Examination Questions International Business Law PDF

**[Examination questions International Business Law]** **Law of The EU** **1. What is the difference between Europe, the EU, and the Economic and Monetary Union?** - **Europe**: Europe is a geographical region that consists of around 50 countries, including non-EU countries like Norway, Swi...

**[Examination questions International Business Law]** **Law of The EU** **1. What is the difference between Europe, the EU, and the Economic and Monetary Union?** - **Europe**: Europe is a geographical region that consists of around 50 countries, including non-EU countries like Norway, Switzerland, and Ukraine. It is defined by its cultural, historical, and geographic boundaries, extending from the Atlantic Ocean in the west to the Ural Mountains in Russia in the east. - **The European Union (EU)**: The EU is a political and economic union of 27 European countries that have chosen to work together on shared policies and goals. The EU focuses on areas like trade, environment, human rights, and security. It has its own institutions, such as the European Commission and European Parliament. Not all European countries are in the EU (e.g., Norway and Switzerland are not EU members). - **The Economic and Monetary Union (EMU)**: The EMU refers specifically to the process of coordinating economic and fiscal policies, adopting a shared monetary policy, and using a common currency, the euro. It is part of the EU, but not all EU countries participate fully in the EMU. For example, 20 EU countries use the euro, but some, like Denmark and Sweden, do not. **2. What does the supremacy of EU law mean?** The supremacy of EU law means that European Union law takes precedence over the national laws of its member states. This principle ensures that EU rules are applied uniformly across all member states, preventing conflicts between national and EU legislation. Key points: - If there is a conflict between EU law and national law, EU law must be followed. - This principle was established in the landmark case *Costa v. ENEL* (1964) by the European Court of Justice (ECJ). - It ensures the effectiveness of EU policies and maintains a level playing field for all member states. **3. What is the difference between the European Council, the Council of Europe, and the Council of the European Union?** **The European Council** - This is a group of the most senior leaders from each EU country, such as presidents or prime ministers. - It also includes the **President of the European Council** and the **President of the European Commission**. - The European Council decides the big goals and main priorities for the EU, like climate change policies or economic strategies. - However, it does **not create laws**. (does not legislate) - You can think of it as a \"summit\" or a meeting where the top leaders set the direction for the EU. **The Council of Europe** - This is **not part of the EU**. It is a separate organization that was created in **1949**, before the EU existed. - It has **46 countries** as members, which is more than the 27 countries in the EU. For example, the UK and Turkey are members, even though they are not part of the EU. - The Council of Europe focuses on protecting **human rights**, supporting **democracy**, and upholding the **rule of law**. - It is responsible for the **European Court of Human Rights (ECHR)**, where individuals can bring cases if they feel their human rights have been violated. **The Council of the European Union** - Also called the **Council of Ministers**, this is one of the main organizations that helps make and approve **EU laws**. - It is part of the **EU's legislative branch**, working closely with the European Parliament. - The Council is made up of **ministers** from each EU country. The specific ministers who attend depend on the topic being discussed. For example: - If it's about farming, agriculture ministers will attend. - If it's about healthcare, health ministers will participate. - The Council of the European Union also helps **coordinate policies** between EU countries. **4. What does the internal market mean and which treaty established this?** - **Internal Market**: The internal market, also called the \"single market,\" refers to the free movement of goods, services, capital, and people within the EU. It aims to remove barriers to trade and ensure that EU citizens and businesses can operate freely across borders as if the EU were one single country. - **Treaty Establishing the Internal Market**: The internal market was established by the **Single European Act (SEA)** in 1986 and fully realized in 1993. The Treaty of Rome (1957) originally laid the foundations for economic integration, but the SEA gave it concrete legal and institutional frameworks. **Explain the Ordinary Legislative Procedure in the EU** The **Ordinary Legislative Procedure** (OLP) is the first method for adopting legislation in the European Union (EU). It emphasizes collaboration between the European Parliament and the Council of the European Union (Council), ensuring that both institutions have an equal role in shaping EU law. - **Key Steps in the OLP**: 1. **Proposal by the European Commission**: - The legislative process begins with the Commission, which drafts and submits a legislative proposal. 2. **First Reading**: - **European Parliament**: Examines the proposal and may suggest amendments. - **Council of the EU**: Reviews the proposal and the Parliament's amendments. The Council can adopt the proposal or suggest changes. 3. **Second Reading**: - The Parliament examines the Council's position and may approve, reject, or propose further amendments. - The Council responds to these amendments. 4. **Conciliation**: - If there is no agreement after the second reading, a Conciliation Committee (composed of representatives from the Parliament and Council) works to find a compromise. 5. **Third Reading**: - Both the Parliament and Council must approve the compromise text. - Ensures **democracy** by involving both elected representatives (Parliament) and EU governments (Council) in making laws. - Applies to most EU policies, like the **single market**, **environmental protection**, and **consumer rights**. **What kind of sources of EU law do you know, and what is the role of the ECJ in this respect?