seller Give? 90
B. What Warranties Should Be Avoided? 91
C. How Long Does the Warranty Last? 92
D. What Should Be Required to Make a Valid
Warranty Claim? 93
E. What Are the Buyer s Options with a Valid
Warranty Claim? 94
XTV. Negotiating Liquidated Damages, Penalties and
Termination Charges 95
A. Setting Predetennined Damage Assessments 95
1. Calculating Liquidated Damages 96
2. Calculating Penalties 96
B. Methods of Terminating the Agreement 97
Table of Contents ix
XV. Negotiating Intellectual Property Issues 98
XVI. Keeping the Deal Confidential 99
XVII. The Elusive Duty of Good Faith 100
XVIII. Conforming with Local Laws: The Sweatshop Dilemma 100
Chapter 3
Negotiating International Agency and Consulting Deals 103
I. Limiting the Agent s Authority 104
n. How to Avoid Foreign Country Labour and Taxation Problems 105
HI. Granting an Agent Exclusive Rights 106
IV. Which Products and Sales Are Covered? 107
V. What Obligations Should the Agent Undertake to the Seller? 108
A. Make the Agent Respect Confidentiality 109
B. How to Deal with Bribery by the Agent 109
VI. What Obligations Should the Seller Undertake to the Agent? 109
A. Supply Sales Literature 109
B. Provide Technical Support 110
C. Arrange Shipping 110
D. Supply Spare Parts 110
VII. Getting Paid: How Should an International Agent
Be Compensated? 110
A. What Are Net Sales? 110
B. Who Takes the Currency Risk: The Agent or the Seller? 111
C. Should the Agent Get Paid if an Order Is Rescinded? 112
D. Payments Prohibited by Law 112
E. How Is Payment to Be Made to the Agent? 112
VDI. Setting and Negotiating an Agent s Quota and Quota Increases 112
LX. What Is Involved in Firing an Agent? 113
X. Trademark Issues to Be Negotiated by Both Seller and Agent 115
XI. The Single Transaction Agent/Broker 116
A. Getting Paid in Brokered Transactions 116
B. Setting the Rules for Regulating the Agent/Broker s
Conduct 117
C. Non-circumvention Brokerage Agreements 118
XTJ. Negotiating Which Law Applies and How Disputes
Are Resolved in an Agency Deal 119
XHJ. Special Issues to Negotiate for Consulting Agreements 120
A. Who Owns the Work Product? 120
B. Do Withholding Taxes Have to Be Withheld? 121
C. What Indemnity and Insurance Is Required? 121
Chapter 4
Negotiating International Distribution Deals 123
I. Establishing International Distribution 123
U. Which Products Are Covered? 125
x Table of Contents
HI. How to Handle Setting Territorial Limits 125
TV. How to Handle Price Controls 127
V. Granting a Distributor Exclusive Rights 128
VI. Pricing Changes 130
VII. Orders 131
VHI. What Are the Performance Obligations of the Distributor? 131
A. Distributor Obligation: Meet a Minimum Sales Quota 132
1. Quota Methodology: Initial Year 132
2. Quota Methodology: Subsequent Years 133
3. Consequences of Failure to Meet a Quota 134
B. Distributor Obligation: Maximize Market Development 134
C. Distributor Obligation: Provide Technical Support 135
D. Distributor Obligation: Ensure Compliance with
Product Safety and Packaging 135
E. Distributor Obligation: Maintain Compliance with
Other Laws 135
F. Distributor Obligation: Avoid Breach of Export Laws 136
G. Distributor Obligation: Promote Sales and Manufacturer
Goodwill 136
H. Distributor Obligation: Advertise in Accordance
with Manufacturer s Policies 137
I. Distributor Obligation: Attend Trade Shows 137
J. Distributor Obligation: Develop a Marketing Plan 138
K. Distributor Obligation: Report on Activities and
Performance 138
L. Distributor Obligation: Maintain a Market Intelligence
Service 138
M. Distributor Obligation: Pay Its Own Expenses 139
N. Distributor Obligation: Make an Initial Purchase
and Maintain Stock-on-Hand 139
O. Distributor Obligation: Assume All Risks of Sale 139
P. Distributor Obligation: Make Pricing Reasonable 139
