Addressing Legal and International Issues

1Addressing Legal and International Issues

Addressing Legal and International Issues

David Crawford

LAW421

7/1/13

Kathryn Harris


For companies such as CadMex and Gentura to enter a contractual relationship together, they

must address the legal and international issues that may occur during the course of their business

agreement. Many factors must be considered in both the present and future of the business

partnership. CadMex Pharma is a company that is a global leader in healthcare products and

pharmaceutical development. In their business model, they attempt to develop “innovative and cost-

effective quality healthcare products.” They usually do this by adhering to laws protecting intellectual

property rights in developing countries. Gentura is a biotechnology company that is looking to do

business with CadMex Pharma in their home country of Candore. The Candorean government has a

majority stake in Gentura which can complicate matters at some times. In order for the relationship

between these two companies to be prosperous, there are a few key choices that need to make to

secure the intellectual property while securing profits.

Legal Disputes in International Transactions

There are many issues involving international transactions such as who owns what in terms of

intellectual property, as well as how much money has to be settled in local or overseas court. Another

big part of international transactions involve the WTO or World Trade Organization. Contracts for the

International Sale of Goods or CISG can be viewed as beneficial to a company, but does not cover the

intellectual property involved in the transaction. In order to protect the business in the event of

something such as an economic collapse or government takeover, it is important to protect some sort of

technology or patent. The whole issue with international transactions is that for arguments to made in

the courts, the actions made by people need to be legally binding. If there is no legal standing, anyone

could ignore the agreement made with the government. If a company had to go to court over

something, it would important to understand how costly and time consuming something like that would


be. In this case, such a thing as international arbitration would be favorable in terms of the time frame

and monetary value.

Practical Considerations for Resolving Legal Disputes

If a company such as CadMex and Gentura were to take legal action against each other, it would

be particularly difficult to pinpoint who has jurisdiction where. It would also likely involve multiple

courts to fight over a resolution. For one, many companies such as CadMex are partially owned by the

government or assisted through government subsidies. Therefore, when a violent or non violent coup

occurs, there needs to be steps in place to ensure the original agreement still exists. If not, what

contingencies are in place to protect the capital investments as time continues. How costly would court

or arbitration be in terms of time and money? If battles are made in the Candore Courts, there is a high

risk that the government can intervene. Therefore, if a company were to agree to binding terms, any

international agreement would suffice.

CadMex’s Sublicensing Agreements

The main factors that could work against CadMex and their ability to sublicensing agreements

would be the government involvement and ownership of the intellectual property. With the

government owning a major stake in the company, they could dictate who does business with whom. If

there are disagreements with another country, it may be blocked by whoever is in charge. In addition,

should the government interfere and argue that they own the rights to the ingredients and procedures

of creating and distributing a particular drug, who actually owns the drug? If drug is sublicensed to

companies other than Gentura, there are much more local courts to put into consideration if CISGs don’t

protect intellectual property and technology. Therefore, if a company decides to make a generic version

of the drug or direct competitor, it’s extremely important to be to ensure you have legal standing to


your own product in both international court and the local courts. As it was said earlier, there needs to

be the ability to enforce the law in specific jurisdictions.

Local vs. International

Since every country has a different way of operating locally, it is difficult to secure a standard for

businesses internationally. While international standards would help centralize things and make things

fair, it is often impractical to find an impartial court to rule over countries. There would be a significant

amount of red tape involved with litigation. Essentially no county is going to allow an international court

to rule and order them to do anything. There would be no legal standing and the rulings would fall upon

deaf ears. Therefore, it would be important to ensure that international law can provide precedents that

can help steer local courts to rule accordingly.

In summation, CadMex and Gentura are two companies that will require an extensive amount of

legal counsel to help facilitate their business agreement. In order to protect their intellectual property

they must ensure that contingencies are in place to ensure their product stays within their confines of

their company. If anything should happen, the arbitration should occur in a place that is economical for

both parties. International agreements should be binding so that arbitration has legal backing.


Works Cited

"Contemporary Business Law I." Addressing Legal and International Issues. N.p., n.d. Web. 1

July 2013.

<https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMSims/business_law1/

intl_legal_ethical/business_law1_intl_legal_ethical_frame.html>.

Melvin, Sean P.. The legal environment of business: a managerial approach : theory to practice.

New York: McGraw-Hill/Irwin, 2011. Print.

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Addressing Legal and International Issues