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.

Section 8 and Annex A of the "ANC Guidelines on Registration" specify that certain service providers are ineligible for registration if they are not corporate entities incorporated in Timor-Leste. This restriction applies to cross-border internet-based voice and data services and value-added network application services, either originating from or terminating in Timor-Leste.

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 not a signatory of the Patent Cooperation Treaty (PCT).

Timor-Leste has a copyright regime under the Code of Copyright and Related Rights. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 129 lists the exceptions, including reproduction by a natural person for private use and without commercial intent; use for teaching and educational purposes, provided it is non-commercial and limited to parts of published works; among others. Title IV outlines the legal mechanisms for enforcement, while Title V introduces provisions on technical protection measures and electronic rights management information, including safeguards against the circumvention of effective technological measures.

Timor-Leste has not adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.

Timor-Leste has not adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Timor-Leste lacks a comprehensive legal framework dedicated to the effective protection of trade secrets. Nonetheless, certain limited provisions exist that address aspects of this issue. Art. 19 of the Private Investment Law (Law No. 15/2017) stipulates that all investors are entitled to the protection of industrial secrets, as well as any other intellectual property rights recognised by law. In a related provision, Art. 184 of the Penal Code (enacted through Decree-Law No. 19/2009) criminalises the unauthorised disclosure of confidential information pertaining to commercial, industrial, professional, or artistic activities. This applies to individuals who acquire such information in their positions, occupations, employment, professions, or artistic engagements. However, prosecution under this provision is contingent upon the lodging of a formal complaint by the aggrieved party.
In addition, a Draft Bill concerning the Industrial Property Code, which is anticipated to include specific provisions on the protection of trade secrets, remains pending enactment.