Today, we have invited a special guest, Prof. Yang. He will give us some advice on the legal aspects of international business. Your international legal advice is important to our business well being. Please give us some counsels on such issues as which laws govern the contract, what recourse is available for default or breach of contract by our clients or what to do if a dispute arises.
The significance of understanding the nuance and distinctions of foreign customs and business practices are a continual challenge for global entrepreneurs and trader. Despite many countries accession to TO membership, trade and investment frictions are still predominant among existing membership. However, these frictions will be better managed under the TO trade rules and the organization's dispute settlement mechanism.
In spite of this, international business contracts and arrangement must be precise, specific and all-inclusive to lessen misunderstanding, misconceptions and disagreements to the minimum .
Problem and disputes occur mainly due to difference in the laws of countries involved. For this very reason, it is imperative to establish from the outset which law governs when disputes arise. The most fundamental principle of all international contracts is the applicable laws and regulations. Make sure that the arbitration clause in your business contract be all-inclusive.
How can we protect our patents and trade market abroad?
Yes, it will be your utmost interest to protect your intellectual property such as your innovations, idea, designs and copyrights in your target country.
As you know, our main focus is to penetrate the markets of countries in Asia. What is the current legal framework in the countries?
The lack of regulatory transparency was a problem and still is to some extent. However, the countries are moving forward to deepen their reforms, new changes will involve the establisher of legal structures to sustain high levels of foreign as well a domestic private investments. This will surely strengthen the law and regulations in the countries, especially, areas related to trade issues.
Several years ago, the countries and China singed memorandums of understanding, pursuant to which the countries will improve their laws government intellectual property rights protection over the following two to three years.
Precisely, the actions the countries have committed to take are consistent with TO agreement.