Subsection 2: Penalty procedure

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Article L327-14

French Intellectual Property CodeIn force

Updated 8 Nov 2023

I.-A member of the Control Board is summoned to the hearing. He/she attends the hearing without the right to vote. He may present observations in support of the notified complaints and propose a sanction.

The Enforcement Committee may hear any rapporteur or member of staff of the Control Board.

No sanction may be imposed unless the legal representative of the organisation in question has been heard or, failing this, duly summoned.

II -The Enforcement Board shall issue a reasoned decision.

On the basis of the investigation report submitted by the inspection college and after an adversarial procedure, it may impose one or more sanctions on the management organisation that fails to comply with the provisions of this title.

III.-The penalties applicable to the organisation in question are :

1° A warning;

2° An injunction, possibly accompanied by a fine, to adopt, within a specified period, one or more decisions enabling the organisation to comply with legislative or regulatory provisions;

3° Withdrawal of approval, where the organisation is approved by the Minister responsible for culture pursuant to the provisions of this Code;

4° A financial penalty, the amount of which, which may not exceed 3% of the organisation's turnover or revenue excluding tax, subject to a maximum of €300,000, is set according to the seriousness of the breaches committed and in relation to any advantages or profits derived from these breaches; this maximum is increased to 5%, up to a limit of €500,000, in the event of a further breach of the same obligation within five years of the year in which the first breach of the obligation was penalised;

5° Publication of the penalty, specifying the identity of the organisation in question and the nature of the breach, in a newspaper with national circulation.

The Enforcement Board will automatically impose a provisional or definitive fine. The total amount of the penalty payment may not exceed the ceiling set in section d for financial penalties. The sums are paid into the Commission's budget

Penalties and financial penalties are recovered in the same way as government debts other than taxes and duties.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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