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Country Commercial Guides FY 2000: France Report prepared by U.S. Embassy Paris, released July 1999 Note*

CHAPTER IV. 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 somewhat like marketing in the U.S., with several significant differences. Following is a general overview of marketing in France. Specific counseling sessions with trade specialist of the United States Department of Agriculture/Foreign Agriculture Service or the U.S. Commercial Service are recommended for those wishing more details.

A. Distribution & Sales Channels

The Retail Network

France possesses a diverse and comprehensive retail network, which increasingly resembles that of the United States.

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 and supermarkets - 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. In contrast, a law limits the amount of retail space that can be purchased or leased commercially, and a special exemption certificate is required for space beyond 300 square meters.

Primary Retail Channels:

-- Grands magasins - Department Stores
-- Hypermarches - Hypermarkets
-- Supermarches - Supermarkets
-- Magasins populaires - Convenience Stores
-- Magasins discount - Hard Discounters
-- Grandes surfaces specialisees - Large Specialized Stores
-- Multi-Channel Retail Groups
-- Vente par catalogue - Mail-order Marketing
-- Centrales d'achats - Central Buying Offices

Department Stores: In 1998, there were some 161 department stores, employing 28,830 people and totaling US 6.68 billion in sales. Paris has the highest number of department stores of any French city, and six 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 technically defined as stores with a minimum selling area of 2,500 square meters. On average, French hypermarkets are self-service retail stores carrying 25,000-40,000 food items and 3,500-5,500 non-food articles at competitive prices. They are generally located in suburbs, and cover a total sales area of 6.4 million square meters. As of January 1, 1999, there were 1,126 hypermarkets, employing 227,500 people. The top five hypermarket companies are Leclerc, Carrefour, Auchan, Geant and Continent.

Supermarkets: Supermarkets are also self-service retail stores. In essence, supermarkets are smaller versions of hypermarkets, with a selling area between 300 and 2,3999 square meters. They usually carry 4,000-5,000 food items and 1,000-2,000 non-food articles, and cover total sales area of 7.8 million square meters. As of January 1, 1999, there were 7,999 supermarkets, employing 163,300 people. The top five supermarket companies are Intermarché, Champion, Super U, Stoc, and Casino.

City-Center Stores: Defined as high quality supermarkets, and dating back to the turn of the century, these establishments are smaller than regular supermarkets, are usually located in town centers and offer a wide selection of food and non-food products. These stores number about 500 in total and tend to be grouped under major leading companies such as Monoprix/Prisunic.

Hard Discounters: Hard Discount Stores trade principally on the basis of low price. They do not offer a comprehensive range of goods and are, thus, not as convenient as supermarkets and hypermarkets. As of January 1, 1999, there were a total of 2,150 hard discount stores in France. These stores represent about 8 percent of total food sales either under their private label or branded products. They generated total sales of US 11.29 billion in 1998. The top five hard-discount companies are Lidl, Ed, Aldi, Leader Price and Le Mutant.

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 6,500 stores of this type, this dynamic sector generates US 20 billion in sales. Do-it-yourself equipment stores are the most numerous (2,510), followed by furniture stores (1,209).

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 Galeries Reunies fall into this category, because they own chains of specialty and convenience stores.

Mail Order Marketing: The French mail order market for consumer products is the fourth largest in the world. This market has tripled in the last ten years, reaching US 8.4 billion in 1997. One out of two French households buys through mail order. Textile products make up 46 percent of mail-order sales, books and records 14 percent, and furniture and home decoration 10 percent.

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 Supermarches, Hypermarches, Centrales d'Achat et Groupements d'Achats, is available for about US 150 (freight included) from:

L.S.A
Mrs. Majean
12/14, rue Mederic
75817 Paris Cedex 17
France
Tel: (33) 1.56.79.43.00
Fax: (33) 1.56.79.43.06

Distribution Channels 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 ensure 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, Belgium and Rotterdam, The Netherlands. Imports from the Mediterranean and African countries enter through the southern port of Marseille. Imports from other EU and European countries are often brought in by truck through the world's largest wholesale food market at Rungis, 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 transport, due to unexpected strikes by port dockers or truck drivers, or some other labor dispute. Fortunately, the availability of alternative entry ports minimizes the magnitude of this problem for U.S. exporters.

