| Liberal professions
can be very difficult of access for foreigners where local academic and/or
professional qualifications are required for admission (medical, legal,
accounting, engineering, architecture) whereas other activities not
subject to such professional requirements undergo a simplified, speedier
examination process (writers, artists, composers, consultants, teachers).
Still the Uruguay Round agreement with respect to services, at least guarantees
national treatment to most purveyers of services.
The performing
arts are generally unionized and any performing is considered to be employment.
It is the employer
who initiates the application process, and while applications for specific
events or a limited number of engagements are processed quickly and successfully,
long term contracts are less frequent in the trade and also less likely
to be approved by the authorities.
If the contemplated
activity involves commerce (buying and selling goods or services),
the admission procedures will generally culminate in the issue of a special
"merchant's" card in addition to the residency card. The merchant's
card adds layers of administrative review and multiplies the risk of delay.
Among those candidates who will require merchant's cards are the chief
executives of limited liabity companies and commercial agents.
In practical
terms, it is difficult for business people other than managers of major
international companies to obtain the authorizations to launch an entirely
new commercial business in France. In particular, the immigration application
will be reviewed by the Chamber of Commerce where the new company is to
carry on business. Applications therefore will include a convincing demonstration
of the viability of the project.
All applicants
to carry on business must prove that they dispose of financial means bearing
a reasonable relation to the business proposal.
BUSINESS
ORGANIZATIONS
Those applicants
intending to buy and sell goods or services will usually prefer to establish
a limited liability company. The main alternatives are the closed company
("société à responsabilité limitée")
and the public corporation ("société anonyme"). The
former will be preferred by most entrepreneurs. For foreign corporations,
the choice of a local corporate vehicle will depend on a variety of considerations
(expected size of the activity in France, closeness of the ties between
the headquarters and the French unit, taxation). For most practical
purposes, French companies can be made to function like their counterparts
in other major developed countries.
French law
also recognizes various forms of partnerships: general partnerships ("société
en nom collectif"), limited partnerships ("société
en commandite") and limited partnerships with publicly distributed
equity participations ("société en commandite par actions").
These forms of partnership can be made to work much like their equivalent
in other developed countries. Their main features are the unlimited liability
of the general partners for partnership debts and their fiscal transparency.
A variety of
"civil" company forms are available and find useful applications
for instance in the real estate sector and the liberal professions.
CURRENT
PRACTICES GOVERNING COMMERCIAL LEASES
There are
two main types of commercial leases: 23-month leases and 3-6-9-year leases,
so called because of the importance of their triannual anniversary dates
for the rights of the tenant. In principle 3-6-9 year leases invest the
lessee with certain rights akin to property including the right to transfer
the lease interest and the right to be indemnified if evicted at the expiration
of the lease. Traditionally, the 3-6-9 year leases were associated with
relatively large capital payments (key money) to the prior tenant
and/or the owner and correspondingly small rental payments. The current
difficulties experienced by French retailers, and the over-supply of offices
have created a buyer's market in which contracts are increasingly negotiated
to the advantage of the tenant. With increasing frequency, landlords are
granting so-called American leases (no key money but higher rents).
Even more than other areas of French law, commercial leases are complicated
and elementary prudence will cause most foreign business people to consult
a specialist before signing such contracts.
HOW ARE
PATENTS, TRADEMARKS, DESIGNS, KNOW HOW, COPYRIGHTS, SOFTWARE AND SEMI-CONDUCTORS
PROTECTED IN FRANCE?
France is
party to most international treaties governing intellectual property, including
the recent Uruguay Round Agreement with respect to Trade related to Intellectual
Proprerty rights (TRIPs). As a result holders of patents and trademarks
outside of France in countries party to the same treaties as France (generally
the major trading nations including members of the European Union, United
States, Canada, Japan) will have 12 months from first publication of
their patent (6 months for trademarks) during which they will have
a priority of registration of such patents (trademarks) in France.
