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ANCINE’S NORMATIVE RULING ESTABLISHES PAYMENT OF A FEE FOR ADVERTISING TRANSMITTED ON THE INTERNET

17Jul2017Jul17,2017
Intellectual Property; Tax; Telecommunications
The Brazilian Film Agency (“ANCINE”) published on May 9, 2017, Normative Ruling No. 134 (“NR No. 134”), which amends Normative Ruling Nos. 95/2011 and 105/2012 and regulates the use of advertising on the internet.

Pursuant to NR No. 134, as of July 18, 2017, audiovisual advertising, even if created exclusively to be transmitted on the internet, must be registered with ANCINE upon payment of a fee called, “Contribution for the Development of the National Film Industry” (“CONDECINE”).

In summary, the same rules previously only applicable to commercials and other advertising exhibited on television will also apply to commercials and advertising broadcast on the internet. 

NR No. 134 does not stipulate, however, what types of advertising will be subject to payment of CONDECINE. Although the rule for advertising on television is applicable only to videos that use advertising space during commercial breaks, on the internet the possibilities are numerous, including, for example, the use of audiovisual work to sponsor posts on social networks, advertorials and advertising on influencers’ posts. The application of NR No. 134 in respect of all types of online advertising is still uncertain. 

With respect to national advertising, CONDECINE must be paid by the production company. For foreign work, the contribution must be collected by the licensee, or by the holder of the right to exploit the work.

In view of the foregoing, certain controversies regarding the legality and constitutionality of NR No. 134 have been raised.

Attorneys in the Tax, Intellectual Property and Information Technology pratices


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