HI5015: Analyzing Legal Aspects of Bayer's Business in Australia
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This essay examines the legal aspects affecting Bayer's international business operations in Australia. It assesses the legal and regulatory framework, focusing on licensing requirements and tax law amendments that could impact Bayer's operations. The analysis also covers relevant treaties, agreements, and conventions, such as trade agreements between Australia and the EU, and patent protection laws. The essay highlights how these legal factors influence Bayer's market feasibility and performance in Australia, emphasizing the importance of compliance and strategic adaptation to navigate the Australian legal landscape. Desklib provides access to similar solved assignments and resources for students.
Legal aspects of international business and enterprises
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Bayer In Australia
Bayer is the world's largest chemical and pharmaceutical concern, which includes three
subgroups with its headquarters in Germany. In 2016, Bayer had 115,200 employees worldwide
and more than 10,000 employees in Australia1. Bayer has a wide range of products to support the
health needs of millions of families around the world at different stages of life. These products
include Australia's #1 pregnant women's multivitamin Elevit, Menevit Men's Philharmonic ii,
and other leading brands including Berocca Performance Multivitamins, Bepanthen Scarlett,
Bepanthen Xin wound antibacterial ointment2, Bepanthen baby diaper cream, Canesten Kenny
Ting lotion, Demazin children cough oral liquid and children's cold oral solution, Penta-vite
children's multivitamins and Iberogast to quickly relieve stomach upset. Since its inception in
1863, Bayer has been a world-leading life technology company and has been investing heavily in
R&D innovation to continue to deliver innovative, healthy products of superior quality.
However, the ever-changing socio and economic conditions do not always guarantee that Bayer
will enjoy the vast market without any hindrance3. Although Bayer company has already
established its subsidiary or branch in Australia, it is always important to always evaluate the
feasibility of market so as to ensure that the economic, political and social factors risks do not
affect the operations and performance of the company. This need calls for an evaluation of legal
aspects in Australia that may positively or negatively affects Bayer’s future endeavors. The goal
1 Bayer, Australia/New Zealand, Bayer, [web page] (2018) <https://www.bayer.com.au/>
2 Bayer, Australia/New Zealand, Bayer, [web page] (2018) <https://www.bayer.com.au/>
3 M. Rockel, Internationalisation: the Strategic Challenge for Western Fine Chemicals Company
Bayer Chemicals Arising from the Growth of China. Munich: GRIN Verlag GmbH, 2005.
Bayer is the world's largest chemical and pharmaceutical concern, which includes three
subgroups with its headquarters in Germany. In 2016, Bayer had 115,200 employees worldwide
and more than 10,000 employees in Australia1. Bayer has a wide range of products to support the
health needs of millions of families around the world at different stages of life. These products
include Australia's #1 pregnant women's multivitamin Elevit, Menevit Men's Philharmonic ii,
and other leading brands including Berocca Performance Multivitamins, Bepanthen Scarlett,
Bepanthen Xin wound antibacterial ointment2, Bepanthen baby diaper cream, Canesten Kenny
Ting lotion, Demazin children cough oral liquid and children's cold oral solution, Penta-vite
children's multivitamins and Iberogast to quickly relieve stomach upset. Since its inception in
1863, Bayer has been a world-leading life technology company and has been investing heavily in
R&D innovation to continue to deliver innovative, healthy products of superior quality.
However, the ever-changing socio and economic conditions do not always guarantee that Bayer
will enjoy the vast market without any hindrance3. Although Bayer company has already
established its subsidiary or branch in Australia, it is always important to always evaluate the
feasibility of market so as to ensure that the economic, political and social factors risks do not
affect the operations and performance of the company. This need calls for an evaluation of legal
aspects in Australia that may positively or negatively affects Bayer’s future endeavors. The goal
1 Bayer, Australia/New Zealand, Bayer, [web page] (2018) <https://www.bayer.com.au/>
2 Bayer, Australia/New Zealand, Bayer, [web page] (2018) <https://www.bayer.com.au/>
3 M. Rockel, Internationalisation: the Strategic Challenge for Western Fine Chemicals Company
Bayer Chemicals Arising from the Growth of China. Munich: GRIN Verlag GmbH, 2005.
of the paper is therefore to determine the legislative regulatory framework that may influence the
operations of Bayer in Australia. The paper will also determine and evaluate the treaties,
conventions or agreement that have impacted on the operations and performance of Bayer in
Australia.
