V. MARKETING U.S. PRODUCTS AND SERVICES The United States and France produce many of the same goods and services and export them to each other. Therefore, marketing products and services in France is much like marketing in the U.S., with several significant differences. Following is a general overview of marketing in France. Specific counselling sessions with United States Department of Agriculture/Foreign Agriculture Service & Foreign Commercial Service trade specialists are recommended for those wishing more details as they plan their specific marketing campaigns in France. A. Distribution & Sales Channels Considering the host of distribution options available in France, it is important for the would-be exporter to select the method best suited to his or her product. French buyers generally prefer to purchase through an intermediary, making sales directly to the end-user a scarce practice. However, sales of expensive, technically sophisticated goods are an exception to this rule. Intermediaries may take one of three primary forms under French law: - Distributor - Agent - Salaried Representative Distributor A distributor (concessionaire) is an individual or legal entity who purchases goods directly from a producer for the purpose of resale. The distributor operates independently and is only bound by the written provisions of the distribution agreement. These agreements, however, are subject to specific rules and regulations regarding exclusive distribution and price-fixing. The conditions of contract termination are an important concern, and vary with the type of distribution agreement. A distribution agreement of specified duration may be terminated at the end of the contract period by either party without prior notification or indemnification. If the termination takes place before the end of the contract period, the terminating party may be sued for breach of contract. A distribution agreement with an unspecified duration may be terminated by either party without indemnification after a fair notice period, usually six months. The termination of such a contract by the producer without fair notice may be grounds for damage claims by the distributor. Agent This category covers commercial agents as well as those persons acting as agents but not fulfilling the requisites for commercial agent status. Unlike distributors, agents do not actually purchase goods for resale; instead, they match up buyers and sellers on a commission basis. All agents exercise their activities in an independent manner, and their principals are exempt from payment of payroll taxes. Agents assume their own fiscal charges (business license tax and value-added tax) and social charges (health insurance, social security and retirement/pension benefits). Commercial Agent: Agents with a written contract have the status of commercial agents (agents commerciaux) if they exercise their activity as a sustained independent profession and fulfill the following conditions: - do not have a written employment contract; - negotiate sales and purchases on behalf of producers, manufacturers, or dealers; - are inscribed in the Tribunal of Commerce registry for commercial agents. A commercial agent is independent and free to act on the behalf of any other firm. However, in the case where the agent wishes to represent one of his or her principal's competitors, consent of the principal must first be secured. The principal may justifiably terminate the commercial agent contract only if the agent shows substantial deficiency in carrying out his or her obligations. Otherwise, contract termination gives the agent a right to indemnification, often equal to two years' commission. Other agents: Persons who do not fulfill all the requirements for commercial agency, and who are not in a position of subordination to the enterprise they represent, are considered agents. Authorization of an agent can be effected by notarial act or private agreement. Either party may terminate the agency agreement at will, but the non-terminating party has a right to indemnification of losses. Salaried Representatives Unlike agents, salaried representatives have employment contracts. They and their employers share the burden of payroll taxes contributing to social security, unemployment compensation, and retirement/pension plans. Statutory Representatives: Whatever their qualifications or title, persons are considered statutory representatives if they exercise their activity as a sustained independent profession and fulfill the following conditions: - engage in the activity of a sales representative for the account of one or more employers; - desist from executing commercial operations on their own behalf; - institute mutual commitments with employers regarding the nature of: the goods or services offered for sale, the region of activity or the category of clients, and the rate of compensation. Statutory representatives, like all employees, perform their work according to the instructions of their employers and benefit from the system of labor law protection. However, they possess a special right to indemnification if their employment is unjustly terminated. This indemnity is based on the