Canadian-American trade is the largest bilateral trade relationship in the world. I’ve written these tips with Canadian businesses in mind. In working with Americans, here are a few cultural tips I can give to make your interactions more effective:

Americans have a special relationship to time

In American business, there is a profound focus on completing tasks as quickly as possible. We have an expression: “Time is Money”. It’s the idea that if we save time, there is automatically a value associated with that time savings. Oftentimes that is true.

There’s even a movement which originated in Silicon Valley called “growth hacking,” or trying to speed up the process of finding new qualified sales leads. While there are sometimes time-saving shortcuts, most of us understand that success comes down to hard work and consistency.

But for other cultures, Americans can seem rushed.

This can lead to the misinterpretation that Americans often don’t understand the trust-building process that genuinely requires time to establish. It can also create an air of suspicion about why the deal needs to be signed so quickly.

My advice to Canadians and others feeling rushed is to confront their American counterpart with the value of what is being overlooked – quality, trust, risk management, etc. Discuss the costs of the relationship failing or needing to replace an implemented system. Faster is not always better.

Silence is the enemy during international negotiations

Americans in business are very uncomfortable with silence. If you stop talking mid-conversation, your American counterpart will be at a compete loss for what to do next.

In Asia, this is often used as a negotiation tactic against Americans. They know that because Americans are desperate to get conversation flowing again, they will start giving away concessions in the negotiated deal. When there’s an extended silence the American normally assumes that they have said something that has not been well received and are trying to return to a state of acceptance.

By the way, silence is a tactic that I have seen work similarly on Israelis too.

Prepare yourself for friendliness on steroids

Canadians only need to visit an American department store to see friendliness used as a business tool. A store sales clerk will likely follow you around asking if you need help. In fact, it is often asked several times in the same store. This overt “friendliness” can be unnerving to international guests to the U.S., but it is a great example of friendliness in business.

Americans are taught from a young age that confidence and friendliness are traits they should cultivate.

This American openness is often appreciated in business settings, at least initially. But it can run the risk of being seen as insincere, especially when Americans talk about “getting together” and then don’t follow through on the expectation they set.

In working with Americans, it is important to set an appointment to follow through on action discussed. And if you trying to sell to American companies, be prepared to follow up with the company’s staff several times to move a step of your selling process forward.

I hope these insights help you to effectively engage and build strong relationships with American business people. If you have a particular situation related to cross-cultural communications and need advice, please feel free to contact me at: info@The-International-Entrepreneur.com.

Best wishes in all of your international business dealings!

It was only a few decades ago that Canada and its neighbors to the south held that men belonged in the workplace and that women should mainly be concerned with wifely and motherly duties at home. Women who did venture into professions were often subjected to being ignored, undervalued or at worst sexually harassed.

And as my own mother-in-law reminded me just last week as she questioned my choice of profession, it isn’t always men who perpetuate historical expectations of a woman’s role.

The good news is that the world is changing. Women have risen to the top of fields like science, politics and business in countries all around the globe.

Every generation of women seems to arrive into a world more open to their potential than the one before it.

Now for the practical approach. While going into global markets means being exposed to other cultures’ values and expectations, that doesn’t mean that we ladies can’t come prepared to deal with anything that comes our way. Here’s what I think you should know:

Take control of the situation when facing unwanted advances

Let’s tackle the most dangerous gender issue first. Very few women want to be propositioned (or worse) while traveling and doing business in another country. It’s incredibly awkward at best, and puts a burden of refusal on the woman. But this really does happen to women of a variety of ages and backgrounds.

The first advice I have is to avoid situations where you are left alone with one male counterpart at the end of an evening or outing. Plan ahead to so that you can stay with your colleagues and decide when you will leave to return to the hotel together.

NEVER let yourself become intoxicated in a business social setting. Ever. You always need to have your full wits about you to make smart decisions. To politely opt out of binge drinking (common in some parts of the world), simply say that you need to stop for “health reasons”, or simply that you’re “not used to drinking”.

If you are propositioned, remember that this may not be a professional taboo like it is in North America. He may not see this as an offending act. Keep your composure. Politely refuse while saving face for both of you. My fellow global jetsetter women often use fidelity to a real or imagined relationship or spouse as their reason for not accepting the offer for an interlude. This generally works.