Legal regulatory framework
One of the legal regulatory area where Bayer is likely to face some obstacles concerns
licensing of some of its products4. Australia is a law abiding country and hence when it comes to
licensing, Australia is very strict5. Bayer’s products are being improved on a continuous basis.
Bayer, being a pharmaceutical company, needs to comply with many licensing requirements and
its operation depends on its ability to assure that its products are safe. There are many cases to
proof that Bayer might face some challenges as far as licensing of its new products is concerned.
For example, in order to be licensed to deal with genetically modified products, Bayer must have
enough proof that the products are safe and must comply with all regulatory bodies including
FAO. Recently, the company was violently attacked on the stock market, following the sentence
inflicted on the United States to the seed giant Monsanto, which the pharmaceutical group has
just bought at a high price, at the risk of a cascade of troubles court6. Following the attack, the
Bayer stock plummeted by over 12% at the Frankfurt Stock Exchange, 81.79 euros, and saw
4 C. Jasper, ‘Agribusiness giants Bayer and Monsanto clear US regulatory hurdles for $US66b
mega merger’, ABC News, http://www.abc.net.au/news/2018-05-30/bayer-monsanto-merger-
gets-green-light-from-us-regulator/9814702 (Accessed 9/18/2018)
5 M. Blakeney, Intellectual property enforcement: a commentary on the anti-counterfeiting trade
agreement (ACTA), Cheltenham, U.K., Edward Elgar. 2012
operations of Bayer in Australia. The paper will also determine and evaluate the treaties,
conventions or agreement that have impacted on the operations and performance of Bayer in
Australia.
Legal regulatory framework
One of the legal regulatory area where Bayer is likely to face some obstacles concerns
licensing of some of its products4. Australia is a law abiding country and hence when it comes to
licensing, Australia is very strict5. Bayer’s products are being improved on a continuous basis.
Bayer, being a pharmaceutical company, needs to comply with many licensing requirements and
its operation depends on its ability to assure that its products are safe. There are many cases to
proof that Bayer might face some challenges as far as licensing of its new products is concerned.
For example, in order to be licensed to deal with genetically modified products, Bayer must have
enough proof that the products are safe and must comply with all regulatory bodies including
FAO. Recently, the company was violently attacked on the stock market, following the sentence
inflicted on the United States to the seed giant Monsanto, which the pharmaceutical group has
just bought at a high price, at the risk of a cascade of troubles court6. Following the attack, the
Bayer stock plummeted by over 12% at the Frankfurt Stock Exchange, 81.79 euros, and saw
4 C. Jasper, ‘Agribusiness giants Bayer and Monsanto clear US regulatory hurdles for $US66b
mega merger’, ABC News, http://www.abc.net.au/news/2018-05-30/bayer-monsanto-merger-
gets-green-light-from-us-regulator/9814702 (Accessed 9/18/2018)
5 M. Blakeney, Intellectual property enforcement: a commentary on the anti-counterfeiting trade
agreement (ACTA), Cheltenham, U.K., Edward Elgar. 2012
more than 11 billion euros of its capitalization go up in smoke7. The attack followed the move
taken by San Francisco court, which forced Monsanto to pay $ 289 million in compensation for
failing to warn of the dangerousness of its glyphosate herbicide, which causes cancer by
American gardener Dewayne Johnson. Australians are very sensitive to their health and there are
many regulatory bodies designed to safeguard the health of Australians. This means that Bayer
ought to be very careful to ensure that her products are safe, failure to which, the company may
not get license to operate effectively.
