RESTRICTEDWORLD TRADE
ORGANIZATIONIP/Q/PAN/1
IP/Q2/PAN/1
IP/Q3/PAN/1
IP/Q4/PAN/1
13 April 1999
(99-1471)
Council for Trade-Related Aspects
of Intellectual Property Rights
REVIEW OF LEGISLATION
PANAMA1
This document reproduces the questions put to the Permanent Mission of Panama together
with the corresponding responses for the purposes  of the review of copyright and related rights
legislation undertaken at the Council meeting held on 1-2 December 1998.2
_______________
I. INTRODUCTORY STATEMENT
1. Background
Panama’s negotiation of accession to and its subsequent membership of the World Trade
Organization (WTO) and the consequent commitmen t to implement the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS Agreement) have confronted the country with fresh
challenges.
In the last four years, the Panamanian intellectual property regime has undergone major
changes.  In particular, many amendments and additions to the domestic legislation have led to a
systematic transformation of the Panamanian system of intellectual property law.  Panama now has a
complete and modern set of intellectual property legislation.
Following the comprehensive reform of its intellectual property legislation, Panama has
concentrated its efforts on strict enforcement so as to ensure the robust and effective protection of the
rights which the regime bestows.
The legislation has extended the framework of protection granted under the Panamanian legal
system to, among other property, utility models, industrial and commercial designs, collective
guarantee marks, geographical indications, designations of origin, trade names, advertising slogans
and signs, computer programs, etc.
The law makes no distinction between nationals and foreigners as regards the requirements
for the registration of inventions and trademarks, and enforcement and application are based on the
national treatment and MFN principles.
                                                     
1For further information concerning the laws and regulations relating to the subject matter of the
review, notified by Panama under Article 63.2, re ference should be made to documents IP/N/1/PAN/1,
IP/N/1/PAN/C/1, IP/N/1/PAN/C/2, IP/N/1/PAN/E/1, IP/N/1/PAN/E/2, IP/N/1/PAN/I/1, IP/N/1/PAN/I/2 andIP/N/6/PAN/1.
2The minutes of the meeting were circulated in document IP/C/M/21.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 2
The competent authority for the registration process is still the Directorate-General for
Industrial Property Registration of the Ministry of Trade and Industry.  The new system has
established a series of specialized courts and tribunals with exclusive jurisdiction over disputes
between private individuals relating to oppositions, cancellations and nullity.  The criminal courtscontinue to have jurisdiction over offences relating to industrial property. In criminal cases, the new
system envisages a radical departure for the Panamanian legislation inasmuch as the right holder will
be able to play an active part in the pre-trial and criminal proceedings as a joined party or private
prosecutor.
The acts which constitute infringements of intellectual property rights are indicated in
Article 164 of Law 35 of 1996 on indu strial property.  Article 165 of the Law provides for mandatory
penalties to be imposed on anyone who engages in the infringing activities described in Article 164,
without prejudice to the penalties specified in the Penal Code.
Article 165 also provides for a series of penalties to be applied when the activities are
engaged in by an enterprise operating in the Colón Free Zone (CFZ), a zone which has caused somemembers concern, for example:  a fine equivalent to 25 per cent of the enterprise’s monthly turnover,
but in no case less than B 75,000.00;  suspension of the right to engage in trade or manufacturing for a
period of three months;  and the cancellation or suspension of permission to operate in the Free Zone
for a period of three months.  If the infringing activities are resumed, the fine will be four times the
maximum and the suspension may be extended to one year.
The CFZ Administration has no powers to suspend the release of goods in the Free Zone;  this
is the responsibility of the customs authorities.  However, the Intellectual Property Department of the
CFZ is authorized to prevent the subsequent trading of goods which have already entered the CFZ.
The goods liable to be retained include all those which have been the subject of intellectual propertyright violations.
The World Intellectual Property Organization (W IPO) plays an important part in this work
and in strengthening the institutions responsible for registering and enforcing intellectual property
rights in Panama.  Under the WIPO-Panama cooperation project for the two-year period 1998-1999
useful work is being done in both the public and private sectors.
2. Institutions
Below, the various institutions concerned with intellectual property in Panama are briefly
reviewed.
