The world is more connected than ever, and mining technology and service companies are no exception. As they expand their reach globally, they need to follow their clients to new markets, from a copper mine high in the Andes to the icey cold winters of Northern Canada. When exploring new markets, it’s the classic “chicken or egg” dilemma: You want to see success before committing to the expenses of a local operation, but as soon as you start generating revenue, the risk of being classified as a PE increases.
Today, the mining industry is experiencing a rapid digital transformation, where nearly every product and service supplied to mines incorporates a substantial technological element. For suppliers, this shift underscores the importance of carefully managing intellectual property when contracting with mining clients.
While the immediate focus for many companies entering the Brazilian market is simply securing or being awarded the work, intellectual property is business-critical and should be treated as such. Protecting intellectual property through well-crafted contracts is essential for businesses looking to safeguard their innovations and maintain competitive advantages.
While Brazil has lots of opportunities for industrial technology and service companies, it also has some unique considerations compared to common law countries when contracting between parties. This is because there are several legal provisions that, if left undefined or unregulated in the contract, shall be applied regardless of the parties’ intentions.
Mining suppliers may use a local subcontractor for a variety of reasons when working on Chilean projects. The issue is that foreign companies can find themselves in trouble if they do not understand how the subcontracting laws work from both a legal and practical perspective.
The solutions and technology being commercialized today are more complex than they were in the past which means there is a strong need for companies to ensure they are protecting their intellectual property when entering into contracts with clients.
We provide practical tips on some key differences that should be considered when negotiating and hiring employees in Chile. These are common questions that have come up frequently over the years regarding a few key points that that are unique to Chile.
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