Problem
David Wise, a U.S. inventor, has developed and patented a revolutionary new running shoe that increases one's speed significantly. His invention has achieved considerable success in the Midwestern region of the United States. Two European companies have offered him joint venture packages to take his invention to the track-happy Europeans. Barthelemy Plus Grande, S.A. is a French sportswear giant with a marketing and distribution system that includes every major city in Western Europe and massive capital resources. Pek Tarsasag, a recently privatized Hungarian firm, offers substantially lower labor costs. In this scenario, based on international business law knowledge you acquired in this class, answer these following questions.
i. What intellectual property right should Mr. Wise be protecting? Describe the right.
ii. Which should Mr. Wise choose to form a joint venture? Why?
iii. Mr. Wise's marketing experts advise him that the Chinese market is very hungry for his shoes. Focusing on intellectual property and rights protection of foreign investors, discuss whether he should seek a Chinese joint venture partner or enter through a wholly owned subsidiary in China.