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HUB FOCUS: Legal issues in film production transactions in Hungary

Our global Media, Sport & Entertainment Hub provides insights into various legal and commercial issues impacting on this space.

As part of our “HUB FOCUS” series, we provide an extract, focusing on some of the legal issues arising in Hungarian film production transactions.


Hungarian copyright provisions are quite conservative and make it difficult for the producer to acquire a full and unlimited set of copyrights, particularly since authorship rights cannot be transferred, sold or waived. There are, however, very few copyright disputes in Hungary concerning authorship of film productions.

Tax relief

Part of the financial benefits from the tax rebate are realised after the actual production is closed. Therefore, there are occasionally settlement disputes between the Hungarian producer and the foreign producer, which can lead to litigation.

The National Film Office occasionally starts investigations on whether the costs legally complied with the tax rebate rules. The Hungarian tax and custom authority will conduct these investigations, which usually only deal with the most significant criminal cases of tax fraud and misuse of state subsidy.

Foreign proceedings

As the contractual web of foreign language production agreements is particularly complex and is mostly governed by foreign law, the parties often choose foreign arbitral proceedings or courts in which to litigate.”

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Permanent link to this article: https://blogs.dlapiper.com/mediaandsport/2015/10/hub-focus-legal-issues-in-film-production-transactions-in-hungary/