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CZECH REPUBLIC

Since May 2005

Pillar Telecom infrastructure and competition  |  Sub-pillar Presence of independent telecom authority
Presence of independent telecom authority
It is reported that the Czech Telecommunication Office (CTU), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.
Coverage Telecommunications sector

CZECH REPUBLIC

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
The Czech Republic does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is required in certain cases.
Coverage Telecommunications sector

CZECH REPUBLIC

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Passive infrastructure sharing obligation
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 in the Czech Republic, and it is practiced in the mobile and fixed sectors based on commercial agreements. 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 has the obligation to 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

CZECH REPUBLIC

Since June 2016
Since April 2006, as amended in December 2018

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar 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 on Enforcement of Industrial Property Rights
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. The Czech Republic has transposed Directive (EU) 2016/943 by introducing an amendment to the Act on the Enforcement of Industrial Property Rights in December 2018.
Coverage Horizontal

CZECH REPUBLIC

Since March 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
WIPO Copyright Treaty
The Czech Republic has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

CZECH REPUBLIC

Since May 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
The Czech Republic has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

CZECH REPUBLIC

Since May 2001
Since April 2000, entry into force in December 2000, last amended in February 2019

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

Copyright Act
The Czech Copyright Act has no general fair use/fair dealing but provides an exhaustive list of exceptions and limitations of copyright which, in certain specific cases, allow the general public to use works without the author’s consent. The recent EU's Copyright Directive 2019/790 has yet to be implemented. 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.
Coverage Horizontal

CZECH REPUBLIC

Reported in 2018, 2021

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Despite the business software piracy rates are decreasing in the Czech Republic, it is reported that the entertainment software industry reports that the level of piracy for its products continues to be problematic, with delays in criminal enforcement proceedings. However, it is reported that the rate of unlicensed software installation in the country was 32% in 2017 (below the 57% rate of Central and Eastern European countries), for an estimated commercial value of unlicensed software of USD 149 million.
Coverage Horizontal

CZECH REPUBLIC

Since January 1993

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
The Czech Republic is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

CZECH REPUBLIC

Since March 2019
Since February 2021

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Regulation 2019/452 establishing a framework for the screening of foreign direct investments

Foreign Investments Screening Act
Under the Regulation 2019/452, Member States may maintain their existing investments screening mechanisms (21 Member States currently do), adopt new ones or remain without such national mechanisms. The Commission keeps an up-to-date list of screening laws in the EU. Member States must notify the Commission who may issue an opinion when an investment threatens the security or public order of more than one Member State, or when an investment could undermine a strategic project or programme of interest to the whole EU, such as Horizon 2020 or Galileo. The final decision remains with the Member State.
The Screening of Foreign Investments Act focuses on foreign investors whose ultimate beneficial owner originates from non-EU countries, and who acquire at least 10% of voting rights in or/and substantial control over a targeted Czech company active in a sector important for the security, public, or internal order of the Czech Republic. If the target company does business in the field of selected dual-use goods, or belongs to critical or critical information infrastructure (defined by special laws), the investor will have to request mandatory authorisation from the Ministry of Industry and Trade (MOIT) before completion of the investment. The screening period is 90 days. If a national security risk is identified, the Czech government will have a further 45 days to decide whether it will approve, conditionally approve, or, prohibit the transaction.
Coverage Horizontal

CZECH REPUBLIC

Reported in 2021

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Lack of transparency in public procurement
It is reported that the lack of transparency is a challenge for public procurement procedures in Czech Republic, especially for foreign bidders, including with respect to overly narrow definitions of tenders, and implicit biases in favor of local vendors and state-owned enterprises.
Coverage Horizontal

CZECH REPUBLIC

Since March 2004, last amended in February 2014
Since April 2016, last amended in 2021

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

Act No. 134/2016 on Public Procurement (Zákon č. 134/2016 Sb., o zadávání veřejných zakázek)
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 Czech Republic, the Directive has been transposed with the Act No. 134/2016 on Public Procurement.
Coverage Any product sold to a utility provider including software used in telecommunication network equipment

CYPRUS

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Cyprus 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

CYPRUS

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Cyprus has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

CYPRUS

Since June 2014
Since 2013, last amended in 2021

Pillar Online sales and transactions  |  Sub-pillar Framework for consumer protection applicable to online commerce
Consumer Rights Directive 2011/83/EU

Consumer Protection Law of 2021 Ν. 112(Ι)/2021
The Consumer Rights Directive 2011/83/EU provides an updated framework aimed at encouraging online sales. The Directive has been implemented by the Consumer Protection Law of 2021 Ν.112(Ι)/2021. The law gives the Consumer Protection Service wider authority to impose sanctions, including administrative fines, and to apply to the court for injunctions in cases of violations. The legislation consolidates the laws in relation to consumer rights, unfair commercial practices, misleading and comparative advertising, unfair terms in contracts, indication of product prices, conditions for the sale of goods at discount prices, and product guarantees.
Coverage Horizontal