international business law

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CASE FACTS:

Mertam
is a US R&D Company devoted to produce genetic modified seeds. One of the
most successful developments is a modified variation of Soybean seed know as
M-116. The modified variation has been properly patented in the US.

Since
Brazil is a big soybean producer, Mertam has decided to fill the patent in that
country. Brazil and the US have a Bilateral Investment Treaty. While the patent
of M-116 was under examination by the Brazilian Patent Office, Mertam signed a
license agreement with a local laboratory named, Bricadeira. The contract
allowed Bricadeira to produce and distribute the M-116. Bricadeira produced and
licensed the seed to local producers. Feijao, is a mayor soybean agricultural
producer in Brazil and decided to obtain the license from Bridacaeira. After
singing, Feijao sold FOB a 100 ton of manufactured soybean to ¨Mar del Viña”
the biggest trader of agricultural products in Chile. Mertam already had the
M-116 patented in Chile.

The
Brazilian Patent Office decided to deny the patent in Brazil arguing that seeds
can not be patented because would be a violation to the human right principle
of free access to food. As a result of that, Feijao, decided not to pay
royalties to Bricadeira, since the seed is considered to be in the public
domain. At the same time, because of the denial of the Brazilian Patent office,
Mertam required an injunction from a Chilean Court avoiding the distribution of
the soybean M-116 in that country. The Chilean Court granted the injunction, and
the shipment dispatched by Feijao must remained in port. As a consequence, Mar
del Viña decided to initiate actions against Feijao for breaching of the sale
contract. No jurisdiction nor applicable law was determined.

Finally,
Mertam and Bricadeira Jointly sued the Brazilian Government at the ICSID court
for a violation of a Bilateral Investment Treaty.

Answer the following questions:

1. 
Which
would be the jurisdiction the applicable law to Sales of Goods Contract between
Mar del Viña and Feijao.

2. 
You are the
Lawyer of Mertam Develop a justification for allowing jurisdiction of the
ICSID.

3. 
You are
the Lawyer of Feijao:

a. 
Develop a
strategy to repel the action for breach of contract initiated by Mar del Viña.

b. 
Develop a
strategy against Mertam because of the injunction. (Using international
antitrust arguments would be recommended).

4. 
You are an
arbitrator at the ICSID court, you need to decided:

a. 
If you
have competence.

b. 
If there
is a violation of the bilateral investment treaty.

c. 
If the
human right mentioned by the Brazilian Patent Office prevails over the BIT.

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