** **Sources of EU Law:** 1. **Primary Law**: - Treaties that form the foundation of the EU (e.g., Treaty of Rome, Treaty of Lisbon, Maastricht Treaty). - Define the structure, powers, and functioning of the EU and its institutions.Since Treaty of Lisbon (see\ infra)\ TFEU: Specific provisions with\ regard to the Union\ institutions and policies.\ TEU: General provisions\ defining the Union 2. **Secondary Law**: - **Regulations**: Directly applicable in all Member States without requiring national implementation (e.g., General Data Protection Regulation). - **Directives**: Binding on Member States but require national implementation through domestic legislation. - **Decisions**: Binding on specific parties or Member States. - **Recommendations and Opinions**: Non-binding but influential in shaping policy. 3. **Case Law**: - Decisions of the European Court of Justice (ECJ) interpreting and applying EU law. - Establishes legal principles and clarifies the scope of legislation. 4. **International Agreements**: - Treaties and agreements the EU enters with third countries or international organizations. **Role of the European Court of Justice (ECJ):** The ECJ ensures that EU law is interpreted and applied consistently across all Member States. Its key roles include: - **Judicial Review**: - Ensures EU institutions act within their powers. - **Infringement Proceedings**: - Decides cases where Member States are accused of failing to fulfill EU obligations. - **Preliminary Rulings**: - Provides authoritative interpretations of EU law when requested by national courts. - **Enforcement of Fundamental Rights**: - Protects citizens\' rights under EU law. The ECJ plays a central role in developing EU law, ensuring its uniform application, and maintaining the supremacy of EU law over national laws. **What is the Maastricht Treaty and what are the Maastricht Criteria? Are these still relevant?** **The Maastricht Treaty:** The Maastricht Treaty, officially known as the **Treaty on European Union (TEU)**, was signed in 1992 and came into force in 1993. It is one of the most significant treaties in EU history. - **Key Features**: 1. **Creation of the EU**: - Formally established the European Union, evolving from the European Economic Community (EEC). 2. **Introduction of EU Citizenship**: - Allowed citizens of Member States to move, live, and work freely across the EU. 3. **Laid Foundations for Economic and Monetary Union (EMU)**: - Introduced the euro as a common currency. 4. **Expanded Areas of Cooperation**: - Added new policy areas like foreign policy, security, and justice/home affairs. **The Maastricht Criteria:** The Maastricht Criteria, also known as **convergence criteria**, are economic conditions Member States must meet to adopt the euro and participate in the EMU. - **Key Criteria**: 1. **Price Stability**: - Inflation must be low and not exceed 1.5% above the average of the three best-performing Member States. 2. **Government Budget Deficit**: - Budget deficits must not exceed 3% of GDP. 3. **Government Debt**: - Total government debt must not exceed 60% of GDP. 4. **Exchange Rate Stability**: - The currency must remain stable within the Exchange Rate Mechanism (ERM II) for two years without severe devaluation. 5. **Long-term Interest Rates**: - Long-term interest rates must not exceed 2% above the average of the three best-performing Member States in price stability. **Are These Criteria Still Relevant?** Yes, the Maastricht Criteria remain relevant, but their application has evolved: - **Relevance**: - They continue to guide Member States seeking to adopt the euro. - They underpin fiscal discipline in the EU, especially under the Stability and Growth Pact (SGP). - **Challenges**: - Economic crises, such as the 2008 financial crisis and the COVID-19 pandemic, have forced flexibility in enforcing the criteria. - High levels of debt and deficits in many Member States have led to debates about reforming the criteria to reflect current economic realities. **European Business law** **How does harmonization work and why is it important?** Harmonization is the process of creating common standards or regulations across different regions to ensure consistency and eliminate barriers to trade or cooperation. In the European Union (EU), harmonization is achieved by adopting directives, regulations, or decisions that align the laws of all Member States. Importance: - Prevents regulatory differences that could divide the single market. - Ensures fair competition for businesses. - Reduces costs for companies operating in multiple regions. - Protects consumers by setting high standards in health, safety, and the environment. **How does mutual recognition work and why is it important?** **Mutual recognition** is the principle whereby a product or service lawfully marketed in one EU Member State can be sold or provided in another Member State without needing to meet additional requirements. - **Importance**: - It enhances market access by reducing barriers caused by divergent national rules. - It supports the functioning of the EU single market while respecting national autonomy. - It fosters trust and cooperation between Member States. - Example: The **Cassis de Dijon case** established mutual recognition for goods, stating that if a product complies with the regulations in one Member State, it should not face barriers in another. **Explain the free movement of goods and how any limitation will be legally evaluated.** The **free movement of goods** is one of the four fundamental freedoms of the EU and aims to eliminate barriers to trade between Member States. - **Key Principles**: - Prohibition of customs duties, quantitative restrictions, and measures having equivalent effects. - Goods lawfully marketed in one Member State should freely circulate across the EU. - **Limitations**: - Member States can impose restrictions based on public policy, public health, or environmental protection. - However, such measures must be **proportionate**, necessary, and non-discriminatory. - The legality of limitations is evaluated through the **proportionality test**, ensuring the restriction is the least restrictive means to achieve the legitimate aim. **Explain the free movement of services and how any limitation will be legally evaluated.