1E9Ct5D

A foreign company may license a program directly for the exclusive use of the end user in the Countryor may license it to a company that will distribute it in the market. Moreover, the remuneration for theuse or distribution of the software may be freely established by the parties.With respect to the marketing of software in Brazil, the law merely establishes that the use ofcomputer programs in the Country shall be the subject of a licensing contract. However, in the event ofthe absence of such license, the tax document relating to the acquisition or licensing of the programcopy will be sufficient to prove the regularity of its use. In the case of licensing agreements for therights to market computer programs of foreign origin, such agreements shall establish theresponsibility for the payment of imposed taxes and charges. These acts and agreements will alsoestablish the remuneration of the owner of the computer program rights residing or domiciled abroad.The entity remitting the foreign currency amount, in payment of the said remuneration, shall keep in itspossession, for a period of 5 years, all the necessary documents to evidence the lawfulness of theremittances.In the cases of the transfer of computer program technology (specifically in cases involving thedelivery of source codes), the Brazilian Patent and Trademark Office will register the respectiveagreements, in order for them to produce effects in relation to third partiesIn the fiscal sphere, there are many doubts with respect to the applicable taxation, which is an issuethat needs to be analyzed on a case-by-case basis.9. INVITATIONS TO BID – PUBLIC AUTHORITY CONTRACTS9.1. General InformationAccording to a provision of the Brazilian Constitution, as a rule, public works, services, purchases,sales and leases, on the part of the Public Authorities, must be procured by an invitation to bid, toensure that the most advantageous proposal for the Public Administration is selected. Within thefederal sphere, the matter is disciplined by Law 8,666 of 21 June 1993, which also establishes thegeneral rules for the direct and indirect public administration, spanning all governmental spheres.It is important to note that invitations to bid for the concession of public services are regulated by laws8,987 of 13 February 1995 and 9,074 of 7 July 1995 ("Public Service Concession Acts"), due to thehigh relevance for the execution of the public policies of the Brazilian Government and to thepeculiarities involving private investments in this sector. Therefore, the Bidding Law is applicable onlyon a subsidiary basis.61