• DIRECTORATE-GENERAL FOR INDUSTRIAL PROPERTY REGISTRATION
(DIGERPI)
This is the institution responsible for registering industrial property.  DIGERPI is an agency
of the Ministry of Trade and Industry.  Its activities are governed by Law 35 of 10 May 1996.
• NATIONAL COPYRIGHT DIRECTORATE
Law 15 of 8 August 1994 adopting the Law on c opyright and related rights and making other
provisions gives the Directorate registration, depository, monitoring and inspection responsibilities in
the field of copyright.  The National Copyright Di rectorate is part of the Ministry of Education.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 3
• DIRECTORATE-GENERAL OF CUSTOMS
The Intellectual Property Department of the Directorate-General of Customs was established
by Executive Decree 123 of 26 November 1996 under the terms of Law 35 of 1996.  The Department
began functioning in February 1997, with the full support of the existing services of the Directorate-General of Customs.  It is responsible for border surveillance on a national basis for the purpose of
protecting intellectual property rights.
• COLÓN FREE ZONE ADMINISTRATION
The Colón Free Zone is the largest free trade zone in the western hemisphere.  It acts as the
hemispheric centre for the commercial distribution of goods.  In this capacity, each year the Colón
Free Trade Zone reports transactions worth US$11,000 million involving the distribution of more than600 types of products and the shipment of more than 1,000 marks to many different countries.
In view of the prominent role played by the Colón Free Zone in the transit of goods to the
large markets of Central and South America, the National Government has set up the Department of
Intellectual Property of the Colón Free Zone to protect intellectual property rights marketed throughthat zone.
The Intellectual Property Department was established under Law 35 of 1996 on industrial
property and its operations are regulated by Executive Decree 79 of 10 August 1997.
• DEPARTMENT OF PUBLIC PROSECUTIONS
The Department of Public Prosecutions is the Panamanian State institution responsible for
prosecuting intellectual property offences.  The seminars organized by WIPO have been used as a
source of further technical training for a group of prosecutors specializing in intellectual property.
• INTERINSTITUTIONAL INTELLECTUAL PROPERTY COMMISSION
The Interinstitutional Intellectual Property Commission was set up under Law 35 of
10 May 1996. It is responsible for the harmonization, coordination and monitoring of intellectual
property policies.
The Commission is composed of representatives of the following institutions:
- Directorate-General for Industrial Property Registration;- National Copyright Directorate;- Directorate-General of Customs;- Administration of the Colón Free Zone;- Department of Public Prosecutions;
- Directorate for International Trade Negotiations.
The Commission meets regularly to coordinate the policies to be implemented by the various
institutions responsible for intellectual property matters in Panama.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 4
• NATIONAL DIRECTORATE FOR INTERNATIONAL TRADE NEGOTIATIONS
The Directorate for International Trade Negotiations (DINECI), which corresponds to what
was formerly the Foreign Trade Council (CONCEX), is the result of the recent merging of separate
entities responsible for foreign trade matters in the Vice-Ministry of Foreign Trade of the Ministry ofTrade and Industry.  DINECI coordinates the meetings of the Interinstitutional Intellectual Property
Commission and ensures that the policies being implemented by the various institutions responsible
for intellectual property are consistent with Pa nama’s international commitments, including those
under the TRIPS Agreement.
3. Future prospects
The enforcement of intellectual property rights is a commitment undertaken by Panama
within the context of the TRIPS Agreement.  This  commitment has been taken seriously in the firm
belief that the adequate and effective protection of intellectual property will encourage technological
development and investment in the Republic of Panama.  A convincing illustration of Panama’s
commitment to intellectual property rights is the approval by the Legislative Assembly, at the first
reading, of the new WIPO treaties on copyright and on interpretation or performance andphonograms.
With a view to the more efficient administration of the enforcement effort, the establishment
of a Panamanian Intellectual Property Institute is currently being studied.  This institution would
combine the Directorate-General for Industrial Property Registration and the National CopyrightDirectorate in a single, financially and administratively independent body.  This is a project on which
private enterprise is working hand in hand with the national Government.  By establishing the
Institute the Government hopes to strengthen the intellectual property agencies and the system of
protection and to promote intellectual property rights in Panama.
II. RESPONSES TO THE QUESTIONS PUT BY THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
A. 