size and importance of the clientele created by the statutory representative. Nonstatutory Salaried Representatives: Representatives who are subordinate to their employers and who do not fulfill the requisites for statutory representative status fall into a separate category and are considered regular employees. Identifying Distributors, Agents and Representatives The Department of Commerce's International Trade Administration offers several services to help the would-be exporter identify potential foreign representatives. The three primary services available from US&FCS France are the Gold Key Service, the Agent Distributor Service (ADS) and Industry Targeted Mailings. To request any one of these services, firms should contact the nearest U.S. Department of Commerce District Office. Contacting and Evaluating Potential Representatives Once the U.S. company has identified several potential representatives, it should contact them directly in writing. Just as the U.S. firm is seeking information on the French representative, the representative is interested in corporate and product information on the U.S. firm. The U.S. firm should provide full information on its history, resources, personnel, the product line, previous export activity, and all other pertinent matters. At the same time the firm is providing information on itself, it should also engage in a thorough investigation of the potential representative. Following is a list of important facts the firm should endeavor to find out: - Current status and history, including background on principal officers - Personnel and other resources - Sales territory covered - Current sales volume - Typical customer profiles - Methods of introducing new products into the sales territory - Names and characters of U.S. firms currently represented - Trade and bank references - Assessment of whether U.S. firm's special requirement can be met - View of in-country market potential for the U.S. firms products The U.S. firm should not hesitate to ask potential representatives or distributors detailed questions; exporters have the right to explore the qualifications of those who propose to represent them overseas. In addition, the U.S. firm is advised to obtain at least two supporting business and credit reports to ensure that the distributor or representative is reputable. The Department of Commerce offers the World Traders Data Report (WTDR), a background report on individual foreign firms. It is prepared by US&FCS staff in Paris, and contains extensive business and credit information. In order to request a WTDR, firms should contact the nearest U.S. Department of Commerce District Office. (The cost for a WTDR is $100.) Negotiating an Agreement with a French Representative Once the U.S. firm has selected a prospective representative, the next step is to negotiate a foreign sales agreement. The content of this agreement is extremely important, as it will determine the legal basis for any relationship between the exporter and the representative. Although U.S. Department of Commerce District Offices can provide counseling to firms planning to negotiate agreements with French representatives, engaging a French lawyer is strongly advised. In drafting the agreement, special attention must be paid to safeguarding the exporter's interests in cases in which the representative proves less than satisfactory. Procedures and conditions for terminating the relationship should be clearly defined. Furthermore, any right to indemnification on the part of the exporter or distributor should be specified. The Retail Network France possesses a diverse and comprehensive retail network which increasingly resembles that of the United States. From the largest department store chains to the smallest individual proprietorships, French distribution channels are exhibiting several important trends. Small- and medium-sized family-owned firms, which traditionally accounted for a majority of French wholesale and retail trade, are rapidly losing ground to hypermarkets - large retail outlets carrying a wide variety of products at discounted prices. At the same time, mail order marketing and specialized chain stores have shown strong growth, further demonstrating the changing needs and preferences of consumers. Primary Retail Channels: - Grands magasins - Department Stores - Hypermarch s - Hypermarkets - Supermarch s - Supermarkets - Magasins populaires - Convenience Stores - Vente par catalogue - Mail-order Marketing - Grandes surfaces specialis es - Large Specialized Stores - Multi-Channel Retail Groups - Centrales d'achats - Central Buying Offices Department Stores: In 1991, there were some 183 department stores, employing 30,000 people and totalling $4.2 billion in sales. Paris has the highest number of department stores of any French city, and nine of the ten top-selling stores are located there. Department stores have lost some market share in all areas except in the medium-to-high price range. A unique feature of the French department store is that many non- food products are sold by the manufacturer's own sales staff, which can account for up to 20 percent of the store's total sales force. Hypermarkets: Hypermarkets are self-service retail stores carrying 20,000-35,000 food articles and 3,000-5,000 non-food articles at competitive prices. They are generally located in suburbs, and cover at least 22,500 square feet each. In 1991, there were 851 hypermarkets, employing 150,600 people. They generated a total of $54.5 billion in sales. Supermarkets: Also self-service retail stores, supermarkets are smaller versions of hypermarkets. They usually carry 3,500-4,500 food articles and 500-1,500 non-food articles. They generally cover 3,600-22,500 square feet. In 1991 there were 6,920 supermarkets, employing 159,200 people. They generated a total of $53 billion in sales. Convenience Stores: Convenience stores are generally self-service and carry a varied assortment (7,000-10,000) of food and non-food articles. In 1991, there were 531 convenience stores, employing close to 22,000. They generated a total of $3.6 billion in sales. Direct (Mail Order) Marketing: The French market for mail-order consumer products is the fourth largest in the world. This market has tripled in the last ten years, reaching $8.5 billion in 1992. One out of two French households buys through mail order. Textile products make up 44.6 percent of mail-order sales, books and records 12.7 percent, and furniture and home decoration 10.7 percent. Large Specialized Stores: Large specialized stores offer an extensive choice of goods in a specific category at a competitive price and with an emphasis on customer service. With over 10,000 stores of this type, this dynamic sector generates $18 billion in sales and represents 56.3 percent of non-food retail sales. Furniture stores are the most numerous (2,500), followed by do-it-yourself equipment stores (1,500). Multi-Channel Retail Groups: The distinctions made above between hypermarket chains, supermarket chains, etc. are becoming blurred. In the last several years, major multi-channel retail groups have emerged, which own chains of different types of stores. Pinault-Printemps and Nouvelles Galleries R unies fall into this category, because they own chains of specialty and convenience stores. Central Buying Offices: In addition to contacting the largest store chains listed above, introducing products via central buying agencies is an excellent distribution method. A complete list of French central buying agencies, the Annuaire des Centrales d'Achat et Groupements d'Achats, is available from: Revue Fran aise de Logistique 42, rue du Louvre, B.P. 551 75027 Paris 01, France Tel: (33-1) 42-21-84-00 Fax: (33-1) 42-21-85-97 Franchising: France is the strongest market for U.S. franchise development within the EU. Out of a total of 36 foreign franchises in France, 16 are American, accounting for 4.2 percent of the total franchise market. The market size in 1993 was $32.8 billion. The estimated annual growth rate for 1993-1995 is ten percent. U.S. exports reached $1.528 billion in 1993; the estimated average annual growth rate for U.S.-owned firms is 12 percent. The franchising industry has stayed strong despite unfavorable economic conditions. Fast-food has been the most successful sector, but is now very competitive. The greatest potential for U.S. franchisors lies in sub-sectors yet to be fully exploited, such as computer education and renovation services. Terms of Payment For U.S. exporters, what is called "the financing of export sales" is not basically different from financing domestic sales. The fundamental concern in both cases is that one is paid in a timely manner for the goods and/or services delivered. France's modern banking system offers a full range of payment means, the most significant of which are: - commercial letters of credit - sight and time drafts - bank transfers - certified checks Although bank transfers and certified checks are fairly self-explanatory methods of payment, commercial letters of credit and sight and time drafts may be less familiar to the would-be exporter but are potentially attractive terms of payment. B. Distribution Systems for Food Products in France France has one of the most highly developed distribution systems for agricultural and food products in the world. There is an extensive network of transportation and distribution channels that assure consumers will receive the final product in good quality and at the proper time. Normally, French imports of agricultural and food products are brought in from the west Atlantic via the northern French port of Le Havre, or via the ports of Antwerp and Rotterdam in the Netherlands. Imports from the Mediterranean and African countries come through the southern port of Marseille. Imports from other EU and European countries are often brought in by trucks through the world's largest wholesale food market at Rungis, which is located south of Paris. Since much of the processed food products in France are of domestic origin, there are well developed regional markets throughout the country. Despite the fact that France has a very modern and relatively efficient distribution and transport system, frequent disruptions occur in product movement, due to unexpected strikes by port dockers or truck drivers, or some other labor