Another legal regulatory that is likely to affect the operations of Bayer in one way or
another is the tax laws amendments. Currently Australia revised its corporate tax to 30% or
27.5% (companies with annual turnover below AUD 2 million)8. Taxable imports and supplies
by non-residents are subject to the GST. Non-residents are required to register with the GST if
their annual turnover resulting from intra-Australian sales is greater than AUD 75,000 (AUD
150,000 for charities). Since July 1, 2017, non-residents offering digital services are required to
register with the GST if they meet one of the following conditions: the buyer is an Australian
resident, the product is made in Australia, the sale is through a locally managed business in
Australia, the sale is for the purchase of an asset that is related to Australia. It is not mandatory to
6 T. Buck, ‘US legal woes drive Bayer shares to 5-year low’, Financial Times,
https://www.ft.com/content/304d673a-a15a-11e8-85da-eeb7a9ce36e4 (Accessed 9/18/2018)
7 K. Jennewein, Intellectual Property Management: The Role of Technology-Brands in the
Appropriation of Technological Innovation. Heidelberg: Physica-Verlag Heidelberg, 2005.
8 J. Paul, and K. Ramneek, International Marketing: Text and Cases. (New Delhi: Tata McGraw-
Hill, 2008).
taken by San Francisco court, which forced Monsanto to pay $ 289 million in compensation for
failing to warn of the dangerousness of its glyphosate herbicide, which causes cancer by
American gardener Dewayne Johnson. Australians are very sensitive to their health and there are
many regulatory bodies designed to safeguard the health of Australians. This means that Bayer
ought to be very careful to ensure that her products are safe, failure to which, the company may
not get license to operate effectively.
Another legal regulatory that is likely to affect the operations of Bayer in one way or
another is the tax laws amendments. Currently Australia revised its corporate tax to 30% or
27.5% (companies with annual turnover below AUD 2 million)8. Taxable imports and supplies
by non-residents are subject to the GST. Non-residents are required to register with the GST if
their annual turnover resulting from intra-Australian sales is greater than AUD 75,000 (AUD
150,000 for charities). Since July 1, 2017, non-residents offering digital services are required to
register with the GST if they meet one of the following conditions: the buyer is an Australian
resident, the product is made in Australia, the sale is through a locally managed business in
Australia, the sale is for the purchase of an asset that is related to Australia. It is not mandatory to
6 T. Buck, ‘US legal woes drive Bayer shares to 5-year low’, Financial Times,
https://www.ft.com/content/304d673a-a15a-11e8-85da-eeb7a9ce36e4 (Accessed 9/18/2018)
7 K. Jennewein, Intellectual Property Management: The Role of Technology-Brands in the
Appropriation of Technological Innovation. Heidelberg: Physica-Verlag Heidelberg, 2005.
8 J. Paul, and K. Ramneek, International Marketing: Text and Cases. (New Delhi: Tata McGraw-
Hill, 2008).
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appoint an Australian tax representative,9. Australia is also planning to adopt stricter measures to
ensure that foreign companies do not evade tax10.
For a long time, the Foreign Investment Review Board has often reviewed the tax
implications of a foreign investment plan when it violates national interests. In addition to the
impact of investment on tax compliance, the scope of the investigation is also the impact of
investment on national security, competition, economic and social, and the characteristics of
investors. This content is specified in Australia's Foreign Investment Policy. Now, as the Foreign
Investment Review Board has included new tax compliance conditions in the approval process,
the inspection process has also added new steps. Transfer pricing and anti-tax avoidance
measures are now the focus of attention, and investors must inform the Australian Taxation
Office of the possibility of applying transfer pricing or anti-tax avoidance measures11.
