Allied Toys, Inc is a company based in NY, USA. Its activities are the development, manufacture and marketing of "high tech toys". Some of these toys embody new inventions that are protected by a US patent. The production of the toys will be outsourced to China and the toys will be directly shipped from China to the Republic of Utopia, by the distributor based in the Republic of Utopia. Allied Toys Inc will take care of the transportation and the distributor will clear the goods with the local customs service. But 50% of the customs duties and costs will be re-invoiced to Allied Toys. The trade name has to be protected as well, it will be KODIAK. Allied Toys, Inc plan to be the leader in the markets of the Republic of Utopia. It's found a well connected local company. The country suffers of corruption especially in the bureaucracy so the delivery of the paperwork by customs can take time. But the distributor will be able to help Allied Toys, Inc. for the starting of the business and afterward a better way to commercialize the products will be the implementation of a subsidiary.
[...] Obligations of the distributor : the quantity is a pre-condition for exclusivity and in this case we suggest to Allied Toys too well estimate the purchase quantity because it plans to penetrate quick as possible the utopian market.Moreover, the distributor is liable of the sales quantity so in somes case he has to deveop a marketing plan to increase the sales. New products : it is important for Allied Toys to mention that the prices and the quantity can be differ. [...]
[...] So to sump up my suggestions, the utopian market is a high potential market where Allied Toys can penetrate if its strategies are well adapted. The idea to produce the toys in China is a good way to reduce the cost but Attley Toys has to be sure that its inventions is well protect by international patents available for US, China and Republic of Utopia as well. China is well-know for its counterfeiting so Attley has to protect as well its tradename and its trademark. [...]
[...] In this case, Attley Toys wants to penetrate the utopian market as soon as possible and to start, it needs to receive the paperwork. The Republic of Utopia is well know for its corrupted bureaucracy. That mean that to receive the paperwork in a reasonable delay, the distributor for the begin and then Attley Toys have to pay to reduce the delivery time. That calls speed money It is a kind of hard situation because the use of blackmail in Republic of Utopia is common. [...]
[...] But in our case, Allied Toys will be not guilty of any bribery because the amendment tot the FCPA allows a kind of bribery called speed money It exists some amendment to the FCPA to the Anti-Bribery regulations. They are: Payments that facilitate or expedite routine government actions such work permits or clearing goods from customs ; payment that are legal under the written laws of the host country bona fide expenditures (the reimbursement of travel and lodging expenses) incurred for the promotion, demonstration, or explanation of products and services of the U.S. [...]
[...] The toy has to be protected and Allied Toys has to depose for a patent because the toy is a high tech toy and results of the development of Allied Toys. In others terms, the company has to protect the toy as an invention and for the invention embodies in the toy. For the first one, the company has to depose a new patent and for the second case, extend the patents for the following countries: China and Republic of Utopia. [...]
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