Database

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HUNGARY

Since December 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Government Decree No. 561/2022 of 23 December 2022 on the Different Application of Certain Provisions Necessary for the Protection of Hungarian Companies for Economic Purposes During the State of Emergency (561/2022. (XII. 23.) Korm. rendelet a magyarországi gazdasági társaságok gazdasági célú védelméhez szükséges egyes rendelkezések veszélyhelyzet ideje alatti eltérő alkalmazásáról)
Since May 2020, Hungary has applied an “Alternative FDI Regime”, established under Chapter 85 of Act LVIII of 2020 and its implementing Government Decree. Originally designed as a temporary measure set to expire at the end of 2021, the regime was extended and reinstated through Government Decree No. 561/2022, thereby making it permanent.
The regime applies to a broad range of transactions, not limited to share acquisitions. It encompasses convertible instruments, usufruct rights, corporate transformations, asset purchases, capital injections, and in-kind contributions.
Under Art. 3 of Decree No. 561/2022, notification is required whenever a foreign investor directly or indirectly acquires:
(i) at least a 5% stake in a strategic company (or 3% if the company is publicly listed), provided the transaction value reaches HUF 350 million (approx. EUR 900,000); or
(ii) at least a 10% stake, regardless of deal value; or
(iii) a stake resulting in the combined shareholding of foreign investors reaching 25% in a strategic company, regardless of deal value.
According to Art. 2 of the Decree a strategic company is defined as a limited liability company, a privately held joint-stock company, a publicly held joint-stock company, or a higher education institution with a registered office in Hungary, whose main or additional activity falls within a sector of strategic significance as defined in Annex 1, particularly in the energy, transportation, or communication sectors, as well as industries defined under Regulation (EU) 2019/452 of the European Parliament and Council of 19 March 2019, which establishes a framework for the screening of foreign direct investments into the Union.
Annex 1 lists an extensive coverage of sectors, including publishing activities, telecommunications, and information technology services, among others.
Coverage Strategic sectors, including publishing activities, telecommunications, and information technology services

HUNGARY

Since June 1995

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Act XXXIII of 1995 on the Protection of Inventions by Patents (1995. évi XXXIII. Törvény a találmányok szabadalmi oltalmáról)
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.
Coverage Horizontal

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

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
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'HU')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"100449"},{"post_id":"100450"},{"post_id":"100451"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'HU')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'HU')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
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

GUINEA-BISSAU

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Guinea-Bissau has not adopted national legislation based on, or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

GUINEA-BISSAU

Reported in 2022, last reported in 2024

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that in Guinea-Bissau, the de minimis threshold, that is, the minimum value of goods below which Customs Authority do not charge duties, is USD 100, below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal

GUINEA-BISSAU

Since October 2012

Pillar Online sales and transactions  |  Indicator Restrictions on domain names
Decree No. 7/2012 of 23 October - Regulations of the Domain name registration (Decreto No. 7/2013 de 23 de Outubro - Regulamento do Registo de Domínios)
Art. 2 of Decree No. 7/2012 states that only entities legally incorporated or residents in Guinea-Bissau can acquire local domain names ".gw". However, under certain conditions, temporary domain registration can take place, namely if the foreign company appoints a local legal representative and presents a declaration duly certified committing to set up the company in Guinea-Bissau.
Coverage Horizontal

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