Q. Distributor Obligation: Not to Modify the Products 140
R. Distributor Obligation: Provide Financial Information 140
LX. What Are the Performance Obligations of the Manufacturer? 141
A. Manufacturer Obligation: Supply the Products 141
B. Manufacturer Obligation: Provide Sales Literature 141
C. Manufacturer Obligation: Provide Technical Support 142
D. Manufacturer Obligation: Provide Tools and
Testing Equipment 142
E. Manufacturer Obligation: Provide Technical Training 142
F. Manufacturer Obligation: Provide Spare Parts 143
G. Manufacturer Obligation: Appointment of Other
Distributors and Avoidance of Grey-Marketing 143
X. Should the Distributor Be Able to Appoint Sub-distributors? 145
Table of Contents xi
XI. Negotiating Intellectual Property Rights with a Distributor 146
A. Trademarks 146
B. Patents 148
1. Patent Infringement in the Territory 148
2. Patent Infringement by Others in the Territory 149
3. Patent Infringement by the Distributor 149
C. Copyright 149
D. Intellectual Property Indemnities 150
E. Trade Secrets 151
XII. Warranties and Liability Insurance 151
XHI. What Happens When the Manufacturer Is Unable to
Supply the Distributor? 153
A. Can the Distributor Access an Alternate Supplier? 153
B. Which Party Bears the Costs? 154
C. Should Either Party Be Able to Terminate after
a Long Force Majeure? 154
XTV. Negotiating the Term and Termination Provisions 154
A. Choices for Setting the Length of the Agreement 154
1. No Fixed Term: Termination upon Notice 154
2. Fixed Term, with Renewal 155
3. No Fixed Term: But Reasonable Notice Required 155
B. What Types of Events Should Permit Instant
Termination? 157
C. What Should Happen When the Distributor Is
Terminated? 159
1. Dealing with the Terminated Distributor s
Return Inventory 159
2. Non-competition 160
XV. Dispute Resolution, Arbitration, Which Law
Should Govern 160
Chapter 5
Negotiating International License Deals 161
I. What Is Being Licensed? 162
A. Patents 163
B. Trademarks 163
C. Copyright 163
D. Know-How 164
E. Technology 164
n. What Are the Licensed Rights Being Granted? 165
A. Can the Licensee Manufacture and Sell? 165
B. Are the Rights Exclusive? 165
C. Is There a Territorial Restriction? 165
D. Is There a Right to Sub-license? 166
in. Setting Minimum Performance Standards 166
xii Table of Contents
IV. What Does the Grantor Get Paid for Its Rights? 167
A. Compensation for an International License 167
B. How to Negotiate the Meaning of Net and Gross Sales 168
V. What Is the Currency and Place of Payment of Royalties? 169
A. Situations Where the Currency Is Freely Convertible 169
B. Situations Where the Currency Is Non-convertible 170
C. Situations Where Exchange Controls May Exist 171
D. When Does the Licensee Have to Withhold
Withholding Taxes? 171
VI. What Are the Obligations of the Licensee? 172
A. Licensee Obligation: Reports and Accounts 172
B. Licensee Obligation: Maintain Quality Standards 173
1. Obtain Pre-production Approval 173
2. Obtain Post-production Approval 174
C. Licensee Obligation: Grant Feedback Licenses
for Improvements 175
D. Licensee Obligation: Exploit the Licensed Rights 176
E. Licensee Obligation: Make All Required Registrations 177
F. Licensee Obligation: Engage a Watch Service 177
G. Licensee Obligation: Non-competition 177
H. Licensee Obligation: Advertising and Sales Restrictions 177
VJJ. What Are the Obligations of the Grantor 178
A. Grantor Obligation: Representations and Warranties 179
B. Grantor Obligation: Perform Verification Testing 180
C. Grantor Obligation: Provide Technical Assistance 180
D. Grantor Obligation: Grant Most Favoured
Licensee Terms 181
E. Grantor Obligation: Option to Sell Production
Line or Licensed Rights 181
F. Grantor Obligation: Maintain Registrations,
