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Tips for trading internationally

IF you are considering expanding your business overseas there are a number of issues to consider. Liz Appleyard, Commercial Partner and her team at Regional Law Firm Tollers Solicitors outlines some of the key issues business should consider

Trading arrangement – agency, distribution, franchise?

Different laws apply to various trading arrangements such as agency, distribution and franchising and each has its own particular pros and cons. Always take both legal and accountancy advice on the range of options open to you.

IP protection

It is important that you protect any intellectual property rights associated with your brand, products or packaging and ensure that they are protected in the countries that you wish to target.

Confidentiality

Confidentiality clauses provide an additional layer of protection over your trade secrets and valuable know-how. Always ask third parties to sign such an agreement before you disclose commercially valuable information to them.

Language of the agreement

You will have to think about what language the trading agreement (and documentation relating to it) should be drafted in. If you are presented with a document in more than one language, it is imperative that a clear agreement is reached as to which version takes precedence.

Choice of governing law

When you trade internationally, different business cultures, legal environments and languages increase the risk of confusion and disputes. As parties will be based in different jurisdictions, you will need to decide which country’s law will govern the agreement.

Anti-bribery and corruption laws

Business practices vary in different jurisdictions and what may be permissible in one country may not be permissible in another. It is important to ensure that any arrangements are compliant with applicable anti-bribery and corruption laws which, if not followed, can lead to a penalties, fines or even imprisonment

Export controls

All countries have export control policies, legislation and enforcement mechanisms in place which you need to consider before you start to trade internationally. You may need to obtain an export licence for your products and an agreement should set out each party’s responsibilities in order to minimise risk of non-compliance.

If you are considering trading internationally, talk to Tollers on 01604 258558 and ask for Liz Appleyard or Ayesha Devlia in the Commercial Team, who will happily assist you. More information can be found at www.tollers.co.uk/news/2015/top-10-legal-tips-for-trading-internationally

Legal considerations for trading internationally

Companies mentioned in this article

Tollers

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