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HUNGARY

Since May 2002

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
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.
Coverage Horizontal

HUNGARY

Since June 2016
Since November 2018

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets)

Act LIV of 2018 on the Protection of Trade Secrets (2018. évi LIV. tTörvény az üzleti titok védelméről)
The Directive 2016/943 on the protection of undisclosed know-how and business information (trade secrets) is key in harmonising national laws concerning trade secrets. Hungary transposed the Directive through Act LIV of 2018 on the protection of trade secrets.
Coverage Horizontal

HUNGARY

Since December 2003, as amended in December 2020
Since May 2014

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Act C of 2003 on Electronic Communications (2003. Évi C. Törvény az Elektronikus Hírközlésről)

Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks
It is reported that passive sharing is mandated and is effective in both the mobile (based on commercial agreements) and fixed sectors. Pursuant to Art. 90 of Act C of 2003 on Electronic Communications, service providers that hold ownership or usage rights over an electronic communications facility are required to enter into contracts to ensure the shared use of network elements and related facilities. The obligation specifically covers ownership and access to structures, internal wiring, support columns, antennas, towers and other supporting constructions, substructures, cable ducts, inspection chambers, and cabinets. However, it does not extend to parts of the structure that are open to customer traffic and serve that particular function.
In addition, Directive 2014/61/EU (Art. 3.2) establishes that Member States shall ensure that, upon written request of an undertaking providing or authorised to provide public communications networks, any network operator must meet all reasonable requests for access to its physical infrastructure under fair and reasonable terms and conditions, including price, with a view to deploying elements of high-speed electronic communications networks. Such written request shall specify the elements of the project for which the access is requested, including a specific time frame.
Coverage Telecommunications sector

HUNGARY

Reported in 2022, last reported in 2024

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
The Hungarian Government holds shares in certain telecommunications companies. Historically, the State has held shares in Antenna Hungária Zrt., which, as of 2024, is owned by 4iG Plc. (78.76%) and the Hungarian State (23.22%). Furthermore, in January 2023, Antenna Hungária Zrt, together with Corvinus International Investment Zrt. (representing the Hungarian State) and Vodafone Europe B.V., signed a binding agreement for the acquisition of 100% of the shares in Vodafone Magyarország Zrt. (‘Vodafone Hungary’). Following the financial closing, Antenna Hungária Zrt. acquired an indirect controlling stake of 51%, while the Hungarian State retained an indirect stake of 49%.
Coverage Telecommunications sector

HUNGARY

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that Hungary does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is required by law. According to Sections 68 and 105 of Act C of 2003 on Electronic Communications, the National Media and Communications Authority (NMHH) may, by decision, impose detailed obligations of accounting separation in relation to specific activities concerning interconnection or access for service providers with significant market power in wholesale service markets. A service provider subject to accounting separation obligations is required to submit an accounting separation statement, prepared in accordance with the requirements set out in this Act, the NMHH Decree on the detailed rules for keeping separate accounting records, and the President’s resolution. This statement must be submitted to the President for approval within 45 days of the adoption of the annual report pursuant to the Accounting Act.
Coverage Telecommunications sector

HUNGARY

Since December 2003, last amended in December 2024

Pillar Telecom infrastructure & competition  |  Indicator Presence of an independent telecom authority
Act C of 2003 on Electronic Communications (2003. Évi C. Törvény az Elektronikus Hírközlésről)
The National Media and Infocommunications Authority (NMHH), established under Art. 10 of Act C of 2003 on Electronic Communications, serves as the competent executive authority for the supervision and regulation of telecommunications services in Hungary. The NMHH operates as an independent regulatory body, formally separated from direct government influence in its decision-making processes.
Coverage Telecommunications sector

HUNGARY

Since April 2013, as amended in 2018, until January 2025

Pillar Cross-border data policies  |  Indicator Ban to transfer and local processing requirement
Act L of 2013 on the Information Security of State and Municipal Bodies (2013. évi L. törvény az állami és önkormányzati szervek elektronikus információbiztonságáról)
Section 3 of "Act L of 2013 on the Information Security of State and Municipal Bodies" imposes local processing requirements on state and local government entities as well as organisations providing essential services. Under this provision, data within the scope of the Act must be processed in electronic information systems that are operated and stored in Hungary. Exceptions are narrowly defined: data may be processed outside Hungary only within the territory of an EEA State and only where the supervisory authority for the security of electronic information systems grants approval or an applicable international treaty provides for such processing. For entities delivering services classified as critical, such as those in the energy, transport, agriculture and healthcare sectors, electronic information systems may only be hosted within EU Member States.
The Cybersecurity Act adopted in December 2024 repeals Act L of 2013 with effect from 1 January 2025.
Coverage Public sector

HUNGARY

Since June 1980

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Hungary is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

HUNGARY

Since May 2001
Since July 1999, entry into force in January 2000, last amended in December 2024

Pillar Intellectual Property Rights (IPRs)  |  Indicator Copyright law with clear exceptions
Directive 2001/29/EC

Act LXXVI of 1999 on Copyright (1999. évi LXXVI. Törvény a szerzői jogról)
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.
Coverage Horizontal

HUNGARY

Reported in 2021, last reported in 2024

Pillar Intellectual Property Rights (IPRs)  |  Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
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.
Coverage Horizontal

HUNGARY

Since March 2002

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
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.
Coverage Horizontal
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[{"post_id":"94376"},{"post_id":"94377"},{"post_id":"94378"}]
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ITA: [{"meta_value":"EU"}]

HUNGARY

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.62%
Coverage rate of zero-tariffs on ICT goods (%)
77.14%
Coverage: ICT goods

HUNGARY

Since September 2015

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Act CLXLIII of 2015 on Public Procurement (2015. évi CXLIII. Törvény a közbeszerzésekről)
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.
Coverage Horizontal

HUNGARY

Since March 2004, last amended in February 2014
Since September 2015

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Utilities Directive (2014/25/EU)

Act CLXLIII of 2015 on Public Procurement (2015. évi CXLIII. Törvény a közbeszerzésekről)
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.
Coverage Any product sold to a utility provider including software used in telecommunication network equipment

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