Maintenance and Filings 181
VJJJ. Term and Termination Provisions 182
LX. Keeping Secret Information Secret 183
X. How to Handle Events beyond Either Party s Control 184
XI. Negotiating Warranties, Indemnities and Disclaimers 184
A. How to Handle Claims by the Licensee against
the Grantor 184
B. How to Handle Claims of hifxingement by Third
Parties against the Licensee 185
C. How to Deal with Claims of Infringement by the
Licensee against Third Parties 186
D. How to Handle Claims against the Grantor by
Third Parties Due to Actions of the Licensee 187
XII. Which Law Should Apply to the License? 187
XJJ1. What Happens When the Laws Change? 188
Table of Contents xiii
Chapter 6
Internationa] Joint Venture and Consortium Deals 189
I. Structuring the Joint Venture 190
H Commencing the Negotiations and the Memorandum of
Understanding 191
HI. Negotiating the Key Business Terms and Scope
of the Venture 193
TV. What Legal Form Will the Joint Venture Take? 194
A. How Do the Parties Value Cash and In-Kind
Contributions to the Venture? 195
1. What Are the Issues When Contributing Cash
to the Venture? 195
2. What Are the Issues When an In-Kind
Contribution Is Made? 196
B. Loans and Further Financing 197
C. Land Use Rights and the Joint Venture s Premises 198
D. Control, Management and Division of Responsibilities 199
E. Allocating Liability between the Partners 203
F. How Is Intellectual Property Transferred to the
Joint Venture? 203
G. Hiring, Firing and Training of Employees 204
V. Non-competition, Exclusivity and Antitrust 205
VI. How to Get Money out of the Joint Venture 206
VJJ. Six Methods for Getting out of the Joint Venture 207
A. Right of First Refusal 208
B. Drag-Alongs and Piggybacks 209
C. Puts and Calls 209
D. Shotguns 210
E. Coin Toss 211
F. Sealed Bid 211
VJH. What Happens When the Joint Venture Terminates? 211
LX. Handling Governing Law and Dispute Resolution in
a Joint Venture 212
Index 213
|
adam_txt |
Titel: Power tools for negotiating international business deals
Autor: Klotz, James M.
Jahr: 2008
Table of Contents
Preface xv
Acknowledgments xvii
Introduction xix
Chapter 1
The Basics of International Business Deals 1
I. How to Disclose Confidential Information without Losing It 1
A. What Kind of Information Is Confidential? 1
B. When Does Confidential Information Cease Being
Confidential? 2
C. Restricting the Use of the Confidential Information 2
D. What Law Applies to the Confidential Information;
Whose Court Gets to Hear Any Dispute? 3
E. When Not to Sign 3
F. What Happens if There Is No Confidentiality Agreement? 4
n. The Next Step in an International Deal: How to Sign
a Letter of Intent 5
A. The Letter of Intent 5
B. Introducing the CISG to Determine Intention 6
HI. How to Make Offers and Quotations to International Customers 8
IV. Avoiding the Spectre of Antitrust 10
V. The Negotiation Issues Common to All International Deals 12
A. How to Negotiate Which Law Applies to the Transaction 12
B. How to Avoid the Automatic Application of the CISG
to International Sales 13
vi Table of Contents
C. Negotiating the Methods for Resolving Disputes 15
1. Negotiating Where to Sue or Be Sued 15
2. Mediation as a Pre-court or Pre-arbitration Alternative 16
3. The Intricacies of Choosing Arbitration as
a Method of Resolving Disputes 17
D. Specific Arbitration Issues to Negotiate 18
1. Where Should the Arbitration Take Place? 18
2. How Many Arbitrators Should There Be and
Should They Have Special Qualifications? 19
3. Ensuring that English Is the Language of Arbitration 20
4. Obtain a Waiver of Sovereign Immunity 20
5. Avoid Punitive and Treble Damages 21
6. Make Sure that the Arbitration Is Confidential 21
E. Who Are the Parties to the Agreement? 21
F. Why Bother with Introductory Paragraphs (Recitals)
to International Agreements? 22
