BRAZIL
N/A
Pillar Telecom infrastructure and competition |
Sub-pillar Functional/accounting separation for operators with significant market power
Requirement of accounting and functional separation for dominant network operators
It is reported that Brazil mandates functional and accounting separation for operators with significant market power (SMP) in the telecom market.
Coverage Telecommunications sector
BRAZIL
Since July 1997, last amended in 2021
Pillar Telecom infrastructure and competition |
Sub-pillar Other restrictions to operate in the telecom market
General Telecommunications Law No. 9.472/1997 (Lei Geral de Telecomunicações No. 9.472/1997)
According to Art. 86 of the General Telecommunications Law, a telecommunication service license can only be granted to companies organized and existing under Brazilian law and which have their principal place of business and administration in Brazil. Licensees that do not satisfy these requirements will be subject to the commitment of adapting themselves or setting up a new company that complies with such requirements prior to the execution of the concession contract or the authorization or permission term. Furthermore, Art. 87 determines that any company or holding company granted a concession that already renders, in the same geographical area, the same type of service subject to a bidding procedure will be obliged to transfer the service previously rendered to a third party within 18 months from the execution date of the concession agreement. Failure to observe this provision can result in forfeiture of the license, as well as other sanctions set out in the grant procedure.
Coverage Telecommunications sector
BRAZIL
Since May 1996
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Effective protection covering trade secrets
Law 9.279, of 1996 - Brazilian Industrial Property Law (Lei 9.279, de 1996 - Lei de Propriedade Industrial)
Law 9,279 provides a framework for effective protection of trade secrets. Art. 195 (XI, XII, and XIV) of the Law protects confidential, classified or undisclosed information. In addition, Art. 206 safeguards industrial secrets revealed in the context of judicial proceedings by ensuring special confidentiality.
Coverage Horizontal
BRAZIL
Since July 1997
Since April 2015
Since October 2017
Since April 2015
Since October 2017
Pillar Telecom infrastructure and competition |
Sub-pillar Passive infrastructure sharing obligation
General Telecommunications Law No. 9.472/1997 (Lei Geral das Telecomunicações No. 9.472/1997)
Law No. 13.116/2015 (Lei No. 13.116/2015)
Regulation for Sharing Support Infrastructure to the Provision of Telecommunications Services (Regulamento de Compartilhamento de Infraestrutura de Suporte à Prestação de Serviço de Telecomunicações)
Law No. 13.116/2015 (Lei No. 13.116/2015)
Regulation for Sharing Support Infrastructure to the Provision of Telecommunications Services (Regulamento de Compartilhamento de Infraestrutura de Suporte à Prestação de Serviço de Telecomunicações)
Brazil has established an obligation for passive infrastructure sharing to deliver telecom services to end users, and it is practiced in the mobile sector and in the fixed sector. According to Art. 73 of Law No. 9,472/1997, telecommunications service providers of collective interest will have the right to use posts, ducts, conduits, and easements owned or controlled by a provider of telecommunications services or other services of public interest, in a non-discriminatory manner and at fair and reasonable prices and conditions. On the other hand, Law No. 13,116/2015 establishes general rules for the implementation and sharing of telecommunications infrastructure. Additionally, Agência Nacional de Telecomunicações (Anatel, National Telecommunications Agency) Resolution No. 683/2017 approved the Regulation for Sharing Support Infrastructure to the Provision of Telecommunications Services, which aims to discipline the sharing of infrastructure.
Coverage Telecommunications sector
Sources
- http://www.planalto.gov.br/ccivil_03/leis/l9472.htm
- http://www.planalto.gov.br/ccivil_03/_Ato2015-2018/2015/Lei/L13116.htm
- https://www.anatel.gov.br/legislacao/resolucoes/2017/949-resolucao-683
- https://www.oecd-ilibrary.org/sites/1343f784-en/index.html?itemId=/content/component/1343f784-en
- https://www.azevedosette.com.br/news/en/telecoms-infrastructure-iii-network-sharing-neutral-network/5986
- https://datahub.itu.int/data/?i=100014
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BRAZIL
N/A
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Signature of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Brazil has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
BRAZIL
N/A
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Brazil has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty
Coverage Horizontal
BRAZIL
Since April 1978
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
Brazil is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
BRAZIL
Since June 1998
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Copyright law with clear exceptions
Law 9.610, of 1998 - Brazilian Copyright Law (Lei 9.610, de 1998 - Lei de Direitos Autorais)
Brazil has a copyright regime under Law 9.610. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted works by third parties. Sections 46, 47 and 48 list the exceptions, which include the reproduction of: news or informative articles, published in newspapers or periodicals, mentioning the author's name; speeches delivered at public meetings of any nature; portraits, or any other form of representation of the image, made on commission, when made by the owner of the object ordered, without opposition from the person represented in them or his heirs; among others.
