20th Century Fox Brazil has lost its bid to block a local tax levied on imports of all film product and on profits from foreign film distribution.

Introduced alongside the launch of national film entity Ancine, tax revenues are intended to support local film production and distribution, a scheme modelled after one managed by the CNC in Paris. "The taxation rates are either 3% or 11%, depending on the situation," said Ancine spokesman Antonio Augusto.

Fox Brazil has filed an appeal for tax it has declared unconstitutional. Other distributors have filed separate injunctions. A local film company, Didak Ltd, lost its injunction attempt last February.

Rio de Janeiro-based MPA Latin America has issued a statement declaring that the federal court's decision was not final. "The decision in question was made under duress and the merit of the security resolution is far from being the final say on the subject."