Precaution for export contract and dispute resolution (1)

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PRECAUTION FOR EXPORT CONTRACTS AND DISPUTE
RESOLUTION

• Presented by
• Knowledgentia Consultants
• Address E-71, L.G.F., Greater Kailash-1
• New Delhi 110048
• Tele 91-11-46012100
• Email info_at_knowledgentia.com
• Website www.knowledgentia.com

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INTRODUCTION

• Export Import business is carried out on the
  basis of a Contract of Sale between buyer and
  seller.
• The contract should comprise of all the necessary
  terms and conditions.
• Presence of dispute resolution and jurisdiction
  for dispute resolution in the contract is very
  important.

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INTRODUCTION

• Clause for liability and duties.
• Scope of work for both parties
• Term and Duration
• Exit Clause
• Arbitration clause is important.
• Indemnification clause.
• Payment Terms

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EXPORT/IMPORT CONTRACT

• For International sale and purchase of
  goods/services
• The buyer could be a trader, importer, distributor
   or wholesaler that will sell the products to
  another company or merchant. 
• Seller an exporter, manufacturer or licensee of
  manufacturer
• Usually, contracts are based only on Proforma
  Invoice, Bill of Lading
• It is advisable to have a written and legal
  contract/agreement in place.

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ESSENTIAL ELEMENTS OF AN IMPORT/EXPORT CONTRACT 

• Products, standards and specifications.
• Units of measure in both figures and words.
• Total value. The total contract value in words
  and figures, and in a specific currency and
  bifurcation of taxes ( as applicable).
• Inspection/Quality Check.

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• Delivery terms and schedule.
• Terms of payment
• Amount, mode and currency.
• Documentary requirements

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• Clauses for Delay in delivery. 
• Insurance of goods against loss, damage or
  destruction during transportation.
• Clause for Intellectual Property Rights to
  goods/services
• Force Majeure.

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• Liability for non-performance of the contract.
• Applicable law.
• Jurisdiction
• Arbitration clause.

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• Cargo claims.
• Terms of breach.
• Indemnification.
• Termination.
• Exit Clause.

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TERMS ON SALES CONTRACT/ PURCHASE CONTRACT

• The formal contract consists of the following
  main terms
• Name of the commodity.
• Quality of the commodity.
• Quantity of the Commodity.

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• Packaging of the commodity.
• Price of the commodity.
• Payment terms and Schedule.

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• Insurance.
• Quality Check/Inspection.
• Force majure.
• Exit Clause

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TERMS ON PRICE METHODS

• Below are methods generally followed for Price
  Methods
• FOB- Free on board
• CFR or CF- Cost and Freight
• CIF- Cost, Insurance and Freight
• DAF- Delivered at Frontier

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FREE ON BOARD (FOB)

• Free on Board means that the seller fulfills his
  obligation to deliver when the goods have passed
  over the ship's rail at the named port of
  shipment.
• The buyer has to bear all costs and risks of loss
  of or damage to the goods from that point.
• FOB terms require the seller to clear the goods
  for export.
• This term can only be used for sea or inland
  waterway transport.

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COST AND FREIGHT

• Cost and Freight means that the seller must pay
  the cost and freight necessary to bring the goods
  to the named port of destination.
• But the risk of loss or damage to the goods, as
  well as any additional costs due to events
  occurring after the time the goods have been
  delivered onboard the vessel, is transferred
  from the seller to the buyer when the goods pass
  the ship's rail in the port of shipment.
• The C F term requires the seller to clear the
  goods for export

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CIF- COST, INSURANCE AND FREIGHT

• CIF means that the seller has the same
  obligations as under C F.
• Seller has to procure marine insurance against
  the buyer's risk of loss of or damage to the
  goods during the carriage.
• The seller contracts and pays the insurance
  premium.

