French Intellectual Property Code
In forceThe publisher's safeguard or receivership proceedings do not result in termination of the contract.
When the business is continued in application of articles L. 621-22 et seq. of the Commercial Code, all the publisher's obligations to the author must be respected.
In the event of transfer of the publishing business in application of articles L. 621-83 et seq. of the aforementioned Commercial Code, the purchaser is bound by the obligations of the transferor.
When the publishing company ceases to operate, either as a result of a judicial liquidation decision or as a result of voluntary cessation of activity, a statement of accounts as at the date of cessation is produced and sent to each author under contract with the company by the publisher or, where applicable, the liquidator. This statement of accounts must show the number of copies of the works sold since the last statement of accounts was drawn up, the amount of royalties due to the author in respect of these sales and the number of copies available in the publisher's stock. The publisher, in the case of a voluntary transfer, or the liquidator, in the case of a judicial decision to liquidate, shall provide the author with the information it has collected from distributors and retailers on the number of copies remaining available.
When the business has ceased trading for more than six months or when judicial liquidation is pronounced, the contract shall be terminated ipso jure.
The liquidator may not proceed with the sale in balance of the copies manufactured or with their realisation under the conditions provided for in articles L. 622-17 and L. 622-18 of the aforementioned Commercial Code until fifteen days after having notified the author of his intention, by registered letter with acknowledgement of receipt.
The author has a right of pre-emption over all or part of the copies. In the absence of agreement, the purchase price will be set by an expert.
