Globalization has become the order of the day for basically all companies with intentions to expand internationally. Competition has intensified with companies establishing in every part of the world in order for them to succeed. The diverse types of financial services and products have immensely continued to emerge in the financial sector of many countries which has apparently brought about an indicative aspect of the changing landscape of the financial service industry globally. Technology has also brought about new strategies and methods which help capture and attract more customers through social media interaction. It has introduced various rules which determine how businesses can advertise and market their products online (Strother, 12). Due to these reasons, many countries have put in place regulatory policies and laws that govern the level and number of companies that emerge with claims to establish and expand their services in flourishing markets. This paper will focus on discussing the strategies and aspects Vantage Point Services should implement in order to establish a branch in Hong Kong, China as well as expand their services. This will be accompanied by a comprehensive analysis of the regulatory laws and global intellectual property legal aspects that should be determined. Additionally, a business plan will be given that portrays the potential activities that will be carried out.
The Vantage Point Services Company needs to consider various important aspects in the expansion and establishment of a new branch in Hong Kong. These aspects include: the currency used in China, the location of the supplier and customers and the mode of payment. These aspects may determine the way the business will operate and affect the regulations applicable in the new country. The Vantage Point Service will consider the precautions against the risk of non-payment as well as the type of currency to use as the fees charged may differ in terms of currency exchange. These will be coupled with the protection of intellectual properties in the Chinese market or rather global markets (Iida, 258). Intellectual property aspects in Hong Kong are protected in the Hong Kong SAR where they are determined in terms of the type of subject matter being protected and the determination whether registration is required for effective protection or not. This is accompanied by the evaluation of the enforcement available in the Special Administrative Rights. Intellectual Rights in Hong Kong are protected by the intellectual property law that creates rights in intellectual property by providing protection in different categories of monopolies. The law defines permitted acts by creating certain legal exceptions to the monopolies in the public interest. It also defines the various ways in which the rights can be acquired for instance through registration. In addition to this, the law elaborates on how rights can be assigned or licensed by one party to another (Mayer).
The Vantage Point Service should ensure that the intellectual laws are determined and understood in order to acquire the legal documents and approval of the law enforcers. They should understand that the intellectual law defines remedies that define the way in which the right owner or the government can enforce rights by civil or criminal proceedings (Strother, 19). They should critically follow the laws in order to be better equipped in terms of the regulations that can lead to their success or failure in China. Research has indicated the various ways in which intellectual rights are handled in Hong Kong where for instance the owner of a patent can manufacture products incorporating his patented invention and hinder other companies from using the same invention (Chan, 43). They can also be handled through the intellectual law that allows the owner of a copyright to copy, publish, perform or import his works but hinder others from carrying out any similar activities. The law allows inventors and the actual owners of rights to acquire economic benefits over other people and companies by charging them on royalties or lump-sums for using their marks, products or inventions from which they have ensured legal monopoly.
The Republic of China uses various aspects to protect intellectual rights such as trademarks, patents that cover inventions, designs that cater for industrial product designs as well as fabrics, copyrights that protect literature, drama, software and films. Trademarks in Hong Kong are used to identify the logos and marks used on goods produced and manufactured by businesses (Strother, 29). There are registered trademarks and unregistered trademarks where the unregistered trademarks are protected by the common law of passing off. Trademarks are protected by the Trademark ordinance that was enacted in 2003 and provides the basis for registering trademarks. They give the owners exclusive rights to use it on goods and services for which the mark was registered. This is coupled with the right to take any legal action to hinder other companies from using their registered mark or goods that relate to the mark with the permission of the owner (World Bank, 33).
Criminal offenses are held against any person found in possession or using a fake trademark or one that belongs to another company. These offenses are contained in the Descriptions Ordinance (Cap 362). Trademarks and patents require registration but copyrights may be acquired without registration. The patents offer protection on technical innovations and give inventors the right to use or put the invention on the market (Braithwaite, 204). They are used to encourage new forms of technology by giving inventors the right to enjoy the privileges of the invention for a period of time. However, inventors are required to make the invention public in order to notify others of its existence (De, 31).
