Allied Toys Inc. (2008)
- The case.
- Outsourcing to China.
- Protection of the trademark.
- The Industrial Intellectual Property.
- Importation in Republic of Utopia.
- Exclusivity right.
- Local subsidiary as importor and distributor.
- Indicative bibliography.
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. [...]
[...] The tradename is defined by the Article 8 from the Paris Convention: trade name shall be protected in all the countries of the Union without the obligation of filing or registration, whether or not it forms part of a trademark.? In this case, Allied Toys has to extend this protection to China and Republic of Utopia. Moreover, the trademark of the Toys Kodiak has to be protecting as well in the same goal to protect it. The trademark will be protecting in application of the IC28 the US trademark application for toys. [...]