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DAF- DELIVERED AT FRONTIER

• DAF means that the seller fulfills his obligation
  to deliver
• When the goods have been made available
• Cleared for export, at the named point and place
• The term is primarily intended to be used when
  goods are to be carried by rail or road, but it
  may be used for any other mode of transport.

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PAYMENT METHODS

• IRREVOCABLE L/C(LETTER OF CREDIT)
• REMITTANCE
• DOCUMENTARY COLLECTION
• DOCUMENTS AGAINST ACCEPTANCE (D/A)

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IRREVOCABLE LETTER OF CREDIT

• Irrevocable L/C is the one that can not be
  withdrawn or amended by the opening bank without
  the agreement of the beneficiary
• Secure
• Internationally Acceptable method

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IRREVOCABLE LETTER OF CREDIT

• Irrevocable or not
• Guidelines for International Trade - Uniform
  Customs and Practice Rules 600 (UCP 600) is the
  latest version with guidelines for comprising
  L/C
• Bank of buyer and seller are involved in the
  completion of the contract and payment

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REMITTANCE

• Mail Transfer (M/T),
• Telegraphic Transfer (T/T), and
• Demand Draft (D/D)

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MAIL TRANSFER

• Buyer will hand over the payment of the goods to
  the remitting bank
• Authorizing its branch bank or correspondent bank
  in the country of the beneficiary by mail to make
  the payment to the Seller.
• Mail transfer is cost effective but takes more
  time.

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TELEGRAPHIC TRANSFER

• Buyer will hand over the payment of the goods to
  the remitting bank
• Buyer authorize their branch bank or
  correspondent bank in the country of the
  beneficiary by telegraphic means to make the
  payment to buyer
• Expensive but quicker.

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DEMAND DRAFT

• Buyer will come to the local bank to buy a
  banker's bill
• Deliver the Bill to the seller or beneficiary by
  mail
• When the seller or beneficiary has received it,
  they will redeem it from the designated Bank.
• Apart from banker's bill, promissory notes or
  cheques can also be used in this way.

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DOCUMENTARY COLLECTION

• D/P AT SIGHT
• Under D/P at sight, the seller might either draw
  or not draw a draft on the buyer.
• Seller shall hand over the shipping documents
  together with (or without) the draft, and the
  shipping documents and the draft (or without
  draft) will be transferred to the collecting bank
  which will present them to the buyer and ask him
  to make the payment at sight.
• 
  
  

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• The buyer, upon sight, should then make the
  payment and get the shipping documents.
• When the collecting bank has finished the
  collection, it should immediately notify the
  remitting bank which will then make the payment
  to the seller.
• Bank shall make payment to the Seller.

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D/P AT _ DAYS AFTER SIGHT (DATE)

• The buyer shall duly accept the documentary draft
  drawn by the seller at _ days sight upon first
  presentation and make payment on its maturity.
• The shipping documents are to be delivered
  against payment only.

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DOCUMENTS AGAINST ACCEPTANCE (D/A)

• Under D/A, the buyer can get the shipping
  documents from the collecting bank after he has
  duly accepted the draft.
• This is only applicable to time draft.
• These will greatly convenience the buyer, but it
  means much more risk for the seller, for once he
  has delivered the shipping documents, he will
  have lost his title over the goods.

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DOCUMENTS AGAINST ACCEPTANCE (D/A)

• D/A has more risks for the seller, for the buyer
  might refuse to pay after acceptance of the draft
  and taken the delivery of the goods.
• Certainly the seller might sue the buyer, but as
  often the case, the buyer claims bankruptcy and
  then the seller can do nothing to remedy the
  situation.
• Buyer fails to remit payment to seller

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CONTRACT TERMS ON DOCUMENTATION

• Generally there are five kinds of commonly used
  international trade documents
• Government Control documents.
• Commercial Invoice Documents.
• Banking Documents.
• Shipping Documents.
• Insurance Documents.