Wholesale Distribution

There are about 30,000 wholesalers of food and agricultural products in France. The food industry, however, continues to consolidate and diversify, with individual firms adding new services to their basic wholesale activities. Wholesalers now offer a whole "menu" of services for small and medium-sized food retailers and processors. Other services which wholesalers are adding to their repertoire include deliveries to restaurants and other food institutions, as well as distributing new-to-market products for a fee. In spite of their efforts to consolidate, many traditional French wholesale food companies continue to lose ground to large super, and hypermarket chains, as well as to "hard discounters," which are increasingly expanding their own wholesale activities. Also, most of the major supermarket companies produce their own private labels for distribution, which effectively reduces the business for traditional wholesalers.

There are, throughout France, 17 wholesale markets generating total sales in 1998 of about $11 billion. The largest wholesale market is Rungis, just outside of Paris, which groups together the traditional trade between suppliers, and clients, and complementary services, i.e., meat and cheese cutting, ripening, storage, packaging, health controls, logistics, etc. Rungis international market covers five product sectors: fruit and vegetables, meat products and preparation, seafood products, dairy and catering products (delicatessen, wines, etc.) and horticultural products. Next to the product sectors, the business center groups together the service companies to meet all business needs. The wholesale international market at Rungis is the most important fresh product market in the world. Rungis' sales total some $6.4 billion annually. Its coverage area supplies around 12 million consumers.

For wholesalers of manufactured goods, the growth of hypermarkets and supermarkets, as well as hard discounters, offer a myriad of opportunities (see the list attached).

Retail Food Distribution Channels

There are six principal categories of retail food outlets in France. The first five categories (hard-discounters, hypermarkets, supermarkets, city-center stores and department stores) represent the mass distribution outlets. These categories control more than 78 percent of total food distribution in France. Total hyper and supermarket sales account for 60 percent of total French food sales. The sixth category, traditional outlets, includes two types, neighborhood and specialized food stores.

Small-and medium-sized family-owned firms, which have traditionally accounted for a majority of French wholesale and retail trade, are rapidly losing ground to hyper/supermarkets - 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.

Mass Distribution Outlets: Hard Discounters, Hypermarket, Supermarkets, City-Center Stores, and Department Stores

Department Stores : Some of the major department stores in Paris, such as Galeries Lafayette, Printemps, and Bon Marché, have gourmet food sections. Although they are not of great importance with regards to total food sales in France (about one percent), they set the standard for quality product presentations.

In the past couple of years, department stores, such as "Galeries Lafayette," tested a cyber service home delivery. "Cybermarket" is the first home delivery in France accessible from the Internet network. Department stores also have a home delivery service, such as the "Telemarket," of the Galeries Lafayette, which has been operating since 1985.

Traditional Outlets: The growth of mass distribution outlets is a threat for small neighborhood convenience shops and specialized food stores. Traditional outlets handle about 22 percent of retail food distribution in France, and specialized stores, such as bakeries, cheese, fruit and vegetable stores, as well as butcheries and delishops, are still well placed in the French food market, with a total of 122,280 shops.

Hotel, Restaurants Food Institutions (HRI)

According to the French Institute for Statistics (INSEE), the HRI sector has been increasing for several years. In 1998, this sector generated annual sales of $47 billion through approximately 4,500 billion of meals served, an increase of 11.3 percent in meals served over 1997. The HRI sector represents 15 percent of total sales of the French food industry.

The HRI sector is divided into the hotel/restaurant sector and the institutions sector. The hotel/restaurant sector represents about 35 percent of meals served in about 155,000 establishments. The French market for the hotel/restaurant sector is dominated by fast foods, sandwich shops and theme restaurants. The institutions sector represents 65 percent of meals served in 50,000 units (hospitals, schools, universities, and workplaces).

B. Use of Agents and Distributors

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 (concessionnaire) 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.

Contract termination is 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. In other words, U.S. exporters should ensure that each distribution agreement has a specific termination date.

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 registered with the Tribunal of Commerce as 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 company 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.

Finding a Partner

The U.S. Commercial Service offers several services to help the would-be exporter identify potential foreign representatives. To request these services, firms should contact the nearest U.S. Department of Commerce District Office. The number can be found in the US government pages of your telephone directory, or you may call 1-800-USA-TRADE. The webpage is http://www.usdoc.gov

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 nature of U.S. firms currently represented
-- Trade and bank references
-- Assessment of whether U.S. firm's special requirements 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 French agency of Dunn & Bradstreet offers this service.

Dunn & Bradstreet France
Service Renseignements de Notoriete
Immeuble Defense Bergeres
345, avenue Georges Clemenceau
92100 Nanterre
France
Tel: (33) 1.41.35.18.98
Fax: (33) 1.41.35.17.00

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 Export Assistance 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.

