prior use of the trade mark. However, such provisions are of comparatively little value to a foreigner who usually has no knowledge that his trade mark has been registered until after the expiration of the time limit within which he could oppose the registration or take action to have it annulled. There is only one way for protecting oneself in such countries against what has been termed "trade-mark piracy' and that is by registering one's trade mark at as early a date as possible.

In Great Britain and France, ownership in a trade mark may be acquired either by use or by registration, but the exclusive right to use can not be enforced unless the mark has been registered. A number of countries require as a prerequisite to the registration of a foreign trade mark a proof that the mark has been registered in the country of origin. Australia, Bulgaria, Cuba, Denmark, Finland, Greece, Guatemala, Honduras, Norway, Panama, Porgutal, Serbia, Spain, Sweden and Switzerland belong in this group.

The International Trade Mark Convention, which includes among parties thereto the United States, Great Britain, France, Italy, Spain, Belgium, Holland, Japan, Sweden, Norway, Denmark, Switzerland, Portugal and Serbia, offers little relief against the usurpation of trade marks. The provision in the convention which is of the greatest value to proprietors of trade marks is the one which gives them a period of four months within which to register in other countries a trade mark which has been registered in their own country and protects them against any piracy of the mark during this interval of time. Beyond this the convention does not go; it merely stipulates that the trade marks of citizens and residents of each of the countries which are parties to the convention shall be protected in each country in the same manner as domestic trade marks are protected.

Although in most countries the requirements of registration are comparatively few and not very complicated, it is advisable to entrust the registration of a trade mark to a

competent lawyer residing in the country where registration is sought. As a rule, registration fees are small and the term for which registration is granted is limited to from ten to twenty years; this is subject to renewal if the trade mark is in use and to cancellation if it is not used.

Those who willfully infringe on duly registered trade marks subject themselves in most countries to criminal as well as to civil prosecution and punishment. They are liable to the payment of damages, and an injunction may be obtained restraining them from future infringement.

Regulations as to what may and may not be adopted as a trade mark vary somewhat in different countries; one of the most common prohibitions is that of registering a mark which so closely resembles one previously registered as to cause confusion and tend to deceive. Other marks which are not admitted to registry include scandalous matter or representations contrary to good morals; letters, words, coats-or-arms, or armorial bearings of royalty, and public or official insignia used or that may be used by the state; portraits of living persons if used without their consent.

As a general rule, a mark must have a distinguishing and identifying quality. It must not be a geographical name or a word in general use.

Keeping in mind legislative restrictions, it is the task of each manufacturer or merchant to select a mark best suited for his purpose. Some trade marks used in domestic business are not appropriate for export trade; thus, for instance, "Uneeda " or "Tacoma" mean nothing in Latin-American republics and they are inferior for creating good will there to such a mark as "National " which has the same meaning in Spanish and Portuguese as in English.

REFERENCES

DUDENEY, F. M. The Exporter's Handbook and Glossary, Chap. XV. EDER, P. J. Foreign and Home Law. Course in Foreign Trade, Vol. X. FILSINGER, E. B. Exporting to Latin America, Chap. XIX.

DE HAAS, J. A. Foreign Trade Organization, Chaps. XIV-XV.

MCMURRAY, O. R. Foreign Trade and Legal Progress. Address before the
Foreign Trade Club of San Francisco.

MEILI, F. International and Commercial Law.

PRECIADO, A. A. Exporting to the World, Chap. XXIII.

SAVAY, N. Principles of Foreign Trade, Chap. XXXIX.

WOLFE, A. J. Theory and Practice of International Commerce, Chap.
XVIII.

WOLFE, A. J. Articles in the Commerce Reports, beginning with the issue
of September, 5, 1921.

CHAPTER XVI

THE MANUFACTURER'S ORGANIZATION FOR

EXPORTING

Relations of the Export Department to Other Departments.-Exporting, though fundamentally not different from selling in home markets, presents so many peculiar problems that it is best for a manufacturer to handle his export business through a separate department. This department should be headed by a man of knowledge and experience, who can devote to the management of export business all his time, thought, and energy. An export department is like any other division in a business organization in that it must not be permitted to act independently; it should be closely connected and coordinated with the other activities of the concern. Some go so far as to maintain that since the main function of an export department is the promotion of sales, it should be controlled by the general sales manager of the firm. The wisdom of such an arrangement is doubtful, even if one assumes that the sales manager is a man of exceptionally broad vision who can see clearly beyond the confines of his own country. The sales manager has enough to do in directing the sales force at home, attending to and shouldering the various responsibilities in the domestic branch of the business. Another difficulty connected with placing the export department under the control of the general sales manager lies in the fact that there are few, if any, export managers worthy of the name who would be willing to work under such an arrangement.

The supervision of the export department is usually vested in the general executive division of the house which controls all the activities of the concern, whether purchasing, advertising, financing, operating, domestic merchandising,

importing or exporting. Such control insures the working of all departments without waste or friction and with the efficiency which comes from coordinated, concerted action.

Subsidiary Sales Organizations. Some corporations doing an export business have found it advantageous to organize subsidiary companies to handle their foreign sales; such are, for instance, the United States Steel Products Company, a subsidiary of the United States Steel Corporation, and the United States Rubber Export Company, a subsidiary of the United States Rubber Company. Subsidiary companies also handle the exports of the Standard Oil Company, the International Harvester Company, and similar concerns. The plan can be adopted only by large enterprises which are able to stand the heavy overhead expenses it involves and which seek extensive foreign connections. A subsidiary may also be employed by a number of manufacturers combining for export under the provisions of the Webb-Pomerene Act.

Divisions in an Export Department.-A highly organized export department consists of many divisions, such as:

1. The traffic or shipping division, which has charge of the exterior packing and marking of goods, their proper routing and the securing of transportation; this division attends to the delivery of orders to the transportation company, to the securing of insurance, when such is to be taken out by the exporting manufacturer, to the preparation of shipping papers and documents.

2. The advertising division, which either alone, or preferably in cooperation with outside advertising agencies, evolves plans for foreign advertising campaigns, prepares copies for foreign advertising, keeps a record of the efficacy of advertising media and methods. The foreign advertising division often forms an integral part of the general advertising department of the house; such an arrangement has been found very satisfactory, as it eliminates the duplication of functions and permits the utilization of the experience of the advertising manager and his associates.