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GOVERNMENT CONTROL DOCUMENTS

• Export Documents.
• Import License and Foreign Exchange
  Authorization.
• Export License - Export Documents.
• Certificate of Origin - Export Document.
• Inspection Certificate - Export Document.
• Consular Invoice.
• Customs Invoice.

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COMMERCIAL INVOICE

• Mandatory Information for Invoice
• Buyer's order number.
• Invoice number and date.
• Shipment terms.
• Names and addresses of the seller and buyer.
• Country from which the shipment is made.
• Description of the goods.

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• Quantity, weight or measurement of the goods.
• Unit price
• Total amount payable, including price of goods,
  freight, insurance and so on.
• Rebate or similar incentives.
• Signature of the exporter.

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BANKING DOCUMENTS

• Below are some generally used banking documents
  in international trade
• Documentary Credit D/C.
• Standby Credit.
• Collection Instruction.
• Bill of Exchange (B/E) or Draft.
• Trust Receipt (T/R).
• Promissory Note.

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SHIPPING DOCUMENTS

• Below are few documents which are generally
  required
• Shipping Order S/O.
• Dock Receipt D/R or Mate's Receipt.
• Bill of Lading (B/L).
• House Bill of Lading.
• Sea Waybill.

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• vi. Air Waybill (AWB).
• vii. House Air Waybill (HAWB).
• viii. Shipping Guarantee.
• ix. Packing List (sometimes as packing note).

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INSURANCE DOCUMENTS

• Below are generally required insurance documents
• Insurance Policy.
• Insurance Certificate.
• Combined Certificate.
• Open policy or Open cover.

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ROADBLOCKS FOR IMPORTERS/EXPORTERS

• Absence of adequate terms/ clauses in contract.
• Infringement of Intellectual Property Rights
• Government control.
• Different laws.
• Difficulty in payments.
• 
  
  

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• Customs duty.
• Lack of information.
• Economic dependence.
• International dispute.
• Language difference.

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MODES OF DISPUTE RESOLUTION

• Major modes of dispute resolution are
• Negotiation
• Mediation
• Arbitration
• Litigation

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INTELLECTUAL PROPERTY ISSUES IN INTERNATIONAL
TRADE

• IP Rights are Territorial.
• Secure Freedom to Operate.
• Respect Deadlines.

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INTELLECTUAL PROPERTY ISSUES IN INTERNATIONAL
TRADE

• Early Disclosure.
• Working with Partners.
• Choosing an Appropriate Trademark.

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WHAT ARE INTELLECTUAL PROPERTY RIGHTS?

• INTELLECTUAL PROPERTY RIGHTS ARE
• TRADEMARKS
• COPYRIGHTS
• PATENTS
• DESIGNS.

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INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL
BUSINESS

• IP is of relevance to many aspects of
  international trade.
• Crucially it provides exclusive rights,
• But these rights have to be pursued locally and
  internationally so as to prevent imitators.

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TRADE MARKS

• Trade Marks are distinctive symbols, signs, logos
  that help consumer to distinguish between
  competing goods or services.
• Trade marks registration enables to maximize
  product differentiation, advertising and
  marketing, thus enhancing the product or services
  in international markets and establishing a
  direct link with the foreign consumers.

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COPYRIGHT

• Copyright is the artistic work/logo or
  combination of artistic work with data on
  websites or compilation of data in the form of
  software.
• Legal copyright registration allows control the
  import and export.
• Exporting the products outside the country brings
  company into contact with different legal
  environment, the rules that apply there may
  differ.
• Therefore, it is important to register creative
  work in prospective exporting countries

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PATENT

• Patent is an exclusive right granted for an
  innovation, which is a product or a process or
  both that provides a new way of doing something,
  or offers a new technical solution to a problem.
• Patents provide licensing opportunities with
  companies inside and
• sometimes even outside a companys field.
  An active patent
• program generates revenue from the
  licensing of patents which cover
• technology or business processes.

