Brazil's STJ limits Ecad's ability to override hotel occupancy rates

The Third Panel of the Superior Court of Justice (STJ) has ruled that the Central Bureau for Collection and Distribution (Ecad) must use the actual occupancy rates declared by hotels when calculating copyright fees for music and audiovisual works played in guest rooms.

The decision stems from a dispute involving a hotel in Maceió, Alagoas. Ecad sought approximately R$ 24,000 in unpaid royalties, arguing that the hotel's reported occupancy rates were unrealistically low. To justify the higher amount, Ecad used market research averages from Ibope instead of the hotel's own declarations.

Relator Minister Ricardo Villas Bôas Cueva stated that occupancy declarations provided by establishments, as per Ecad's own collection regulations, carry a relative presumption of truthfulness. While these declarations can be contested, the burden of proof lies with Ecad to demonstrate through evidence that the provided information is invalid or inconsistent with reality. The court found that unilaterally substituting declared data with market research without such proof constitutes abusive conduct.