disputes. Fortunately, the availability of alternative entry ports minimizes the magnitude of this problem for U.S. exporters. Wholesale Distribution There are about 27,000 wholesalers of food and agricultural products (including raw products) in France. The industry continues to consolidate and diversify with individual firms adding new services to their basic wholesale activities. Wholesalers now offer a whole "platform" of services for small and medium-size food retailers and processors. Despite consolidation, many traditional French wholesale food companies continue to lose ground to large super and hypermarket chains, and most recently to the "hard discounters" who are increasingly expanding their own wholesale activities with "private labels". Retail Food Distribution Channels There are six principal categories of retail food outlets in France. The first five (hard-discounters, hypermarkets, supermarkets, city-center stores and department stores) represent the mass market and control about 56 percent of total food distribution. The sixth category, traditional outlets, includes neighborhood stores and specialized food stores. It is expected that mass market outlets will control 75 percent of the market by the year 2000. As of January 1993, there were almost 8,253 super and hypermarkets in France. Currently, there is a trend towards the hard discounters in favor to the traditional full-range supermarkets. Restaurants, Hotels and Food Institutions Each year, french consumers eat 5.8 billion meals valued at almost $28 billion outside of the home in 131,000 restaurants, cafes, cafeterias and university dining halls. This represents about 13 percent of all meals consumed in the country. Out-of-home food is growing at the low rate of one percent a year. Almost 40 percent of out-of-home meals are consumed at commercial facilities (restaurants, hotels, fast food, etc.), while 60 percent are consumed at schools, hospitals or workplaces. French restaurants, hotels and institutions usually use the services of wholesalers or processed food buyers. In these cases, the well developed distribution channels of the wholesalers/importers are often the key to getting a new food product into that sector. C. Approaches to the French Market American companies have prospered in the French market and will continue to do so if special attention is paid to their approach to the market and the products/services they offer. As outlined above, the best "first step" is to appoint an agent or distributor; however, expansion in the market can take various other forms, depending on the product/service. Joint Venture/Licensing A joint venture with a French firm having similar commercial interests is one recommended approach. The French government encourages this type of investment and offers a wide range of incentives. In selecting a joint venture partner, the American company must carefully analyze its strengths and weaknesses and search for a firm that offers the appropriate support. Traditionally, a french joint venture partner strengthens the marketing activities of an American firm with its in- place distribution system. In certain industries, French manufacturers have skills that augment those of the American partner. Financing is also of special concern. Each joint venture proposal requires special analysis and conditions if it is to be successful. A joint venture with a French firm that has full French government support can be beneficial as long as manufacturing decisions can be made independently of government involvement. Recognizing the differences in each market is essential for success; consequently, it is recommended that companies interested in forming joint ventures consult with the Embassy in Paris before making any entangling alliances. Steps to Establishing an Office Establishing a subsidiary/branch office in France is also an advisable approach for some industries. The French government encourages the formation of new enterprises and, in conjunction with the Paris chamber of commerce and other chambers throughout the country, offers extensive counseling and assistance to those wishing to set up an office in France. Detailed "how to" guides are available not only from the various chambers of commerce, but also from FCS and the numerous American consulting firms present in France. D. Selling Factors/Techniques Selling your product or service in France is similar to the United States. Buying decisions are made on the basis of quality, price and after-sales service. The principal difference in France is, in fact, the language. Pending legislation will require that all advertising, labeling, instructions and promotional programs be in French. At this writing we do not know if the law will be passed nor, if it is passed, how strictly it will be enforced. Consequently, we strongly recommend close contact with the commercial and agricultural sections in the Embassy and arranging for local legal representation. Advertising and Trade Promotion There are far too many newspapers, magazines and technical journals to list; however, judicious use of the media is an important part of any and all promotional programs. Below is a list of the most