Baker & Daniels clients often face the same business and legal problems when trying to decide whether to enter into or how to manage a business relationship in another country. We have solutions to these problems. And we have U.S. educated lawyers who speak several different languages, including Arabic, German, French, Spanish, Mandarin and Shanghaiese. Our attorneys can literally have an answer for you within 24 hours by working with their colleagues in China, the U.S. or through our affiliated law firms.
Establishing International Holding Companies to be Tax Efficient
Whether your company has one or several international investments, you may have been advised by your international tax experts to establish a holding company in another country, such as Luxembourg, the Netherlands, Spain, Hong Kong or Mauritius. We have established legal entities in each of these countries, and we know what it takes to meet the local legal requirements.
Protecting Your Intellectual Property
Whether you have decided to patent your technology, register a trademark, obtain a copyright or keep your confidential information trade secret, you are rightfully concerned about your ability to protect that valuable asset once you use it or place it into commerce. We have helped clients manage their intellectual property portfolio worldwide in order to maximize protection for those valuable properties while deciding whether to forego continued protection when the business does not justify the maintenance fees. We have also helped clients by monitoring Web sites to identify counterfeiters, shut down manufacturing of counterfeit products and have counterfeit goods seized. In some cases, the counterfeit goods posed safety and product liability problems for our clients, and we had the goods seized to avoid future accidents and the resultant liability.
Competition From Low Cost Producers
Remember the saying: When you can't beat them, join them? Many of our clients have found that due to low manufacturing costs in China, India and Brazil, they simply cannot compete. So they have established sourcing relationships with companies and have asked us to assist in conducting due diligence to identify the right sourcing partner. In other cases, we have helped them establish manufacturing facilities, either through a joint venture or Wholly Foreign Owned Enterprise. We have helped form joint ventures for a range of manufacturing clients, including a specialty chemical manufacturer, wood products manufacturer, lawn equipment manufacturer, wire manufacturing company and water supply equipment manufacturer. We have also helped clients restructure the ownership of joint ventures after they were formed.
Compliance with International Environmental Laws and Product Conformance Requirements
Although the U.S. was once the leader in all areas of environmental regulation, there are many types of regulatory programs in the EU, Japan, Korea and even China that impose more stringent requirements than exist in the U.S. today. Knowing whether your products must conform with those requirements, what substances are restricted and what levels you must meet will help you protect your hard earned market share in those countries and will avoid expensive compliance actions. We have assisted clients in establishing global compliance programs and establishing processes to assure that future product improvements will also comply. We are knowledgeable about the EU REACH program, the Restriction on Hazardous Substances laws in the EU, China, Korea and Japan, the EU's Packaging, WEE requirements and End of Life Vehicle requirements.
Entering Other Markets to Gain Market Share
Selling products into the rapidly growing markets in the developing world is an opportunity many companies do not want to miss. Whether a company survives could well depend on its ability to meet the needs of this large and constantly changing market. We have helped many companies with their sales, distribution and manufacturing strategy in China, India and the Middle East — all with the end in mind of selling to new customers in these developing economies. One of the clients we counsel — Klipsch Audio Technologies — has grown from being one of the first U.S. loudspeaker companies to becoming a leading global manufacturer of high-performance loudspeakers and other entertainment products, including home theater systems, surround sound, computer speakers, iPod/MP3 speakers, professional cinemas and commercial venues.
Ensuring Product Safety - Navigating Specification and Safety Issues - Avoiding Product Recalls
The easiest way to avoid a product recall is to set tight contractual specifications up front. But even the tightest contract won't prevent a recall if you never audit or spot check the supplier's products before they are incorporated into your finished product. We can help you establish a prevention program that includes notification of changes in any raw materials used, notification prior to process changes, audits and independent lab testing of products before they are shipped to you or to your customers.
Deciding How Best to Globalize
We can clarify the important business decisions for you, including:
- Assessing the appropriate investment vehicle,
- Whether to enter into a joint venture or establish a Wholly Foreign Owned subsidiary,
- Establishing a holding company structure to be the most tax effective possible, such as avoiding the double taxation that results from dividends being paid to a U.S. company, and
- Deciding whether a Representative Office can legally do all that you need to do in China or whether you need to obtain a Trading License.
We can explain your options in simple terms and help you to decide the best method for you to make your foray into China.
Ensuring Corporate Compliance
If you are a publicly traded company and have Sarbanes Oxley Compliance issues, you understand that you need to ensure that your corporate policies apply globally and that they are enforced and monitored in other countries just as they are in the U.S. Even if you are not publicly traded, there are compliance issues that arise under the Foreign Corrupt Practices Act that require training and monitoring. Helping your foreign employees understand the U.S. laws or corporate policies with which they must comply is one of our strengths. We literally speak the language of your employees in China and many other countries and can help them understand the issues. We have helped a variety of clients, including Klipsch Audio Technologies, the specialty chemical division of a Fortune 500 company, an engineering firm, a motor vehicle manufacturer and many others.
Resolving International Disputes
Most international contracts will provide dispute resolution provisions that provide for arbitration in a neutral location such as Singapore, Sweden or other jurisdictions. Our international team includes litigators experienced in international arbitration. We have also negotiated resolutions of complex disputes where the contract is silent on how and where a dispute will be resolved.