Brazil: TV in bars to pay royalties

Minister Sydney Benet, the Third Chamber of the Superior Court of Justice (STJ), decided to admit the claim filed by Central Bureau of Collection and Distribution (ECAD).

Background
A microenterprise filed suit against royalty payment with the claim that it was not proven that the TV would attract more customers. The company also claimed that most customers frequented the establishment for snacks. This argument was accepted by the Special Civil Court of Minas. ECAD appealed and the Segunda Turma Recursal (court of Appeal) denied it.

Minister Benet suspended the process, saying that the understanding adopted by the court is contrary to the Supreme Court. He mentioned that “Article 105 of the Constitution and 187 of the Internal Rules of the Supreme Court grant the Court the authority to process and adjudicate claims to preserve its own jurisdiction and to ensure their decisions”.

Benet said that it is “long established by the Supreme Court that bars, restaurants and hotels are subject to the payment of royalties when radio and television are provided in their premises.”

According to Resolution No 12/2009, the rapporteur has determined that the decision will be communicated to the President of the Court of Justice of Minas Gerais and also, to the President of the apellate proceedings. Others interested should manifest themselves within 30 days from the date of publication of the notice in the Diário da Justiça. Subsequently, the process will be referred to the Ministério Público Federal.