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PATENT

• Possessing a patent help a company to grow by
  capitalising on the market potential of its
  inventions. Small companies use patents to
• financial backing.
• Small scale companies that hold patents attract
  overseas investment and develop products for
  exports

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DESIGN

• Design is the ornamental or aesthetic aspect of
  an article which must appeal to the eye. The
  design may consist of three-dimensional features,
  such as the shape or surface of an article, or of
  two dimensional features, such as patterns, lines
  or colour.
• Design contribute to both innovation and brand
  building.
• Designs helps improve the form of a product, how
  the brand connects emotionally and engages with
  consumer.

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IP RIGHTS ARE TERRITORIAL

• All IP rights are only valid in the country or
  region in which they have been granted, except
  Copyright.
• Therefore, applying for such rights in other
  countries is important if there is an intention
  to go international.

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EXCEPTIONS

• Copyright is automatically available to all
  member countries through the provisions of the
  Berne Convention,
• Well known marks have automatic protection,
• Trade secrets are by their nature confidential.

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IP RIGHTS ABROAD

• Export Import the owner of IPR should seek
  protection from the jurisdiction wherein it is
  proposing to commence business
• Protection through application of Trademark,
  Patent, License, Assignment as applicable and
  agreed between both parties
• IPR can be applied for registration either
  through National route or through Regional Route
• Once applied, the seller can claim royalty in
  lieu of rights to sell the product/service in
  that jurisdiction

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IP RIGHTS ABROAD

• National route
• Register for the relevant IP in each
  country/territory.
• Obtain IP Rights Internationally
• Regional Route Below are few International
  Organization which provide IP rights for their
  jurisdictions or conglomerate of areas
• Benelux Office for IP (TM and Designs)
• ii. African Regional Industrial Property
  Office (ARIPO)

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• iii. Eurasian Patent Office
• iv. European Patent Office
• v. Office for the Harmonization of the Internal
  Market (TM and Designs)
• vi. Organisation Africaine de la Propriété
  Intellectuelle (OAPI)
• vii. Patent Office of the Cooperation Council for
  the Arab States of the Gulf
• In INDIA INTELLECTUAL PROPERTY RIGHTS are
  protected by CONTROLLER GENERAL OF PATENTS,
  DESIGNS TRADE MARKS.

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INTERNATIONAL ROUTE

• World Intellectual Property Organization (WIPO)
  Administers the conventions and systems for the
  international registration of marks, designs and
  patents in conformity with the requisite
  standards and parameters.
• Through Madrid and Hague International
  application is valid in the designated countries
  unless rejected within a specified time.
• PCT International application subject to
  international phase (international search and
  patentability report and a preliminary
  examination report, if required) followed by the
  national phase. Here the designated countries
  decide on patentability.

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FREEDOM TO OPERATE (FTO)

• Analyzing FTO is to evaluate whether you are in
  any way infringing the patents, designs or
  trademarks of others in the particular
  jurisdiction.
• Such a evaluation is usually done by conducting a
  search in patent, trademark and design databases
  for patent applications, granted patents,
  registered trademarks or designs.

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FTO - PATENT

• Even if there is a potentially conflicting patent
  that has been granted in the territory in
  question.
• It may have expired or expiring soon.
• Its claims may not cover the elements of
  interest.
• If the patent still remains valid and applicable.
• It could still be invalidated by finding
  applicable prior art.
• A license could be obtained or
• Invent an alternative.

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FTO - TRADEMARK

• Same issues nationally as for international
• Search for similar trade name or domain name that
  may lead to a future dispute.
• Analyse the competitors and their brands/mark
  whether registered or not.
• Then create, innovate and coin a mark/logo/tag
  line for protection.

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HOW TO DEAL THE CONFLICT?

• If the search produces a prior existing patent,
  trademark or design in the market of interest
  then clearly it cannot be used as is
• Options available are to change the trademark,
  design around the patent or design
• Offer to buy or license that right or
• Challenge its validity if its not novel or its
  obvious.