These changes have been brewing for some time, and the government is trying to fill the
loopholes in the taxation, showing that it is working to solve the national interest problems
brought by taxation of multinational corporations12. The expected effect of these conditions is to
9 M. Hoeck, Cooperation and Technological Endowment in International Joint Ventures:
German Industrial Firms in China. (Köln: Kölner Wissenschaftsverl, 2008).
10 P. R. Cateora, and L. G. John, International Marketing. (Boston: Irwin McGraw-Hill, 2002).
11 Australian Government, Latest news on tax law and policy [web page] (2018) <
https://www.ato.gov.au/general/new-legislation/latest-news-on-tax-law-and-policy/>, (Accessed
9/18/2018)
12 D. Jones, Recent Developments in Transfer Pricing and the Taxation of Multinational
Companies in Australia. (White Paper. 2017)
ensure that foreign companies do not evade tax10.
For a long time, the Foreign Investment Review Board has often reviewed the tax
implications of a foreign investment plan when it violates national interests. In addition to the
impact of investment on tax compliance, the scope of the investigation is also the impact of
investment on national security, competition, economic and social, and the characteristics of
investors. This content is specified in Australia's Foreign Investment Policy. Now, as the Foreign
Investment Review Board has included new tax compliance conditions in the approval process,
the inspection process has also added new steps. Transfer pricing and anti-tax avoidance
measures are now the focus of attention, and investors must inform the Australian Taxation
Office of the possibility of applying transfer pricing or anti-tax avoidance measures11.
These changes have been brewing for some time, and the government is trying to fill the
loopholes in the taxation, showing that it is working to solve the national interest problems
brought by taxation of multinational corporations12. The expected effect of these conditions is to
9 M. Hoeck, Cooperation and Technological Endowment in International Joint Ventures:
German Industrial Firms in China. (Köln: Kölner Wissenschaftsverl, 2008).
10 P. R. Cateora, and L. G. John, International Marketing. (Boston: Irwin McGraw-Hill, 2002).
11 Australian Government, Latest news on tax law and policy [web page] (2018) <
https://www.ato.gov.au/general/new-legislation/latest-news-on-tax-law-and-policy/>, (Accessed
9/18/2018)
12 D. Jones, Recent Developments in Transfer Pricing and the Taxation of Multinational
Companies in Australia. (White Paper. 2017)
ensure that foreign investors comply with Australian tax laws. The Foreign Investment Review
Board and the Inland Revenue Department work very closely together in areas such as residential
land acquisitions, foreign investment review committee filing fees and agricultural land
registration are now accepted by the tax bureau. And some multinational companies' investment
plans for acquiring shares and new companies in Australia have been subject to tax-related
conditions. The press conference of the Finance Minister today largely confirmed this new
initiative.
Some of the conditions that may be added only require foreign investors to comply with
the law, while others may require additional measures by foreign investors e.g. comply with
Australian tax laws, provide documents or information required by the Australian Taxation
Office, tell the Australian Taxation Office whether a transaction is subject to transfer pricing and
anti-tax avoidance regulations, adhere to the Australian Taxation Office in good faith, submit an
annual report on investor tax compliance to the Foreign Investment Review Board and when
approved, foreign investors should be mindful of the additional reporting requirements imposed
by these conditions. These new adjustments would require Bayer to be compliant so as to ensure
that its operation in Australia is not affected by the ever-changing tax and investment laws.
Treaties, agreements and conventions
Due to firm adherence to trade laws, Australia has a number of conventions, treaties and
agreements designed to facilitate smooth running of the companies (both national and
multinational) and to prevent legal issues. During the visit, German Chancellor Merkel expressed
very much to the free trade agreement between Australia and the EU stand by. In this regard,
Turnbull stressed that the FTA is not only an economy, but also reflects the similar values of the
Board and the Inland Revenue Department work very closely together in areas such as residential
land acquisitions, foreign investment review committee filing fees and agricultural land
registration are now accepted by the tax bureau. And some multinational companies' investment
plans for acquiring shares and new companies in Australia have been subject to tax-related
conditions. The press conference of the Finance Minister today largely confirmed this new
initiative.
