Intellectual property contract Law

IP contract law in France and the EU: licence, assign, coexist

Intellectual property rights can be sold, licensed, jointly held or peacefully shared with competitors. The contract is the tool that converts an IP right into business value. In France, IP contracts must comply with strict formal rules under the French Intellectual Property Code, while delivering the commercial flexibility expected by international parties.

Reviewed by Nathalie Dreyfus, European Trademark and Patent Attorney. Last updated: June 2026.

French formal requirements every IP contract must meet

French IP law sets specific formal rules that differ markedly from common law practice. Three principles to remember:

Written form for copyright transfers. Article L.131-2 of the French Intellectual Property Code requires copyright assignments and exclusive licences to be in writing, with detailed indication of each transferred right, its scope, purpose, territory and duration. Article L.131-1 forbids global assignment of future works.

Mandatory recording for trademark and patent contracts. Article L.714-7 (trademarks) and Article L.613-9 (patents) make assignments and exclusive licences enforceable against third parties only when recorded with the INPI, the EUIPO or the EPO.

Specific clauses for film and audiovisual. A presumption of assignment of economic rights to the audiovisual producer applies, but moral rights remain with the authors.

L.131-3 CPI

Strict copyright assignment formalism

Each transferred right must be listed separately, with its scope, purpose, territory and duration, in writing. A vague catch-all clause is null and void.

Source: Article L.131-3 of the French Intellectual Property Code.

L.714-7 CPI

Recording trademark contracts at INPI

Trademark assignments and exclusive licences are enforceable against third parties only when recorded with the INPI (or the EUIPO for EU trademarks).

Source: Article L.714-7 of the French Intellectual Property Code.

L.613-9 CPI

Recording patent contracts at INPI

Patent assignments and exclusive licences must be recorded with the INPI to be enforceable against third parties.

Source: Article L.613-9 of the French Intellectual Property Code.

VBER 2022

EU Vertical Block Exemption Regulation

Distribution and licensing arrangements involving IP rights ancillary to product distribution can benefit from the EU Vertical Block Exemption Regulation if hardcore restrictions are avoided.

Source: Regulation (EU) 2022/720, Vertical Block Exemption.

Four contract families we routinely draft

Step 1

Assignment contracts

Permanent transfer of an IP right, similar to a sale. Used at company sale, IP carve-out or portfolio restructuring. Requires precise listing of rights, territory and duration, plus recording at INPI/EUIPO/EPO.

Step 2

Licence contracts

Temporary right to exploit an IP right, in exchange for a royalty or lump sum. Exclusive or non-exclusive, territorial or worldwide, with or without sub-licensing right. Common in patent commercialisation, franchise, software, content licensing.

Step 3

Coexistence agreements

Used when two similar trademarks compete in different scopes. Parties recognise each other’s rights and define product/service categories and territories where they can coexist peacefully, avoiding litigation.

Step 4

Joint ownership agreements

When a patent or trademark is registered by multiple parties. Joint ownership of patents follows a specific regime (Articles L.613-29 and following of the CPI) deviating from common indivision law.

Step 5

Other IP-related contracts

NDAs, R&D collaboration, technology transfer, options, settlement and transaction agreements after litigation, IP commitments in M&A SPAs.

Royalties and tax considerations

French and EU IP contracts trigger complex tax effects. Royalties paid by a French licensee to a foreign licensor are generally exempt from withholding tax under most EU tax treaties (Royalty Directive). VAT applies under standard EU rules. Transfer pricing requires arm’s length conditions, particularly for intra-group licensing. We coordinate with tax counsel to ensure structure efficiency.

Our IP contract services

  • Drafting and negotiation

    Bespoke drafting of IP licences, assignments, coexistence and joint ownership agreements.

  • IP contract audits

    Review of existing contracts for risks, gaps, missing clauses, and reform opportunities.

  • M&A IP due diligence

    Identification and documentation of IP rights, assignment chains, exposure and warranties.

  • Contractual disputes

    Representation in IP contract disputes before French and EU courts.

  • INPI, EUIPO and EPO recording

    Filing of contract recordings to make them enforceable against third parties.

  • Training and contract playbooks

    Custom training for legal and IP teams on French and EU contracting standards.

FAQ on IP contract law

Must IP contracts be in writing under French law?
Copyright assignments and exclusive licences must be in writing under Article L.131-2. Trademark and patent assignments and exclusive licences benefit from recording at INPI to become enforceable against third parties. A written contract is, in practice, mandatory for any meaningful IP transaction in France.
What is the difference between an exclusive and a non-exclusive licence?
An exclusive licence grants the licensee the sole right to exploit the IP in the defined scope, even excluding the licensor. A non-exclusive licence allows the licensor to grant similar rights to multiple licensees in parallel. Exclusive licences typically command higher royalties and trigger specific French recording requirements.
Can I license a patent that has not yet been granted?
Yes, but with limits. Licences on patent applications are valid and increasingly common, especially in technology transfer. The contract should anticipate scenarios where the patent is refused, partly granted or amended during prosecution, and provide royalty adjustment or termination mechanisms.
How do you record a trademark assignment in France?
By filing a request with the INPI, including the signed assignment, identification of the trademark, the parties and the scope. The EUIPO has a similar procedure for EU trademarks. Recording is essential to make the assignment enforceable against third parties, including subsequent assignees.
What is a coexistence agreement?
A coexistence agreement is a contract between two trademark holders with potentially confusing marks, defining each party’s exploitation scope, products, services and territories. It avoids opposition or invalidity actions and creates predictable boundaries for future business.
Do I need a separate joint ownership contract for a co-owned patent?
Strongly recommended. The default regime for patent joint ownership in France (Articles L.613-29 and following) is restrictive and can block exploitation. A bespoke joint ownership agreement clarifies sharing of costs, royalties, exploitation rights, transfer rights and dispute resolution.

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