COPYRIGHT AND RELATED RIGHTS
1. Please explain whether and how Panama prov ides full retroactive protection to works,
phonograms and performances from other WTO Members as required by Articles 9.1, 14.6 and70.2 of the TRIPS Agreement, each of which incorporates by reference or relies upon Article 18
of the Berne Convention.  Please give the date  to which such protection extends back with
respect to each category of subject matter.
The Panamanian Law on copyright and related ri ghts (Law No. 15 of 8 August 1994) first
entered into force on 1 January 1995 without retroactive effect on copyright-related events which
occurred during the period of validity of the old c opyright rules laid down in the Administrative Code.
In fact, both the Law and its Regulations (Executive Decree No. 261 of 3 October 1995)
clearly establish that the rights acquired by third parties prior to its entry into force will not be
affected.  This approach is consistent with the principle of legal certainty, which must be safeguarded.
Nevertheless, rights in works which did not enjoy protection under the previous Law because
they had not been registered automatically qualify for protection under the present Law.
This explanation having been given, we would emphasize that full retroactive protection is
available and is granted to all works, phonograms and performances from WTO Members.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 5
Likewise, we should point out that foreign works receive the same treatment as domestic
works.
2. Please clarify how Article 10.2 - protection of compilations of data and other material -
of the TRIPS Agreement is implemented in Panama's legislation.
Our Copyright Law protects compilations of data and other material as derived works,
without prejudice to the rights of the author in the original work.  Thus, under Article 8 protection is
granted to compilations of various works and databases which, as a result of the choice or
arrangement of the subject matter, constitute personal creations.
Article 9 of the Decree establishing regulations under the Copyright Law reiterates this
concept and adds that the protection does not extend to the data or information compiled;
consequently, the existing rights in the constituent works or materials are not affected.
3. Please clarify whether Panama's legislation foresees rental rights for computer
programs and cinematographic works pursuant to Article 11 of the TRIPS Agreement.
In relation to the rental of computer programs and cinematographic works, Panama's
legislation contains a general provision applicable to all rights subject to protection (including these),
which recognizes the distribution right of authors in their works.  This right of distribution set out in
Article 40 of the Law includes the right to sell, rent or transfer ownership by any other means for
valuable consideration.
4. Please clarify how Article 14.4 of the TRIPS Agreement is implemented into Panama's
legislation.
As distinct from TRIPS and the WIPO Treaty (WCT) , Law 15 does not specifically establish
the right of phonogram producers to authorize or prohibit the rental of their phonograms.  It refers
only to the right to authorize or prohibit their reproduction.
However, in the chapter on related rights the Law contains an article which allows the
provisions applicable to authors and their works to be applied to related right holders, to the extentthat they are consistent with the nature of their particular rights.  This rule could be interpreted in
favour of the phonogram producer, enabling Article 40 on rental rights to be applied to him on a
residual basis.
B. 
TRADEMARKS , GEOGRAPHICAL INDICATIONS AND INDUSTRIAL DESIGNS
1. Please clarify whether under Panama's legislation a mark may be licensed or assigned
without the transfer of the business to which it belongs (Article 21 of the TRIPS Agreement).
The Panamanian legislation allows trademarks to be licensed or assigned or transferred to one
or more persons, without the transfer of the business to which the trademark belongs. Referenceshould be made to Articles 121 and 129 of Law 35 of 1996 and to Article 103 of Executive Decree
No. 7 of 1998, which state that:
"ARTICLE 121:  The owner of a registered mark may, by contract, grant one or more persons
licences to use the mark with respect to all or part of the products or services covered by theregistration.
The owner may reserve the right to make simultaneous use of the mark."IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 6
"ARTICLE 129:  The rights arising out of an application or registered mark may be assigned
or transferred to one or more persons.  The tran sfer must be registered with DIGERPI in order
to be effective against third parties."
"ARTICLE 103:  The rights arising out of a registration application or a registered mark may
be assigned or transferred to one or more persons with respect to all or part of the products or
services covered by the said mark or registration application, with or without transfer of the
business to which the trademark belongs."
2. Please clarify whether Panama's legislation recognizes valid reasons in cases of non-use
of a mark and specify them.  Furthermore, please provide concrete examples, if possible(Article 19 of the TRIPS Agreement).
