          
                   Protecting Intellectual Property Abroad
          
               U. S. businesses competing abroad need to protect 
          their intellectual property. Although no course of action 
          can guarantee trouble-free expansion into foreign markets, 
          it pays to learn about a country's intellectual property 
          laws and practices before deciding to do business there. 
          Laws and customs vary widely, but following a few general 
          principles can make the difference between an advantageous 
          competitive arrangement and commercial disaster.
          
               In recent years, U.S. firms doing business abroad have 
          had experiences like these (the examples represent real but 
          composite experiences):
          
               * Company A sent product literature to a potential 
          foreign business partner. Soon the would-be partner 
          cornered the markets for the product in its region. Company 
          A had a U.S. patent, but public disclosures had now made 
          its product unpatentable in most foreign countries.
          
               * Company B first knew its computer programs were 
          being sold abroad when pirated copies entered the United 
          States. It blocked commercial importation, enforced its 
          copyrights country by country, and has been successful so 
          far in stopping infringements in countries that are major 
          markets.
          
               * Company C's expansion into one country was held up 
          when it discovered that its trademark was already 
          registered there by someone else. After lengthy 
          negotiations, it bought the right to use the mark.
          
               * Company D did business on a handshake and general 
          understanding. Its closely guarded technology has been very 
          useful to its foreign competitors.
          
               * Company E found exclusive rights to its inventions 
          and writings an enormous commercial advantage. It secured 
          the best protection available in each country in which it 
          did business and avoided investing in those with inadequate 
          protection.
          
               Before making a decision to invest or do business in 
          any country, it pays to investigate the business 
          environment.  Protection of valuable intellectual property 
          is an important aspect of that environment. The protection 
          available depends on the national laws, administrative 
          practices, and treaty obligations of each country.
          
               Determining the type and extent of protection needed 
          involves technical, legal, and business considerations. 
          Deciding between trade secret and patent protection, for 
          example, depends on whether an invention can be "reverse 
          engineered," as well as on marketing plans and legal 
          requirements. In the United States, different aspects of 
          one product might be protectible under laws covering 
          utility patents, mask works, design patents, copyrights, 
          and trademarks.
          
               Intellectual property protection can be quite complex.  
          Ideally, questions should be explored in detail with an 
          attorney.  This guide is intended to provide an 
          introduction to intellectual property protection for U.S. 
          businesses considering expanding into foreign markets.
          
          
          