G. What Happens When the Other Party's Language
Is Not English? 23
H. What Does an 'Entire Agreement Clause' Mean? 24
I. Assigning the Agreement to Third Parties 24
J. How Are Notices to Be Sent to Each Party? 25
K. Issues in Signing and Dating the Agreement 26
L. The Disasters Caused by Force Majeure Clauses
and Unexpected Disasters 27
1. What Kind of Events Should Excuse Non-performance? 28
2. What Kind of Events Are Unacceptable to Excuse
Non-performance? 30
3. What Happens When a Force Majeure Event Occurs? 30
M. How to Deal with Changes in Circumstances 32
N. How to Deal with Changes in Local Laws 33
VI. The Unsavoury Request: How to Deal with Bribes 33
Chapter 2
Negotiating International Sales of Goods and Services 41
I. What Exactly Are the Goods Being Sold? 42
A. The Quality of the Goods: What Does 95% Pure
Really Mean? 42
B. The Quantity of the Goods: What Does 'At Least
One Hundred Tons Mean'? 44
U. The Trade Terms Needed to Negotiate a Sale 45
A. EXW (Ex Works): The Bare Minimum 46
B. The 'F' Terms: FCA, FOB and FAS: Clear the
Goods Ready for Export 47
1. FCA ('Free Carrier') 47
2. FAS ('Free Alongside Ship') 47
Table of Contents vii
3. FOB ('Free on Board') 48
4. Variations of the FOB Term 49
C. The 'C Terms: CIF and Others: Seller Ships
the Goods 50
1. CFR: 'Cost and Freight' 51
2. CPT: 'Carriage Paid to.' 51
3. CJP: 'Carriage and Insurance Paid to.' 51
D. The 'D' Terms: Seller Delivers the Goods to the
Buyer's Home 51
HI. Making the Price Work: How to Maintain Flexibility
in the International Aspects of Pricing Goods 52
A. What Is the Actual Price of the Goods? 52
B. Negotiating Adjustment Mechanisms to the Price 52
C. The Roller Coaster of Currency Fluctuations 54
D. Running Afoul of Exchange Controls 54
E. Who Pays the Taxes and Duties? 55
1. NAFTA Preferences 56
2. Pricing Foreign Goods Lower than Domestic
Price: The Pitfalls of 'Dumping' 57
F. Who Pays for Packing and Labelling of the Goods? 58
TV. North American Export Permits, Import Controls and
Commercial Invoices 59
A. Export Controls: Who Gets the Permit? 59
B. Import and End-Use Certificates 60
V. Import Controls: Do I Need a Permit? 60
A. Import Restrictions 60
B. What Needs to Be in the Commercial Invoice? 61
VI. Additional Documents Required by an International
Buyer of Goods 61
A. Government Documents 61
B. Certificates of Origin 63
C. Certificates of Quality 63
VIJ. How to Get Paid for Goods in an International Sale 64
A. Cash in Advance vs. Open Account 65
B. Documentary Collection 67
C. Understanding Letters of Credit 67
D. Specific Issues to Be Negotiated in a Letter of Credit 71
1. Transferability and Middlemen 71
2. Getting Timely Bank Confirmation 72
3. Revolvability 73
4. When Does the Letter of Credit Expire? 73
5. Allowing Quantity Tolerances and Partial Deliveries 73
6. Are Photocopies and Faxes Permitted? 74
7. Getting the Required Level of Detail 74
8. Irrevocability 74
viii Table of Contents
9. Ambiguous Words Have Meaning in a Letter
of Credit 74
10. Payment in Excess of the Letter of Credit 75
E. Using Performance Bonds and Standby Letters of Credit 75
VOL Key Issues to Negotiate for the Delivery of the Goods
or Services 76
A. Fixing Delivery Dates 76
B. Fixing Delivery Quantities 77
C. When Does Delivery Occur? 77
D. Restocking Charges 78
E. Avoid the Obligation to Fulfil All Orders 78
F. Using Rolling Schedules to Meet Supply Requirements 78
G. Compelling Pre-notification of the Intended Delivery Date 79
H. What Happens if the Buyer Does Not Take Delivery? 79
LX. The Business Issues of Transfer of Title and Risk 80
A. Why Retain Title with a Romalpa Clause? 80
B. Avoid Title Where There Are Environmental or
Tax Concerns 80
C. Who Disposes of Defective Goods? 81
X. What Is a Bill of Lading and Why Do I Need to Know
