Under GATS, WTO members are expected to make commitments that allow foreign suppliers to establish in their markets. Such commitments appeal, because the imposition of restrictions on investment destabilizes the international trade in products, as well as services. Whenever commitments are made, they are subject to the six types of limitations specified in the agreement. These restrictions limit the types of legal entities that are permitted. Additionally, GATS does allow governments to impose a host of other conditions on foreign investors. For instance, the government may issue a decree, restricting the right of foreign banks that operate branches in the country to conduct an international transfer of funds. In that case, country A cannot be said to have violated the GATS regulations (Roger, 2010).
The two countries, in this case the US and country A, must endeavor to resolve their dispute through consultations. They must enter into consultations within 30 days, since the dispute begun, as it has been stipulated in Article 4. If they do not resolve the dispute within 60 days, the complaining member may request the WTO to convene a panel for the purpose of speeding the resolution process. A panel may also be requested before the expiry of the 60 days period, and this usually happens whenever the defending member declines to enter into consultations. The panel may also be convened, as soon as the two parties come to the agreement that consultations are bound to hit a dead end (Roger, 2010).
Flyboy Inc., expansion into overseas market, such as Pamonia, can vastly increase the number of customers for the enterprise. This increased business growth comes with risks. Risk can be defined as average of state, economic and legal risks. Corruption in international trade is frequent. The rate of bribery, while engaging in the international business dealings, has been as a result of restrictions that authorities impose on foreign entrepreneurs. In most instances, those in authority end up benefiting from the same restrictions, as they are able to secure access after kickbacks have been offered by the foreign companies.
Nevertheless, Flyboy Inc. has to familiarize itself with the practices, as well as the local customs. In some instances, it is presumably justifiable to offer lavish gifts and grease payments to customers. However, such practices corrupt the society, resulting into a situation where routine engagements are derailed as none can be accomplished or expedited unless these forms of payments have been accomplished. Additionally, officials further complicate such processes as the issuing of licenses and permit, so that they can create an opportunity for corrupt dealings (Roger, 2010).
While venturing in the Pamonian market, the firm has to be aware of the strict laws and regulations that govern operations and avert acts of bribery, as they can attract hefty penalties under the international law. Foreign Corrupt Practices Act (FCPA) prohibits acts of bribery, involving foreign government officials in an endeavor to solicit for business advantages. Flyboy Inc. must develop a strategic plan to that is centered primarily on its core values and standards, so as to avoid questionable dealings, as well as the associated penalties, while engaging in foreign markets. Flyboy Inc. should maintain corporate programs; comply with the FCPA rules and regulations, as well as the laws that govern foreign investment in Pamonia. This would secure operations in Pamonia, since its activities would proceed without coercion from any party.
The FCPA encourages the U.S enterprises to use such intermediaries as agents, so as to establish an effective chain of distribution. Every party in the line of distribution has to be certified on the basis of its past performance record. The party must provide proof of willingness to abide by the FCPA. Engaging such distribution agents serves to generate positive influence on operations, thereby increasing the profit margin. This is usually the case when the agents happen to be known and well-established in the target market (Roger, 2010).
The urge to profiteer is the fundamental reason why parties engage in counterfeiting, as well as other unscrupulous activities. Companies that have their intellectual property infringed seek the injunctive relief. This is the right remedy, since the infringement of the Rockers and Dacca Inc.’s property, as it may prove to be detrimental to its reputation, as well as its future.
The Copyright Act provides that no individual or party may use the intellectual property without proper authorization from its legal owner. This Act provides copyright owners with the exclusive right to control reproduction, distribution and display of their copyrighted works. In addition, compensation and damages provide an adequate remedy whenever an infringement happens to occur. Rockers are entitled to filing a lawsuit against the alleged infringers so that they can be adequately compensated for the damages caused as per those legislations that govern intellectual property rights (Peter, 2009). Grey markets products are sold outside the established distribution agreements. Their purveyors take advantage of the fact that companies charge different prices for their products in different regions. The Rockers and Dacca Inc. can sue their competitors for damages suffered as a result of the intellectual property infringement.
The amount of damages is what the infringer would have to pay for a license if one had been approved. Additionally, the court may assess the losses that have been suffered by the Rockers and Dacca Inc., while determining the most appropriate compensation. The loss is conveniently assessed by the loss that has been incurred by the patent holder or on the amount of profit that has been made by the defendant. Another available remedy is the impounding and destruction of all reproductions made in violation of the legal owner’s rights.
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Article 9 of the Paris Convention provides that all goods that unlawfully bear trade names are to be seized on importation in any of the union’s countries that has agreed to protect trade names. In this case, the French court may rule in favor of the suspension of the use of “Method Wilson” as a trade name on the Euro Wally World pork barbecue. Wilson-Style-Barbecue is not generic enough to warrant the protection. Well-known trade names are those, which have a great international repute and are, therefore, entitled to protection in a foreign country, even without registration. Limited Wilbur should then extend its marketing activities to France. Nevertheless, they must protect their trade name by seeking trademark rights. Secondly, they must retain the original procedure that they employed while preparing barbecue. They might have to import their pork from the identified areas in North Carolina, so as to ensure that the distinctiveness of their barbecue is not lost.
Imitation has been common in several business domains. In most cases, firms imitate one another, while introducing new processes or products, as well as during the enhancement of organizational management. Most organizations imitate in an endeavor to exploit the perceived superiority of an established organization (Miller et al, 2010). This is the case with Raju’s gmatplus.com. Nevertheless, the judgment against Raju may not be enforceable, since gmatplus.com is different from GMAT, and the Graduate Management Admission Council has not copyrighted the phrase gmatplus. While it would be perceivable that Raju is seeking to benefit unfairly from the reputation that GMAT has, it is quite challenging to hold him legally responsible for the confusion that the name of his website creates. In fact, the court has no jurisdiction over Raju, as his company is registered in India and not in the US. Furthermore, Raju’s operations are concentrated in markets outside the US, and it would be difficult to quantify the damage that his operations cause to GMAT.