Some of the conditions that may be added only require foreign investors to comply with
the law, while others may require additional measures by foreign investors e.g. comply with
Australian tax laws, provide documents or information required by the Australian Taxation
Office, tell the Australian Taxation Office whether a transaction is subject to transfer pricing and
anti-tax avoidance regulations, adhere to the Australian Taxation Office in good faith, submit an
annual report on investor tax compliance to the Foreign Investment Review Board and when
approved, foreign investors should be mindful of the additional reporting requirements imposed
by these conditions. These new adjustments would require Bayer to be compliant so as to ensure
that its operation in Australia is not affected by the ever-changing tax and investment laws.
Treaties, agreements and conventions
Due to firm adherence to trade laws, Australia has a number of conventions, treaties and
agreements designed to facilitate smooth running of the companies (both national and
multinational) and to prevent legal issues. During the visit, German Chancellor Merkel expressed
very much to the free trade agreement between Australia and the EU stand by. In this regard,
Turnbull stressed that the FTA is not only an economy, but also reflects the similar values of the
two countries13. According to ANZ news, Merkel stressed that Germany and Australia share the
same values, and international trade policy is very important for Germany. She said: "Germany
has always supported Australia in the area of free trade agreements . We have made great
progress in this regard." Before the talks, Turnbull said in a speech that free trade agreements are
not just economic issues. For Australia and the European Union , the Free Trade Agreement
provides us with an opportunity to “show what we insist on and what we are against” when the
world faces serious security challenges. Turnbull also mentioned the incident in which the
former Russian spy in the United Kingdom was attacked by nerve gas. He said that countries
with the same values and understanding of human dignity have responded in common. "We
believe that living in a free and democratic country is a fortune. Human beings need a law-
abiding international order." Many commentators and observers consider the agreement as a
breakthrough for firms and companies from these countries. That is why some of the headlines
clearly acknowledged the effort of Hexagon. One of the headlines read Australian ambassador
to France, the Hexagon "has everything to gain from a rapprochement of the European and
Australian economies. The agreement was made in the Australian capital of Canberra14
13 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
14 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
same values, and international trade policy is very important for Germany. She said: "Germany
has always supported Australia in the area of free trade agreements . We have made great
progress in this regard." Before the talks, Turnbull said in a speech that free trade agreements are
not just economic issues. For Australia and the European Union , the Free Trade Agreement
provides us with an opportunity to “show what we insist on and what we are against” when the
world faces serious security challenges. Turnbull also mentioned the incident in which the
former Russian spy in the United Kingdom was attacked by nerve gas. He said that countries
with the same values and understanding of human dignity have responded in common. "We
believe that living in a free and democratic country is a fortune. Human beings need a law-
abiding international order." Many commentators and observers consider the agreement as a
breakthrough for firms and companies from these countries. That is why some of the headlines
clearly acknowledged the effort of Hexagon. One of the headlines read Australian ambassador
to France, the Hexagon "has everything to gain from a rapprochement of the European and
Australian economies. The agreement was made in the Australian capital of Canberra14
13 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
14 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
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Australia is one of the fastest growing economies in the world. It recently negotiated a
Progressive Global Trans-Pacific Partnership Agreement (CPPP) with ten other countries in the
Pacific region. The future EU-Australia agreement will allow European companies to compete
on an equal footing with companies from countries with which Australia has already concluded
trade agreements 15. The agreement will also provide additional security to companies such as
Bayer. Bayer will feel free to explore and expand its ventures because of the cordial relationship
between the Germany and Australia brought about by such negotiated trade agreement.