Don’t let yourself become the “Invisible Woman”

The last time I heard of an “invisible woman” she had been on a trade delegation trip to Mexico. The Mexican delegation was comprised of men who felt more comfortable forming relationships with her male counterparts. She quickly realized that if she didn’t try to counteract their behavior, it would become a long and fruitless trip.

This woman interjected herself into conversations. She made her presence felt, while staying professional all the while. She also brought the issue to her male counterparts so that they understood that she was being culturally shut out of the conversations. This helped and soon she was generally accepted as well as the men.

Show you’re the boss to avoid the female discount

Dutch cultural anthropologist Fons Trompenaars famously studied how status is assigned in a culture. In many Western cultures, we accord status based on merit or what someone does and says. In much of the world, status is ascribed or given based on other factors such as a family name, gender, age, university attended, etc. A woman in some places will not be given the same level of status as her male counterpart because her ascribed status is lower.

All is not lost. To counteract this cultural phenomenon, there are a few tricks. The first is to come prepared with a letter from your company president stating your specific role and the level of your responsibility (financial, number of employees managed, etc.).

If this is an issue, then if at all possible, travel with at least one subordinate. Have the subordinate help you out by showing deference to you in front of your international counterparts. This submission can include letting you enter all rooms first, siting first, speak first, introduce yourself first, as well as asking your opinion before making a decision. All of this sends clear signals that you are the boss.

International business dealings may present some additional challenges for women, but that does not mean that we should not assert ourselves on the global stage.

Every year the climate for global business improves for women and our actions can continue to drive towards gender equity.

If you have additional questions about doing business internationally as a woman or other global business topics, please feel free to email me or read my 200+ articles on The International Entrepreneur website.

However, these partnerships are often set up to fail. Some partnerships assume that today’s business environment will stay the same, setting up disaster when the winds of change come.

Other times, the partnering companies assume that all staff equally understand and support the goals of the partnership.

Frequently, company leaders also assume that communication channels are always open to receive any feedback that would be critical to success.

Because of these incorrect assumptions, many of these partnerships are sunk before they ever have much chance to reach their full potential.

To build a durable international partnership, let’s compare it to a 17th century trading ship. For those of us today who are professionally involved in international trade, it is hard to imagine the incredible risks that our predecessors took a few centuries ago.

Bobbing on the high seas, hoping for favorable winds, traders took months or even years to make shipments that today take hours or a few days. But those traders knew what to do to improve their chances of a successful voyage. Here’s advice that transfers to today:

1. Build your ship to withstand the worst weather.

Too many partnerships today are negotiated during a good economy and when business is going well. Just like the traders of the past, you need to consider how your partnership will work when there are less than optimal conditions.

One of the best ways to ensure that you reach your intended destination is to build your partnership on strong personal relationships with your partner company’s leadership.

Basing the relationship on contractual terms is limiting, because all possible future events cannot be anticipated. A strong direct relationship allows leaders to work together for a continuing mutually beneficial partnership.

2. Be sure that all crew know your final destination port.

Many times, company leadership hears about a new partnership, but the goals of the new venture are not communicated down to the crew.

In fact, the accounts payable specialist or the customer service rep or sales rep may find communicating with overseas partner staff or customers frustrating because of low English language skills. This leaves all parties exasperated and ready to throw the other party overboard.

Patience comes when all staff understand the importance of reaching the partnership goals.

3. Prevent mutiny and other subversions on the high seas.

The captain is often the last to know when there is something wrong on board. The same is true with many partnerships.

In production partnerships, factory employees, particularly in East Asia, are hesitant to speak up when there is a quality issue or a problem meeting quota.

Just like on those old trading ships, it is important to develop both formal and informal communication channels so that leadership knows about problems while the issues are still small and manageable.

The right strategic partnerships can help propel a smaller company to higher growth and long-term viability. But to be successful, these partnerships need to be built on strong foundations of direct personal relationships, clearly communicated goals, and a variety of communication channels.

All of this builds a sea-worthy ship and crew that will voyage to distant lands and opportunities!

Want to learn more about this topic? Sign up for Becky’s webinar with CME on Leveraging Canada-US Partnerships for Strategic Advantage on February 24.