In Articles 138 of Law 35 of 1996 and 116 of Executive Decree No. 7 of 1998, the
Panamanian legislation permits the cancellation of trademark registration for non-use of the mark for
more than five consecutive years prior to the date of initiation of the cancellation action.
The legislation does not specifically mention valid reasons for the non-use of the mark.
However, Article 190 of Law 35 of 1996 states that “at any stage of the proceedings, the Judge may
examine evidence ex officio and assess the body of proof, in accordance with the rules of fair
comment and with account for the rules on the auth enticity of documents laid down in the Judicial
Code”.  Accordingly, any valid reason may be in voked for the Judge to assess the non-use of the
mark.
3. Please clarify whether and how Articles 16.2 and 16.3 - enhanced protection of well-
known marks - of the TRIPS Agreement are implemented in Panamanian law.
Article 95 of Law 35 of 1996 defines what is meant by a famous or renowned mark and a
well-known mark:
“ARTICLE 95:  A famous or renowned mark is one which, through intensive use on the
market and in advertising, has become widely disseminated without losing its distinctiveness
and is known to the public at large. A well-known mark is one which presents the samecharacteristics and is known to the group of consumers at which it is directed.”
Article 91.10 of Law 35 stipulates that the following are grounds for nonregistrability as a
trademark or as elements thereof:
“10. Those which are identical or similar to a famous or renowned mark, for application to
any product or service; or those which are well-known, for application to products or services
determined in accordance with the group of consumers at which they are directed.”
4. Please clarify the term of protection of a mark (Article 18 of the TRIPS Agreement).
Articles 109 and 110 of Law 35 establish the term of registration of a trademark:
“ARTICLE 109:  The registration of a trademark shall be for a term of ten years from the date
of submission of the application and may be renewed indefinitely for identical periods,provided that renewal is requested within the specified period and the fiscal duties are paid.”
“ARTICLE 110:  The renewal of the registration of a trademark must be requested within the
period comprising the year immediately precedin g and the six months following the date of
expiration of the corresponding registration.  If this period expires without renewal havingIP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 7
been requested, the registration shall lapse de jure .  Renewal of the registration during the
period of six months following its expiration sha ll be subject to the payment of the specified
additional charge.  During this period the registration shall retain its full effect.”
5. Please clarify how Articles 23 and 22.4 of the TRIPS Agreement are implemented.
Articles 91.11 and 135 of Law 35 of 1996 take into account the provisions of Articles 23 and
22.4 of the TRIPS Agreement:
“ARTICLE 91: The following may not be registered as trademarks or as elements thereof:
11. Geographical designations, whether proprietary or non-proprietary, and maps,
together with nouns and adjectives, including proper nouns and adjectives, when they
indicate the origin of the products or services and may mislead or give rise to
confusion with respect thereto.”
“ARTICLE 135:  It is forbidden to use indications of provenance and designations of origin
which do not genuinely correspond to the particular country, locality or geographical region
in which the products were manufactured, processed, harvested or extracted or the services
rendered, even if the true origin of the product is indicated, or the geographical indication is
used in translated form or accompanied by expressions such as class, type, style, imitation orthe like.”
6. Please explain whether and how textile designs are protected.
Textile designs may be protected:
1. As an industrial design (Article 66 of Law 35 of 1996 and Article 51 of Executive
Decree 7 of 1998);
2. by copyright (Article 67 of Law 35 of 1996);3. as a trademark (Article 89 of Law 35 of 1996).“ARTICLE 66:  An industrial design is an y two-dimensional or three-dimensional form
which, incorporated in a utilitarian product, gives it a special appearance or makes it suitable
for use as a type or model for manufacturing purposes.  The protection conferred on an
industrial design under the present Law does not include those elements or characteristics ofthe design which serve only to obtain a technical effect or are dictated solely by
considerations of a technical nature.”
“ARTICLE 51: Any combination of shapes, lines or colours which are incorporated in an
industrial product for decorative purposes and which give it a typical and characteristic look.Industrial designs are essentially two-dimensional.”
“ARTICLE 67: The protection conferred on an i ndustrial design under the present Law does
not exclude or affect the protection to which that design may be entitled under other legal
provisions, in particular those relating to copyright.”
