Doing Business In - International Franchise Association
Doing Business In - International Franchise Association Doing Business In - International Franchise Association
has grown exponentially as bank regulations for the issuance of credit cards have been relaxed to near-Western standards. Five years ago, it was rare for a Czech consumer to use a credit card to make a purchase; today, virtually all professionals in major cities have at least one. Sales Service/Customer Support Return to top Although not yet at the level of Western standards, customer service has come a long way since the market opened up. There is still some room for improvement, and any firm able to implement a customer-friendly support system will have an edge in the market. This applies to both retail and industrial customers. The retail market is less consistent when it comes to service/support. Many local firms still do not seem to have grasped the concept of employee customer service training in this post-Communist society, and this often leads to a mentality of “the customer is never right.” The industrial sector is somewhat more developed as the Czechs have made great strides to become part of the international marketplace. U.S. companies should take pains to demonstrate to potential end users their after-sale service capacities. Some industrial users have the impression that European suppliers offer superior after-sale support, and the presence of a well-trained, well-supported local agent who can service equipment is important in closing a sale. Conscious of the discrepancies among Member States in product labeling, language use, legal guarantee, and liability, the redress of which inevitably frustrates consumers in cross-border shopping, the EU institutions have launched a number of initiatives aimed at harmonizing national legislation. Suppliers within and outside the EU should be aware of existing and upcoming legislation affecting sales, service, and customer support. Product Liability Under the 1985 Directive on liability of defective products, amended in 1999, the producer is liable for damage caused by a defect in his product. The victim must prove the existence of the defect and a causal link between defect and injury (bodily as well as material). A reduction of liability of the manufacturer is granted in cases of negligence on the part of the victim. Key link: http://ec.europa.eu/enterprise/policies/single-market-goods/product-liability/ Product Safety The 1992 General Product Safety Directive introduces a general safety requirement at the EU level to ensure that manufacturers only place safe products on the market. It was revised in 2001 to include an obligation on the producer and distributor to notify the Commission in case of a problem with a given product, provisions for its recall, the creation of a European Product Safety Network, and a ban on exports of products to third countries that are not deemed safe in the EU.
Key link: http://ec.europa.eu/consumers/safety/prod_legis/index_en.htm Legal Warranties and After-sales Service Under the 1999 Directive on the Sale of Consumer Goods and Associated Guarantees, professional sellers are required to provide a minimum two-year warranty on all consumer goods sold to consumers (natural persons acting for purposes outside their trade, businesses or professions), as defined by the Directive. The remedies available to consumers in case of non-compliance are: - Repair of the good(s); - Replacement of the good(s); - A price reduction; or - Rescission of the sales contract. Key link: http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm Other issues pertaining to consumers’ rights and protection, such as the New Approach Directives, CE marking, quality control and data protection are dealt with in Chapter 5 of this report. Protecting Your Intellectual Property Return to top Introduction Several general principles are important for effective management of intellectual property rights in the Czech Republic. First, it is important to have an overall strategy to protect IPR. Second, IPR is protected differently in the Czech Republic than in the U.S. Third, rights must be registered and enforced in the Czech Republic, under local laws. Companies may wish to seek advice from local attorneys or IP consultants. The U.S. Commercial Service can often provide a list of local lawyers upon request. It is vital that companies understand that intellectual property is primarily a private right and that the US government generally cannot enforce rights for private individuals in the Czech Republic. It is the responsibility of the rights' holders to register, protect, and enforce their rights where relevant, retaining their own counsel and advisors. While the U.S. Government is willing to assist, there is little it can do if the rights holders have not taken these fundamental steps necessary to securing and enforcing their IPR in a timely fashion. Moreover, in many countries, rights holders who delay enforcing their rights on a mistaken belief that the USG can provide a political resolution to a legal problem may find that their rights have been eroded or abrogated due to doctrines such as statutes of limitations, laches, estoppel, or unreasonable delay in prosecuting a law suit. In no instance should USG advice be seen as a substitute for the obligation of a rights holder to promptly pursue its case.
- Page 1 and 2: Doing Business in the Czech Republi
- Page 3 and 4: table for conversion to the euro ha
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- Page 7 and 8: Key Link: http://www.ombudsman.euro
- Page 9 and 10: lack of U.S. firms present, so U.S.
- Page 11 and 12: Key Link: http://ec.europa.eu/inter
- Page 13 and 14: sales. The cadre of agents has expa
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- Page 17: http://www.efsa.europa.eu/EFSA/Scie
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- Page 23 and 24: design. Amendments to the trademark
- Page 25 and 26: Provisions of Nutritional Labeling:
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- Page 29 and 30: Resources Return to top Updated inf
- Page 31 and 32: Automotive Parts and Equipment (APS
- Page 33 and 34: Electronic Components (ELC) Overvie
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- Page 37 and 38: Telecommunications Eq. (TEL) Overvi
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- Page 41 and 42: • Project financing comes from va
- Page 43 and 44: • Metal detectors • Monitoring
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- Page 47 and 48: Association of Czech Building Savin
- Page 49 and 50: There is room for growth in the fas
- Page 51 and 52: Contacts: Hana Obrusnikova, Senior
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Key link: http://ec.europa.eu/consumers/safety/prod_legis/index_en.htm<br />
Legal Warranties and After-sales Service<br />
Under the 1999 Directive on the Sale of Consumer Goods and Associated Guarantees,<br />
professional sellers are required to provide a minimum two-year warranty on all<br />
consumer goods sold to consumers (natural persons acting for purposes outside their<br />
trade, businesses or professions), as defined by the Directive. The remedies available to<br />
consumers in case of non-compliance are:<br />
- Repair of the good(s);<br />
- Replacement of the good(s);<br />
- A price reduction; or<br />
- Rescission of the sales contract.<br />
Key link:<br />
http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm<br />
Other issues pertaining to consumers’ rights and protection, such as the New Approach<br />
Directives, CE marking, quality control and data protection are dealt with in Chapter 5 of<br />
this report.<br />
Protecting Your <strong>In</strong>tellectual Property Return to top<br />
<strong>In</strong>troduction<br />
Several general principles are important for effective management of intellectual<br />
property rights in the Czech Republic. First, it is important to have an overall strategy to<br />
protect IPR. Second, IPR is protected differently in the Czech Republic than in the U.S.<br />
Third, rights must be registered and enforced in the Czech Republic, under local laws.<br />
Companies may wish to seek advice from local attorneys or IP consultants. The U.S.<br />
Commercial Service can often provide a list of local lawyers upon request.<br />
It is vital that companies understand that intellectual property is primarily a private right<br />
and that the US government generally cannot enforce rights for private individuals in the<br />
Czech Republic. It is the responsibility of the rights' holders to register, protect, and<br />
enforce their rights where relevant, retaining their own counsel and advisors. While the<br />
U.S. Government is willing to assist, there is little it can do if the rights holders have not<br />
taken these fundamental steps necessary to securing and enforcing their IPR in a timely<br />
fashion. Moreover, in many countries, rights holders who delay enforcing their rights on<br />
a mistaken belief that the USG can provide a political resolution to a legal problem may<br />
find that their rights have been eroded or abrogated due to doctrines such as statutes of<br />
limitations, laches, estoppel, or unreasonable delay in prosecuting a law suit. <strong>In</strong> no<br />
instance should USG advice be seen as a substitute for the obligation of a rights holder<br />
to promptly pursue its case.