Q1: In your opinion, what are some of the top strategic considerations when deciding whether to register intellectual property internationally?

First and foremost, make sure you have access to advisors who you trust and who know the rules and can make recommendations based on your specific situation. Acting on assumptions can foreclose your rights and options without you even realizing it.

There are no guarantees that registering intellectual property, (‘IP’ includes patents, trademarks, and copyrights – it also includes trade secrets, but you cannot register those) will be a financially successful endeavor.

Registering IP requires a short-term investment in hopes of a long-term payoff.

The costs are usually paid upfront, whereas the benefits are typically realized years later, if at all. This requires making projections and educated guesses, and a business plan is crucial.

Although there are international and multi-national treaties that harmonize certain aspects of IP, it is still highly country-specific. Choosing the countries where IP protection will be sought is a strategic decision, as it is simply impractical to file in every country.

Consider registering your IP in those countries where you market or manufacture your products.

Also consider where your competitors are located, where you compete with them, and particularly where they have their manufacturing capabilities. In addition, each country should be assessed for cost/benefit, such as the size of the market in that country, the barriers to entry for you and your competition, and even the political stability of the country. Simply put: is obtaining IP protection in a particular country worth the investment?

Q2: What is the financial commitment of protecting your IP in international markets?

For patents, filing an international patent application under the PCT (Patent Cooperation Treaty) requires at least a 3 to 4 year time commitment and has several stages, each requiring a financial commitment.

First, there is the initial drafting of a quality PCT patent application that will serve as the basis for what will subsequently filed in all desired countries. Conservatively, budget US$20,000 to US$75,000 for drafting and filing of the PCT patent application. This should include costs for a prior art search and analysis and a draftsman for the drawings.

Second, applicants have up to 31 months (depending on the country) from their first, original filing to decide in which countries to enter the ‘National Stage’, which is often around US$5,000 per country (plus translation costs where needed). This is because patent protection is country-specific.

There is no such thing as an international patent.

Third, in any given country, prosecution of the patent application (the process of taking a filed application through issuance, which is never guaranteed) can take a variable amount of time and money—US$20,000 to US$30,000 or more—depending on the difficulty encountered. The time frame ranges typically from two to five years—sometimes more—from when the patent application enters the National Stage of a particular country to when the patent application is prosecuted.

Finally, you also have to be aware of payment of maintenance fees, which vary by country. Some countries require annual payments even before the patent issues, some require payments after the patent issues, and others require payment over some other schedule. These fees can exceed US$10,000 over the life of the patent in each country.

Enforcement costs of a patent can vary widely, as something as a simple cease-and-desist letter, licensing agreement, or a cross-licensing agreement with a competitor (involving their patents as well) can resolve enforcement issues for as little as a few thousand dollars.

Few patents are ever litigated, but for those that are, the costs can run into the millions.

For trademarks and copyrights, the costs and time commitment are typically a fraction of those required for patents. The processes of registration and enforcement are much simpler and therefore typically cost less.

Q3: In what kinds of international situations is it better to file a patent vs. keeping IP as a trade secret?

Some assets, despite their high value (e.g., customer lists) are not patentable, thus making trade secret protection the obvious decision. For those assets that are patent-eligible subject matter (i.e., process, machine, composition of matter, and article of manufacture), there are several considerations that should be examined in consultation with a patent attorney.

First is duration. Patents are of a limited duration (by international treaty, about 20 years from filing) in all countries, whereas a trade secret can retain its status until it is revealed, which may never happen. Thus, if long-term protection is desired beyond the term afforded by a patent, then a trade secret may be best.

A great example of this is the formula for Coca Cola from 1886, which is still protected as a trade secret.

Second is susceptibility to Reverse-Engineering. A patent must disclose sufficient details to allow others to make and use the invention once the patent expires. By contrast, a trade secret loses its value if competitors can reverse-engineer it, which can leave the trade secret owner without recourse.

Generally, the more susceptible something is to reverse-engineering, the less it would be a viable trade secret.

In addition, if your process involves a combination of elements, some of which are easier to reverse engineer than others, it may be possible to patent those portions of the process that are easier to reverse engineer while maintaining confidentiality on those parts that you can keep secret.