** The **free movement of services** ensures that businesses and individuals can provide services across EU borders without undue restrictions. - **Key Principles**: - Service providers have the right to operate in any Member State on a temporary basis. - Discrimination based on nationality or residency is prohibited. - **Limitations**: - Justifiable only for reasons of public interest (e.g., consumer protection, public health). - Must pass the **proportionality test**: Are the restrictions appropriate, necessary, and the least restrictive option? - Relevant case law: The **Säger case** emphasized that restrictions must not disproportionately hinder service providers. **Explain the free movement of people and how any limitation will be legally evaluated.** The **free movement of people** enables EU citizens to live, work, and travel freely within the Union. - **Key Principles**: - Right to reside and work in any Member State without discrimination. - Extends to workers, job seekers, students, and families. - **Limitations**: - Restrictions can be imposed on grounds of public policy, public security, or public health. - Must comply with the **proportionality principle**: Restrictions should address genuine threats and be proportionate to the aim pursued. - Example: Deportation or refusal of entry must be justified and not arbitrary. **Explain the free movement of capital and how any limitation will be legally evaluated.** The **free movement of capital** allows individuals and businesses to transfer money, invest, or own property across Member States without undue restrictions. - **Key Principles**: - Prohibition of restrictions on capital movements and payments between Member States. - Includes activities like direct investment, real estate purchases, and securities trading. - **Limitations**: - Permissible only for reasons like combating tax evasion, money laundering, or ensuring financial stability. - Evaluated through the **proportionality test** to ensure restrictions are necessary, suitable, and not excessively restrictive. **What is the Citizens Directive?** The **Citizens Directive** (Directive 2004/38/EC) governs the rights of EU citizens and their family members to move and reside freely within the EU. - **Key Provisions**: - Right of residence for up to three months without conditions or formalities other than holding a valid ID or passport. - For stays exceeding three months, citizens must meet specific criteria (e.g., employment, self-sufficiency, or study). - Protection against expulsion unless there are serious grounds of public policy or security. - Family members of EU citizens, including non-EU nationals, are granted rights under the directive. - **Importance**: - It strengthens the concept of EU citizenship. - Simplifies and clarifies the legal framework for free movement. **European Competition law** **What Exercise Will You Need to Perform to Establish an Illegal Cartel Under EU Law?** In the European Union (EU), illegal cartels are prohibited under **Article 101 of the Treaty on the Functioning of the European Union (TFEU)**. Cartels involve agreements or concerted practices between businesses that restrict competition within the internal market. To establish whether a cartel exists, the following analytical and legal exercise must be performed: **1. Identify the Agreement or Practice:** The first step is to assess whether there is an agreement, decision, or concerted practice: - **Agreement**: - This includes formal contracts or informal arrangements, whether written or oral. - Covers agreements between competitors (horizontal agreements) or companies at different levels of the supply chain (vertical agreements). - **Decisions by Associations**: - Includes decisions made by trade associations or organizations that restrict competition. - **Concerted Practices**: - Covers coordinated actions without a formal agreement but with an anti-competitive effect (e.g., price signaling). **2. Determine the Restrictive Effect:** The second step involves analyzing whether the conduct restricts competition: - **Restrictions by Object**: - Some behaviors are so harmful to competition that they are presumed illegal (e.g., price-fixing, market-sharing, output restrictions, bid-rigging). - **Restrictions by Effect**: - If the behavior does not fall into the above category, its actual effects on competition need to be assessed. - Analyze whether it distorts competition, reduces consumer choice, or limits innovation. **3. Assess the Impact on the Internal Market:** To fall under EU law, the agreement or practice must have the potential to affect trade between EU Member States. This ensures that purely domestic matters remain outside the scope of EU competition law. **4. Apply the Rule of Reason and Check for Exemptions:** - Assess whether the agreement falls under the exemptions of **Article 101(3) TFEU**, which allow certain agreements if they: - Improve production, distribution, or innovation. - Allow consumers a fair share of the benefits. - Do not impose unnecessary restrictions. - Do not eliminate competition in the market. - The burden of proof lies on the companies to demonstrate that these conditions are met. **5. Evidence Gathering:** - The European Commission (EC) or national competition authorities collect evidence of collusion (e.g., meeting records, emails, price lists, or whistleblower testimony). - Leniency programs may encourage cartel members to self-report in exchange for reduced penalties. **6. Penalties and Consequences:** If a cartel is established, the consequences include: - Fines of up to **10% of a company\'s global annual turnover**. - Private enforcement: Affected parties can claim damages. - Potential criminal penalties at the national level in some Member States. By applying these steps, authorities ensure that cartels are effectively identified and penalized to protect competition and consumers. **What Exercise Would You Need to Do to Establish an Abuse of a Dominant Position Under EU Law?