The Directive 2000/31/EC (E-Commerce Directive) is the legal basis governing the liability of Internet Services Providers (ISPs) in the EU Member States and includes a conditional safe harbour. Not all Member States have transposed the relevant articles consistently, leading to divergent national case law that could cause legal insecurity on an EU level.
Under Section 7/3 of the Act CVIII on Electronic Commerce, which transposes Directive 2000/31/EC, service providers and intermediaries are protected from liability for third-party content. However, this exemption does not cover disguised advertising, as regulated in Section 14/A.

Hungary and the European Union have adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty. Hungary ratified the Treaty on 27 November 1998, with its provisions coming into force on 20 May 2002. Subsequently, the European Union ratified the Treaty on 14 December 2009, and it entered into effect on 14 March 2010.

Under Art. 62. k of the Act CLXLIII on Public Procurement, foreign firms are excluded from government procurement if they are registered in a country that is neither an EU member nor a member of the WTO Government Procurement Agreement nor if they are registered in a country that has no double taxation treaty with Hungary or the EU.

Art. 85 of the Utilities Directive (2014/25/EU) contains provisions allowing contracting public entities to reject foreign goods not covered by any EU international commitments from its tender procedures. In these cases, a tender submitted for the award of a supply contract may be rejected where the proportion of the products originating in third countries exceeds 50% of the total value of the products constituting the tender (Art. 85.2). Additionally, in cases of equivalent offers, the provisions provide for a preference for European tenders and tenders covered by EU's international obligations. In practice, this possibility has rarely been used.
In Hungary, the Directive has been transposed with Act CXLIII of 2015 on Public Procurement.

It is reported that the lack of transparency is a challenge for public procurement procedures in Hungary, especially for foreign bidders, including with respect to overly narrow definitions of tenders and implicit biases in favour of local vendors and state-owned enterprises. Moreover, it is reported that in April 2022, the European Commission launched a budget conditionality mechanism against Hungary over the “systemic irregularities, deficiencies and weaknesses” in its public procurement procedures.

There are no foreign ownership limitations in sectors relevant for digital trade.

Act LVII of 2018 on Controlling Foreign Investments Violating Hungary’s Security Interests establishes a national security-related screening mechanism. According to Art. 2 of the law, foreign investment needs prior ministerial approval is required, when (i) 25% of the shares (10% in publicly traded companies) are acquired in companies important to the national security; (ii) decisive influence over such companies is acquired; (iii) a branch office is established in Hungary; or (iv) a right to use/operate a sensitive infrastructure or asset is acquired. Companies whose activities are important to national security include active cryptography, electronic communication and public communication systems. According to Art. 1 of the Decree, A foreign investor is (i) a person or organisation from outside the European Union (EU), European Economic Area (EEA), or Swiss Confederation; and (ii) a legal entity registered in the EU, EEA, or Swiss Confederation that acquires ownership or interest in a Hungarian company, if the controlling person or entity is from outside the EU, EEA, or Swiss Confederation.

Since May 2020, the Alternative FDI Regime, outlined in Chapter 85 of Act LVIII of 2020 and its implementing Governmental Decree, has supplemented existing FDI regulations under the FDI Act. Initially set to expire at the end of 2021, the regime was later extended indefinitely and reinstated through a new Governmental Decree in late 2022. According to Section 276 of Act LVIII of 2020, acquisitions of Hungarian companies in strategic sectors, including information technology, by foreign entities require authorisation.
In addition to share acquisitions under the FDI Act, the Alternative FDI Regime covers other deal structures, such as acquiring convertibles, usufruct rights, corporate transformations, asset acquisitions, capital injections, and in-kind contributions. These transactions are included if they result in at least a 10% stake in a strategic company, regardless of whether the deal is paid or free. The industries covered by the Alternative FDI Regime are extensive, encompassing sectors such as manufacturing, chemicals, food and agriculture, health, medical, waste, building materials, transport, logistics, education, communication, and even retail and wholesale, as long as they involve critical infrastructure.

Under Art. 51 of Act XXXIII of 1995 on the protection of inventions, foreign applicants that have no residency within the EU or the European Economic Area (EEA) have to be represented by an authorised attorney-at-law in front of the Hungarian Intellectual Property Office.

Hungary is a party to the Patent Cooperation Treaty (PCT).

There is no general principle for the use of copyright-protected material comparable to the fair use/fair dealing principles. Directive 2001/29/EC defines an optional but exhaustive set of limitations from the author´s exclusive rights under the control of the “three-step test” in line with the Berne Convention that establishes three cumulative conditions to the limitations and exceptions of a copyright holder’s rights. The Directive has been transposed by Member States with significant freedom.
Chapter 4 of the Act LXXVI of 1999 establishes copyright exemptions, including a right of citation, the right of use for educational purposes, private use and news reporting.

It is reported that internet piracy in Hungary is a significant issue. Stakeholders have noted that the Hungarian government should allocate sufficient resources to its law enforcement authorities to effectively combat intellectual property rights violations, particularly those occurring online.

Hungary and the European Union have adopted the World Intellectual Property Organization (WIPO) Copyright Treaty. Hungary ratified the Treaty on 27 November 1998, with its provisions coming into force on 6 March 2002. Subsequently, the European Union ratified the Treaty on 14 December 2009, and it entered into effect on 14 March 2010.