Some JVs Are Doomed From the Start

2009-06-27

I generally avoid any jokes with racial overtones, but in this case, I'll make an exception.

From the BBC:

Russia's energy giant Gazprom has signed a $2.5bn (£1.53bn) deal with Nigeria's state operated NNPC, to invest in a new joint venture.

The new firm, to be called Nigaz, is set to build refineries, pipelines and gas power stations in Nigeria.

My emphasis. Apologies to any reader whose native language is not American English. You may not get the (admittedly cheap and crude) humor in this.

I've spent many years dealing with Chinglish, awkwardly trying to get people to understand my horrid Chinese, and coming up against the language problems inherent in providing legal services to clients from pretty much everywhere in the world. I understand how difficult this all is.

As a trademark lawyer, I've seen lots of very questionable brand names, some of which are created by folks offshore with very limited Chinese language skills. I have had numerous clients over the years whose experience with foreign languages is so utterly lacking that they actually ask me to give them advice on their choice of a Chinese-language trademark. Anybody who asks a white guy for that kind of advice is looking for a lot of trouble.

Needless to say, choice of company name is not one that should be made lightly, but it happens all the time. Many companies fail to even consider this until they are forced to make a decision upon submission of incorporation documents. You would think that a lot of market research would go into these decisions, huh?

I know, everyone in the petroleum industry is going to know who "Nigaz" is and will have no problem with the name. But every time the JV makes the news, 90% of the guys on Wall Street (most of whom are even more immature than I) are going to read the name in the paper and snicker. Do you really want that in a brand?

Tags: China Business & Economy