An important
difference between French patents and those in many other countries is
that patent applications are reviewed by French authorities (the Institut
National de la Propriété - INPI) for novelty or newness
but their inventive nature is not considered by the authorities (whereas
in the United States, patent applications are reviewed for both novelty
and inventiveness). In this sense, it is sometimes said that a French
patent is worth less than an American patent in so far as the French patent
can be more easily attacked, in particular for lack of inventiveness.
Rights to trademarks
in France are best protected by registraton with the INPI. Prior use is
not required to obtain registration. Moreover the first to register prevails
over the first to have used the trademark without registering it, except
where nationally renowned but unregistered names are concerned. Words,
numbers and symbols can be protected while geographic designations are
subject to specific regulation to prevent false or misleading claims of
origin. Both product and service marks can be protected. At the time of
registration, the INPI does not review for novelty or distinctiveness,
which are open to contest after the fact by interested parties.
The right to
use a design is based on authorship. Two independent creators of the same
design could have coincident rights. To prevent others from using an original
design a creator is well advised to publish it (either with the INPI
or in the relevant professional and general press) in such manner as
to put potential usurpers on notice as to the design. A recent case in
which Ralph Lauren was found liable for counterfeiting Yves Saint-Laurent's
tuxedo for women's couture illustrates the seriousness of the efforts deployed
to combat abuses of creators.
Know how consists
of confidential and useful information which the holder diligently defends
from disclosure. Know how is transfered by contract. Franchising is subject
to regulations which limit use of this strategy. In particular, prospective
franchisors must have a proven record of success in operating stores in
France before launching their franchise network. Payment to the franchisor
is most often made in the form of an entrance fee and royalties.
Copyrights
are also protected based on authorship. In France the authors of litterary,
musical, cinematographic, audiovisual, graphic, architectural and similar
works can protect their creations. The claim to ownership of the copyright
is manifested by a banner on the work stating the name of the author. The
rights obtained by authors are the exclusive economic rights (to represent,
reproduce, and distibute the work) and the moral rights (the right
to be cited as author, the right to impose the integrity of the work).
While the former can be transferred either in an unlimited or a limited
manner (in time, space, market, use, etc.), moral rights are inalienable
(subject to reasonable exceptions in the film industry).
In French law,
computer software is protected as a separate category of intellectual property.
There is considerable ambiguity in the case law about the basis of ownership
of software, specifically whether it need be inventive (not obvious
to a practitioner), rather than merely original as that notion is understood
in copyright law. France is party to the major international conventions
relating to software and semi-conductor protection.
HOW TO COLLECT
UNPAID BILLS
Claims against
French debtors can be brought before the French courts. In doing so, the
foreign plaintiff should definitely seek counsel from a French lawyer.
Claims against
French debtors will often also be subject to jurisdiction of the courts
of the country of the plaintiff. In such cases, the question will be whether
judgments of the foreigner's court can be enforced with reasonable expediency
in France. The answer is affirmative provided the court having pronounced
the judgment respected the elementary rules of procedural justice (notice
to the defendant, right to be heard, impartiality of the judges) and
provided also the foreign judgment is not contrary to French public policy.
The successful
pursuit of claims against merchants can actually be quite expeditious in
France where there is no serious defense against the claim. Against merchant
debtors there is a procedure which does not involve any court appearance
(and so is affordable even for relatively small claims). Provided
the defendant does not dispute the claim, the delay for recovery can be
as short as two or three months from the date of initiation of the procedure.
Spurious defences are discouraged by charging to the abusive defendant
an increased award of compensation.
TEXTS OF
LEGAL SOURCES
Translations
into English may be ordered by e-mail. Payment in advance by check or bank
transfer will be required. Translation fees are F 1.00 per word in French.
Estimates will be given free of charge. Daniel Arthur Laprès - lapres@easynet.fr
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