SWEDEN
Since December 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Act (2023:560) on the Screening of Foreign Direct Investments (Lag (2023:560) om granskning av utländska direktinvesteringar)
There are no foreign ownership limitations in sectors relevant for digital trade.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250209235824/https://investmentpolicy.unctad.org/investment-laws/laws/468/sweden-act-2023-560-
- https://web.archive.org/web/20230928204840/https://www.state.gov/reports/2023-investment-climate-statements/sweden/
- https://web.archive.org/web/20230331073907/https://www.state.gov/reports/2020-investment-climate-statements/sweden/
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SWEDEN
Since December 2005, entry into force in January 2006
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Nationality/residency requirement for directors or managers
Companies Act (2005:551) (Aktiebolagslag (2005:551)
According to Section 9 of the Companies Act, at least 50% of the board of directors of a limited liability company must be European Economic Area (EEA) residents unless granted an exemption by the Swedish Companies Registration Office.
Coverage Horizontal
SWEDEN
Since May 2018, last amended in October 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Protective Security Act 2018:585 (Säkerhetsskyddslag 2018:585)
Amendments to the Protective Security Act 2018 (PSA) grant the Swedish Government the authority to oversee and potentially block investments that may threaten national security. The Act also empowers Swedish security services and armed forces to conduct security inspections on firms operating in sectors deemed critical to national security and, if necessary, revoke operating licenses if breaches are identified. One of the sectors covered by this legislation is telecommunications. The Act deliberately refrains from providing a detailed definition of "security-sensitive activity". According to Chapter 1, Section 1 of the PSA, security-sensitive activities include (i) activities crucial to Sweden's security or (ii) activities bound by an international protective security commitment that Sweden has undertaken. It is reported that the preparatory works of the PSA suggest that activities within certain sectors may be considered security sensitive, such as essential services related to electronic communications, including operational centres, key interconnection points with equipment for traffic exchange and signalling, and major transmission networks, as well as key civil infrastructure like stations for electronic communications, 5G technologies, and radio and TV.
The PSA has been used by the Swedish security services to ban Huawei from operating in Sweden in 2020, as they deemed the equipment to pose a security risk to the country.
The PSA has been used by the Swedish security services to ban Huawei from operating in Sweden in 2020, as they deemed the equipment to pose a security risk to the country.
Coverage Security-sensitive activites
SWEDEN
Since December 2023
Since May 2018, last amended in October 2023
Since May 2018, last amended in October 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Act (2023:560) on the Screening of Foreign Direct Investments (Lag (2023:560) om granskning av utländska direktinvesteringar)
Protective Security Act 2018:585 (Säkerhetsskyddslag 2018:585)
Protective Security Act 2018:585 (Säkerhetsskyddslag 2018:585)
In December 2023, the Act (2023:560) on the Screening of Foreign Direct Investments entered into force, introducing substantial changes to the regulatory framework governing foreign investments in Sweden. According to Art. 7 of the law, foreign investors engaging in sensitive sectors are mandated to secure authorisation from the reviewing authority before executing the investment. The authority holds the power to approve, conditionally approve, or prohibit the investment based on considerations related to public order or national security.
The FDI Act applies to investments in undertakings with a registered office in Sweden, including indirect transfers of shares and transfers of shares in listed companies. According to Art. 7, any prospective foreign investor in protected activities notify the inspection authority before investing if: (i) they would hold 10% or more of the votes in a relevant entity, (ii) acquire or form an entity engaging in protected activities, (iii) become a partner in a trading company conducting such activities, (iv) form a foundation engaging in these activities, or (v) gain direct or indirect influence over the management of entities or foundations involved in protected activities.
The Act covers various sectors, including essential services, security-sensitive activities (as defined in Art. 2 of the Protective Security Act), the processing of sensitive personal data or location data, the processing of sensitive personal data or location data, research or the supply of products or technology relating to emerging technologies and other strategically protected technologies.
The FDI Act applies to investments in undertakings with a registered office in Sweden, including indirect transfers of shares and transfers of shares in listed companies. According to Art. 7, any prospective foreign investor in protected activities notify the inspection authority before investing if: (i) they would hold 10% or more of the votes in a relevant entity, (ii) acquire or form an entity engaging in protected activities, (iii) become a partner in a trading company conducting such activities, (iv) form a foundation engaging in these activities, or (v) gain direct or indirect influence over the management of entities or foundations involved in protected activities.
