The STJ Ruling on Ecad Royalties
The Third Panel of the Superior Court of Justice (STJ, one of Brazil’s highest appellate courts) established that the Central Bureau for Collection and Distribution (Ecad, the entity responsible for collecting music royalties in Brazil) cannot unilaterally and without valid justification replace the occupancy rate reported by a hotel with generic market research data. The decision, which considered the practice illegal and abusive, was issued during the trial of Special Appeal (REsp) 2,284,318.
The dispute arose from a collection lawsuit filed by Ecad against a hotel in the city of Maceió, alleging default since September 2023. The collection agency claimed approximately R$ 24,000 in copyright royalties for room audio systems—meaning the provision of television and radio sets inside guest rooms.
To calculate the outstanding balance, Ecad applied regional average hotel occupancy rates published by the Brazilian Institute of Public Opinion and Statistics (Ibope). Ecad justified this method by arguing that the occupancy rates declared by the hotel itself were negligible and that the bureau had the autonomy to rely on divergent external data.
Regulation and Royalty Assessment Criteria in the Hotel Sector
STJ case law, consolidated under Repetitive Theme 1,066—a mechanism that standardizes rulings across multiple appeals with identical legal questions—already recognizes that making television and audio equipment available in hotel rooms allows Ecad to collect copyright royalties. However, the structure of such assessments must strictly adhere to regulations, precluding arbitrary adjustments.
The reporting justice, Ricardo Villas Bôas Cueva, pointed out that collective copyright administration is governed by Decree 9,574/2018. Under this regulation, Ecad issued its own fee schedule and collection rules establishing criteria to determine licensing fees for the hospitality industry. The calculation must consider three primary factors:
- The establishment’s total room inventory;
- The socioeconomic region where the hotel is located;
- The hotel’s actual occupancy rate.
Under Ecad’s own internal rules, there is a clear hierarchy for obtaining occupancy rates. The primary rule requires the figure to be provided directly by the hotel via a formal statement submitted by its accountant or company manager. The use of market averages, such as those published by Ibope, is a subsidiary rule—meaning a fallback alternative applicable only when the establishment fails to present the required accounting documentation.
The Presumption of Veracity and the Burden of Proof
Upon reviewing the appeal, the STJ concluded that the declaration submitted by the hotel carries a relative presumption of veracity—a legal principle establishing that information must be treated as true until proven otherwise. To overcome this presumption, Ecad must provide concrete evidence showing that the documents submitted by the user are invalid or unsuitable.
“Such a presumption can only be rebutted through an objection or challenge by Ecad, which must necessarily discharge the evidentiary burden of proving the invalidity or unsuitability of the documents submitted by users,” stated Justice Ricardo Villas Bôas Cueva.
The court held that a mere unsupported allegation that the hotel’s reported rates were insignificant does not justify altering the calculation base. The justice underscored that the collection regulation is a legal instrument that binds both parties. By ignoring its own internal rules, Ecad frustrated the hotel’s legitimate expectation of being assessed on its actual figures. In the court’s view, this conduct constitutes a breach of good faith, rendering the collection illegitimate.
Practical Considerations for Hotel Governance
This STJ decision provides legal certainty and highlights the critical role of document management for hospitality companies and real estate investors. By maintaining precise operational records and submitting occupancy declarations duly signed by certified accountants or managers, hotels ensure that copyright royalties reflect the financial reality of their operations.
The ruling prevents generic market estimates from unduly burdening hotel operations. For Ecad to disregard a hotel’s formal declaration, it must pursue appropriate legal avenues and demonstrate concrete proof of documentary inconsistency, as unilateral changes to the billing methodology are not permitted.
This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.
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