Safeguarding Intellectual Property in the Republic of Panama

p>Panamanian Intellectual Property Law No. 35 ofThe Attorney General's Office and the Customs
May 10, 1996, replaced the obsolete legal provisionsBureau are officially empowered to initiate
on Intellectual Property, which were in existence forinvestigations on Intellectual Property matters.
more than sixty years. This law simplifies the processThe Customs Bureau and the Free Zone
of registering trademarks and allows for renewal of aAdministration are duly empowered to keep records
trademark for ten-year periods. The law's mostof the Panamanian Intellectual Property Registrations
important feature is the granting of ex-officiofor companies willing to protect their intellectual
authority to government agencies to conductproperty through barrier measures. GALINDO, ARIAS
investigations and to seize materials suspected of& LOPEZ offers the service of registering a
being counterfeited.Panamanian Trademark Registration before the
This new legislation introduced modem conceptsCustoms Bureau and the Colon Free Zone.
recommended by the World Intellectual PropertyWith the information in the register, the authorities
Organization (WIPO), consistent with the policies ofcan control and even seize merchandise more
the World Trade Organization (WTO), thus bringingeffectively at the Colon Free Zone and Customs.
Panama into line with international developments onThese measures take importance because allowing
industrial property, which has reduced thean infringing product to remain on the market will hurt
infringement of foreign trademark rights in Panama.the right-holder's sales and lead to a risk of market
In addition, Panama is party to the followingconfusion.
international agreements:Some complexities involved in establishing or
(a) The Trade Related Intellectual Property Rightsenforcing IP rights on a cross border/international
(TRIPS) contained in the Marrakech Treaty,scale, are time factor and expertise on the part of
approved by means of Law No. 23 of 1997;the authorities. In view of the seriousness of the
(b) The Berna Convention approved by means ofsanctions involved, which require that decisions be
Law No. 3 of January 3 1996;taken as quickly as possible, time is of the essence.
(c) World Intellectual Property Organisation (WIPO)Demanding cessation of infringement only makes
Treaty approved by means of Law No. 93 of 15sense if a court order can be issued quickly. For this
December 1998;reason, preliminary injunctions play a major part in
(d) The General Inter-American Convention forenforcing IP rights, since these measures are
Trademark and Commercial Protection approved byintended to prevent further infringement until the
means of Law No. 64 of 1934; andcourt has decided on the merits of the case.
(e) The Paris Convention, approved by means ofOn the other hand, the demand for a quick
Law No. 41 of 1995.procedure, leading to a very tough sanction, requires
In Panama, differing from other jurisdictions whereexpertise on the part of the judges. Only judges fully
cases of industrial property are of administrativeversed in intellectual property matters are prepared
nature, since 1997, the IP jurisdiction has beento make speedy use of this prohibitory instrument. It
removed from the Ministry of Commerce andis also necessary to ensure the participation of
Industry and given to special courts with exclusivewell-trained legal practitioners and attorneys.
competence to handle IP conflicts (ie, oppositions,Finally, costs are an issue of major practical
cancellations, infringement of trademarks andimportance in establishing or enforcing IP rights on a
copyrights, etc). Also, the District Attorneys' office iscross border/international scale. With the complexity
specialized in the prosecution of IP rights. Since theof these matters, retaining the services of experts,
creation of this specialized jurisdiction within the courtand of specialized legal practitioners in addition to
system, the proceedings regarding these subjectsattorneys, imposes a heavy financial burden on the
have been more expedite and owners are allowed toparties. Measures such as taking evidence and
get a better protection of their IP rights in Panama.carrying out tests and investigations on the infringing
The creation of specialized prosecutors for intellectualgoods also involve further costs. In some cases, in
property-related cases has strengthened theIntellectual Property infringement proceedings, the
protection and enforcement of intellectual propertyfinancially weaker party is always in disadvantage.
