Some legal aspects of exhibition management Some

Some legal aspects of exhibition management

Some terms Liability – You can’t prepare for every eventuality (that’s why we have to think about insurance) but you can be aware of liability issues related to guests in your exhibition and employees at the show. Insurance – Otherwise known as “asset protection”. Coverage - страховое покрытие.

Generally exhibitions are organized by legal entities or individuals and as a form of entrepreneurial activities are objects of business (economic) law. Therefore, everything related to this activity must comply with corresponding legal acts.

Exhibition management laws In many foreign countries – Italy, Germany, Egypt, Spain etc. – there are special laws regulating most aspects of exhibition industry. In Italy the Regulation which simplifies the procedures for organizing and holding exhibitions and fairs was approved by a special Presidential decree in 1994.

USA In the USA there is a law determining the rules for participating in international exhibitions and trade shows, rules for importing exhibits, equipment and other materials on the territory of the country. There also special laws that allow governmental and state authorities to subsidize some of the private companies both American and overseas.

Spain The Spanish law on exhibition activities in the Madrid autonomous district defines an optimal quality level of exhibits and the participation of industries. The services provided by organizers must meet the requirements of exhibitors and visitors and ensure safety of people and property. And it provides all necessary means and authority to the Madrid administration.

Russia Unfortunately, though the first rules for organizing exhibitions were issued in 1828, there is no such a law in the Russian Federation now. The project was presented for the discussion in 2003 but still there’s no result. At the moment regulation acts that are used for the exhibition activities are the following:

• - постановление Правительства Российской Федерации от 12. 04. 2000 г. N 328 "О Комиссии Правительства Российской Федерации по выставочно-ярмарочной деятельности"; • - постановление Правительства Российской Федерации от 06. 01. 1997 г. N 11 "Об усилении контроля за обязательным применением контрольно-кассовых машин при осуществлении денежных расчетов с населением на рынках, ярмарках, в выставочных комплексах и на других территориях, отведенных для осуществления торговли";

- постановление Правительства Российской Федерации от 16. 01. 1995 г. N 50 "Об утверждении Положения о порядке контроля за экспортом из Российской Федерации химикатов, оборудования и технологий, которые имеют мирное назначение, но могут быть применены при создании химического оружия" (в части обязательного согласования с Минюстом России заявлений на выдачу заключений о возможности временного вывоза отдельных видов химикатов и оборудования двойного применения для демонстрации на выставках, ярмарках и в рекламных целях);

- распоряжения Правительства Российской Федерации об участии российских организаций в конкретных выставочно-ярмарочных мероприятиях

Отдельные вопросы общего характера в сфере осуществления выставочно-ярмарочной деятельности регулируются нормативными правовыми актами, являющимися основополагающими для всех отраслей экономики, в том числе,

• Гражданским кодексом (Civil Code) Российской Федерации (заключение договоров), • Налоговым кодексом (Internal Revenue Code – IRC) Российской Федерации (порядок налогообложения – taxation), • Таможенным кодексом (Customs Code) Российской Федерации (перемещение товаров, предназначенных для выставок, через таможенную границу Российской Федерации).

Also by some Federal laws: от 18. 07. 1999 г. N 183 -ФЗ "Об экспортном контроле"; от 18. 07. 1995 г. N 108 -ФЗ "О рекламе"; от 14. 06. 1995 г. N 88 -ФЗ "О государственной поддержке малого предпринимательства в Российской Федерации"; Закон Российской Федерации от 07. 02. 1992 г. N 2300 -1 "О защите прав потребителей" и др.

Among the international legal acts regulating the industry are the following: - Парижская конвенция 1928 года о международных выставках; The Paris Convention of November 22, 1928 is the legal instrument that regulates the organization of Expos. It provides the guarantees which ensure a smooth organization of, and participation to, these global events.

Since 1928 the BIE has updated the Convention on different occasions in order to account for the shifts in the economic, social and political trends, the progress of the world and the emergence of new countries.

- Соглашение с государствами-участниками СНГ "О развитии выставочно-ярмарочной деятельности в Содружестве Независимых Государств" от 26. 05. 1995 г. ;

Customs problems - Таможенная конвенция о КАРНЕТЕ А. Т. А. для временного ввоза товаров (Брюссель, 06. 12. 1961 г. ); (Convention on the A. T. A Carnet for the Temporary Admission of Goods, Brussels, ) - Конвенция о временном ввозе (Стамбул, 26. 06. 1990 г. ); (Convention On Temporary Admission (Istanbul, 26 June 1990)

Customs • The Customs Code of a country may be a substantial obstacle for moving exhibits to and from the country and thus for developing the industry. For this case a special type of documents was developed. • They are called carnets. • Carnets are also known as Merchandise Passports or Passports for Goods.