** Abuse of a dominant position is prohibited under **Article 102 of the TFEU**, which prevents a company in a dominant market position from using its power to distort competition. Establishing an abuse of dominance involves a multi-step legal and economic analysis: **1. Define the Relevant Market:** The first step is to define the market in which the alleged abuse is taking place. This involves: - **Product Market**: - Identify products or services that are considered interchangeable or substitutable by consumers based on characteristics, prices, or use. - **Geographic Market**: - Determine the area in which the company operates and where competition conditions are sufficiently homogeneous. The proper market definition is crucial to assess whether the company holds a dominant position. **2. Establish Dominance:** Dominance refers to a position of economic strength that allows a company to prevent effective competition in the market. Factors to consider include: - **Market Share**: - A market share above 40-50% is typically a strong indicator of dominance, but lower shares may be relevant in some cases. - **Barriers to Entry**: - Assess whether competitors can enter the market easily (e.g., high capital costs, legal barriers, or customer loyalty). - **Control Over Essential Infrastructure**: - Check if the company controls critical facilities or resources necessary for competitors to operate. - **Buyer Power**: - Analyze whether buyers can counterbalance the company's dominance. Dominance itself is not illegal, but abusing it is. **3. Identify Abusive Behavior:** Once dominance is established, the next step is to assess whether the company has engaged in abusive practices. Abuses are generally classified into two types: - **Exploitative Abuses**: - Practices that directly exploit consumers, such as: - Charging excessively high prices. - Imposing unfair trading conditions. - **Exclusionary Abuses**: - Practices that harm competitors or prevent new entrants, such as: - Predatory pricing: Selling below cost to drive competitors out of the market. - Refusal to supply essential goods or services. - Tying: Forcing customers to buy additional products/services. - Exclusive agreements: Preventing customers from dealing with competitors. **4. Assess the Effect on Competition:** The abuse must have the effect of distorting competition in the market. This requires evaluating: - The impact on competitors (e.g., foreclosure from the market). - The harm caused to consumers (e.g., higher prices or reduced choice). - Whether the abuse is likely to restrict innovation or efficiency. **5. Check for Objective Justifications:** The dominant company can defend its behavior by showing that it: - Is objectively necessary (e.g., safety reasons, technical requirements). - Produces efficiencies or consumer benefits that outweigh the anti-competitive effects. **6. Evidence Gathering:** Similar to cartel investigations, authorities collect evidence through: - Market studies. - Whistleblower reports. - Internal communications of the dominant company. **7. Penalties and Remedies:** If abuse of dominance is established: - Fines of up to **10% of a company\'s global annual turnover** can be imposed. - Structural remedies, such as requiring the company to divest parts of its business. - Injunctive relief to stop the abusive behavior. In both cases---cartels and abuse of dominance---the European Commission and national competition authorities play a vital role in investigating and enforcing the rules, ensuring fair competition across the EU. The ultimate goal is to protect consumer welfare, foster innovation, and maintain a level playing field for businesses. **Jurisdiction and applicable law** **Jurisdiction and Applicable Law: Using the Rome I and Brussels I Regulations** The **Rome I Regulation** and **Brussels I Regulation** are two key EU legal instruments governing jurisdiction and the applicable law in cross-border civil and commercial disputes. Below is a detailed guide on their purpose and how to use them effectively. **1. Rome I Regulation: Applicable Law for Contractual Obligations** **Purpose:** The **Rome I Regulation (Regulation (EC) No 593/2008)** determines which national law applies to contractual obligations in cases involving parties from different EU Member States. **Key Provisions:** 1. **Party Autonomy (Article 3)**: - The parties to a contract can freely choose which law will govern their agreement. This is the principle of **party autonomy**. - The choice must be explicit or clearly demonstrated by the terms of the contract or circumstances. 2. **Default Rules When No Law Is Chosen (Article 4)**: If the parties do not specify a governing law, the regulation sets out default rules based on the nature of the contract: - **Sale of Goods**: Law of the seller\'s habitual residence. - **Provision of Services**: Law of the service provider\'s habitual residence. - **Employment Contracts**: Law of the country where the employee habitually works. - **Real Estate**: Law of the country where the property is located. - In cases where a clear default rule cannot be established, the law most closely connected to the contract applies. 3. **Consumer Protection (Article 6)**: - A consumer contract is generally governed by the law of the consumer\'s habitual residence if the business actively directs its activities to that country. - However, a choice of law cannot deprive the consumer of protections afforded by their home country\'s mandatory rules. 4. **Mandatory Rules (Article 9)**: - Overriding mandatory provisions of a country\'s law (e.g., labor laws, safety standards) apply regardless of the chosen law. **How to Use Rome I:** - **Step 1**: Check if the parties have chosen a governing law (Article 3). - **Step 2**: If no choice is made, identify the type of contract and apply the relevant default rule (Article 4). - **Step 3**: Consider consumer protection or mandatory rules, even if the parties have chosen a law. **2. Brussels I Regulation: Jurisdiction in Civil and Commercial Matters** **Purpose:** The **Brussels I Recast Regulation (Regulation (EU) No 1215/2012)** governs which court has jurisdiction in cross-border civil and commercial disputes within the EU. **Key Provisions:** 1. **General Jurisdiction (Article 4)**: - The default rule is that a person should be sued in the courts of their **habitual residence**. - For companies, this is the place of their **registered office**, **principal place of business**, or **central administration**. 2. **Special Jurisdiction (Articles 7--9)**: In certain cases, jurisdiction can be established based on the nature of the dispute: - **Contractual Obligations**: Courts of the place where the obligation was performed (e.g., place of delivery or provision of services). - **Torts (Non-Contractual Obligations)**: Courts of the place where the harmful event occurred. - **Real Estate**: Courts of the country where the property is located. 