Sales of services are generally effectuated through employment and consulting contracts, which would seem to indicate that such transactions are purely private in nature. Several rule-based sale of services would be provided in this presentation

1. INTERNATIONAL BUSINESS TRANSACTION
SALE OF SERVICES
Gatot Soemartono, Ph.D
Mariske Myeke Tampi, S.H., M.H.

2. STAY INFORMED!
• www.oecd.org – Organization for Economic Cooperation and Development
(OECD)
• www.gats-info.eu.int – Text and Guide to GATS
• www.ilo.org – International Labor Organization
• www.aia.org.uk – Association of International Accountants

3. Which one is more potential to be sold
abroad?
Ford? Lawyering Skill?

4. INTRODUCTION
• International business law courses have focused on sale of good rather than
sale of service
• Focus on sale of service and the licensing of technology
• Generally effectuated through employment and consulting contracts
• Provides examples of foreign regulations that the international employer,
principal, agent, consultant, and employee will need to become accustomed
with
• Reviews the generic ways people sell services

5. Figure 1. Significant interregional gap within countries in wealth and life expectancy
Source: OECD Regional Outlook 2016

6. THE MEANS FOR SELLING SERVICES INTERNATIONALLY
• International consulting
• Services related to the export of goods
• Electronic transfers of knowledge and data
• Licensing agreements
• Franchising services
• Tourism services

7. The real world innovation dilemma:
think like a startup but don't take any risks, and submit to mediocracy

8. THE MAIN FACTORS TO INCREASE PRODUCTIVITY IN
ALL SEGMENTS OF BUSINESS
Innovation
Information
Knowledge
Communication
Technology

9. THE MAIN FACTORS TO INCREASE PRODUCTIVITY IN
ALL SEGMENTS OF BUSINESS
Innovation
Information
Knowledge
Communication
Technology

10. Innovation distinguishes between a leader and a follower.

11. THE RULE BASED MULTILATERAL
TRADING SYSTEM
• General Agreement on Trade in Services (GATS) – targeted to reducing
obstacles to trade in services
• Mutual Recognition Agreements (MRA) – USA and EU bilateral agreements
reducing barriers in specific industries
• Trans-Atlantic Business Dialogue (TABD) – non-governmental level, endorsed
bilateral and multilateral cooperation in area of electronic commerce and
identified 5 priority issues: (1) protection of personal data and privacy; (2)
digital signatures and harmonized legal framework; (3) encryption; (4) tax,
tariff and customs; (5) intellectual property, protection, and associated liability.

12. GENERAL AGREEMENT ON TRADE IN
SERVICES (GATS)
• Framework Agreement
• A most-favored-nation obligation
• Transparency
• Recognition requirements
• National treatment

13. HIRING FOREIGN PERSONNEL
• Foreign sales representative: agent who distributes, represents, services or
sells goods on behalf of foreign sellers
• Principal/agent: the person being hired while the party doing the hiring
• Dependent Agent: employee
• Independent Agent: consultant

14. FOREIGN COMPETITION LAW
• EU Regulation 1983/83 deals with the legality of exclusive distribution
agreements.
• Generally disfavors clauses that prohibit a distributor from selling within
the territory of another distributor
• Block exemption can be utilized to defend against such challenges
• Price fixing and tying clauses are illegal
• Noncompetition clause are susceptible to nonenforcement

15. LOGISTICAL SERVICES
• Freight forwarders
• Cargo consolidator
• Multimodal transport

16. ADVERTISING SERVICES AND LAW
• Federal Trade Commision (FTC)
• Lanham Act
• American Association of Advertising Agencies
• Heritage Mutual Insurance Case
• Advertising injury
• Duty to defend

17. CROSS-BORDER SECURITY OFFERINGS
• Securities and Exchange Commision (SEC)
• International Organization of Securities Commision (IOSCO)
• Materiality

18. INTERNATIONALIZATION OF
ACCOUNTING AND TAXATION
• Transfer pricing
• Unitary taxation
• Association of International Accountants
• A Framework for Electronic Commerce
• International Accounting Standards (IAS)

19. MAIN SOURCES
• Dimatteo, Larry A. The Law of International Business Transactions. 2003.
Ohio: Thomson – South Western
• Poole, Jill. Textbook on Contract Law. 9th edition. 2008. New York: Oxford