Public law is the situation which nations interact according to a common legal framework where private law applies to the individuals in the nation states. The legal system of a country basically based on one of four foundations. They are civil, common, bureaucratic and religious laws.Legal concepts relating to international business
- Sovereignty
This expose, the individual nation has absolute power over the governing of their populaces and the activities which can be occurred within their border.
- Sovereign Immunity
Sovereignty implies that a nation can create laws and restrictions. A manifestation of this sovereignty power is what we call sovereign immunity.
- Act of State
This is a legal principle which refers to claim made by foreign parties whose assets have been taken by the state in public sector.
- Extraterritoriality
This refers the application of one country’s law to activities outside its borders.
Intellectual and industrial property rights
A great concern area of multinational companies which involves in R&D and technology is the protection of intangible assets like, processes, trademarks and trade secrets.
- Trademarks and trade names
Trademarks, logos and designs and trade names consider as an integral part of the product. Trademarks and trade names have indefinite life and can be licensed to others.
- Patent laws and accords
The process might differentiate from one county to another according to the country’s requirements to obtain a patent for a product.
Ex- US has first to invent policy while Japan issues patents for even minor modification.
- Copyrights
Copyrights give exclusive rights to author, composers, artists etc to release, modify and dispose their production / work as they see fit.
Resolving business conflicts
Conflicts tend to be happening in international business due to three reasons;
- The contracting parties are not familiar with each other.
- International transactions happen in a risky situation with fluctuations etc
- Business ethics, cultural differences etc
- Contracts
Drafting a contract with clearly mentioned rules and terms is a good way to avoid conflicts.
- Resolving disputes
- Adaptation
- Renegotiation
- Mediation
Local courts
If the above mentioned ways doesn’t appear to help to clear the situation, this is the next step to take.
Litigation
International Arbitration
In arbitration, parties to a dispute agree to take their case to a third party in the form of independent arbitration. This is kind of speedier process than the court procedures.
International Centre for Settlement of Investment Disputes (ICSID)
This is affiliated with the World Bank and when the contract being disputed involves investments in foreign countries.