3. **Exclusive Jurisdiction (Article 24)**: - Certain disputes have exclusive jurisdiction, regardless of the parties\' agreement, such as disputes related to real estate, company registrations, or intellectual property rights. 4. **Choice of Court Agreements (Article 25)**: - Parties can agree in advance on which court will have jurisdiction, provided the agreement is clear and meets formal requirements. 5. **Consumer Contracts (Articles 17--19)**: - A consumer can only be sued in their habitual residence unless they initiated the proceedings. 6. **Employment Contracts (Articles 20--23)**: - Employers can only bring proceedings in the courts of the employee's habitual residence. 7. **Recognition and Enforcement of Judgments (Articles 36--44)**: - Judgments rendered in one Member State are recognized and enforceable in other Member States without the need for special proceedings. **How to Use Brussels I:** - **Step 1**: Determine the general jurisdiction based on the defendant's habitual residence (Article 4). - **Step 2**: Check if special or exclusive jurisdiction rules apply based on the nature of the dispute (Articles 7--9, 24). - **Step 3**: If there is a choice of court agreement, ensure it is valid and binding (Article 25). - **Step 4**: For consumer or employment contracts, confirm the protective rules for the weaker party. **Intellectual Property law** **1. Why is the Paris Convention so important for IP?** The **Paris Convention for the Protection of Industrial Property (1883)** is one of the foundational treaties in international intellectual property (IP) law. It ensures that: 1. **National Treatment Principle**: - Foreign nationals from member countries receive the same IP protection as domestic citizens in any member country. 2. **Right of Priority**: - Applicants who file for IP protection in one member country have the right to claim the same filing date when applying in other member countries within: - 12 months for patents and utility models. - 6 months for industrial designs and trademarks. 3. **Global Framework**: - It establishes standards for patents, trademarks, industrial designs, and unfair competition. **Importance**: The Paris Convention fosters international cooperation in protecting IP, giving inventors and businesses confidence to operate globally. **2. What are the three key principles in the Berne Convention?** The **Berne Convention for the Protection of Literary and Artistic Works (1886)** governs copyright protection. Its three key principles are: 1. **Automatic Protection**: - Works are protected automatically upon creation, with no need for formal registration or deposit. 2. **National Treatment**: - A work originating in one member country receives the same copyright protection in other member countries as their domestic works. 3. **Minimum Standards of Protection**: - Sets a baseline for protection, such as: - The life of the author + 50 years (at minimum). - Recognition of moral rights (e.g., right to attribution). **3. What do you understand by 'free uses of works'?** **Free uses of works** refer to situations where copyrighted works can be used without seeking permission or paying royalties. This is typically allowed under \"exceptions\" or \"limitations\" to copyright law, such as: 1. **Fair Use (US)** / **Fair Dealing (EU)**: - Permits limited use for purposes like criticism, commentary, research, news reporting, or education. 2. **Public Domain**: - Works no longer under copyright protection can be freely used by anyone. 3. **Quotations and Parody**: - Short excerpts used for critique or humor may qualify as free use. 4. **Private Use**: - Copying works for personal, non-commercial purposes is often allowed. **4. What is TRIPS? What does it add?** The **TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights)** is an international treaty under the WTO framework. It integrates IP protection into global trade law and requires all WTO members to: 1. **Adopt Minimum Standards**: - Cover patents, copyrights, trademarks, trade secrets, and industrial designs. - Provides a uniform global standard of IP protection. 2. **Enforce IP Rights**: - Members must ensure effective enforcement mechanisms for IP violations. 3. **Encourage Innovation**: - Strikes a balance between IP protection and access to technology and knowledge. **What TRIPS Adds**: - It globalizes IP standards and emphasizes enforcement, ensuring stronger IP rights than earlier agreements like the Paris and Berne Conventions. **5. What is a copyright and what kind of rights does it give the author? Can anything be protected by copyright?** **Copyright:** Copyright protects original literary, artistic, musical, and other creative works. It grants the author: 1. **Economic Rights**: - Right to reproduce, distribute, perform, and display the work. - Right to license or sell these rights. 2. **Moral Rights**: - Right to attribution (credit as the creator). - Right to protect the work\'s integrity from distortion or misuse. **Not Everything is Protected:** - Ideas, concepts, procedures, and methods are not copyrightable. - Copyright protects only the **expression** of an idea, not the idea itself. **6. What is a trademark and explain the Madrid system relevant for trademarks?** **Trademark:** - A trademark is a sign, logo, word, or symbol that identifies and distinguishes the goods or services of a business from others. **Madrid System:** The **Madrid System** (administered by WIPO) facilitates the registration of trademarks across multiple countries via one application. Key points: 1. **Centralized Process**: - File a single application through the trademark office in your home country. - Extend protection to over 130 countries. 2. **Flexibility**: - Trademark holders can manage renewals and updates for all covered countries in one place. 3. **Cost-Effective**: - Saves time and money compared to filing in each country individually. **7. What is a patent and what kind of protection does it grant its holder?** **Patent:** A patent grants the inventor exclusive rights to an invention for a limited time (usually 20 years). It must be: 1. **Novel**: Not previously known. 2. **Inventive**: Non-obvious improvement on existing solutions. 3. **Industrial Application**: Capable of being used or produced. **Protection Granted:** - Right to prevent others from making, using, selling, or distributing the invention without permission. - Provides a competitive edge but requires public disclosure of the invention. **8. What is an industrial design, how is it protected and under which conditions?