Intellectual rights in Hong Kong are regulated in order to guide import and export of goods and services. This requires potential investors to be aware of the intellectual law used in China. The law contains detailed information related to the manufacture and production of goods and services requirements. These are addressed by the Hong Kong Special Administrative Rights that defines the rights administered to the owners of the aspects contained under the law. The Special Administrative Rights also determine the legal actions that can be taken if the rights are broken or in case of any infringements (Mayer).
For instance, selling goods with forged trademarks, trading activities in public without the right owner’s permission will lead to infringement of intellectual property rights that can land people in jail as they are treated as a criminal offense in Hong Kong (Mayer). Similarly, the intellectual law provides that those who are engaged in copyright piracy or possession of infringed articles on sale are liable to a maximum fine of HK$50, 000 per article. This is accompanied by a prison term of up to four years. Importation or exportation of pirated articles is treated as a criminal offense in China. It leads to the issuing of sanction against those caught in the act (Journal of International Property Rights, 363).
Additionally, advertising and marketing of goods and services with irregular or misleading information is treated as an office in China where fines are imposed. Therefore, potential investors who plan to expand their businesses should be aware of these legal aspects as they may affect their establishment in Hong Kong. The intellectual property rights address the trade secrets as well as regulate them in China. Before establishing the new branch in Hong Kong, the manger will be required to critically understand the legal system that addresses trade secrets. This should be done to give them a clear understanding of the market strategies as well provide definitive guidelines that will be used in formulating the objectives and goals of the organization (De, 33).
In order to harness social media strategically, the manager needs to evaluate the various laws against the advertising content. This will give them a proper understanding of the laws and actions taken in case the information on the advertisement is misleading (Iida, 258). The advertisement should be concise and clear about the goods and services being marketed. It will require a marketing unit or rather formulation of a marketing department that will handle advertisements and proper adherence of the laws and regulations that determine marketing that entails social media.
For the company to develop global e-business, it has to establish a global e-presence and brand online where they have to familiarize their activities to the people through the various social media channels. This will require development of a website that contains the mission, vision and objectives of the company. The website will be linked to the social media channels such as Facebook, Twitter, and YouTube just to mention but a few. These channels will engage potential consumers as well the public at large in conversations where they can give their insight on the company’s activities. They will also give alumni’s and associates a platform to interact and share ideas regardless of the distance between them. The website and the social media channels will be established by first gathering their resources and relevant information on their aims and objectives. The marketing department will be responsible for such activities where it will engage the people on the issues they wish to address and what the people think about it. They will also ensure that the details given on the social media channels is captivating and luring in order to attract customers. The website should be designed in a very captivating way that involves short and precise messages as well as special analysis software that filters all the relevant feedback from the customers.
Social media in Hong Kong is regulated by the internet laws. Particularly, the law polices the sending of spontaneous commercial electronic messages. The Unsolicited Electronic Messages Ordinance (UEMO), which was enacted in 2007, controls commercial messages that go through the “ Hong Kong link” (. hk). Advertisers, both local and international, are required to be familiar with this laws as they are applicable on individuals or companies (INTERNET LAW).
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Chan, Samuel Y. S. ” New Tax Relief in Hong Kong for Intellectual Property Rights– Opportunities and Threats.” International Tax Journal 38. 2 (2012): 39-51. Web.
De, Mente B. China: Understanding & Dealing with the Chinese Way of Doing Business : Coping with the New ” central Kingdom”. Phoenix, AZ: Phoenix Books / Publishers, 2012. Print.
Iida, Keisuke. Legalization and Japan: The Politics of Wto Dispute Settlement. London: Cameron May, 2012. Print.
Mayer Brown. Intellectual Property Rights Study, 2013. Retrieved fromhttp://www. kpmg. com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/IntellectualProperty-Rights-Study-201309. pdf
Strother, Stuart C. China: Doing Business in the Middle Kingdom. New York, N. Y.] (222 East46th Street, New York, NY 10017: Business Expert Press, 2012. Internet resource
World Bank . Doing Business 2013: Smarter Regulations for Small and Medium-SizedEnterprises. Washington, D. C, 2013. Internet resource.
INTERNET LAW – Hong Kong’s Regulation of Unsolicited Commercial Electronic Advertisement, 2013. Retrieved fromhttp://www. ibls. com/internet_law_news_portal_view. aspx? s= latestnews&id= 2167