International Corporate Legal Strategy
LEGAL STRATEGY REPORT FOR BIG SIGMUND’s HOMEPORT
Team members: 1. Baruah Eshan 2. Le Thi Quynh Huong 3. Hegde Suyog 4. Frau Fabio
Q.1 Ans- Sigmund should consider the following things while doing business with Avocado or Vossberg : A. Partnership Agreement- Since Sigmund is a young entrepreneur and has limited money in his hands so he should make a partnership agreement with Avocado. The agreement should clearly specify that Avocado will finance or invest in his product in terms of marketing/sales and distribution and Sigmund on the other hand will share the technical details such as know-how of his product. B. Profit Sharing Agreement- Sigmund should also sign a profit sharing agreement with Avocado. The profit should not necessarily be 50-50 between both the parties but Sigmund should atleast get 25 to 30 percent of profit for an infinite period of time. C. Non-Disclosure Agreement- Finally Sigmund should make a pre-contract such as Non-Disclosure agreement that should restrict Avacado from disclosing technical details and know-how to any third party without the consent of Sigmund.
Sigmund should make all these contracts under the advice of a registered advocate or a corporate lawyer. The advocate or the lawyer should be practicing in the U.S. so that he/she can help Sigmund in case of any legal dispute or discrepancies between him and Avocado.
Q.2 Ans- Sigmund should set up his business in France through Joint venture with an IT French company. As Sigmund is inexperienced with law and Big Sigmund is just a small start-up company, he needs further support in both financial and legal aspects. Joint venture could enable the company to share the risks and costs with partner, access to greater resources, market share and distribution channels. In particular, Sigmund should seek for a separate joint venture to gain flexibility with a reliable company. The local company should be well-performed and have a positive attitude for collaboration. As our main strategies are support for foreign law and regulations and market capture, the local company should be grown-up and long-standing such as Odisei S.A..
Q.3 Ans- Some of the crucial things that we need to consider while making an agreement with a contract manufacturer in China are:-
A. Protection of Intellectual Property- Before making a business deal with VOSSCONN, Sigmund should register his own product patents, trademarks or copyrights. Such restrictions can prevent a competitor from registering the same Intellectual Property in China. Sigmund should clearly specify in his contract that VOSSCONN will not manufacture similar products with other competing companies and will not share any know-how and trade secrets.
B. Setting up a Dispute Resolution Joint committee- Disputes are a common scene in International Business. So both the sides/companies should set up a joint dispute resolution committee and should agree to solve disputes mutually and in an unbiased manner. Both the companies/sides should register their companies under International Chamber of Commerce or any such well recognised International Trade Associations.
Q.4 Ans- Sigmund, according to what we learned in class, must register a patent about his invention, in order to protect it from the market and from Avocado (who we know has been developing a similar product in-house and we know it’s only trying to buy time to postpone Sigmund’s product and learn from him how to complete...
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