** **Industrial Design:** - Protects the aesthetic or ornamental aspects of a product (e.g., shape, pattern, color). **Protection:** 1. **Under the Hague System** (WIPO), industrial designs can be registered internationally. 2. Duration varies but often up to 25 years with renewals. **Conditions:** - Must be **new** and **original**. - Should not conflict with existing designs or public order/morality. **9. What is a trade secret, which steps would one need to take to protect a trade secret and is this protection absolute?** **Trade Secret:** - Refers to confidential business information (e.g., formulas, methods) that provides a competitive advantage. **Steps for Protection:** 1. Identify trade secrets. 2. Implement confidentiality agreements (NDAs). 3. Restrict access and use security measures. **Is Protection Absolute?** No, protection is lost if: 1. The information becomes public. 2. It is independently discovered. 3. Protection measures are inadequate. **10. What is a license and what are the key parts of this contract?** **License:** - A license allows a party (licensee) to use the IP of another (licensor) under agreed terms. **Key Parts:** 1. **Scope**: - Defines what rights are granted (e.g., reproduction, distribution). 2. **Territory**: - Specifies geographic area for use. 3. **Duration**: - Establishes time limits. 4. **Royalties**: - Outlines payment terms. 5. **Termination Clauses**: - Explains conditions for ending the agreement. **Cybersecurity Regulations for Businesses** **1. Five Consequences of Cyber Attacks** Cyber attacks can have severe repercussions for businesses, ranging from financial losses to reputational damage. Key consequences include: 1. **Financial Losses**: - Direct costs include ransom payments (e.g., in ransomware attacks) and costs for remediation. - Indirect costs arise from business disruption, lost revenue, and potential lawsuits. 2. **Data Breaches**: - Theft of sensitive customer or business data (e.g., financial details, trade secrets) can lead to regulatory fines and lawsuits. 3. **Reputational Damage**: - Loss of trust from customers, partners, and investors can lead to long-term business impact. 4. **Operational Disruption**: - Cyber attacks, like distributed denial-of-service (DDoS) attacks, can halt critical operations and disrupt supply chains. 5. **Regulatory Penalties**: - Failure to comply with cybersecurity regulations (e.g., GDPR, NIS2) due to a breach may lead to significant fines and sanctions. **2. What Does ENISA Do?** The **European Union Agency for Cybersecurity (ENISA)** is the EU's agency responsible for improving cybersecurity across the EU. Its key roles include: 1. **Policy Development**: - Assists member states and EU institutions in developing cybersecurity strategies, policies, and legislation. 2. **Capacity Building**: - Helps strengthen national cybersecurity frameworks by providing training, guidance, and resources. 3. **Incident Response Support**: - Offers expertise and coordinates responses to cross-border cyber incidents. 4. **Awareness and Research**: - Conducts studies, raises awareness, and disseminates best practices to enhance cyber resilience. 5. **Certification Framework**: - Supports the creation of EU-wide cybersecurity certification schemes to ensure the security of ICT products and services. **3. What is eIDAS and Give an Example?** The **eIDAS Regulation (Electronic Identification, Authentication, and Trust Services)** is an EU regulation that sets standards for electronic identification and trust services for electronic transactions. **Key Features:** 1. Facilitates secure cross-border electronic transactions. 2. Recognizes electronic signatures, seals, and timestamps as legally binding across the EU. 3. Supports the use of digital identification for public and private services. **Example:** - A business in Germany can sign contracts electronically using an **eIDAS-compliant electronic signature** that is legally valid in France. **4. Explain the Purpose of the GDPR and Discuss the Key Provisions?** **Purpose of GDPR (General Data Protection Regulation):** The GDPR aims to protect individuals' personal data and privacy, ensuring transparency and accountability in data processing by organizations. **Key Provisions:** 1. **Data Protection Principles**: - Data must be processed lawfully, transparently, and for a specific purpose. - Data minimization and accuracy are required. 2. **Rights of Individuals**: - Right to access personal data. - Right to data portability. - Right to erasure (\"right to be forgotten\"). 3. **Consent**: - Organizations must obtain clear and explicit consent for data collection and use. 4. **Data Breach Notification**: - Companies must notify authorities within 72 hours of discovering a breach. 5. **Accountability**: - Organizations must maintain records of processing activities and appoint Data Protection Officers (DPOs) when necessary. 6. **Penalties**: - Non-compliance can result in fines of up to €20 million or 4% of global turnover, whichever is higher. **5. Explain the Main Features of the NIS2 Directive. Why is This Important for Companies?** The **NIS2 Directive (Directive on Security of Network and Information Systems)** builds on the original NIS Directive to enhance the cybersecurity of critical infrastructure in the EU. **Main Features:** 1. **Broader Scope**: - Applies to a wider range of sectors, including healthcare, energy, financial services, and digital infrastructure. - Covers medium and large-sized companies in these sectors. 2. **Stronger Risk Management**: - Requires companies to adopt cybersecurity measures like incident response, supply chain security, and encryption. 3. **Incident Reporting**: - Obligates organizations to report significant cyber incidents to authorities within 24 hours. 4. **Enhanced Cooperation**: - Promotes greater collaboration between EU member states through information sharing and incident response. 5. **Stricter Penalties**: - Imposes tougher fines for non-compliance, ensuring accountability. **Importance for Companies:** - Ensures robust protection against cyber threats, reducing risks to critical operations. - Protects companies from reputational and financial harm due to security breaches. - Aligns businesses with EU-wide standards, fostering trust and interoperability. **Compliance with International Human Rights & Labor Standards in Global Business Operations** 1. \- **What are the four main fields of the EU regulations of labor and how do these fields protect workers in their specific areas?