International Marketing _ Assignment # 02

In general terms, a nations legal system provides the context, the means, and methods within which it regulates business practices, defines the parameters within which companies and individuals conduct business transactions, specify both the rights and obligations of parties who are involved in business transactions, and addresses the methods of legal redress to those who believe they are entitled to some type of recourse in the legal system. LEGAL ENVIRONMENT: There is no single uniform international law governing foreign business transactions does exist; therefore the international marketer must pay particular attention to the laws of each country within which it operates.

Laws governing business activities within and between countries are an integral part of the legal environment of international business. It is therefore important for you to consult with local lawyers and accountants regarding the laws in their particular country.

The following legal considerations are often listed as paramount in deriving, formulating, and executing an international companys strategic plans:

STRATEGIC LEGAL CONCERNS Product Safety and Product Liability Marketplace Behavior Product Origins Legal Jurisdictions Arbitration Protection of IPR Property risks

INTERNATIONAL LEGAL SYSTEMS Common Law Code Law Theocratic Law Socialist Law

International Marketing _ Assignment # 02

ISSUES FACED BY AN MNC WHILE ENTERING A COUNTRY:

In developing countries the legal framework and rule of law concepts are of high importance. The enforcement principles should not depend on the size, type and the origin of companies and should create an equal level playing field for all investors. Some of the major issues faced are: Different countries have different rules and regulations for activities like marketing of a product, sales of product, quality of products etc. Some of the major products are food, pharmaceutical products, hazardous material etc. Use and developing of technologies are also regulated by the legal bodies. Different laws for financing and operations to the foreign companies. Laws related to labor and employment management, in the host country may affect the managerial decisions. Some countries dont allow multinational companies to close their shops or manufacturing who provide warranties with the products. Different trade and investment policies. Ownership regulations for foreign companies. Different taxation, systems and laws. RELEVANCE OF PATENTS A patent is a set of exclusive rights granted by a state (national government) to an inventor or their assignee for a limited period of time in exchange for a public disclosure of an invention. In other words, Patent is an alienable right of monopoly given by a country to protect the possession of invention.

International Marketing _ Assignment # 02

A patent is not a right to practice or use the invention. Rather, it provides the right to exclude others from making, using, selling, offering for sale, or importing the patented invention for the term of the patent, which is usually 20 years from the filing date subject to the payment of maintenance fees. In the modern epoch, when free exploitation of technologies has progressed enormously, it prevents trespassing in inventers/individuals recognition for their creativity and let their invention advance unabated. Patent has confiscated any slice of hindrances on the way of creating, equipping with knowledge and capabilities and achieving success. It ultimately facilitates the consistent development of Human life and intensifies the significant progress of society with magnanimity. Patents protection plays the main role as market regulator and progress stimulators. RELEVANCE OF INFRINGEMENT OF IPR The Intellectual Property Right (IPR) laws primarily comprise of the Trade Marks Act, Copyright Act, Patent Act and Design Act. The provisions contained in these legal enactments enunciate the procedure for registration, the rights of the registration holder and also grants protection to the persons/entities that hold the IPR. In case of infringement, of any of the rights conferred by these enactments, the holder can claim protection by infuse both, civil as well as criminal liability against the infringer. Although, the legislation provides ample protection to the IP holder, its practical implementation is not easy. The disputes regarding infringement of IP become a subject matter for adjudication by the various authorities that are appointed for this purpose which eventually ends up in a very time consuming and expensive affair. The provisions of the IP Acts itself or through relevant provisions of CPC provide that a suit may be instituted for granting injunction against any person who infringes the IPR of any other person.

International Marketing _ Assignment # 02

Ranbaxy vs Pfizer

Pfizer owns the patent to the cholesterol-lowering medicine Lipitor, one of the world's topselling drugs. It had two registered European patents, one describing the formula of the drug on a more general basis and one covering the exact molecular form. Indian drug company Ranbaxy, which is involved to a significant extent in the generic drug market, sought to challenge both patents. The first, it claimed, did not cover the exact molecular formula of Lipitor. Ranbaxy therefore intended to manufacture a cheaper version of the drug and asked the court to make a declaration of non-infringement of Pfizer's patent in respect of its actions. The second patent, which described the exact formula, was claimed to be invalid for anticipation and obviousness because in effect it did not represent a real advance over the first patent. The High Court reiterated the test specified in Amgen, that the crucial factor was what a person skilled in the art would have understood the patentee to be using the language of the claim to mean. It emphasized that the language chosen in the patent registration was of critical importance. The High Court agreed with Ranbaxy's argument that the second patent was invalid for anticipation but refused to make a declaration for non-infringement in respect of the first patent as the language used in the claim would have been clear to a person skilled in the art. This decision has effectively preserved Pfizer's monopoly on British sales of Lipitor, as the patent upheld by the High Court would have remained valid until a later date than the patent which was declared invalid. Ranbaxy won a similar case in Austria, although Pfizer is appealing. Further litigation over Lipitor could come to court next year in both Germany and the Netherlands. Meanwhile it is preparing to fight a similar battle in the United States, which accounts for more than 60 percent of Pfizer's Lipitor sales. Similarly in the Amgen case, in parallel litigation (although there is no exact correspondence with the UK case), it was held by the US District Court of Massachusetts that the TKT product did infringe Amgen's patent as an 'equivalent'.

International Marketing _ Assignment # 02

CONCLUSION :

The Lipitor case not only demonstrates the importance of clarity when drafting patent applications but also is an example of one of the major difficulties faced by multinational corporations - the uncertainty of legal outcomes from country to country. ==============================================================================