Coverage Horizontal
BRAZIL
Since October 1988
Since December 2002
Since December 2002
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Federal Constitution (Constituição Federal)
Law 10.610, of 2002 (Lei 10.610 de 2002)
Law 10.610, of 2002 (Lei 10.610 de 2002)
The Federal Constitution, in Art. 222, states that editorial responsibility and the activities regarding selection and management of the programming to be disseminated shall be carried out exclusively by native Brazilians or those naturalized for more than 10 years, in any social communication medium. It also adds that electronic social communication media, regardless of the technology used to deliver the service, shall comply with the principles stipulated in Art. 221, as provided by specific legislation, which shall also ensure priority to Brazilian professionals in the production of Brazilian programs.
This is reiterated in Law 10,610/2002, which establishes that the control and management of broadcasting companies and news companies must be exercised exclusively by Brazilians, born or naturalized for more than 10 years.
This is reiterated in Law 10,610/2002, which establishes that the control and management of broadcasting companies and news companies must be exercised exclusively by Brazilians, born or naturalized for more than 10 years.
Coverage Electronic social communication media
Sources
- https://www2.senado.leg.br/bdsf/bitstream/handle/id/243334/Constitution_2013.pdf?sequence=11
- http://www.planalto.gov.br/ccivil_03/Leis/2002/l10610.htm
- https://assets.contentstack.io/v3/assets/blt3de4d56151f717f2/bltfc179da7fbec29f4/5f3307431967337e7590d563/Lexology_Getting_The_Deal_Through_-_Telecoms_&_Media_2020.pdf
- https://uk.practicallaw.thomsonreuters.com/7-570-8027?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a810339
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BRAZIL
Reported in 2005, last reported in 2022
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
Complaints on patent applications
It is reported that there are complaints regarding the pendency of patent applications and the impact on the effective term of patents.
Coverage Horizontal
Sources
- http://www.planalto.gov.br/ccivil_03/leis/l9279.htm
- https://www.wipo.int/pct/en/pct_contracting_states.html
- https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
- https://ustr.gov/archive/assets/Document_Library/Reports_Publications/2005/2005_NTE_Report/asset_upload_file383_7446.pdf
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BRAZIL
Since 2006, last amended in 2021
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Complementary Law 123 of 2006, amended by Complementary Law 147 of 2014 (Lei Complementar 123 de 2006, emedada pela Lei Complementar 147 de 2014)
Complementary Law 123 of 2006, amended by Complementary Law 147 of 2014 and last amended in 2021, provides that procurement of items up to 80.000 BRL (approx 15.000 USD) are exclusive for Brazilian Micro and Small Enterprises (SMEs) (Art. 47 and 48). These preferences may cover digital products and services. Besides, micro and small enterprises of Brazilian origin have certain preferences such as the right to an extra bid if it offers a price 10% higher and a 25% set-aside of the number of items of larger contracts of goods if they are divisible.
Art. 49 states that these provisions do not apply if (i) the criteria for differentiated and simplified treatment for micro and small businesses are not expressly provided for in the invitation to tender; (ii) there is not a minimum of three competitive suppliers classified as micro-companies or small companies based locally or regionally and capable of fulfilling the requirements established in the invitation to bid; (iii) the differentiated and simplified treatment for micro and small companies is not advantageous for the public administration or represents damage to the set or complex of the object to be contracted.
Art. 49 states that these provisions do not apply if (i) the criteria for differentiated and simplified treatment for micro and small businesses are not expressly provided for in the invitation to tender; (ii) there is not a minimum of three competitive suppliers classified as micro-companies or small companies based locally or regionally and capable of fulfilling the requirements established in the invitation to bid; (iii) the differentiated and simplified treatment for micro and small companies is not advantageous for the public administration or represents damage to the set or complex of the object to be contracted.