Carnet • A Carnet or ATA Carnet (pronounced kar-nay) is an international customs and export-import document. It is used to clear customs in 71 countries and territories without paying duties and import taxes on merchandise that will be re-exported within 12 months. • Carnets facilitate temporary imports into foreign countries and reimportation them back. • By presenting an ATA Carnet document to foreign customs, you pass import duty free and import tax free into a carnet country for up to one year • http: //www. atacarnet. com/videos

Carnets in Russia: Chamber of Commerce and Industry of the Russian Federation (ТПП) Accepts ATA Carnets for: Commercial Samples (товарные образцы), Exhibitions and Fairs Professional Equipment. as of 03/15/2001 our country joined the convention on 18. 07. 1996

INSURANCE Insurance is a very important part of our life. The very name gives us the belief that if something goes wrong, and it can, we will be protected. Many feel that you should always hope for the best but plan for the worst, and getting insurance plays a bit part in that. Trade shows are huge events for many companies, and take a lot of time and planning to be successful. The fact that these shows are such complicated undertakings means that exhibitors would be very wise to purchase some kind of exhibition insurance.

Accidents can happen at trade shows, and when they do organizers and exhibitors want to hope that everyone is okay and that you will be covered in case of lawsuits. If there is one thing people love to do, it is sue and many will sue for the slightest provocation. You need to make sure you are covered in case of accidents at trade shows. No matter how careful you are, one of your customers at the fair could burn their mouth on your coffee. An unaware person could slip on a spilled drink outside your booth. A shelf in your booth could come off, spilling its contents, possibly hitting someone.

Accidents In April 2006, 51 people died in India and over 150 were injured when a fire went through a trade show. The fire was blamed on a short circuit in a panel over a plastic sheeting that was hung over an air conditioner.

Accidents In January 2008, a trade show in San Diego went tragically wrong when a member of the trade show went missing and was found dead soon after the trade show.

Need of coverage When these tragedies occur, you want to make sure that the exhibitors, attendees and organizers are covered. This is where insurance comes in and why no trade show can occur without trade show insurance in place. In fact, mostly trade show exhibits are not even allowed to take place without insurance covering the building, products being sold, attendees, and so on.

Trade show exhibits are often used by companies to promote new, innovative products that may not have been tested fully. What happens if the products malfunction and end up injuring someone, or even damaging the facility? The last thing you want to end up with after a big event is a lawsuit. Luckily, exhibition insurance is available for purchase to cover any damages that may occur, and to give peace of mind to exhibitors, booth attendants, show attendees, and everyone involved.

If an exhibitor is demonstrating a brand new chain saw, he could risk cutting off his own finger. Should this happen, he'd probably drop the saw in shock and pain, and it could fall to the floor while still on and injure nearby attendees.

There are many business sectors that contain products that can be dangerous. For instance, what about trade show booths that promote knives and guns? While exhibitors are extremely knowledgeable about their products and know how to handle them safely, there is always the possibility that a show attendee could drop a knife on their foot, or even use it to hurt someone else. Even seemingly safe trade show exhibits that are interior design focused have their dangers; someone could accidentally knock over one of those new long-lasting, 'calming' scented candles and set the exhibit and the entire building on fire.

It can be insurance for the trade show, for exhibits, for the attendees, for transportation, for the exhibitors and on the venue.

Usually, these policies protect you from general liability, liabilities related to property damage, and losses or destruction of trade show exhibits, displays, and props. Some policies also cover medical expenses of event participants, event cancellation, or weather insurance. It is critical to find out what each policy you are considering covers, if there any lapses in coverage, and if temporary guests and employees are covered.

PROTECTING INTELLECTUAL PROPERTY RIGHTS (IPR) Trade Shows present great business opportunities but exhibiting at a show puts Intellectual Property Rights (“IPR”) at risk if not protected properly.

GENERALLY THERE ARE FOUR TYPES OF INTELLECTUAL PROPERTY PROTECTION Copyright Patent Trademark Trade secret

Copyright: A copyright is granted to authors for individual works of authorship and other forms of creative expression. This includes literary, dramatic, artistic and other intellectual works both published and nonpublished: graphics, email announcements, press releases, customer testimonials, You. Tube video, all content that could be used in your exhibit, and could be protected by copyright. The copyright owner has exclusive rights to reproduce the work. In the USA copyrights are registered with the Copyright Office of the Library of Congress.