Another legal issue that may face Bayer is patent protection. Australia is a member of
Paris Convention Treaty (PCT) and as treaty expects, the Australian government works hard to
ensure that there is no patent infringement. However, the issue of patenting will not affect Bayer
so much because the past behavior shows that Bayer is good in innovation and creation of
patents. So far, the number of PCT associated with Bayer is 180. On the other hand, the number
of PCT associated with Bayer CROPSCIENCE is 166. This clearly shows that Bayer is
complying with the PCT and this is a positive move as far as current and future endeavors are
concerned16.
15 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
16 T. Buck, ‘Bayer reports sharp rise in legal cases linked to its weedkiller,’ Financial Times,
[web page] (2018) < https://www.ft.com/content/18e45e34-a6df-11e8-8ecf-a7ae1beff35b
>(Accessed 9/18/2018)
Progressive Global Trans-Pacific Partnership Agreement (CPPP) with ten other countries in the
Pacific region. The future EU-Australia agreement will allow European companies to compete
on an equal footing with companies from countries with which Australia has already concluded
trade agreements 15. The agreement will also provide additional security to companies such as
Bayer. Bayer will feel free to explore and expand its ventures because of the cordial relationship
between the Germany and Australia brought about by such negotiated trade agreement.
Another legal issue that may face Bayer is patent protection. Australia is a member of
Paris Convention Treaty (PCT) and as treaty expects, the Australian government works hard to
ensure that there is no patent infringement. However, the issue of patenting will not affect Bayer
so much because the past behavior shows that Bayer is good in innovation and creation of
patents. So far, the number of PCT associated with Bayer is 180. On the other hand, the number
of PCT associated with Bayer CROPSCIENCE is 166. This clearly shows that Bayer is
complying with the PCT and this is a positive move as far as current and future endeavors are
concerned16.
15 Australian Government, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
agreement-tpp.aspx> , (Accessed 9/18/2018)
16 T. Buck, ‘Bayer reports sharp rise in legal cases linked to its weedkiller,’ Financial Times,
[web page] (2018) < https://www.ft.com/content/18e45e34-a6df-11e8-8ecf-a7ae1beff35b
>(Accessed 9/18/2018)
Similarly, in China, Bayer won patent case where it had sued a Shilang company in
China for patent infrigment. In the case, The plaintiff Bayer Schering Company claims that
Bayer Schering is a subsidiary of Bayer, a world-renowned pharmaceutical company, and the
patent holder of the Chinese patent ZL93100215.X. The invention title of the patent is
"quinolonecarboxylic acid and naphthyridonecarboxylic acid derivatives and its preparation
method", the application date is January 9, 1993, and the authorization announcement date is
April 28, 1999, and the patent is still in an effective state17. The plaintiff produced, sold and
exported the drug containing "Moxifloxacin" as the active ingredient according to the patent,
which is a kind of 8-methoxy fluoroquinolone with antibacterial activity. Treatment of upper and
lower respiratory tract infections, such as acute sinusitis, chronic bronchitis episodes, community
acquired pneumonia, and skin and soft tissue infections, is widely used and has a large sales
volume in China18. The victory clearly shows that Bayer is keen in aspects related to the patent
protection and this gives the company a upper hand when doing business in Australia. Most of
Bayer's current business activities are based on innovation in recent years19. Currently,
approximately 40% of Bayer's annual sales revenue comes from patented products developed by
Bayer Labs over the past 20 years . Bayer's R&D centers are mainly located in Europe, the
United States and Japan, as well as small-scale, specialized, such as R&D centers in Shanghai20.