Third, if the trade secret is reverse engineered, this can open up the possibility of competitors filing patents on the trade secret. Some countries recognize a prior-use defense, and this scenario could also raise inventorship issues. Nevertheless, having a competitor file a patent on one’s own trade secret is a nightmare, and can be avoided by pursuing patents instead of trade secret protection at the outset.

Fourth, it may be possible to obtain a patent on something that is currently a trade secret, thus giving up trade secret status. Conversely, a patented invention cannot later become a trade secret.

Fifth, if you have already missed the deadline to allow you to file a patent application on your invention, you may have no choice but to try to keep it as a trade secret.

Jonathan M. D’Silva is a Partner at the law firm of MacDonald Illig Jones & Britton, LLP in Erie, Pennsylvania. He is the chair of the firm’s Intellectual Property Group and the newly created Emerging Technology Group. Jonathan is a Registered Patent Attorney and admitted to practice law in Pennsylvania, New York, and the District of Columbia. He received his Bachelor of Science and Master of Engineering degrees in Agricultural and Biological Engineering from Cornell University. He received his Juris Doctorate degree from the University at Buffalo School of Law.

Bryan Walker is a patent attorney for MacDonald, Illig, Jones & Britton LLP. Before this position, he was a Patent Examiner for the U.S. Patent and Trademark Office. Bryan earned both BS and MS degrees in computer science; and started his career in systems administration and software development before earning his law degree from Washburn University.

For many, this unfortunate situation occurs when they see the hijacked mark or design on products imported back into their home market.

On a trip to China in 2008, I met with an American automotive rubber belt manufacturer. They had made this unfortunate discovery.

Would-be clients came to the company wanting support on their purchased products. Instead, both sides discovered that the products weren’t authentic, but copies. As a result, the company wasn’t able to support the copycat products.

These inferior products from abroad had tarnished the company’s brand both in China and in countries where the knock-off products were being sold.

Situations like this one require time and money to try to wrestle stolen intellectual property (IP) away from international IP pirates.

It happens even to companies that choose to skip selling in international markets. But there are ways to help protect your company’s name, logos and designs.

The smartest and least costly of which is registering trademarks in international markets. Here’s where to start:

Internationally filing your trademark

The World Intellectual Property Organization (WIPO) established the Madrid Protocol in 1989. The Madrid Protocol and Treaty allows an individual or company to register for trademark protections in one process. This streamlined approach helps with the registration process, but does not actually harmonize trademark protection standards between member countries.

With more countries signing on regularly, there are now 92 countries claiming to adhere to these international registration protocols of mark protection. I say ‘claiming’ because China is on that list, and China is by far the greatest source of IP infringement in the world.

You can check the Madrid Protocol List of Member Countries to see if your current and future target markets are listed.

The list includes popular export markets such as the United States, Canada, Japan and Germany.

By registering your marks with WIPO, you can pay one fee, read the information in one language and register one time. Fees vary from a few hundred dollars for one mark in one market, to tens of thousands of dollars for registering in all Madrid Protocol countries. Terms vary, but most WIPO trademarks registrations last for ten years.

What kinds of marks can you register?

To quote WIPO:

“A word or a combination of words, letters, and numerals can perfectly constitute a trademark.”

“But trademarks may also consist of drawings, symbols, three-dimensional features such as the shape and packaging of goods, non-visible signs such as sounds or fragrances, or color shades used as distinguishing features—the possibilities are almost limitless.”

While most companies stick to the basics of registering their company name, product names and logos; especially larger multinationals, have registered colors (ex. Coca-Cola red) and symbols (ex. McDonald’s arches and the Nike swoosh).

First to file vs. first to use

Some companies discover that, by law, they cannot use their own trademark in an overseas market because someone else already registered the mark.

The famous recent case of this was Tesla, the car manufacturer being sued in China for trademark infringement. The Tesla name and logo had been registered by a Chinese businessman well before Tesla’s entry into the market. By rights, the Chinese trademark holder can register the marks without any proof of actual use.

In some countries, including the U.S., intellectual property rights are normally awarded to the first to use a mark or invention (with proof of use, of course). This is not universally the case.

In many countries, the right to use IP is given to whoever files the registration and pays the fees first.

