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- Protecting Intellectual Property Abroad
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- U. S. businesses competing abroad need to protect
- their intellectual property. Although no course of action
- can guarantee trouble-free expansion into foreign markets,
- it pays to learn about a country's intellectual property
- laws and practices before deciding to do business there.
- Laws and customs vary widely, but following a few general
- principles can make the difference between an advantageous
- competitive arrangement and commercial disaster.
-
- In recent years, U.S. firms doing business abroad have
- had experiences like these (the examples represent real but
- composite experiences):
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- * Company A sent product literature to a potential
- foreign business partner. Soon the would-be partner
- cornered the markets for the product in its region. Company
- A had a U.S. patent, but public disclosures had now made
- its product unpatentable in most foreign countries.
-
- * Company B first knew its computer programs were
- being sold abroad when pirated copies entered the United
- States. It blocked commercial importation, enforced its
- copyrights country by country, and has been successful so
- far in stopping infringements in countries that are major
- markets.
-
- * Company C's expansion into one country was held up
- when it discovered that its trademark was already
- registered there by someone else. After lengthy
- negotiations, it bought the right to use the mark.
-
- * Company D did business on a handshake and general
- understanding. Its closely guarded technology has been very
- useful to its foreign competitors.
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- * Company E found exclusive rights to its inventions
- and writings an enormous commercial advantage. It secured
- the best protection available in each country in which it
- did business and avoided investing in those with inadequate
- protection.
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- Before making a decision to invest or do business in
- any country, it pays to investigate the business
- environment. Protection of valuable intellectual property
- is an important aspect of that environment. The protection
- available depends on the national laws, administrative
- practices, and treaty obligations of each country.
-
- Determining the type and extent of protection needed
- involves technical, legal, and business considerations.
- Deciding between trade secret and patent protection, for
- example, depends on whether an invention can be "reverse
- engineered," as well as on marketing plans and legal
- requirements. In the United States, different aspects of
- one product might be protectible under laws covering
- utility patents, mask works, design patents, copyrights,
- and trademarks.
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- Intellectual property protection can be quite complex.
- Ideally, questions should be explored in detail with an
- attorney. This guide is intended to provide an
- introduction to intellectual property protection for U.S.
- businesses considering expanding into foreign markets.
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