prominent French newspapers and magazines: Le Figaro 37, rue du Louvre 75081 Paris Cedex 02 France Tel: (331) 42 21 62 00 President Directoire: Robert Hersant Directeur: Jean Miot Le Monde 15, rue Falguiere 75501 Paris Cedex 15 France Tel: (331) 40 65 25 25 Fax: (331) 40 65 25 99 Gerant et Dir. Pub.: Jacques Lesourne Secretaire Gen.: Manuel Lucbert L'Express 61, avenue Hoche 75411 Paris Cedex 08 France Tel: (331) 40 54 30 00 Fax: (331) 42 67 72 93 Liberation 11, rue Beranger 75154 Paris Cedex 03 France Tel: (331) 42 76 17 89 Fax: (331) 40 54 98 59 France Soir 65, rue de Bercy 75012 Paris France Tel: (331) 40 01 80 00 Fax: (331) 43 41 44 88 President des Petites Annonces: Cyril Duval P.D.G.: Philippe Villin Le Parisien 25, avenue Michelet 93400 Saint-Ouen France Tel: (331) 40 10 3030 P.D.G.: Philippe Amaury Dir. Gen.: Fabrice Nora International Herald Tribune 181, avenue Charles de Gaulle 92200 Neuilly Sur Seine France Tel: (331) 46 37 93 00 Fax: (331) 46 37 93 38 Publisher: Richard McLean Vice President: John Vinocur Le Nouvel Observateur 14, rue Dussoubs 75081 Paris Cedex 02 France Tel: (331) 45 08 02 00 Fax: (331) 42 36 19 63 Le Point 140, rue de Rennes 75006 Paris France Tel: (331) 45 44 39 00 Fax: (331) 45 49 30 20 Le Quotidien de Paris 140, rue Jules Guesde 92300 Levallois Perret France Tel: (331) 47 30 78 00 Fax: (331) 47 30 78 78 Financial and Economic Press: Les "Echos" 46, rue la Boetie 75381 Paris Cedex 08 France Tel: (331) 49 53 65 65 Fax: (331) 45 61 48 92 Dir. Gen. de Redaction: Gilles Brochen, Nicolas Beytout L'Expansion and La Vie Francaise Groupe Expansion 25, rue Leblanc 75842 Paris Cedex 15 France Tel: (331) 40 60 40 60 Fax: (331) 40 60 41 10 President: Jean-Louis Servan-Schreiber Dir. Gen.: Jean Boissonnat, Damien Dufour La Tribune Desfosses Cote-Desfosses 42-46, rue Notre Dame des Victoires 75002 Paris France Tel: (331) 44 82 16 16 Fax: (331) 44 82 17 92 P.D.G.: Georges Ghosn Dir. Gen.: Paul-Francois Trioux Le Nouvel Economiste 65, Champs Elysees 75360 Paris Cedex 08 France Tel: (331) 40 74 70 00 Fax: (331) 42 25 94 73 E. Government Procurement The French Government generally pursues procurement policies in accordance with EU regulations, which call for non-discrimination vis-a- vis foreign firms. In France, procurement regulations do not usually present barriers to entry for foreign firms. However, local political pressure and administrative procedures often favor French companies. French Government procurement comes under the jurisdiction of the Ministry of the Economy, Finance and Budget. The Commission Centrale des Marches (CCM), or Central Procurement Board, has overall responsibility for monitoring compliance with procurement regulations. France, as a member of the EU, is obliged to follow EU public works regulations which require government purchasing entities to publish tender notices for all public works projects valued at over 5 million ecus, or approximately $5.75 million. Tender notices that exceed this threshold must be published in the Official Journal of the European Community, as well as in the French Bulletin Officiel des Annonces des March s Publics. In the case of Telecommunications, however, a European Community Utilities Directive (January 1, 1993) requires France to give EU bidders a three percent price preference and gives France the option to reject bids with more than 50 percent non-EU content. Certain defense-related industries are also excluded from regular procurement rules. In addition, public projects must conform to the following requirements: - a minimum of 52 days is required for bid submissions after an offer is announced. - the reason for a bid's rejection must be provided upon request. - the values of the winning bids must be publicly disclosed. For information on French Government procurement regulations and procedures, contact: CCM Tour de Lyon 185, rue de Bercy 75572 Paris Cedex 12, France Tel: (33-1) 43-45-11-45 Fax: (33-1) 43-44-90-14 Information on current and past French and EU procurement tenders and bids may be obtained through France's MINITEL service, an on-line information bank. This service offers up-to-date information and immediate access. MINITEL Services Company 888 Seventh Avenue, 28th Floor New York, NY 10106 Tel: (212) 399-0080 Fax: (212) 399-0129 Access to procurement tenders and bids may also be obtained by subscribing to the Official Journal of the European Community (OJEC), or the Bulletin Officiel des Annonces des March s Publics (BOAMP). However, these publications often do not arrive from overseas in a timely manner. OJEC can be ordered from: UNIPUB 4611F Assembly Drive Lanham, MD 20706-4391 Tel: (800) 274-4888 Fax: (301) 459-0056 For subscriptions to BOAMP, contact: BOAMP Direction des Journaux Officiels 26, rue Desaix, France 75727 Paris Cedex 15, France Tel: (33-1) 40-58-77-58 or (33-1) 40-58-75-00 F. Intellectual Property Rights Intellectual property consists of industrial property as well as literary/artistic proprty. Under the French intellectual property rights regime, industrial property is protected by patents, trademarks, and designs and models, while literary/artistic property is protected by copyrights. By virtue of