This is why it is crucial to register your trademarks as early as possible and before you actually enter markets.

Always register in China

Since China is both a first-to-register IP legal framework and the IP Piracy Capital of the World, it makes sense to register in China as soon as possible. It gives your company legal standing should you need to pursue any legal action now or in the future.

Some would say that the Chinese legal system is too broken to bother registering IP.

But Chinese laws and enforcement in this area are steadily gaining ground.

For example, a social entrepreneurial company called Nokero—operating out of Denver, CO—has sought IP protection for trademark infringement and damages in China. The CEO of this small but growing company happens to be a former patent attorney. The company has won several of its infringement cases in Chinese courts!

For non-Madrid Protocol markets

If you are operating in a market NOT covered by the Madrid Protocol, or plan to do so, then talk with your international business attorney for a referral. If your company does not yet have a law firm with international reach, this would be the time to find one that does.

Registering trademarks is relatively easy and inexpensive compared with damage control after infringement when you have no legal claim to stand upon.

In some places, the local distributor or sales office had marketing responsibilities, while in others the responsibility rested with the headquarters’ marketing department. There was lots of confusion about who should be doing what, and lots of wasted resources. It was very disjointed and hard for marketing staff to manage, not to mention inefficient and far from optimized.

It’s like adding rooms onto a house every time there’s a new family member instead of working from a master plan. Your marketing framework needs to be both sustainable – a program your current and future resources can maintain AND scalable – a program that still works as you continue to expand in new and current markets. Without a framework, the marketing house eventually crumbles… along with the company.

What this company needs is a framework for their international marketing that can grow with them in both new and existing markets.

One of the biggest choices that a company should make is: centralized or decentralized marketing. Here’s how to decide which one best fits your company:

Centralized approach to international marketing

In a centralized marketing program, the marketing team at headquarters makes most of the marketing decisions and they plan and execute most marketing programs. This approach
makes the most sense when: 

• Your marketing department is highly competent and has experience working with international markets
• You can find country experts to help your marketing team localize materials to the right levels
• You sell most of your products through direct exporting or your own in-country subsidiaries
• Your marketing materials require little or no localization. This is the case for highly globalized markets, like scientific products or certain types of software
• Your product and company carries a positive Country of Origin Effect. For instance, German engineered products have a positive COE for quality and longevity.

If your approach is centralized, then you’ll want to focus on developing in-house marketing capabilities and scalable processes. This will ensure you have much more control over the marketing and sales cycle, and should be used to your company’s advantage (shortening sales cycles and increasing win rates). Manage the marketing talent carefully and hire great professionals.

Centralized marketing can be a slower growth path, so be sure to remove any growth barriers.

Travel costs can be heavy, so combine trips and eliminate any unnecessary travel. Lastly, be sure to have a strong communication channel between marketing and sales staff who are directly interacting with the market and product development.

Decentralized approach to international marketing

In a decentralized marketing program, marketing functions and decision-making are primarily pushed out into the field. You may have a small army of independent distributors or representatives.

Another option is to rely on your own local in-country sales offices. This approach works best when:

• Your products are in heavily regulated industries
• Your products need to be significantly localized in order to sell them in other markets
• There is a strong market bias toward local language and local sales connections
• There is a strong NEGATIVE Country of Origin Effect
• Your company’s marketing is not highly trained and has very limited resources

The focus of a decentralized approach is to support and motivate the local marketing staff and representatives. Marketing materials are often produced as a template that a local marketer or representative can use as a starting point for localization and translation. If this is your approach, then developing and maintaining close working relationships with the in-country reps and marketing staff is KEY to your success.

Decentralized marketing gives up some control over how your brand is represented.

There are risks related to corruption, so be upfront about what you can and cannot accept under the laws of your home country.

Localized marketing and reps can cost upwards of 25-30 percent of the total product price, so the supporting marketing department back at headquarters must run very lean in terms of staff and budget.

The reason for choosing a single approach is this: if you do both, then you are paying to manage a program centrally but not getting the benefits of control or efficiency. If you essentially do neither (rare, but I’ve seen it), then you undercut your abilities to reach your markets.

I hope you found this article helpful. For more information about international marketing, please visit: The International Entrepreneur Website.