Anything about It? 81
XI. Negotiating the Right Kind of Insurance 83
A. Insurance for When the Goods Are Damaged or Lost 83
1. The Difference between an Open Cover Policy
and a Special Cargo Policy 83
2. 'All Risks' Does Not Mean All Risks! 84
B. Insurance for When the Goods or Services Cause
Damage or Injury 85
XII. Negotiating Inspection Rights 85
A. Inspecting the Goods before They Are Delivered 86
B. Inspecting the Goods after They Have Been Delivered 87
XHJ. Selling Goods or Services with Warranties 89
A. What Warranties Should the Seller Give? 90
B. What Warranties Should Be Avoided? 91
C. How Long Does the Warranty Last? 92
D. What Should Be Required to Make a Valid
Warranty Claim? 93
E. What Are the Buyer's Options with a Valid
Warranty Claim? 94
XTV. Negotiating Liquidated Damages, Penalties and
Termination Charges 95
A. Setting Predetennined Damage Assessments 95
1. Calculating Liquidated Damages 96
2. Calculating Penalties 96
B. Methods of Terminating the Agreement 97
Table of Contents ix
XV. Negotiating Intellectual Property Issues 98
XVI. Keeping the Deal Confidential 99
XVII. The Elusive Duty of Good Faith 100
XVIII. Conforming with Local Laws: The Sweatshop Dilemma 100
Chapter 3
Negotiating International Agency and Consulting Deals 103
I. Limiting the Agent's Authority 104
n. How to Avoid Foreign Country Labour and Taxation Problems 105
HI. Granting an Agent Exclusive Rights 106
IV. Which Products and Sales Are Covered? 107
V. What Obligations Should the Agent Undertake to the Seller? 108
A. Make the Agent Respect Confidentiality 109
B. How to Deal with Bribery by the Agent 109
VI. What Obligations Should the Seller Undertake to the Agent? 109
A. Supply Sales Literature 109
B. Provide Technical Support 110
C. Arrange Shipping 110
D. Supply Spare Parts 110
VII. Getting Paid: How Should an International Agent
Be Compensated? 110
A. What Are Net Sales? 110
B. Who Takes the Currency Risk: The Agent or the Seller? 111
C. Should the Agent Get Paid if an Order Is Rescinded? 112
D. Payments Prohibited by Law 112
E. How Is Payment to Be Made to the Agent? 112
VDI. Setting and Negotiating an Agent's Quota and Quota Increases 112
LX. What Is Involved in Firing an Agent? 113
X. Trademark Issues to Be Negotiated by Both Seller and Agent 115
XI. The Single Transaction Agent/Broker 116
A. Getting Paid in Brokered Transactions 116
B. Setting the Rules for Regulating the Agent/Broker's
Conduct 117
C. Non-circumvention Brokerage Agreements 118
XTJ. Negotiating Which Law Applies and How Disputes
Are Resolved in an Agency Deal 119
XHJ. Special Issues to Negotiate for Consulting Agreements 120
A. Who Owns the Work Product? 120
B. Do Withholding Taxes Have to Be Withheld? 121
C. What Indemnity and Insurance Is Required? 121
Chapter 4
Negotiating International Distribution Deals 123
I. Establishing International Distribution 123
U. Which Products Are Covered? 125
x Table of Contents
HI. How to Handle Setting Territorial Limits 125
TV. How to Handle Price Controls 127
V. Granting a Distributor Exclusive Rights 128
VI. Pricing Changes 130
VII. Orders 131
VHI. What Are the Performance Obligations of the Distributor? 131
A. Distributor Obligation: Meet a Minimum Sales Quota 132
1. Quota Methodology: Initial Year 132
2. Quota Methodology: Subsequent Years 133
3. Consequences of Failure to Meet a Quota 134
B. Distributor Obligation: Maximize Market Development 134
C. Distributor Obligation: Provide Technical Support 135
D. Distributor Obligation: Ensure Compliance with
Product Safety and Packaging 135
E. Distributor Obligation: Maintain Compliance with
Other Laws 135
F. Distributor Obligation: Avoid Breach of Export Laws 136
G. Distributor Obligation: Promote Sales and Manufacturer
Goodwill 136
