Brazil passes law requiring display of Brazilian content on TV and in cinema theaters

On January 16th, the Brazilian laws 14.814 and 14.815  were published, after receiving approval by President Luiz Inácio Lula da Silva. The laws establish an obligation to exhibit Brazilian works in cinemas and on paid TV. These laws stem from two bills approved by the Senate in December 2023.

The topic had been under discussion since last November when representatives from the Brazilian audiovisual sector presented demands to protect the local TV and movie industry from competition from American cinema and streaming services. The difficulty of keeping Brazilian films on screens, after the removal quotas in 2021, was emphasized.

"The reintroduction of quotas is expected to have a more significant impact, as these quotas ceased 2020, and their absence is pointed out as one of the reasons for the significant drop in the market share of national works during this period," said José Maurício Fittipaldi, media and entertainment partner at the law firm CQS/FV Advogados, one of the top Brazilian media firms - as confirmed by Leaders League’s latest Media and Entertainment law firm ranking for the country - and president of the media, entertainment and culture Commission of OAB/SP (the Brazilian Bar Association in São Paulo).

Law 14.814/24, which re-establishes a  quota for the commercial exhibition of Brazilian cinematographic works, will be in effect until 31/12/2033. This change aims to prioritize Brazilian cinema by ensuring companies, the film industry, and companies running cinemas include Brazilian feature films in their scheduled programming, by stipulating a minimum number of sessions and a diversity of titles.

Furthermore  Law 14.815/24 amends MP 2.228-1/01, the regulation which defines the general principles of the Brazil’s national cinema policy. With this change, it is established that, from now until 2043, companies in domestic video screening and distribution sector must include Brazilian cinematographic works in their programming. Additionally, domestic video distribution companies are required to reserve a percentage in their catalogs for Brazilian cinematographic and videophonic works, launching them commercially.

The new legislation also amends Article 41 of Law 12.485/11, which deals with “Pay TV”, extending the validity of Articles 16 to 23 until 31/12/38. These articles establish minimum levels of exhibition of national content, especially shows and movies by independent producers.

“Law 14.815 also establishes an important measure in the fight against audiovisual piracy by expressly determining the authority  of the National Cinema Agency (Ancine) to ‘determine the suspension and cessation of unauthorized use of protected Brazilian or foreign works’,” explained Fittipaldi.

The government’s intention with the new laws is to encourage the consumption of national works, both on TV and in cinema, valuing domestic production and promoting the self-sustainability of the Brazilian film industry. Implementation of the laws will be handled by Ancine, which will have its powers expanded to oversee the compliance of these measures by companies in the sector.

João Paulo Morello, founding partner and head of the media and entertainment department at Coelho & Morello Advogados, and a member of the media, entertainment, and culture committee of OAB/SP, recalls the recent case of South Korea, where a similar law was approved and helped foster and maintain competition with international studios and streaming services.

“The existence of mechanisms that ensure the production of cultural works closer to our local reality, which often compete unfavorably with massive productions from developed countries, is crucial, especially in the cinematic context. There was concern within the cultural sector about the end of this policy, which was dispelled by the publication of these laws."

The lawyer also commented that both laws will go a long way to ensuring growth for the sector, both in cultural and economic terms.