C. Franchising

The French franchise industry is ranked first in Europe. Although it is a very competitive market, it offers however many opportunities for U.S. franchises. Out of a total of 61 foreign franchises in France, 28 are American, accounting for 3 percent of the total franchise market. The market size in 1998 was USD 32.1 billion. The estimated annual growth rate for 1998-1999 is 5 percent. Sales by U.S.-owned companies are expected to reach USD 1,029 million in 1999. Fast-food has been the most successful sector, but is now very competitive. However, there remains potential for specialty restaurants. The greatest potential for U.S. franchisors lies in sub-sectors yet to be fully exploited, such as computer education, internet services renovation services or shopping services for working couples.

D. Direct Marketing

Direct marketing in France is a fast growing industry with sales evaluated at USD 8.7 billion in 1998. This figure includes expenses for all direct marketing media: mailings, catalogs, telephone marketing, targeted and non-targeted fliers, press and television.

The market is expected to grow at the rate of 3 percent per year. While accounting for 2.4 percent of total retail sales, mail order business has been growing faster than retail business. Catalog sales reached USD 7 billion in 1998, representing 80 percent of the total market. Catalog sales remain a good opportunity for U.S. companies. U.S. companies rank second after German companies in mail order sales in France with USD 383 million in sales. The best prospects for growth are specialty catalogs which would sell apparel, books, records as well as entertainment videos since they are the most ordered items. However, there is room for specialty catalogs that would take advantage of unexploited sectors.

E. 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 the European market and the products/services offered by competitors in Europe. 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 Commercial Service in Paris before making any 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 the Commercial Service and the numerous American consulting firms present in France.

F. Selling Factors/Techniques

Selling your product or service in France is somewhat 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, followed by European laws. Since August 1994, the "Loi Toubon" requires that all advertising, labeling, instructions and promotional programs be in French. Consequently, we strongly recommend close contact with the Commercial and Agricultural sections in the Embassy, as well as 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: (33) 1.42.21.62.00
Fax: (33) 1.42.21.64.05
Yves de Chaisemartin, President and Managing Director
Franz-Olivier Giesbert, Editor

Le Monde
21 bis, rue Claude Bernard
75005 Paris
France
Tel: (33) 1.42.17.20.00
Fax: (33) 1.42.17.21.21
Jean Marie Colombani, President and Managing Director
Alain Fourment, General Secretary

L'Express
17, rue de l'Arrivée
75733 Paris Cedex 15
France
Tel: (33) 1.53.91.11.11
Fax: (33) 1.53.91.12.10
Mr.Seillée, President and Managing Director
Denis Jeambar, Editor

Liberation
11, rue Beranger
75154 Paris Cedex 03
France
Tel: (33) 1.42.76.17.89
Fax: (33) 1.42.72.94.93
Serge July, Publisher

France Soir
45, avenue Victor Hugo
Bât. 265
93534 Aubervilliers Cedex
France
Tel: (33) 1.53.56.87.00
Fax: (33) 1.53.56.87.68
George Ghosn, President and Managing Director
Jean-Claude Nardonnet, Editor

Le Parisien
25, avenue Michelet
93400 Saint-Ouen
France
Tel: (33) 1.40.10.30.30
Fax: (33) 1.40.10.35.16
Philippe Amaury, President and Managing Director
Fabrice Nora, Managing Director

International Herald Tribune
181, avenue Charles de Gaulle
92251 Neuilly Cedex
France
Tel: (33) 1.41.43.93.00
Fax: (33) 1.41.43.93.38
Richard Woolridge, President
Richard Goldmark, Editor

Le Nouvel Observateur
12, Place de la Bourse
75002 Paris
France
Tel: (33) 1.44.88.34.34
Fax: (33) 1.44.88.34.01
Claude Perdriel, President and Managing Director
Jean Daniel, Editor

Le Point
74, avenue de Maine
75014 Paris
France
Tel: (33) 1.44.10.10.10
Fax: (33) 1.43.21.43.24
Bernard Wouts, President and Managing Director
Jean Chmitt, Editor

Les Echos
46, rue la Boetie
75381 Paris Cedex 08
France
Tel: (33) 1.49.53.65.65
Fax: (33) 1.42.89.14.69
Mr. de la Barre de Nanteuil, President and Managing Director
Nicolas Beytout, Editor

L'Expansion and La Vie Francaise
Groupe Expansion
14, boulevard Poissonnière
75308 Paris Cedex 09
France
Tel: (33) 1.53.24.40.40
Fax: (33) 1.53.24.41.22
Damien Defour, President
François Roche, Editor

La Tribune Desfosses
Cote-Desfosses
42-46, rue Notre Dame des Victoires
75002 Paris
France
Tel: (33) 1.44.82.16.16
Fax: (33) 1.44.82.17.16
Fabrice LaRue, President and Managing Director
Philippe Mudry, Editor