Patent: A patent is a grant of a property right for things and processes that are useful in the real world. The legal description of the invention is the patent’s claim. Patent Offices review the patent and determine whether the invention is one that is new, before accepting the patent. In the USA the right is for 20 years after the date on which an application is applied for. During that period the inventor may exclude others from making, using or offering for sale, or selling the invention.

Trademark: A trademark is a word, name, symbol or design or slogan which distinguishes the products of one company from another. A trademark must be distinctive and is linked to a specific product or company. A “service mark, ’’ is similar to a trademark and generally refers to the source of a service and not a product. In the USA trademark protection is created through the use of the mark, or by filing the mark with the US Patent and Trademark Office.

Trade Secret: Trade secret protection can protect confidential information from improper appropriation and is generally enforced by the states. To consider whether something is a trade secret, courts will look at how secret the information is, the efforts made to protect the secret, the value of the information, and the amount of money or effort involved in creating the secret. The higher the cost in developing the trade secret, the more likely it will be considered a trade secret. A trade secret program, including employee confidentiality requirements to ensure this secret is protected is additional evidence of the intent to keep the information a secret.

Protecting your IPR BEFORE exhibiting at a Trade Show 1. Register your IPR An idea is NOT protectable and a product not registered as an IPR has no or little remedy against potential infringers (нарушители). Therefore, registering a product BEFORE exhibiting at a Trade Show is key to effective IPR protection. Scope of the protection: registration in one country DOES NOT provide protection in the rest of the world.

General international rules: A company has two options when it comes to registering IPR abroad: To ensure full IPR protection in another country, a company can apply to register any IPR in that country. For more information about the specific intellectual property laws and requirements of individual countries, visit the WIPO Guide to Intellectual Property Worldwide. This option can become challenging especially when a company needs to register its IPR in several countries.

However, when a country is signatory to one of the numerous IPR multilateral treaties (e. g. WTO, Berne and Paris Conventions…) the complexity of overseas filing is largely reduced; a registration in the jurisdiction designated by the treaty will grant IPR protection in all the signatory countries of the treaty. This is the easiest option and the most commonly adopted. It provides IPR protection in several countries with only one registration.

Registration in Russia is made by Russian Agency for Patents & Trademarks (ROSPATENT)

2. Prepare non-disclosure and confidentiality agreements (соглашение о неразглашении) for employees to sign prior to attendance at trade shows. (patent, trade secret protection)

3. Consider whether it is appropriate for individuals outside of the organization to sign confidentiality agreements prior to disclosure of intellectual property to them. (patent, trade secret protection)

4. Advise employees in advance not to talk about sensitive business in public places. Provide employees with concrete and precise examples of what can and cannot be disclosed. (patent, trade secret protection)

5. Work with marketing department to ensure that sensitive (конфиденциальная) business information is not disclosed in written materials, whereby the risks of revealing sensitive business information may outweigh the benefits of obtaining new business. (patent, trade secret protection)

6. Mark products with patent numbers, where applicable, and with trademark and copyright symbols, where appropriate, to show ownership of intellectual property. (patent, trademark, copyright protection)

Protecting IPR during a Trade Show 1. Avoid having non-authorized (несанкционированные) pictures taken. 2. Police disclosure of intellectual property by employees at trade shows. (patent, trademark, copyright, trade secret protection)

3. In any back rooms meetings with vendors where proprietary new products are displayed, admit only select and important customers or potential customers and require anyone admitted to sign a non-disclosure agreement. (patent, trade secret protection)

Remedies against infringement at the show: little can be done at the show itself. Trade fair organizers cannot themselves determine which party is guilty of unauthorized copying. Unless there is a court decision that clearly stipulates that there is infringement, trade show organizers cannot act on behalf of (or against) exhibitors. However, the larger trade fair organizers have legal staff in place from which you can seek advice

Specific rules in Europe and Germany Trade Show organizers cannot close down a trade fair booth during the show

Specific rules in China to better protect IPR at trade shows in China new rules have been proclaimed in 2006. For instance, if a trade fair lasts three days or longer, trade fair organizers are obliged (обязаны) to establish a complaint center for IPR related issues. If the trade fair lasts only one or two days and the organizers do not provide a complaint center, the exhibiting company can check whether local enforcement authorities will be present at the trade fair. If not, they may at least provide a contact person who can be addressed in case of infringements.