COMPANY AND INTERNATIONAL BUSINESS LAW

COMPANY AND INTERNATIONAL BUSINESS LAW

15/05

Red beans case 

1. Question issue
2. Law “ no one shall be permitted to profit from his won fraud or take advandtage of his wrong” - Contracts for illegal things and invalid

🡪 Case online

Exam:

Written word to submit

Case analysis

2 weeks to submit

Individual work

Another case :

Russian movie company

Conflict between two licenses of exclusive distribution rights to Russian films in the United States

The content is protected by copy right

Two licenses : one for the original distribution and one for the other languages distributions

Film dubbing (doublage), subtitles

So two different market

But people that are Russian  only, they will buy the films and cut the dubbing themselves and sell the films

🡪 Violation of licenses

16/05

Diamonds : intellectual property – Apple

What you can license ?

• Trademark
• Patents
• Copyright

Big difference between trade and Licensing

When you sell licensing, you sell NOTHING

There is no tariff (douane d’importation seulement) between franchisees

MacDonald’s is trading nothing, but MacDonald’s is a franchisee

Franchisee is an idea and sells their ideas

Trade is more physical goods

Case: Dayan v. McDonald’s Corp

The first man wanted to implement macdonald in France

Dayan did not respect some requirements of the contract

Services cleanliness wasn’t respected, MacDonald’s from US stop the franchisee

Dayan sued MacDonald for that

His first reaction was: Deny totally

But McDonald’s hired people to check on the dirt – so there were evidences ! (dog shit, oil grease…)

What Dayan can do ?: make an appeal

But he has to find other arguments because too much evidences

“I didn’t know… it wasn’t such a big deal” 🡪 he attack McDonald : “I can deny but this is the fault of McDonald they are bad etc…”

🡪 But this is not the right thing to do

So Dayna loose

1. Issue/Question : Had McDonald’s failed to fulfill obligation to assist plaintiff in complying with franchise agreement ?

Where do we find the rules?  : IN THE CONTRACT

1. Law: The law has to respect the question

We need a law about assisting, training about (here) cleaning

The contract says: Franchisors must assist franchisees

1. Apply the rule to the facts : did MacDonald violate this rule or not ? does MacDonald did training about cleaning to Dayan

They sent a person to train / to assist, that speak French – That’s the evidence/proof, they fulfill the obligation

Business look at the law: is this was a big victory for McDonalds ? 🡪  NO

It stops their business in France, in ten year they had nobody to open a MacDonald  in France

HP- first computer constructors

Why create a factory in France ? Because it’s cheaper to do computer in France than doing it in US and them export them

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