** [Main fields] - **Individual labor rights** - Plays a key role in protecting employees and defining their relationship with employers - Rights aim to: - Ensure a fair and equal treatment for all employees - Provide a safe and secure working environment - Guarantee a fair compensation for the work delivered - Contract consists of - The tasks and responsibilities you are expected to fulfill as part of your role. - The salary and benefits you are entitled to receive in exchange for your work - **Anti-discrimination regulations** - The EU Employment Equality Act is designed to eliminate discrimination in the workplace and professional environments. It ensures that individuals are treated equally, regardless of their personal traits or background - Protects what? - Race or ethnic origin - Religious beliefs - Disabilities - Sexual orientation - Age - **Rights to information, consultation and participation at work** - Article 27 of the EU law - These rights make sure workers are involved in decisions that affect them, helping to improve communication and teamwork in the workplace - **Rights to job security** - The ILO standards aim to balance the rights of employers and employees when ending a job - The employers has the right to let a worker go but only if they have a valid reason - Example: An employer notices an employee's performance is poor. Instead of firing them immediately, the company gives them extra training and a chance to improve before making a final decision 2. **What is labor law and what are the key components?** [What is it ?] - Rules to protect workers' right across member states. - Aim: to ensure fair treatment, safety, and equality for all workers, while also balancing the needs of employers. [Key components] - **Working conditions** - There are standards for physical and contractual working conditions to ensure safety and fairness - **Information and consultation** - Employees have the right to be informed and consulted about significant workplace decisions - Example: Regular meetings with employee representatives - **Non-standard jobs** - Rules to protect workers in part-time, temporary, or freelance roles - Example: Equal treatment for temporary workers compared to permanent staff - **Equality and non-discrimination** - Labor law ensures no worker is discriminated against based on gender, race, religion, age, disability, or other factors - Example: Men and women earning the same for the same role - **Work-life balance** - Measures to help employees balance professional and personal life - Example: Limits on overtime to avoid burnout **Environmental and Corporate Sustainability** 1. **Environmental regulations: How does the EU implement environmental policies, or in other words; which principles are used to form EU's environmental policies?** - Precaution - Acting to prevent environmental damage even if full scientific proof is not yet available. - Prevention - Avoiding environmental harm before it happens through careful planning and regulation. - Rectifying pollution at source - Addressing pollution where it starts, instead of managing its effects later. - Polluter pays - Ensuring those who cause environmental damage are responsible for covering the costs of cleaning it up. 2. **Corporate sustainability: What does NFRD stand for and what is it's use within European corporate sustainability?** - NFRD = Non-Financial Reporting Directive - NFRD helps promote corporate sustainability by making companies more transparent about their environmental and social impact. - It ensures stakeholders, such as investors and consumers, have access to this information, encouraging businesses to act responsibly and contribute to sustainable development. 3. **What is the main objective of the EU Green Deal, and how does it aim to achieve this goal by 2050?** - Main goal = climate-neutral by 2050 - How to achieve this goal? - Using clean energy like wind and solar - Promoting a circular economy, where resources are reused and waste is minimized - Reducing pollution in air, water and soil - Encouraging sustainable farming to protect nature and provide healthy food - Ensuring a fair transition, so no region or person is left behind 4. **How does the CS3D contribute to the European Green Deal?** - CS3D = Corporate Sustainability Due Diligence Directive - It supports the Green Deal by: - Ensuring large companies follow sustainable practices. - It makes businesses responsible for identifying and fixing negative impacts on human rights and the environment, helping reduce emissions and promote sustainability. 5. **What role does the CS3D play in ensuring sustainability in corporate operations and governance?** - The CS3D ensures companies go beyond just reporting their actions. They must actively address risks in their operations and supply chains, such as environmental damage or unsafe working conditions, making their business more sustainable and ethical. 6. **What are the main obligations for companies under the CS3D** - Identify and fix potential and actual negative impacts on human rights and the environment. - Apply these rules not only to their operations but also to their subsidiaries and business partners. - Develop a climate transition plan that aligns with the 2050 climate-neutrality goal. 7. **What are companies required to include in their climate transition plans under the CS3D?** - Companies must create a plan that: - Outlines how they will reduce emissions. - Sets intermediate goals to ensure progress toward the 2050 target. - Aligns with the Paris Agreement and the European Climate Law. 8. **What is the Farm to Fork strategy** - The Farm to Fork strategy is part of the Green Deal and focuses on making farming and food systems more sustainable. It aims to: - Reduce environmental damage caused by farming. - Improve the quality of food. - Ensure food is healthy, affordable, and accessible to everyone. 9. **What makes the United Nations Framework Convention so special?** - The UN Framework Convention on Climate Change (UNFCCC) is special because it brings almost every country together to fight climate change. - It sets a global framework for reducing greenhouse gas emissions and was the foundation for major agreements like the Paris Agreement. 