H. Distributor Obligation: Advertise in Accordance
with Manufacturer's Policies 137
I. Distributor Obligation: Attend Trade Shows 137
J. Distributor Obligation: Develop a Marketing Plan 138
K. Distributor Obligation: Report on Activities and
Performance 138
L. Distributor Obligation: Maintain a Market Intelligence
Service 138
M. Distributor Obligation: Pay Its Own Expenses 139
N. Distributor Obligation: Make an Initial Purchase
and Maintain Stock-on-Hand 139
O. Distributor Obligation: Assume All Risks of Sale 139
P. Distributor Obligation: Make Pricing Reasonable 139
Q. Distributor Obligation: Not to Modify the Products 140
R. Distributor Obligation: Provide Financial Information 140
LX. What Are the Performance Obligations of the Manufacturer? 141
A. Manufacturer Obligation: Supply the Products 141
B. Manufacturer Obligation: Provide Sales Literature 141
C. Manufacturer Obligation: Provide Technical Support 142
D. Manufacturer Obligation: Provide Tools and
Testing Equipment 142
E. Manufacturer Obligation: Provide Technical Training 142
F. Manufacturer Obligation: Provide Spare Parts 143
G. Manufacturer Obligation: Appointment of Other
Distributors and Avoidance of Grey-Marketing 143
X. Should the Distributor Be Able to Appoint Sub-distributors? 145
Table of Contents xi
XI. Negotiating Intellectual Property Rights with a Distributor 146
A. Trademarks 146
B. Patents 148
1. Patent Infringement in the Territory 148
2. Patent Infringement by Others in the Territory 149
3. Patent Infringement by the Distributor 149
C. Copyright 149
D. Intellectual Property Indemnities 150
E. Trade Secrets 151
XII. Warranties and Liability Insurance 151
XHI. What Happens When the Manufacturer Is Unable to
Supply the Distributor? 153
A. Can the Distributor Access an Alternate Supplier? 153
B. Which Party Bears the Costs? 154
C. Should Either Party Be Able to Terminate after
a Long Force Majeure? 154
XTV. Negotiating the Term and Termination Provisions 154
A. Choices for Setting the Length of the Agreement 154
1. No Fixed Term: Termination upon Notice 154
2. Fixed Term, with Renewal 155
3. No Fixed Term: But Reasonable Notice Required 155
B. What Types of Events Should Permit Instant
Termination? 157
C. What Should Happen When the Distributor Is
Terminated? 159
1. Dealing with the Terminated Distributor's
Return Inventory 159
2. Non-competition 160
XV. Dispute Resolution, Arbitration, Which Law
Should Govern 160
Chapter 5
Negotiating International License Deals 161
I. What Is Being Licensed? 162
A. Patents 163
B. Trademarks 163
C. Copyright 163
D. Know-How 164
E. Technology 164
n. What Are the Licensed Rights Being Granted? 165
A. Can the Licensee Manufacture and Sell? 165
B. Are the Rights Exclusive? 165
C. Is There a Territorial Restriction? 165
D. Is There a Right to Sub-license? 166
in. Setting Minimum Performance Standards 166
xii Table of Contents
IV. What Does the Grantor Get Paid for Its Rights? 167
A. Compensation for an International License 167
B. How to Negotiate the Meaning of Net and Gross Sales 168
V. What Is the Currency and Place of Payment of Royalties? 169
A. Situations Where the Currency Is Freely Convertible 169
B. Situations Where the Currency Is Non-convertible 170
C. Situations Where Exchange Controls May Exist 171
D. When Does the Licensee Have to Withhold
Withholding Taxes? 171
VI. What Are the Obligations of the Licensee? 172
A. Licensee Obligation: Reports and Accounts 172
B. Licensee Obligation: Maintain Quality Standards 173
1. Obtain Pre-production Approval 173
2. Obtain Post-production Approval 174
C. Licensee Obligation: Grant Feedback Licenses
for Improvements 175
D. Licensee Obligation: Exploit the Licensed Rights 176
E. Licensee Obligation: Make All Required Registrations 177
