The trial that began on April 28, 2016 in a Plenary Session of the Federal Supreme Court (STF) and was resumed on October 27, 2016 dismissed the Direct Actions of Unconstitutionality (ADIs) 5062 and 5065. Those actions deal with questions regarding the Central Office of Collection and Distribution (ECAD) and the Brazilian Union of Composers (UBC), together with other institutions of collective management and the changes made by the Law, which modified the Brazilian Copyright Law.
The main changes brought with the advent of this new law are: the establishment of mandatory publicity and transparency of the collection and distribution statutes and regulations and the criteria of calculation used by collective management associations; the State supervision of collection activity executed by ECAD, which depends on specific regulations; the solidary responsibility of the directors of associations of collective management of copyrights with their private property, for misuse of purpose or for the default of obligations in relation to the associates, by intent or negligence; and the establishment of minimum distribution percentages to the authors and other copyright holders of the amounts collected by public execution.
The institutions, like ECAD and UBC, claimed those changes would directly violate constitutional rules and principles related to essentially private property rights and to the freedom of association.
However, the Federal Supreme Court concurred with the State and determined that the regulation of the matter does not contradict the freedom of initiative or association nor the right to private property, and the law was considered constitutional.
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PDF file: newsletter-stf-ecad