Coverage Horizontal
BRAZIL
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Brazil is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country is in the process of acceding to the agreement, having formally requested accession in May 2020.
Coverage Horizontal
BRAZIL
Since October 1988
Since December 2002
Since December 2002
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Federal Constitution (Constituição Federal)
Law 10.610, of 2002 (Lei 10.610 de 2002)
Law 10.610, of 2002 (Lei 10.610 de 2002)
The Federal Constitution, in Art. 222, mentions that in all circumstances, at least 70% of the total capital stock and of the voting capital of newspaper companies, sound broadcasting companies, or sound and image broadcasting companies, shall be owned directly or indirectly by native Brazilians or those naturalized for more than ten years, who shall mandatorily exercise the management of activities and shall define the content of programming.
This restriction is reiterated in Law 10,610/2002, which forbids foreign ownership that exceeds 30% of the capital stock and voting capital of news companies and broadcasting companies. In addition, foreign equity participation in these companies must be done indirectly through a Brazilian company incorporated in accordance with Brazilian law. It is not clear whether the coverage includes the online provision of these services.
This restriction is reiterated in Law 10,610/2002, which forbids foreign ownership that exceeds 30% of the capital stock and voting capital of news companies and broadcasting companies. In addition, foreign equity participation in these companies must be done indirectly through a Brazilian company incorporated in accordance with Brazilian law. It is not clear whether the coverage includes the online provision of these services.
Coverage Newspaper companies, sound broadcasting companies, and sound and image broadcasting companies
Sources
- https://www2.senado.leg.br/bdsf/bitstream/handle/id/243334/Constitution_2013.pdf?sequence=11
- http://www.planalto.gov.br/ccivil_03/Leis/2002/l10610.htm
- https://www.tmgtelecom.com/wp-content/uploads/2021/06/TMG-Trends-and-issues-in-online-video-regulation-in-the-Americas-June-2021.pdf
- https://nextvnews.com/anatel-establishes-that-offering-linear-tv-channels-on-the-internet-is-not-considered-as-pay-tv/
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BRAZIL
Since 1993, last amended in April 2021, in force until April 2023
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law 8,666 regarding public procurement
Art. 3 of Law 8,666 establishes that:
- under equal conditions, as a tie-breaking criterion, preference is given, successively, to goods and services produced in the country, produced or provided by Brazilian companies, produced or provided by companies that invest in research and technology development in the country;
- in the bidding processes, a margin of preference may be established for manufactured products and for national services that meet Brazilian technical standards, technological development and innovation carried out in the country. For manufactured products and national services resulting from technological development and innovation carried out in the country, an additional margin of preference may be established to that provided. This margins may be applied to goods and services from the Southern Common Market (MERCOSUR). The margins are established by the Federal Executive Power, and their sum cannot exceed the amount of 25% on the price of foreign manufactured products and services.
- under equal conditions, as a tie-breaking criterion, preference is given, successively, to goods and services produced in the country, produced or provided by Brazilian companies, produced or provided by companies that invest in research and technology development in the country;
- in the bidding processes, a margin of preference may be established for manufactured products and for national services that meet Brazilian technical standards, technological development and innovation carried out in the country. For manufactured products and national services resulting from technological development and innovation carried out in the country, an additional margin of preference may be established to that provided. This margins may be applied to goods and services from the Southern Common Market (MERCOSUR). The margins are established by the Federal Executive Power, and their sum cannot exceed the amount of 25% on the price of foreign manufactured products and services.
Coverage Horizontal
BRAZIL
Since April 2021
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law of Tenders and Administrative Contracts No. 14,133 (Lei de Licitações e Contratos Administrativos No. 14,133)
Art. 26 of Law No. 14,133 states that a margin of preference in the bidding process may be established in favor of domestic manufactured goods and services that meet Brazilian technical standards. This margin may be up to 10% on the price of goods and services and also be extended to manufactured goods and services originating in States that are part of the Southern Common Market (Mercosur). The article also mentions that in the case of national manufactured goods and national services resulting from development and technological innovation in the country, the margin of preference may be up to 20%.
Coverage Horizontal