International Marketing

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1) Conciliation is a nonbinding agreement between parties to resolve disputes by asking a third party to meditate differences (203). Conciliation is used to carefully listen to both parties and explore and figure out together what they think is the best option for solving the problem. Conciliation has the best track record of ways that people have come together to settle any kind of dispute. Working together to find an answer to a problem can be more beneficial to the company so that way everyone feels at peace with how it is worked out. Arbitration procedure is for the parties involved to select a disinterested and informed party or parties as referees to determine the merits of the case and make a judgment that both parties agree to honor (203). Arbitration is done more where they can make a decision, but it is under the auspices of international arbitration groups, and these groups have formal rules for the process.Conciliation is considered especially effective when resolving disputes with Chinese business partners because they feel less threatened by conciliation the attribution(203). Conciliation is often preferred because they are less stress that comes with getting to work with a team to get the best solution. When working together you feel more peaceful whereas attribution can be stressful knowing people above you get the ultimate decision. The Chinese like that friendly negation should be used first to help solve issues and not make everything so serious and hard on your employees.

2) When looking at laws regarding intellectual property (IP), the difference between common-law countries and code-law countries becomes very apparent. A common-law country like the U.S. generally follows the interpretations of past decisions made under the higher courts. They will typically go by the practice of prior use, which means that whoever can ESTABLISH FIRST USE is typically considered the rightful owner. (pg. 209). Any company can claim the trademark of an IP so lang as they can prove that they were the first to use it before anyone else. Code-law countries are based on an all-inclusive system of written rules (codes) of law, (pg. 199) and use registration to deem who the trademark belongs to. Registration here means that, the FIRST TO REGISTER a trademark or other property right is considered the rightful owner. (pg. 209). The book gives an example of the code-law country Spain, where Cidesport of Spain files a lawsuit over Nike (U.S.) and wins (pg. 209). This was because they had been using the word Nike since 1932 (long before the Nike company was founded) on some of their apparel. This resulted in Nike not being able to sell their sportswear in Spain, but they were allowed to sell their shoes as they Cidesport did not originally sell shoes with Nike on them. This is an excellent example of a company needing to know where they face some legal issues on their own IP. Especially if they enter countries that do not recognize that IP the same way it would be recognized at home.