Comprehension and Discussion Questions. 2. Does contract law differ across countries?
1. What is a contract?
2. Does contract law differ across countries?
3. What are the two main legal traditions in the world today?
4. What is common law based on?
5. What is civil law based on?
6. Which countries operate with a civil law system?
CASE STUDY
Management Focus Microsoft Battles Software Piracy in China.
Background information
World’s biggest personal computer software company, developed MS-DOC and then Windows, the operating system and graphical user interface that now reside on over 90 percent of the world’s personal computers. In addition, Microsoft has a slew of best-selling applications software, including its word processing program (Microsoft Word), spreadsheet program (Excel), and presentation program (Power Point). An integral part of Microsoft’s international strategy has been expansion into mainland China, where there were an estimated 2.2 million personal computers in use in 1994, a number that was expected to grow by at least 1 million per year through the rest of the decade. Moreover, with a population of 1.5 billion, China represented a potentially huge market for Microsoft.
Key objectives of Microsoft
- To built Chinese sales from nothing in 1994 to $ 100 million by 2000.
- To make China respect Microsoft trademark and combat pirating its software.
- To make the Chinese government enforce its own intellectual property rights laws in order to crack down on factories that the United States identified as pirating US goods
- To increase the security of its goods and preserve the world monopoly.
Problem
To protect its interests and trademark Microsoft uses all possible means but cant’s combat pirating. The Chinese authorities began to prosecute the counterfeit manufacturing and even acknowledged that a copyright violation occurred. Microsoft was awarded $2600 and the pirate company was fined $ 3000. Microsoft is appealing the verdict and is requesting $ 20 million damages.
Discuss the problem, using the questions:
1. Will Microsoft reduce the price to compete with pirated versions?
2. Will Microsoft lobby the US government to pressure the Chinese authority to start enforcing their own intellectual property laws?
3. Will Microsoft wage a “guerrilla warfare” by digging pirated goods?
4. How can Microsoft maximize the sales of legitimate products?
5. Do you think that the best way to stop the Chinese government from using the pirated software is to go into business with it?
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6. What tariffs should the US government impose?
7. How can Microsoft compensate its damages?
8. How can Microsoft go into business with China?
9. Will you admit any claims of the Chinese partners? Which?
10. Will you refer some cases to the International Arbitration Court?
11. How will you react on the decision of the EU Antidumping Committee to fine Microsoft for preserving world monopoly rights?
Ex. 1. Choose the correct answer. Only one answer is correct. Write your answers on the separate answer sheet.
1. The right of the people to be … in their persons, houses, papers and effects, against unreasonable searches and seizures, shall not be violated.
A) successful b) secure c) happy d) isolated
2. No person shall be compelled in any criminal case to be … against himself.
A) a witness b) an enemy c) an offender d) a defendant
3. Public international law does not have a uniform codified set of … laws.
A) use b) existed c) accepted d) modified
4. Different national legal system may compete for …, and the laws they choose conflict.
A) laws b) police c) courts d) jurisdiction
5. Private international law is also affected by … conventions that provide a base for initial unification of substantive law.
A) unilateral b) bilateral c) multilateral d) different
6. A patent … the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention.
A) grants b) obliges c) insists d) asks
7. Inventions, clothes design, books, provide an … for people to search for novel ways of doing things and they reward creativity.
A) possibility b) incentive c) advantage d) characteristic
8. Many countries have … intellectual property regulations on their books.
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