France: Legal Environment

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

Business Contract

General Observation: You must clearly define the seller's obligations and the methods of quality control.
Law Applicable to the Contract: France is a signatory to the Vienna Convention on international contracts. The French legal system is complex. It is not easy for a foreigner to understand French law, so it is recommended that international laws be used or an arbitration system be called upon. International laws are generally accepted in contracts drawn up with French companies.
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 transport in France, which can be complicated.
Language of Domestic Contract: French, English or any other language is possible if both parties agree.
Other Laws Which Can Be Used in Domestic Contracts: If French law is not used, the law of the other contracting party must be applied.

Intellectual Property

National Organisations: The National Institute of Industrial Property (INPI) (in French) for patents, trademarks, models and industrial designs.
The Society of Authors, Composers and Publishers of Music (SACEM), The National Union of Authors and Composers of music (SNAC), The Society of Stage Authors and Composers (SACD), The Society of Men of Letters (SGDL), The Civil Society of Multimedia Authors (SCAM), High Authority for the Distribution of Works and Protection of Rights on the Internet (HADOPI).
Regional Organisations: For the protection of patents: the European patent office
To control trademarks, designs and models: 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 Code of intellectual property	20 years	Patent Cooperation Treaty (PCT)
Trademark Code of intellectual property	10 years renewable indefinitely	Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design Code of intellectual property	25 years renewable once
Copyright Code of intellectual property	70 years after the death of its author for inheritance tax 50 years after the first publication for registration fees	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 Edict n°2001-670 of 25 July 2001 incorporating into Community law the code of intellectual property and the code of the post and telecommunications	25 years renewable once

Legal Framework of Business

Equity of Judgments

Equal Treatment of Nationals and Foreigners: Yes
The Language of Justice: French
Recourse to an Interpreter: Possible
Legal Similarities: French law has various sources: the Constitution, laws voted by Parliament, ministerial decrees and orders, international conventions and treaties ratified by France.
Because France belongs to the European Union, national law conforms to the requirements of Community legislation.
There are legal similarities with all the countries whose law has come from Roman law.

The Different Legal Codes

Accounting regulations	The 4th Community Directive, incorporated at the national level by the accountancy Act of 30th April, 1983, integrated in the Code of Commerce and completed by the law of 31/12/1989 relative to the simplified regime for small companies. The 7th Community Directive and the law of 3/01/1985 concerning groups of companies (consolidated accounts). The doctrine.
Contract and property law	Civil Code
Customs law	Customs Code in conformity with Community law
Consumer law	Code of Consumption
Company law	Code of Commerce Civil Code General Tax Code Monetary and Financial Code
Investment law	Monetary and Financial Code Bilateral conventions
Labour law	Labour Code The Collective Agreements (interprofessional agreements conducted at the national level, local agreements containing the rules common to a profession, company agreements, or of an establishment, taking into account the characteristics of the company and its employees). For practical information on Labour law, click here

Checking National Laws Online: The Constitution in English
Other Useful Resources: Ministry of Justice
Information on French justice
Legifrance, List of Codes
Legal Portal
Country Guides: Country Guide Loyrette Nouel

The Jurisdictions

Disputes with the State, the Administration, local administration concerning their decisions	Tribunal Administratif (Administrative Tribunal) Cours d’Appel Administrative (Administrative Court of Appeal) Conseil d’Etat (Council of State)
Disputes relative to work contracts, disputes between employers and employees	Conseil des Prud’hommes (Industrial Tribunal)
Commercial disputes	Tribunal de Commerce (Commercial Tribunal) Cours d’Appel (Court of Appeal) Cours de Cassation – Section Commerciale (Supreme Court of Appeal - Commercial Section)
Third party liability and insurance, civil status of persons, real estate	Tribunal d’Instance (Magistrate's Court) (< 10 000 EUR) Tribunal de Grande Instance (County Court) (> 10 000 EUR)
Criminal liability (bankruptcy, misappropriation of funds, complicity, etc.)	Tribunal de Police (contraventions) (Police Court) (fines) Tribunal Correctionnel (offenses) (Court of Summary Jurisdiction) (offences) Cour d’assises (crimes) (Court of Assizes) (crimes) Cours d’Appel annuaire des juridictions (Court of Appeal directory of jurisdictions) Cours de Cassation – Section Criminelle (Supreme Court of Appeal - Criminal Section)

Court Officials

Avocat (Lawyer/Barrister): The lawyer's first role is to inform her/his clients about their rights and obligations. Then she/he is able to represent and defend them in a court of law.
Expert judiciaire (Legal expert): A judge appoints a duly authorised professional who will review information in order to clarify certain elements of a case.
Greffier (Clerk of the Court): Throughout the procedure, she/he will prepare a written record of the exchanges, declarations and observations.
Huissier (Bailiff): She/He is a legal officer responsible for serving legal process and for enforcing court decisions.
Juge (Judge): She.He is the one who decides if the law has been broken or not, as well as the penalties to be applied.
Procureur de la république (State prosecutor): She/He is a magistrate who represents the Prosecution in the county court (tribunal de grande instance).

International Dispute Resolution

Arbitration: Arbitration is a solution for settling disputes. An arbitrator is called in and has to make the final decision. In addition, the Mediator works with French and foreign firms to resolve intercompany disputes regarding contractual obligations.
Arbitration Law: Articles 1442 and 1443 of the new code of civil procedure
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: Any person or company facing a dispute can resort to arbitration on condition that both parties agree to this procedure. The sentence decided by the arbitrators is not binding. If the person sentenced refuses to carry it out, the other party will have to resort to a state tribunal for an exequatur ruling. The person sentenced can refer to the Court of Appeal to request the sentence be reversed.
Permanent Arbitration Bodies: French Association of Arbitration (AFA) (Sectors Covered: All)
Paris Chamber of Arbitration (Sectors Covered: All)

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