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RESPECT DEADLINES

• Priority Period.
• Patents 12 months Designs 6 months
• Once an application for a patent or design right
  has been made domestically (priority date) an
  international application has to be made within
  the priority period .
• Priority date can be claimed from domestic
  priority.
• Loss of novelty if filed beyond the stipulated
  period

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EARLY DISCLOSURE

• Novelty is pre requisite for claiming protection.
• Disclosure only through Non-disclosure Agreement.
• If not, the novelty could be lost and an
  application for registration be rejected.
• Essential for Innovative processes and products
  for both Designs and Patents to potential
  partners before protection has been filed.

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WORKING WITH PARTNERS IPR

• Ownership of IP.
• Assignments/licenses for ownership.
• Risk of unauthorized use or disclosure of trade
  secrets by partner.
• Risk that partner will use trade secrets of
  others and expose you to litigation. Insist on
  indemnification.
• Quality of product to be maintained.
• Sustain brand image.
• Trade marks to be registered in name of original
  owner only.
• If registered in the partners name in the country
  could create conflicts once the relationship
  ends.

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CHOOSING AN APPROPRIATE TRADEMARK

• Mark should be innovative, creative
• Not deceptive
• Not descriptive or generic
• Unique and not obvious
• Interesting connotations and their translated
  meanings should be analyses in the territory for
  interest
• FEW EXAMPLES
• Mitsubishi was dismayed to find that PAJERO
  means 'Wanker' in Spanish. Ford NOVA means
  No Go in Spanish. Whereas Coca Cola was
  successful in finding a trademark in Chinese to
  say Happiness In The Mouth

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DISPUTE RESOLUTION
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NEGOTIATION

• Basic means of settling differences.
• It is back-and-forth communication between the
  parties.
• Goal of trying to find a solution.
• You may negotiate directly.
• You may hire an attorney to negotiate on your
  behalf.
• No specific procedures to follow.
• It works best if all parties are positive and
  intend to settle
• the matter.

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MEDIATION

• Mediation is a voluntary process.
• An impartial person (the mediator) helps with
  communication and promotes reconciliation.
• Mediator manages the process and helps facilitate
  negotiation.
• Mediator does not make a decision nor force an
  agreement.
• Parties directly participate and are responsible
  for negotiating their own settlement or agreement.

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ARBITRATION

• Arbitration is the submission of a disputed
  matter to an impartial person (the arbitrator)
  for decision.
• An out-of-court method for resolving a dispute.
• Arbitrator controls the process, will listen to
  both sides and make a decision.
• Appeal rights are limited.

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LITIGATION

• Litigation is the use of the courts and civil
  justice system to resolve legal controversies.
• Used to compel opposing party to participate in
  the solution.
• Specific rules of procedure, discovery and
  presentation of evidence must be followed.
• A formal judicial proceeding allowing full
  examination and determination of all the issues
  between the parties.
• Decision can conclude the litigation process and
  be enforceable.
• Appeal is available.

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ARBITRATION V/S CIVIL LAW

• Arbitration is the alternative dispute resolution
  mechanism
• Saves time and cost as incurred in litigation
• Parties are bound by Award of an arbitrator
• Final decision of Arbitrator

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ADVANTAGES OF ARBITRATION

• Advantages of arbitration
• (i) Arbitration proceedings are private and
  confidential.
• (ii) Parties can choose the arbitrator.
• (iii) Parties can choose the language of the
  arbitration and its venue.
• (iv) Arbitrations can be less formal than
  court proceedings.
• (v) Arbitration awards are final, binding
  and are enforceable through the
• courts.

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• (vi) Avoids hostility.
• (vii) Usually cheaper than litigation.
• (viii) Faster than litigation.
• (ix) Flexible.
• (x) Simplified rules of evidence and procedure.