10. **What are some of the challenges of the European Green Deal?** - The Green Deal faces several challenges - High costs: Significant investment is needed to transform industries and infrastructure. - Economic disruption: Some sectors, like coal and heavy industry, will need major changes, which could affect jobs. - Fairness: Ensuring all regions and workers benefit equally from the transition to a green economy. - Global competition: Balancing environmental goals with maintaining the EU's economic competitiveness. **Financial Fair Play** 1. **What is the purpose of UEFA\'s Financial Fair Play rules and how do they contribute to fair competition between football clubs?** - UEFA\'s Financial Fair Play (FFP) rules are made to stop football clubs from spending more money than they earn. This helps clubs stay financially healthy and avoid big debts. The rules make sure rich clubs don't spend too much money to buy the best players or pay high wages, which would give them an unfair advantage. This way, all clubs, even smaller ones, can compete more fairly. 2. **Give an example of a football club that was punished for violating Financial Fair Play rules and briefly explain what happened.** - In 2022, Paris Saint-Germain (PSG) was punished by UEFA for breaking Financial Fair Play rules. They were fined €10 million right away, with a possible extra €55 million if they don't follow the rules in the future. This shows UEFA's effort to make sure all football clubs spend their money fairly and responsibly. **Free movement of Capital** 1. **What is "Free movement of capital"? Give 2 examples of cross-border capital movements.** - The ability to transfer funds across borders within the EU and between EU and non- EU countries without any barriers - Examples - Opening bank accounts abroad - Buying shares in companies abroad 2. **What is PSD2? Mention 2 key features.** - PSD2 = Payment Service Directives 2 - = European law that improves payment security, boosts competition and encourages innovation - Key principles - Stronger security: Requires two-factor authentication for online payments - Better protection: provides clearer rules for consumer refunds on unauthorized payments **International Mergers** 1. **Explain the merger review process** - **Step 1: pre-notification phase** - Companies inform the EC (European Commission) of the planned merger before formally filing the application - The EC determines if the notification is complete and ready for formal submission - **Step 2: Formal Notification** - Companies officially notify the EC of the proposed merger by submitting the relevant documentation - he EC begins its formal review process - **Step 3: Initial Review (phase I)** - It is the first check to see if a merger causes competition problems. - The European Commission has 25 working days to decide if the merger is approved, needs conditions, or requires a deeper investigation in Phase II. - **Step 4: In-Depth investigation (phase II, if required)** - It is a detailed review of how a merger could affect competition. - The European Commission has 90 working days (extendable by 15 days) to analyze the market, consult stakeholders, and assess solutions proposed by the merging companies. - **Step 5: Remedies and commitments (if applicable)** - Adress competition concerns through remedies proposed by the merging parties - The European Commission monitors these remedies, and if they address the issues, the merger can proceed. - **Step 6: Final decision** - Final decision is when the European Commission decides on the merger after the Phase II investigation. - The options are: - Approving the merger unconditionally. - Approving it with specific remedies. - Blocking the merger if no sufficient remedies address the competition concerns. 2. **What are the 'EU thresholds' to be considered by the EC for a merger?** - The EU thresholds determine if a merger must be reviewed by the European Commission (EC) under EU competition rules. A merger meets these thresholds if: - The combined worldwide turnover of all involved companies exceeds €5 billion. - The EU-wide turnover of at least two companies involved exceeds €250 million each. 3. **What are the key criteria the EU considers in evaluating a merger?** - Market concentration - Examines the market share of merged entities - Potential dominance - Will the merger create or strengthen a dominant position? - Consumer impact - Effects on prices, innovation and product quality - Barriers to entry - Will new competitors face difficulty entering the market - Supply Chain Effects - Assesses vertical mergers and risks of foreclosure **The World Trade Organization** 1. **What is the WTO and what are its core legal functions/objectives?** - What - The WTO (World Trade Organization) is an international organization that regulates global trade to ensure it flows smoothly, fairly, and predictably. - Legal functions/objectives - [Legislative Function:] - Acts as a forum for negotiations. - Creates a balanced framework for global trade rules. - [Adjudicative Function:] - Uses the Dispute Settlement Mechanism (DSM) to resolve trade disputes based on rules, not power. - Reviews cases like Australia\'s Tobacco Packaging (2018) and ensures consistency through an appellate body (currently paralyzed). - [Monitoring and Enforcement:] - Oversees trade policies through the Trade Policy Review Mechanism (TPRM). - Monitors compliance, such as China's compliance post-WTO accession (2001-present). 2. **What are some critical perspectives of the WTO, especially regarding its treatment of developing countries?** - The WTO faces criticism for not adequately addressing the needs of developing countries. Critics argue that it is biased toward wealthier nations, particularly in areas like intellectual property and subsidies. Developing countries often feel disadvantaged by the organization's policies, as they expose local industries to global competition without providing sufficient support. 3. **Summarize the WTO's key strengths and weaknesses.** - The WTO's strengths include: - Its ability to provide a platform for negotiations - Resolve disputes - Monitor trade policies. - However, its weaknesses lie in - Its failure to adapt to modern challenges like digital trade - Its bias towards wealthier nations - The paralysis of its dispute settlement mechanism.