A Lawyer's Guide to International Business

It is a fact of life that in-house counsel for large, medium and even smaller companies in the United States must do business abroad.

The website of the Association for Corporate Counsel identifies a number of legal issues encountered by in-house counsel for American companies that do business internationally.

The topics are wide ranging and may involve anti-corruption and anti-terrorism, conflict resolution, export controls and sanctions, tax considerations, securities issues, sovereign immunity, bankruptcy/asset recovery, international IP protection, advertising, privacy, as well as perilous international transactions ranging from joint ventures to labor law.

Given the complexity of legal issues in doing business abroad and the heightened popularity of foreign travel, it is no wonder that in-house counsel are increasingly facing new and challenging opportunities to interact with foreign business leaders and with foreign counsel.

In the process, in-house counsel must confront and can hopefully embrace differing habits and customs.

It is important to realize that most foreign counsel and business people establish relationships with individuals and not with firms. So, face-to-face meetings are therefore critical to maintaining these relationships over time.

What follows are several lessons learned – by no means an exhaustive list – from one American patent law firm in overcoming possible barriers to doing business abroad.

General Considerations

Although most foreign business executives in Europe and Japan are very comfortable communicating via e-mail and cell phones, as well as with express transportation businesses like FedEx or DHL, many companies still rely on the fax machine for forwarding many documents with a confirmation copy by ordinary mail.

Most business executives in Japan and Europe speak English, however, it is sometimes necessary to have translators available to interpret key documents that may not be forwarded to your office in English. In those cases, be sure to retain skilled interpreters.

Similarly, when dealing with some clients abroad, don’t be surprised if occasional correspondence appears somewhat terse. Most likely, this is a reflection of a language barrier and shouldn’t be taken personally.

In doing business in Japan or Australia, the effects of jet lag cannot be overstated. One should always plan on some “down time” to relax before scheduling any series of meetings. A couple of years ago, for example, one pitcher for the New York Yankees, feeling the effects of 15-hour jet lag during the course of an exhibition baseball game in Japan, reportedly said that his five innings on the mound felt like twelve.

The effects of jet lag should also be considered when developing a schedule for a foreign guest.

Interestingly, as part of their due diligence in determining whether the Japanese will do business with an American law firm, Japanese executives have been known to visit the law offices for days to garner a greater appreciation for the character of the workforce and work culture.

Plan appointments with your foreign hosts well in advance of the trip.

Of course, you should keep in mind that domestic clients still expect service so be prepared for these telephone calls and remain accessible.

You should contact the cell phone carrier to program your cell for placing and receiving international calls.

When in Japan

Compared to practices in this country, presenting one’s business card to a Japanese business person is a very important ritual. The card is hidden in one’s hand and then presented in a very specific manner that accentuates the information on the card. It is helpful to practice this protocol before meeting with one’s guest or host.

Japanese patent lawyers usually like to visit the offices of their American counterparts biannually.

Obviously, tastes vary but personal touches matter. Of his many visits to America to sporting events and elegant restaurants, one Japanese patent counsel was most impressed with a family barbeque at his host’s home, a boat cruise along the Connecticut shore and a trip to Mystic Seaport.

Thoughtful but not necessarily excessive gifts also matter to one’s foreign hosts and are expected. For example, the craftsmanship of Groton, Conn., pen-maker Richard Aldred, who produces a range of pen styles in different woods and metal finishes, has proven popular.

When in Europe

Because your hosts will want to take their guest to the very best restaurant in their capital city, it may happen that the place you enjoy lunch with representatives of one foreign law firm will be the same restaurant that lawyers from another firm will take you that evening for dinner. Be gracious and don’t let on. Whenever eating out, be prepared to be introduced to local favorite dishes.

When walking along the streets of London to a business meeting, be sure to look both ways each way before crossing the street. After a business trip to the British Isles, my colleagues always mention how difficult it can be to drive on the right side of the road. But it can be even more dangerous looking the wrong way when crossing London’s busy streets.

Of course, no crash course in business etiquette can substitute for good manners and one’s ability to engage in healthy social dynamics.

Finally, some analysts predict that the emerging new hot spots for the international business are China, India and Latin America.

Richard R. Michaud is the managing partner of the Michaud-Duffy Group LLP, an international intellectual property law firm based in greater Hartford, Conn. Within a one-year period he will have visited corporate clients in Sweden, Germany and Japan. He can be reached at (860) 632-7200 or at [email protected]. The Michaud-Duffy Group concentrates solely in patent law, trademark law, trade secret law, copyright law and related transactional issues.