the Paris Convention and the Washington Treaty regarding industrial property, U.S. nationals are entitled to receive the same protection of industrial property rights in France as French nationals. In addition, U.S. nationals have a "right of priority period" after filing a U.S. patent, trademark, design or model, in which to file a corresponding application in France. This period is twelve months for patents and six months for trademarks, designs and models. Patents There are three types of patent problems: patents of invention (Brevets d'Invention), patents of addition (Brevets d'Addition), and certificates of utility (Certificats d'Utilite). Patents of invention cover all inventions, whereas patents of addition cover supplements to those inventions. Certificates of utility cover all inventions except those of a pharmaceutical nature. In order to qualify for patent protection, the invention must: * Have an industrial or agricultural application * Imply a non-obvious procedure, and * Have absolute novelty. Duration: Patents for inventions have a twenty-year life span, after which they become part of the public domain. Patents of addition are only valid for the unexpired term of their parent patents. Certificates of utility have a six-year, non-renewable life span. Patent Registration: Applications for patent registration must be filed with the French National Institute for Industrial Property, the Institut National de la Prori t Industrielle (INPI), before the invention is publicly disclosed. INPI receives applications, examines their validity, and registers the patents. AFter the application for a patent is filed, INPI conducts a check for comparable inventions. Upon approval and registration, a patented invention may be manufactured, operaterated, used or sold only with the authorization of the patent's owner. The owner can transfer, or sell the patent, or grant a license for others to use it. A patent must be used to be retained. Applicants can consult INPI's library to check for the existence of similar inventions prior to filing. INPI Division des Brevets 26 bis, rue de Saint-Petersbourg 75800 Paris Cedex 08, France Tel: (33-1) 42 94 52 52 Fax: (33-1) 42 93 59 30 Patent protection in France may also be obtained through ownership of a European Patent, which is filed through the European Patent office in Munich: Office Europeen des Brevets Erhardtstrasse 27 8000 Munich 2, Germany Tel: (49) 89 23 990 Fax: (49) 89 99 4465 Patent registration in France requires a French address, which may be obtained through a legal representative in France. A list of patent advisors who can act as legal representatives can be obtained from the French National Association of Patent Advisors, Compagnie Nationale des Conseils en Propriete Industrielle: CNCPI 21, rue de Saint-Petersburg 75800 Paris Cedex 08 France Tel: (33-1) 45 22 55 11 Fax: (33-1) 40 08 07 97 Certificate of Utility Registration: Certificates of Utility are also granted by INPI (see above). However, in this case, INPI does not conduct a check for comparable inventions. Fees: * Patents for Inventions - Application fee: FF250, which includes the first year of annual renewal fees. - Documentation and research fee: FF4200 - The annual renewal fee is calculated each year on a sliding scale. * Patents for Additions - Registration fee: FF2500 * Certificates of Utility - Registration fee: FF250 - Annual renewal fees on a sliding scale. Trademarks Trademark protection can apply to both goods and services. In a general sense, trademarks recognize and protect indicators which serve to distinguish one product or service from similar products or services. In the French regime, trademarks: * Can be written or designed trademarks. * Can be sonorous trademarks, such as musical tunes, jingle, words, slogans. * Must not be deceptive as to the nature or origin of the goods. * Must be recognizable by sight or sound. * Must have novelty for the specified product line. Duration: A trademark has a ten-year life span and is renewable every ten years. Trademark Registration: Applications must be filed with INPI, which receives applications, examines their validity, and registers trademarks. After registering the trademark, it must be publicly and unequivocally exploited for five consecutive years, or all trademark rights are forfeited. It may be sold totally or partially, by product or service category. INPI Division des Marques 32, rue des Trois-Fontanot 92016 Nanterre, France Tel: (33-1) 46 92 58 00 Fax: (33-1) 49 01 07 37 Registration of trademarks, as in the case of patents, requires a French address, which may be obtained through a legal representative in France. A list of trademark advisors who can act as legal representatives can be obtained from CNCPI, whose address is listed above. Fees: * Application fee (first registration or renewal): FF1200 for up to three product/service categories; FF250 for each additional category protected. * For the first photographic reproduction: FF250. * For each additional reproduction up to the 100th: FF150. * For each extension by reproduction: FF170. Designs and Models Designs and models have the following characteristics: * Designs are an