F. Licensee Obligation: Engage a Watch Service 177
G. Licensee Obligation: Non-competition 177
H. Licensee Obligation: Advertising and Sales Restrictions 177
VJJ. What Are the Obligations of the Grantor 178
A. Grantor Obligation: Representations and Warranties 179
B. Grantor Obligation: Perform Verification Testing 180
C. Grantor Obligation: Provide Technical Assistance 180
D. Grantor Obligation: Grant Most Favoured
Licensee Terms 181
E. Grantor Obligation: Option to Sell Production
Line or Licensed Rights 181
F. Grantor Obligation: Maintain Registrations,
Maintenance and Filings 181
VJJJ. Term and Termination Provisions 182
LX. Keeping Secret Information Secret 183
X. How to Handle Events beyond Either Party's Control 184
XI. Negotiating Warranties, Indemnities and Disclaimers 184
A. How to Handle Claims by the Licensee against
the Grantor 184
B. How to Handle Claims of hifxingement by Third
Parties against the Licensee 185
C. How to Deal with Claims of Infringement by the
Licensee against Third Parties 186
D. How to Handle Claims against the Grantor by
Third Parties Due to Actions of the Licensee 187
XII. Which Law Should Apply to the License? 187
XJJ1. What Happens When the Laws Change? 188
Table of Contents xiii
Chapter 6
Internationa] Joint Venture and Consortium Deals 189
I. Structuring the Joint Venture 190
H Commencing the Negotiations and the Memorandum of
Understanding 191
HI. Negotiating the Key Business Terms and Scope
of the Venture 193
TV. What Legal Form Will the Joint Venture Take? 194
A. How Do the Parties Value Cash and In-Kind
Contributions to the Venture? 195
1. What Are the Issues When Contributing Cash
to the Venture? 195
2. What Are the Issues When an In-Kind
Contribution Is Made? 196
B. Loans and Further Financing 197
C. Land Use Rights and the Joint Venture's Premises 198
D. Control, Management and Division of Responsibilities 199
E. Allocating Liability between the Partners 203
F. How Is Intellectual Property Transferred to the
Joint Venture? 203
G. Hiring, Firing and Training of Employees 204
V. Non-competition, Exclusivity and Antitrust 205
VI. How to Get Money out of the Joint Venture 206
VJJ. Six Methods for Getting out of the Joint Venture 207
A. Right of First Refusal 208
B. Drag-Alongs and Piggybacks 209
C. Puts and Calls 209
D. Shotguns 210
E. Coin Toss 211
F. Sealed Bid 211
VJH. What Happens When the Joint Venture Terminates? 211
LX. Handling Governing Law and Dispute Resolution in
a Joint Venture 212
Index 213 |
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spelling | Klotz, James M. Verfasser aut Power tools for negotiating international business deals James M. Klotz 2. ed. Alphen Aan Den Rijn Kluwer Law International 2008 XIII, 220 S. txt rdacontent n rdamedia nc rdacarrier Kluwer Law International HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016964345&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
spellingShingle | Klotz, James M. Power tools for negotiating international business deals |
title | Power tools for negotiating international business deals |
title_auth | Power tools for negotiating international business deals |
title_exact_search | Power tools for negotiating international business deals |
title_exact_search_txtP | Power tools for negotiating international business deals |
title_full | Power tools for negotiating international business deals James M. Klotz |
title_fullStr | Power tools for negotiating international business deals James M. Klotz |
title_full_unstemmed | Power tools for negotiating international business deals James M. Klotz |
title_short | Power tools for negotiating international business deals |
title_sort | power tools for negotiating international business deals |
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