17 Bayer, Bayer Crop Science Australia logo, Bayer, [web page] (2018,
<https://www.crop.bayer.com.au/> (Accessed 9/18/2018)
18 P. Connor, Global Price Fixing. (S.l.: Springer US, 2001).
19 C. Hodgson, ‘Bayer falls again after latest legal setback over Monsanto weedkiller, Financial
Times, [web page] (2018), <https://www.ft.com/content/54613b36-a13e-11e8-85da-
eeb7a9ce36e4> (Accessed 9/18/2018)
China for patent infrigment. In the case, The plaintiff Bayer Schering Company claims that
Bayer Schering is a subsidiary of Bayer, a world-renowned pharmaceutical company, and the
patent holder of the Chinese patent ZL93100215.X. The invention title of the patent is
"quinolonecarboxylic acid and naphthyridonecarboxylic acid derivatives and its preparation
method", the application date is January 9, 1993, and the authorization announcement date is
April 28, 1999, and the patent is still in an effective state17. The plaintiff produced, sold and
exported the drug containing "Moxifloxacin" as the active ingredient according to the patent,
which is a kind of 8-methoxy fluoroquinolone with antibacterial activity. Treatment of upper and
lower respiratory tract infections, such as acute sinusitis, chronic bronchitis episodes, community
acquired pneumonia, and skin and soft tissue infections, is widely used and has a large sales
volume in China18. The victory clearly shows that Bayer is keen in aspects related to the patent
protection and this gives the company a upper hand when doing business in Australia. Most of
Bayer's current business activities are based on innovation in recent years19. Currently,
approximately 40% of Bayer's annual sales revenue comes from patented products developed by
Bayer Labs over the past 20 years . Bayer's R&D centers are mainly located in Europe, the
United States and Japan, as well as small-scale, specialized, such as R&D centers in Shanghai20.
17 Bayer, Bayer Crop Science Australia logo, Bayer, [web page] (2018,
<https://www.crop.bayer.com.au/> (Accessed 9/18/2018)
18 P. Connor, Global Price Fixing. (S.l.: Springer US, 2001).
19 C. Hodgson, ‘Bayer falls again after latest legal setback over Monsanto weedkiller, Financial
Times, [web page] (2018), <https://www.ft.com/content/54613b36-a13e-11e8-85da-
eeb7a9ce36e4> (Accessed 9/18/2018)
For Bayer R&D investment is a huge support for Bayer's business philosophy. Bayer will
continue to strengthen its investment in innovation and R&D. Our goal is to lead the market with
innovative products protected by patents . Bayer's huge investment in R&D relies on Effective
intellectual property protection for research and development and sales of innovative products is
particularly important for Bayer's already mandated protection of intellectual property rights. The
company is determined to protect intellectual property , including patents , trademarks and
copyrights . Any illegality of our innovative products. Both production and trade can cause harm
to our business model and should be stopped, especially for counterfeit products such as
medicines and pesticides, which will cause great damage to consumers and the environment."
20 C. Jasper, ‘Agribusiness giants Bayer and Monsanto clear US regulatory hurdles for $US66b
mega merger’, ABC News, [web page], (2018) <http://www.abc.net.au/news/2018-05-30/bayer-
monsanto-merger-gets-green-light-from-us-regulator/9814702> (Accessed 9/18/2018)
continue to strengthen its investment in innovation and R&D. Our goal is to lead the market with
innovative products protected by patents . Bayer's huge investment in R&D relies on Effective
intellectual property protection for research and development and sales of innovative products is
particularly important for Bayer's already mandated protection of intellectual property rights. The
company is determined to protect intellectual property , including patents , trademarks and
copyrights . Any illegality of our innovative products. Both production and trade can cause harm
to our business model and should be stopped, especially for counterfeit products such as
medicines and pesticides, which will cause great damage to consumers and the environment."
20 C. Jasper, ‘Agribusiness giants Bayer and Monsanto clear US regulatory hurdles for $US66b
mega merger’, ABC News, [web page], (2018) <http://www.abc.net.au/news/2018-05-30/bayer-
monsanto-merger-gets-green-light-from-us-regulator/9814702> (Accessed 9/18/2018)
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References
AUSTRALIAN GOVERNMENT, Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (TPP-11) [web page] (2018) <
https://dfat.gov.au/trade/agreements/not-yet-in-force/tpp-11/Pages/trans-pacific-partnership-
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