Germany: Legal environment

In this page: Business Contract | Intellectual Property | Legal Framework of Business | International Dispute Resolution

Business Contract

General Observation: The seller's duty as well as the methods of quality control have to be defined in very precise terms.
Law Applicable to the Contract: For more information refer to the business code.
Advisable Incoterms: It is preferable to choose an incoterm FOB or CIF. Avoid EXW, if you do not want to have to take care of the transport in Germany which can be complicated.
Language of Domestic Contract: German
Other Laws Which Can Be Used in Domestic Contracts: If German law is not used, the law of the other contracting party must be chosen.

Intellectual Property

National Organisations: The organisation responsible for the protection of intellectual property in Germany is the Deutsches Patent- und Markenamt (DPMA).
Regional Organisations: For patent protection: The European Patent Office.
Governing trademarks, designs and models: the European Union Intellectual Property Office
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent PatAnwO (Patent Anwalts Ordnung) 1966	Initial 3 year period of validity	Patent Cooperation Treaty (PCT)
Trademark MarkenG 1995	10 year period of validity	Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design Industrial Designs
Copyright Copyright	70 years after the death of the author	Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty
Industrial Models Industrial Designs	25 years

Legal Framework of Business

Equity of Judgments

Equal Treatment of Nationals and Foreigners: Germany is a constitutional state. Foreign nationals benefit from the same treatment as that reserved for citizens in legal matters.
The Language of Justice: The legal language is German.
Recourse to an Interpreter: Possible
Legal Similarities: The main source of the law is the Constitution of May 1949 known as the Fundamental Law for the Federal Republic of Germany (which has become the constitution of reunified Germany). The country's judicial system is based on a system of civil law joining together historical concepts and judicial revisions of different legislative acts by the Federal Constitutional Court. Germany has not accepted the obligatory jurisdiction of the ICJ. As it is part of the European Union, its national law is bound to submit to the conditions of Community Legislation.

The Different Legal Codes

General Codes	Penal Code Civil Code Civil procedure Code
Specific codes	Commercial Code

Checking National Laws Online: German Law Journal
Bundesrecht.de
Other Useful Resources: Ministry of Justice
Legal System
Country Guides: Ministry of Justice (in German)
Lexadin, German Legislation

The Jurisdictions

Federal Constitutional Tribunal (Bundesverfassunsgericht)	Constitutional matters
Federal Court (Bundesgerichtshof)	Ordinary jurisdiction
Administrative Court	Administrative litigation
Ordinary court	Civil and criminal matters
Labor tribunal	Professional matters
Tax tribunal	Tax litigation
European court of Justice	European matters

Court Officials

Federal Justice Minister: Head of the Judicial branch of the federal government, appointed by the Chancellor
President of the Federal Constitutional Court: Appointed by the Bundesrat
Public Prosecutor to the Federal Court: Appointed by the Minister of Federal Justice
Minister of Justice of the Lander: Consult the European portal e-justice for more information.
Judges: Professional judges preside over the federal or Länder courts.

International Dispute Resolution

Arbitration: Commercial disputes involving Germany are rare. According to UNCTAD, Germany was challenged three times. If needed, arbitration is a solution for settling disputes. An arbitrator is called in who has to make the final decision.
Arbitration Law: German Arbitration Act
Conformity to International Commercial Arbitration Rules: Party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Party to the Geneva Protocol on Arbitration Clauses.
Party to the Geneva Convention of the Execution of Foreign Arbitral Awards.
Appointment of Arbitrators: The court of arbitration is composed of an odd number of arbitrators (usually three). The arbitrators are chosen by the parties, or the President of the Chamber of arbitration.
Arbitration Procedure: For more information refer to the German Institute of Arbitration.
Permanent Arbitration Bodies: Deutsche Institution für Schiedsgerichtsbarkeit (Sectors Covered: All)

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