The Act covers various sectors, including essential services, security-sensitive activities (as defined in Art. 2 of the Protective Security Act), the processing of sensitive personal data or location data, the processing of sensitive personal data or location data, research or the supply of products or technology relating to emerging technologies and other strategically protected technologies.
Coverage Sensitive sectors
Sources
- https://web.archive.org/web/20231211235512/https://eur-lex.europa.eu/eli/reg/2019/452/oj
- https://web.archive.org/web/20231222223551/https://policy.trade.ec.europa.eu/enforcement-and-protection/investment-screening_en
- https://web.archive.org/web/20240529151650/https://www.riksdagen.se/sv/dokument-och-lagar/dokument/svensk-forfattningssamling/lag-2023560-om-granskning-av-utlandska_sfs-2023-560/
- https://web.archive.org/web/20231110234923/https://www.government.se/government-policy/foreign-and-security-policy/protective-security-act-2018-585/
- https://web.archive.org/web/20230331073907/https://www.state.gov/reports/2020-investment-climate-statements/sweden/
- https://web.archive.org/web/20231209012743/https://iclg.com/practice-areas/foreign-direct-investment-regimes-laws-and-regulations/sweden
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SWEDEN
Reported in 2020, last reported in 2023
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Discriminatory treatment in patent applications
It has been reported that patent filing fees for foreign applicants in Sweden are higher than those for domestic applicants. The Swedish Patent and Registration Office (PRV) suggests that non-residents may need to engage a local agent to file a patent. According to the Swedish Intellectual Property Office, fees for foreign patent applications range from 140 to 18,610 SEK (approximately 13 to 1,700 USD), while fees for domestic applicants range from 150 to 8,450 SEK (approximately 14 to 800 USD). Additionally, inventions made in Sweden that have implications for national security require authorisation from the Swedish patent office before they can be filed abroad.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230928204840/https://www.state.gov/reports/2023-investment-climate-statements/sweden/
- https://web.archive.org/web/20201202161915/https://www.americanbar.org/groups/intellectual_property_law/publications/landslide/2019-20/march-april/global-collaborations-foreign-filing-licenses/
- https://web.archive.org/web/20211201094501/https://www.prv.se/en/patents/fees-and-payment/
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SWEDEN
Since May 1989
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Sweden is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
SWEDEN
Since May 2001
Since December 1960, last amended in November 2024
Since December 1960, last amended in November 2024
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Directive 2001/29/EC (The Copyright Directive)
Act No. 1960:729 on Copyright in Literary and Artistic Works (Lag (1960:729) om upphovsrätt till litterära och konstnärliga verk)
Act No. 1960:729 on Copyright in Literary and Artistic Works (Lag (1960:729) om upphovsrätt till litterära och konstnärliga verk)
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.
The Swedish Act on Copyright in Literary and Artistic Works was amended to be consistent with the Directive, but Sweden applies copyright exceptions very narrowly, choosing not to employ the three-step test. The economic rights conferred by the Copyright Act are relaxed in cases of making physical copies for private or educational use or when an author has previously authorised the reproduction of the work in the EEA (the Consumption Principle). However, Section 12 of the Copyright Act explicitly excludes creating digital copies of copyrighted material or making copies of computer programs and software, and a 2016 ruling by the Swedish Supreme Court found that posting photos of public art online was not consistent with Swedish copyright law.
The Swedish Act on Copyright in Literary and Artistic Works was amended to be consistent with the Directive, but Sweden applies copyright exceptions very narrowly, choosing not to employ the three-step test. The economic rights conferred by the Copyright Act are relaxed in cases of making physical copies for private or educational use or when an author has previously authorised the reproduction of the work in the EEA (the Consumption Principle). However, Section 12 of the Copyright Act explicitly excludes creating digital copies of copyrighted material or making copies of computer programs and software, and a 2016 ruling by the Swedish Supreme Court found that posting photos of public art online was not consistent with Swedish copyright law.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230928054256/https://wikimedia.se/2017/07/10/court-judgment-shrinks-public-space-in-sweden/
- https://web.archive.org/web/20231129014753/https://www.lexology.com/library/detail.aspx?g=2b8145b5-a80b-4a19-9d8d-a42b2131f96c
- https://web.archive.org/web/20230528203748/https://www.wipo.int/wipolex/en/text/580485
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SWEDEN
Since March 2010
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
The European Union and Sweden have adopted the World Intellectual Property Organization (WIPO) Copyright Treaty. The treaty was ratified on 14 December 2009 and came into effect on 14 March 2010.
