MKT 360 Lecture Notes - Lecture 24: Nespresso, Intellectual Property, Variable Pricing

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14 Nov 2016
Department
Course
Professor
CHAPTER 7
Oct-5
Areas of potential legal problems in international marketing
Patents, trademarks, copyright laws
o Each country has their own laws in patents, trademarks, etc.
USA: they protect the inventor long period of protection
Individualism high so thats h the potet the idiidual.
Japan: benefits society short period of protection, you made public your
patent application so it gives a long time to get people ideas from your
patent.
Colletiis is high so thats h the potet the soiet.
Distributor & Wholesaler agreements
o In many countries overseas distributors and wholesalers are protected from
getting fired
o If you want to give away with them, you have to give them compensation
Product quality laws and controls
o You cannot market a food, ediie o shapoo uless its ee appoed 
the FDA. (in the US)
Packing laws
o What kind of info you have to put in your nutritional packages the government
picks this: size, type, order in ingredients, etc.
Retail price maintenance laws
o Wal-Mart in Germany: the eet ale to use the sae piig tehiue the
were using in the US.
To sell elo o at ost to attat the to oe podut ut the thell
sell you other stuff price leader.
They were accused of dumping.
Price controls, limitations on markups or markdowns
o Political risks like in Venezuela when they give you a ceiling
o You at ake oe tha this  pofit
Warranty and after-sales exposure
o ICC
o If you are a manufacturer and you sell interstate, you have to keep replacements
for an x amount of time say like you sell coffeemakers Nespresso(a local coffee
machine not Nespresso but one made in the US) needs to keep replacements for
5 years after they discontinue the product in case of anything.
Rules of competition on:
o Collusion
Manufacturers meet secretly and set prices
o Buyer discrimination
Against age, race, etc.
o Promotional methods
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Here in the US, comparative advertising: you mention your competitor by
name and you say mine is better than yours
You cannot do that in South America or France.
o Variable pricing
Changing different prices for different areas, Publix in coral gables and
Hoestead: ut the a sa its because of different taxes or
transportation.
o Exclusive territory agreements (gray marketing)
Exclusive territories (explained detail)
Gray marketing is when you want to distribute a product overseas and
something the distributer might ask is exclusivity to the project.
When someone is not the elusie distiuto of a out, thell ig
in some other products and thats grey marketing
Non-authorized distributer sells their product in a region where there is
an authorized distributer.
Problem for the manufacturer:
Distributer in Argentina is losing their business to the distributers
in Florida so the Argentinians quit.
Catepilla had a peaeful deisio ad issued a e ule:
o Each individual distributer can only service tractors that
are physically in their territory.
o They started checking with serial number.
What is legal/illegal about this?
o Supreme court has declared that it is legal.
o You as a manufacturer sell to somebody something in your
territory, they can do whatever they want with it bc you
at tell the hat to do ith it
(No class Oct. 7)
Oct-10
Bases for Legal systems
Common Law
o Derived from English law
o England, US, Canada and other influenced English countries.
o As a itl akete, its ot the sae la eehee.
o Basis for common law:
Tradition
Past practices: previous law passed by a previous court (previous cases
precedents supreme court)
Legal precedents set by courts
o Intellectual property law: first to use
Who used it for the first time and who is continuing to use it?
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