rights (IPR) in Panama.The United States concluded free trade negotiations
Panamanian Intellectual Property Law also includeswith Panama on 2006. This trade agreement will
criminal enforcement and criminal penalties such aseliminate tariffs and other barriers to goods and
prison, which are the most effective methods andservices, promote economic growth, and enhance
procedures in the fight against infringement oftrade between the United States and Panama.
intellectual property rights.This trade agreement includes a chapter on
Another major difference from foreign jurisdictions isIntellectual Property. Conventions such as the Madrid
that in Panama custom authorities and administrativeArrangement concerning the International Registration
authorities from the Colon Free Zone, which haveof Marks, and the Patent Cooperation Treaty (PCT)
their own special brand register, are empowered bywill be mandatory in the Republic of Panama.
law to retain, inspect and even seize counterfeitThe agreement provides for improved standards for
goods; in some cases, these institutions may proceedthe protection and enforcement of a broad range of
even without the need of a claim or process in caseintellectual property rights, which are consistent with
of suspicion of counterfeited goods.both U.S. standards of protection and enforcement,
On the other hand, Panama's 1994 copyright lawand with emerging international standards. Such
modernized copyright protection and its 2004 updateimprovements include protections for digital products
created a special Copyright Office with anti-piracysuch as U.S. software, music, text, and videos and;
enforcement powers.stronger protection for patents, trademarks and test
The Republic of Panama is signatory to the WIPOdata, including an electronic system for the
Copyright Treaty and the WIPO Performances andregistration and maintenance of trademarks.
Phonographs Treaty. The copyright office hasStrengthening and improving Panama's overall regime
enhanced border measures and established newfor the protection and enforcement of intellectual
punishable offenses, such as for Internet-basedproperty rights in a broad range of areas was an
copyright violations which have significantly reducedimportant objective of the FTA negotiations.
the rate of VHS piracy.In Panama's climate, businesses are often looking for
Panama worked through the FTA negotiations witha way of putting themselves ahead of competitors;
the United States of America to establish a legalmany companies lack a clear understanding of exactly
regime to combat piracy of audiovisual products overwhat their intellectual property is or what it's worth.
the Internet, including notice and take downMany businesses are unaware of the extent of their
provisions and clearly defined Internet Serviceintellectual property and the consequences of failing
Provider (ISP) liabilities and copy protection measures.to protect it properly.
At the international level, Panamanian government hasTherefore, businesses are realizing the importance of
reinforced the legal framework and institutionalan effective protection and use of intellectual
arrangements to comply with the existingproperty and companies are seeking expert legal
international treaties, including more effectiveadvice to find out the best way to protect their
methods and procedures to all intellectual propertyintellectual property and also to understand how best
matters, such as:to enforce it.
• Administrative enforcement, such as seizure ofSome companies are tending to implement measures
infringing goods by a customs office;in order to have an inventory of their intellectual
• Criminal enforcement against the infringer;property to determine what the company's
• Civil enforcement, in which the right holder, orintellectual property is, where it is, and what it is
someone in possession of valid rights, such as anworth; and also to understand that managing the
assignee or licensee, takes prescribed legal action,company's intellectual property is more than just
such as in court by filing a civil action against anregistering patents and trademarks.
infringer, and perhaps seeking an injunction;Companies are starting to implement processes to
• Technological enforcement, in which producers ofidentify intellectual property that belongs to others -
products and services employ technological means tosuch as knowledge and trade secrets of competitors
protect IP rights against infringement (for example,that may accidentally come into their business with
encryption of digital copyright works).new personnel.
• Border measures before the Customs Office andBetween in-house resources and outside advisors,
the Colon Free Zone Authority. In order to enforcecompanies are making sure to cover intellectual
IP rights, Panamanian Intellectual Property Law grantsproperty licensing, strategic alliance structuring,
discretionary powers and faculties to Customs andcounterfeit and grey market tracking, due diligence
The Colon Free Zone authorities to conducton partners and employees, registration of patents,
investigations and retain any goods suspected ofcopyrights, trademarks and trade secrets, intellectual
being imitations, including the confiscation ofproperty valuation and royalty and revenue recovery.
equipment used to manufacture fake goods.