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LAW FOR ENFORCEMENT OF FOREIGN AWARDS

• Member country signatory of International
  Conventions. 
• Members to bring legislation for enforcement.
• India has accordingly enacted Foreign Awards (
  Recognition and Enforcement) Act, 1961.
• Person interested in the award can pray the
  court, having jurisdiction.
• Court pronounces the judgment according to the
  award.
• No appeal can lie except when the judgment is in
  excess or not in accordance with the award.

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REAL TIME CASE LAWS

• CHAMBER OF ARBITRATION, MILAN 10.10.2014
• FACTS Issue of breach of terms of Technology
  Transfer Agreement entered in between the parties
  way back in 2011 between an Italian and German
  entity. Claimant terminated the contract alleging
  the non timely delivery of goods and claimed
  refund of payment made for procurement of
  materials.
• ARGUMENTS According to Claimant, Respondent was
  unable to package a given quantity of the agreed
  product within the stipulated time as per the
  order.
• Commercialization was to be launched by a client,
  who cancelled the entire order and the claimant
  suffered loss of client, income as well as
  reputation.
• However, the respondent stated that no deadline
  was mentioned in the contract and also respondent
  made all efforts to package the product timely.
• Ref Claimant (Italian company) v. Respondent
  (German company) Chamber of Arbitration of Milan
  Award No. 7813, rendered on 10 October 2014.

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• JUDGMENT OF THE COURT
• The Sole Arbitrator found that Respondent
  behavior was in compliance with the standard good
  faith acceptable in the circumstances and taking
  into account both parties contractual
  obligations.
• In fact, on the basis of the evidence presented
  by the parties and of the experts report, the
  Sole Arbitrator deemed that while Respondent
  proved to have made its best efforts to try and
  package the goods, Claimant did not demonstrate
  that it actually performed the activities which
  were necessary to put Respondent in the condition
  to package in case of urgency, not only pursuant
  to the agreement but also according to the
  standard practices of the field.
• Thus, the award was in favour of the Respondent
  German Company.

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Playboy Enterprises v. Bharat Malik Another,
Delhi High Court 2001 PTC (21) 328

• INFRINGEMENT OF FOREIGN TRADEMARK
• FACTS
• Playboy Enterprises Incorporation has been the
  publisher of the widely known magazine PLAYBOY
  filed for restraining an Indian publisher Mr.
  Bharat Malick, who launched PLAYWAY.

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• Plaintiff contended that the adoption of the word
  'PLAY' by the defendant was ill motivated and
  illegal. And that the word was phonetically
  similar to the mark PLAYBOY.
• Hence, there was a clear case of infringement of
  the registered trademark of the plaintiff with
  the intention of selling the defendants magazine
  using the goodwill and reputation of the
  plaintiff.
• Court held that long and continuous user by
  Plaintiff of the mark PLAYBOY has given it a
  global reputation of being well known in that
  content. Thus, use of mark PLAYWAY for similar
  content amounts to infringement and passing off.
• Defendants were restrained from printing and
  publishing the magazine under the name PLAYWAY.

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HORLICKS LTD. ORS. V. KARTICK SADHUKAN 2002
(25) PTC 126 Del

• FACTS
• HORLICKS Ltd. is a foreign company engaged in
  manufacturing of wide range of food products.
• KARTICK CONFECTIONERY started manufacturing a
  similar look-alike product, namely, toffees under
  the trademark HORLIKS infringing the trademark
  rights enjoyed by 'HORLICKS.
• SUIT HORLICKS filed for a suit seeking to
  permanently restrain
• KARTICK CONFECTIONERY from infringing the
  trademark
• HORLICKS and also its copyrights which it
  enjoyed over the
• product.

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JUDGEMENT

• The court ruled that use of the label and
  trademark HORLIKS by defendants in respect of
  toffees is very likely to cause confusion among
  the people. It would thereby lead to deception
  and thus it restrained Kartick confectionary from
  use of the mark HORLIKS or under any other name
  that is similar in expression to Hs trademark
  HORLICKS.