Le Nouvel Economiste
10, rue de Faubourg Montmartre
75009 Paris
France
Tel: (33) 1.55.33.30.00
Fax: (33) 1.55.33.30.20
Françoise Sampermanf, President and Managing Director
Valerie Lecasble, Editor

G. Pricing Product

The U.S. exporter can usually determine the export price of his/her manufactured product using 70% of the domestic price (after deduction of all local marketing costs). This will allow the French importer to price imports from the U.S. on the same price level as an American counterpart. A simple way of comparing U.S. and French retail prices consists of taking the net U.S. retail price and comparing it with the French retail price without Value Added Tax, (V.A.T.) currently 20.6%. The French consumer is generally willing to pay a maximum of 10-15% over the American retail price.

When determining the export price, it is important to consider that if prices are FOB, the French importer will have to pay for transportation, insurance, customs duties, value-added tax and fixed fees per shipment.

Terms of Payment

For U.S. exporters, 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.

H. Sales service/Customer support

Although less developed than in the U.S., French businesses also provide all kinds of services such as after-sales service, home delivery, maintenance contracts, warehousing facilities, hotlines, or toll free numbers for any technical assistance. For some products such as electrical appliances, e.g. T.V., replacement service is available.

I. Selling to the Government

The French Government generally pursues procurement policies in accordance with EU regulations, which call for non-discrimination vis-a-vis foreign firms, but with a slight advantage to E.U. firms. In France, procurement regulations do not officially present barriers to entry for foreign firms. However, local political pressure and administrative procedures are often said to favor French companies.

French Government procurement comes under the jurisdiction of the Ministry of the Economy and Finance. 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 ECU 5 million, or approximately US 5.75 million. Tender notices that exceed this threshold must be published in the Official Journal of the European Union, as well as in the French Bulletin Officiel des Annonces des Marches 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 less than 50 percent 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
139, rue de Bercy
75012 Paris, France
Tel: (33) 1.44.87.17.17
Fax: (33) 1.53.17.87.04

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 Union (OJEU), or the Bulletin Officiel des Annonces des Marches Publics (BOAMP). However, these publications often do not arrive from overseas in a timely manner. OJEU 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
Fax: (33) 1.45.77.10.85

J. Protecting your Product from IPR Infringement

Intellectual property consists of industrial property as well as literary/artistic property. 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 two types of patents: Patents of Invention (Brevets d'Invention) and Certificates of Utility (Certificats d'Utilité). Patents of Invention cover all inventions. Certificates of Utility cover all inventions except those of a pharmaceutical nature which are covered by complementary certificates (Certificats Complémentaires de Protection).

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. 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 Propriete 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, operated, 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) 1.53.04.53.04
Fax: (33) 1.42.94.02.09

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 Association of Patent Advisors, "Compagnie Nationale des Conseils en Propriete Industrielle":

CNCPI
92, rue d'Amsterdam
75009 Paris
Tel: (33) 1.53.21.90.89
Fax: (33) 1.53.21.95.90

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: US 41, which includes the first year of annual renewal fees.
-- Documentation and research fee: US 690. This amount is to be paid at the latest one month after the application.
-- The annual renewal fee is calculated each year on a sliding scale.
-- Certificates of Utility
-- Registration fee: US 41
-- Annual renewal fees are calculated 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, jingles, 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) 1.53.04.53.04
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): US 245 for up to three product/service categories; US 50 for each additional category protected.

For designs and models specifically:
--- For each photographic reproduction:
-in Black and White: US 30
-in Color: US 60
--- For a renewal: US 35

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 follow 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
26 bis rue de Saint Petersbourg
75008 Paris, France
Tel: (33) 1.53.04.53.04
Fax: (33) 1.42.93.59.30

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 US 11 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
Fax: (33) 1.42.81.40.21

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 de Lettres (SGDL)
38, rue du Faubourg Saint-Jacques
75014 Paris, France
Tel: (33) 1.53.10.12.00
Fax: (33) 1.53.10.12.12

For documentary and educational works, applications must be filed with the Civil Society for Multimedia Authors: Societe Civile des Auteurs Multimedia (SCAM)
5, avenue Velasquez
75008 Paris
France
Tel: (33) 1.56.69.58.58
Fax: (33) 1.56.69.58.59

K. Need for Local Attorney

Establishing an entity to do business in France is not recommended. A lawyer with experience in France should be retained as soon as the establishment of a French business entity is contemplated. The U.S. Commercial Service 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 be able to recommend 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.