International Joint Ventures
According to a recent study: "Many organizations that are looking to establish global joint venture contracts and agreements with foreign partners mistakenly believe that the terms and conditions are about the same as domestic contracts with in-country partners. Joint Venture contracts structured with in-country partners will not work as templates for global joint venture without significant modification."?
The greatest risks for international joint venture come from some emerging countries that are early entrants into joint venture, or those that have limited governmental support, ineffective legal enforcement, immature infrastructure, limited or nonexistent intellectual property protection or lack an understanding of foreign laws.
The most important areas to protect through an international joint venture agreement are security and confidentiality, legal compliance, fees and payment terms, proprietary rights, auditing rights and dispute resolution process. The legal systems in some countries might claim jurisdiction over any agreement regardless of which system the agreement specifies, and that other legal systems might have little respect for intellectual property rights.