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Understanding the seizure of intangible rights: definition and scope

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Recovering an unpaid debt can quickly become a headache. When reminders go unheeded, it's time to take enforcement action. Among these, the seizure of intangible rights remains a little-known but valuable option.

What is the seizure of intangible rights?

This procedure enables a creditor with a writ of execution to have the debtor's intangible rights placed under judicial control and then sold. It applies to all intangible assets that are not money claims.

The Code of Civil Enforcement Procedures defines it in article L. 231-1. It applies to rights that have economic value but no material existence.

How does it differ from other seizures?

Unlike seizure for sale, which targets tangible assets, seizure of intangible rights targets intangible assets. It differs from seizure-attribution, which applies to money claims and results in immediate allocation to the creditor. For good distinguishing enforceable seizure from precautionary seizureIt is crucial to understand their respective objectives and conditions.

Its hybrid structure borrows from both procedures:

  • The document is served on a third party, in the same way as an attachment for payment.
  • The property remains unavailable until it is sold, in the same way as a seizure for sale.

What rights can be seized?

For an in-depth understanding of the overall functioning and usefulness of seizure of shares and securitiesIt is essential to know the main rights involved:

  1. Shareholder rights
    • Shares in non-trading companies (SCI, SCP)
    • Shares in SARL, SNC, SCS
  2. Securities
    • Actions
    • Bonds
    • Equity securities
    • Treasury securities
  3. Other intangible rights
    • Intellectual property (patents, trademarks)
    • Operating licences
    • Domain names
    • Cryptoactives

However, claims for sums of money are excluded. Other procedures are available for these claims: attachment, direct payment or attachment of earnings.

The 2012 enlargement: a major step forward

Until 2012, only the seizure of shareholders' rights and securities was explicitly regulated. The decree of 30 May 2012 changed all that.

Article R. 231-1 of the Code of Civil Enforcement Procedures has extended the procedure to all intangible rights "insofar as their specific nature does not prevent this". This flexible wording allows the procedure to be adapted to a wide variety of rights.

This extension is in response to the evolution of assets, which are increasingly made up of intangible assets: intellectual property, licences and digital assets.

Why does this procedure matter?

In our dematerialised economy, intangible assets often represent the bulk of the value of an estate. Stocks, shares, copyrights or trademarks can be worth considerable sums.

Yet this procedure remains underused. The difficult reconciliation between enforcement law and substantive law (particularly company law) hinders its use.

The recent decision by the French Constitutional Council (17 November 2023) highlights the imperfections of the current system. Reforms could improve its effectiveness. For more information, visit take a closer look at the practical steps and compulsory information of this procedure, additional resources are available.

The world is going digital. Our civil enforcement procedures must keep pace with this development to ensure that the right to debt recovery is effective. For specialised legal support, particularly in seizure of sharesIf you have any doubts about your rights, do not hesitate to consult an expert lawyer.

Sources

  • Code of civil enforcement procedures, articles L.231-1 and R.231-1
  • Repertoire of civil procedure, "Seizure of intangible rights" by Rudy Laher (2023)
  • Constitutional Council decision no. 2023-1068 QPC of 17 November 2023

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