We rely on vendors to develop new technologies to improve service offerings and reduce costs. We expend minimal amounts on research and development. Until the Breakup of Telebrás, Embratel and the other companies of the Telebrás System were required to contribute to the research and development center operated by Telebrás, known as Centro de Pesquisa e Desenvolvimento da Telebrás or the CPqD, in addition to their own independent research and development activities. Embratel had aggregate expenditures in respect of research and development activities of R$8.1 million, R$15.9 million and R$19.9 million for 2000, 1999, and 1998, respectively.

The CPqD is a private, independently administered, non-profit foundation financed with resources from the public and private sector and will continue to develop communications technology. Pursuant to a three-year contract signed in May 1998 between Telebrás and Embratel, we are required to contribute up to R$63.2 million during the three years ending July 2001 to the CPqD. During the term of this agreement, we have access to telecommunications software developed by the CPqD and other technological services provided by the CPqD such as equipment testing and consulting and training services. The CPqD may also provide such services to third parties on a fee-for-service basis. As of the end of 2000, we had contributed approximately R$61.2 million toward the CPqD agreement, which includes the research and development services along with software and training services.

We also outsource some of our research and development activities to universities, including Pontificia Universidade Católica de Rio de Janeiro, Universidade Federal de Campinas and Universidade Federal do Rio de Janeiro, Coordenação de Programas de Pós-Graduação em Engenharia. We spent approximately R$0.5 million on these outsourcing contracts in 2000.
We actively protect our intellectual property rights in Brazil and relevant foreign jurisdictions. Most of our trademarks, including the Embratel tradename and the other related Embratel product names are protected through trademark legislation.