assembly of traits or colors on the surface of an object. They constitute an original two dimensional decoration. * Models are all creations (ornaments). * They must have absolute novelty. Although some designs and models can be protected under patent or copyright procedures, others fall into a category which requires special treatment. Designs or models having an industrial function follow patent procedures, while designs or models having a purely ornamental function follown copyright procedures. Those designs or models which have both a practical and an ornamental function are subject to the following: Duration: Infringement protection has a 25 year life span, and is renewable for another 25 years. Registration: Exclusive proprietary rights to the design or model are acquired through the act of creation itself. Registration merely serves as proof of that creation. Designs and models are to be registered with the INPI: INPI-Designs and Models Section 13 bis, rue de l'Epargne 60200 Compeigne, France Tel: (33) 44 92 74 74 Fax: (33) 44 92 74 60 To prove the date of creation of a design or model without formal registration, a designer may wish to use a special envelope (enveloppe speciale) for a FF55 fee. The date of creation begins when the envelope is received by the INPI. Copyrights Copyrights cover artistic works, literary works and software. In the French IPR regime, in order to qualify for a copyright, the language used to express the idea must be original, not the idea itself. Duration: Copyrights are valid for 50 years after the death of the author, with two major exceptions: music copyrights are valid for seventy years after the death of the composer, and software copyrights are valid for 25 years after creation. Contrary to other copyrights, software designed by a salaried employee belongs to the employer. Registration: Artistic and literary works are automatically protected once created and fixed in tangible form. Therefore, registration is not required, but nonetheless recommended. For musical works, including songs, instruments, poems, sketches under 20 minutes, monologues, and other musical audiovisual productions, applications must be filed with the French Society for Musical Authors, Composers and Editors: Societe des Auteurs, Compositeurs et Editeurs de Musique (SACEM) 225, avenue Charles de Gaulle 92521 Neuilly sur Seine, France Tel: (33-1) 47 15 47 15 Fax: (33-1) 47 45 12 94 Membership acceptances are restricted to reputable applicants who are already known for the quality of their works. If not qualified for SACEM, applications must be filed with the National Association of Musical Authors and Composers: Syndicat National des Auteurs et Compositeurs de Musique (SNACM) 80, rue Taibout 75009 Paris, France Tel: (33-1) 48 74 96 30 For theatrical works, including plays, operas, operettas, musical comedies, films and theatrical scripts, applications must be file with the Society for Theatrical Authors and Composers: Societe des Auteurs et Compositeurs Dramatiques (SACD) 11 bis., rue Ballu 75442 Paris Cedex 09, France Tel: (33-1) 40 23 44 44 Fax: (33-1) 45 26 74 28 For literary works and software, applications must be filed with the French Literary Society: Societe des Gens des Lettres (SGDL) 38, rue du Faubourg Saint-Jacques 75014 Paris, France Tel: (33-1) 40 51 33 00 Fax: (33-1) 43 54 92 99 For documentary and educational works, applications must be filed with the Civil Societ for Multimedia Authors: Societe Civile des Auteurs Multimedia (SCAM) 38, rue du Faubourg Saint Jacques 75014 Paris, France Tel: (33-1) 40 51 33 00 Fax: (33-1) 43 54 92 99 G. Need for Local Attorney Establishing an entity to do business in France is not a good occasion for a "do it yourself" approach. A lawyer with experience in France should be retained as soon as the establishment of a French business entity is contemplated. The American Embassy in Paris maintains a list of American Lawyers practicing in France, which is available upon request. More detailed information about professional backgrounds can be obtained from the Martindale-Hubbell Law Directory and for the Bar Register of Pre-eminent Lawyers. Lawyers and bankers in the United States also will normally have means of recommending lawyers in France. France has two major categories of legal practitioners: Avocats An "avocat" must be a lawyer. "Avocats" may render legal advice on all matters, draft agreements and contracts, handle commercial disputes and collection cases, and plead and defend civil and criminal cases before the French courts to which they are admitted. Notaries (Notaires) A French "notaire" is a public official appointed by the Ministry of Justice, and not the equivalent of a public notary in the United States. The number of "notaires" in each jurisdiction is limited, and their fees fixed by law. Their functions include the preparation and recording of notarial acts (wills, deeds, acts of incorporation, marriage, contracts, etc.), the administration and settlements of estates (excluding litigation in court) and serving as the repository of wills. They are not lawyers, but very specialized members of the legal profession. They may not plead in court.