Timor-Leste does not currently have patent legislation in force. As a result, despite reports of growing demand for patent registration, the country lacks a dedicated legal framework for the protection and enforcement of patent rights. In the absence of formal protection mechanisms, rights holders reportedly rely on cautionary notices published in the local press to notify third parties of asserted rights. Nevertheless, Timor-Leste has prepared a Draft Bill for an Industrial Property Code, which is expected to include patent-related provisions.

There is no comprehensive legal framework or substantive measures to ensure patent protection. Reports indicate that certain international corporations have resorted to publishing notices in local newspapers to assert their patent claims. Pursuant to Art. 19 of the Private Investment Law (Law No. 15/2017), all investors are entitled to the protection of intellectual property rights as recognised by law; however, it does not apply to patents which have yet to be recognised by law. Nevertheless, a Draft Bill on the Industrial Property Code is expected to include provisions on patents.

Timor-Leste is a signatory to the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II). The country joined these Agreements with its accession to WTO membership in August 2024, except for duties on products in ITA tariff lines 378 and 27, which will be eliminated in 2027 and 2030, respectively.

Under Art. 10 of Decree-Law No. 1/2025, procuring entities are required, where expressly permitted by the Code, to support the national economy by giving preference to goods extracted, produced, or grown within the national territory and to goods and services supplied by domestic providers, including by adapting procurement procedures to the country’s socio-economic context.
This preference is operationalised through the Arts. 86–87. Art. 86 requires contracting authorities, in public tender, restricted tender, and request-for-quotation procedures, to apply a preference margin of up to 10% (in score or price) in favour of eligible national suppliers that meet specified local-content conditions. These conditions include, inter alia, domestic production thresholds for goods, minimum shares of local inputs or Timorese workers for works, and at least 60% Timorese staff for services, supported by the submission of a local content plan with the bid. Art. 87 extends a smaller preference margin, up to 5%, to non-national suppliers whose offers nonetheless satisfy one of the relevant local-content conditions.
In addition, Art. 88 authorises contracting authorities, across all procurement procedures under the Code, to include requirements that tenders contribute to economic and social development, national innovation, local employment creation, and the transfer of technology or know-how to national workers and suppliers. It also permits requirements for the procurement of minimum proportions of goods and services at the local or national level, and for the employment of a minimum number of national workers.

It is reported that procurement procedures are characterised by a significant lack of transparency. Contracts are occasionally awarded outside the formal procurement framework or facilitated through political channels. Although a public procurement website exists, it is reported to be inconsistently updated and to not publish all tenders. Reports further indicate that, when tenders are posted, they are often available for only a brief period, and the selection of winning bidders may be predetermined.

Timor-Leste is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA) but it does have observer status since September 2024.

The Private Investment Law delineates the conditions and incentives applicable to both domestic and foreign investment, while affirming the principle of legal equality for international investors. Pursuant to Art. 9.3, there is a list of specific activities and sectors from which foreign investors are excluded. Notably, this list does not encompass any activities pertinent to digital trade. Art. 24 of the Social Communication Law No. 5/2014 stipulates that foreign ownership in the share capital of media entities shall not exceed 30% of the total equity of the respective organisation. However, it is not clear whether this restriction applies to digital media platforms.

Pursuant to Art. 47 of the Commercial Companies Law, companies must appoint a legal representative who has permanent residence in Timor-Leste. Art. 47(4) further provides that the company’s management may appoint that legal representative to act as the company’s manager or attorney.

Additional Art. 4.1 of Law No. 5651 stipulates that social media service providers based abroad whose daily access from Türkiye exceeds one million users are required to appoint at least one authorised representative in Türkiye. Where the representative is a natural person, that individual must be both a Turkish citizen and resident in Türkiye. Where the representative is a legal person, it must take the form of a branch established directly by the social media provider as a limited liability company. It is reported that major foreign technology companies, including Meta (Facebook and Instagram), Google (YouTube), and X, readily exceed the stipulated user threshold and consequently incur significant costs in complying with the obligation to establish local representation.

The Law on Consumer Protection provides a comprehensive framework for consumer protection that also applies to online transactions.

Türkiye has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Türkiye has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Türkiye has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.