Coverage Horizontal
SWEDEN
Since March 2010
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
The European Union and Sweden have adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty. The treaty was ratified on 14 December 2009 and came into effect on 14 March 2010.
Coverage Horizontal
SWEDEN
Since June 2016
Since May 2018
Since May 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 (2018:558) on Trade Secrets. (Lag (2018:558) om företagshemligheter)
Act (2018:558) on Trade Secrets. (Lag (2018:558) om företagshemligheter)
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. Sweden transposed the Directive through a series of amendments to existing legislation as well as the Trade Secrets Act of 2018.
Coverage Horizontal
SWEDEN
Since May 2022
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Electronic Communications Act (SFS 2022:482) (Lag (2022:482) om elektronisk kommunikation)
In Sweden, the sharing of passive infrastructure is mandated to support the delivery of telecommunications services to end users. Pursuant to Sections 15 and 16 of Chapter 5 of the Electronic Communications Act, operators classified as undertakings with significant market power may be required to comply with reasonable requests for access to and use of infrastructure essential for the construction of electronic communications networks, as well as networks and associated facilities necessary for providing electronic communications services.
Coverage Telecommunications sector
SWEDEN
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)
0.98%
Coverage rate of zero-tariffs on ICT goods (%)
78.47%
Coverage: ICT goods
SPAIN
Since May 2005
Pillar Online sales and transactions |
Indicator Restrictions on domain names
Order ITC/1542/2005 of 19 May 2005, which approves the National Plan for Internet domain names under the country code corresponding to Spain (".es") (Orden ITC/1542/2005, de 19 de mayo, que aprueba el Plan Nacional de nombres de dominio de Internet bajo el código de país correspondiente a España («.es»))
Only an individual or legal entity with interests in or ties to Spain has the right to acquire a ".es" domain. "Interests" or "ties" in Spain are broadly interpreted and include local presence from individuals and incorporated or unincorporated entities that are based, resident or registered in Spain. Examples are companies which wish to aim their services, either partly or in full, at the Spanish market and those that wish to offer information, products or services that are culturally, historically or socially linked to Spain. The latter is allowed, even if there is no local branch or service that is marketed in Spain.
Coverage Horizontal
SPAIN
Since June 2014
Since November 2007
Since November 2007
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Consumer Rights Directive 2011/83/EU
Royal Legislative Decree 1/2007 of 16 November, Approving the Revised Text of the General Law for the Protection of Consumers and Users and Other Complementary Laws (Real Decreto Legislativo 1/2007, de 16 de noviembre, por el que se aprueba el texto refundido de la Ley General para la Defensa de los Consumidores y Usuarios y otras leyes complementarias)
Royal Legislative Decree 1/2007 of 16 November, Approving the Revised Text of the General Law for the Protection of Consumers and Users and Other Complementary Laws (Real Decreto Legislativo 1/2007, de 16 de noviembre, por el que se aprueba el texto refundido de la Ley General para la Defensa de los Consumidores y Usuarios y otras leyes complementarias)
The Consumer Rights Directive 2011/83/EU provides an updated framework aimed at encouraging online sales. The Directive has been implemented by the Royal Legislative Decree 1/2007 of 16 November, Approving the Revised Text of the General Law for the Protection of Consumers and Users and Other Complementary Laws.
Coverage Horizontal
Sources
- https://web.archive.org/web/20200803112501/https://e-justice.europa.eu/content_consumer_rights_directive_201183-639-en.do
- https://web.archive.org/web/20230130150141/https://www.global-regulation.com/translation/spain/1445031/royal-legislative-decree-1-2007-of-16-november%2c-approving-the-revised-text-of-the-general-law-f...