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ICC DEVELOPMENT INTERNATIONAL V. ARVEE
ENTERPRISES ANOTHER2003 PTC (26) 228

• FACTS
• ICC Development (International) Ltd., exclusive
  owner of rights pertaining to logo/word/ for
  World Cup.
• Arvee Enterprises was an authorized dealer of
  Philips India Ltd. Launched a Promotional
  campaign with slogan - "Philips Diwali Manao
  World Cup Jao" and "Buy a Philips Audio System
  win a ticket to the World Cup". They even
  inserted a pictorial representation of a ticket
  with an imaginative seat and gate number saying
  "Cricket World Cup 2003.

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• SUIT
• ICC approached the Delhi High Court for restrain
  against the Defendant on the averment of ambush
  marketing.
• JUDGMENT
• Court dismissed the suit of ICC and asserted that
  the practice of Arvee was neither it was an
  Unfair trade practice nor misuse of brand of
  World Cup.
• Court upheld that World Cup is a sporting event
  and not a trademark upon which exclusive rights
  would vest with Plaintiffs as claimed.

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WIPRO CYPRUS PRIVATE LIMITED V. ZEETEL
ELECTRONICS 2010 (44) PTC 307 (MAD)

• FACTS
• Wipro Cyprus Private Ltd acquired the trademark
  Yardley and all its variants thereupon from
  Lornamaed Group Ltd including its Indian
  registrations.
• Zeetel Electronics attempted to import talcum
  powder and body sprays having the same trademark
  Yardley from
• Singapore.
• SUIT
• Wipro filed for a suit of permanent injunction
• against Zeetel.

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JUDGEMENT

• Madras High Court restrained Zeetel from
  importing the goods in India thereby it upheld
  the exclusive right of Wipro on acquisition of
  brands for India.
• Thus, on the basis of license and sale of
  registered Trademarks competitor was curbed from
  doing business of goods under that trademark.

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NOKIA AND SAMSUNGFebruary 1, 2016

• The convoluted litigation between Nokia and
  Samsung concluded with an arbitral award which
  settled the patent disputes between both the
  corporates. The award also assessed the
  compensation for extension of Patent license for
  a few years.
• Multifarious and complicated issues of cross
  patents, technology its scope and ambit can be
  best adjudicated by the mode of Arbitration as
  strict laws of civil procedure and evidence would
  only impede the decision and not enhance its
  redressal

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TESSERA TECHNOLOGIES, INC. VS. AMKOR
TECHNOLOGY, INC.

• The parties entered into a license agreement in
  1996, and agreed that all disputes would be
  submitted to final and binding arbitration before
  the ICC.
• The tribunal convened by the ICC found that Amkor
  had intentionally and materially breached the
  parties' license agreement, and that, as a
  result, Tessera, Inc. properly terminated the
  license agreement in 2011.
• The total award of approximately 145 million

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MITSUBISHI MOTORS CORP. VS. SOLER
CHRYSLER-PLYMOUTH, INC. 473 U.S. 614 (1985)

• Petitioner brought an action in a US District
  Court seeking an order compelling the parties to
  arbitration in pursuance of the sales agreement.
• Respondent alleged that the dispute involved
  antitrust claims (division of markets resulting
  in restraint of trade), which are not arbitrable.
• The court held that International Arbitration can
  settle all disputes.

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CONCLUSION

• Export/Import Contract should always be entered
  into
• Incorporation of all suitable terms and
  conditions in the Contract
• Arbitration clause plays an important role for
  dispute settlement.
• Terms of breach, indemnification and insurance
  plays are of paramount importance
• Payment method should be secure, suitable and
  acceptable to both
• Exporter/Importer should ensure that the relevant
  Intellectual property rights are secured both in
  domestic as well as international arena
• In case of conflict, do not delay, initiate
  action quickly.

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