“ARTICLE 89: For the purposes of the present Law, a trademark is any sign, word, or
combination of these elements or any other medium which, by its nature, is capable of
individualizing a commercial product or service.”IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 8
C. PATENTS , LAYOUT DESIGNS (TOPOGRAPHIES ) OF INTEGRATED CIRCUITS , PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF ANTI -COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
1. Please explain how Article 31 of the TRIPS Agreement is implemented.  Please also
provide the number of cases in which a compulsory licence was granted and give a brief
summary of the case(s).
Article 31 of the TRIPS Agreement relating to other use without authorization of the right
holder was not taken into account in the Panamani an industrial property legislation (Law 35 of
10 May 1996).
2. Please clarify whether Panama's legislation foresees a reversal of burden of proof in the
case of process patents (Article 34 of the TRIPS Agreement).
Article 21 of Law 35 of 10 May 1996 on industrial property provides for the reversal of the
burden of proof in process patent proceedings:
“ARTICLE 21: After a patent has been granted, its holder may claim suitable compensation
or, where appropriate, the payment of damages, if before the granting of the patent the
patented process or product was being exploited without his consent and the said exploitation
took place after the date of  publication of the patent application in the Industrial PropertyBulletin (hereinafter BORPI).
In the event of the unauthorized exploitation of process patents, the burden of proof shall be
on the defendant if both or one of the following elements are present:
1. If the product is new;
2. if it is quite likely that the product was made by the process and if the patent holder,
despite having taken all reasonable steps, has not been able to establish which process
was actually employed.
In gathering and weighing the evidence to the contrary, the lawful interests of the defendant
with respect to the protection of his industrial or trade secrets shall be taken into account.”
3. Article 32 of the TRIPS Agreement states that an opportunity for judicial review of any
decision to revoke or forfeit a patent shall be available.  Please clarify how this provision is
implemented.
Law 35 of 1996 does not allow the Directorate-General for Industrial Property Protection to
revoke a patent ex officio.
Article 63 deals with those cases in which the competent courts of law may, at the request of
any interested party, declare the nullity of a patent of invention:
“ARTICLE 63: At the request of any interested party, and after hearing the holder, the courts
of law with jurisdiction over industrial property proceedings shall declare the nullity of a
patent of invention or a utility model registration in any of the following cases:
1. If it is shown that the granting of the patent or the registration contravened  the
provisions of Articles 10, 11, 14,15, 24, or 25 or Article 35.1 or 35.2 of the present
Law;IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 9
2. if, as a result of a modification or division of the application, the patent granted were
to contain claims based on material not contained in the initial application.
PARAGRAPH:  If the grounds indicated in this ar ticle concern only one claim or part thereof,
nullity shall be declared only with respect to  such claim or part thereof, as appropriate.
Nullity may be declared in the form of a limitation or narrower definition of the
corresponding claim.”
On the other hand, in accordance with Article 65, patents may be forfeited as a result of:1. Their expiration;  or2. non-payment of the fees payable under Chapter II of Title IX of this Law within the
time-limit laid down therein or within the subsequent six-month grace period.
The declaration of nullity may be subject to judicial review in accordance with Article 203 of
the Panamanian Constitution and Article 98 of the Judicial Code of Panama, which authorize the
Supreme Court of Justice, Third Division, acting within the administrative jurisdiction, to hear cases
originating in improper or unsound actions, omissions or submissions of the public services or in
decisions or orders executed, adopted, issued or given or measures taken by civil servants or national,
provincial and municipal authorities and au tonomous or semi-autonomous public entities in
performing or on the pretext of performing their functions.
4. Article 39.3 of the TRIPS Agreement provides for the protection of test or other data.
Please explain how this provision is implemented.
The provision contained in Article 39.3 of the TRIPS Agreement is implemented in the
Panamanian legislation in Articl es 84 and 87 of Law 35 of 1996:
“ARTICLE 84:  Information which is in the public domain, which is obvious to an expert in
the field or which is disclosed under a provision of the law or by court order shall not be
considered to be an industrial or trade secret.  Information shall not be considered to be in the
public domain or to have been disclosed under a provision of the law by a person whopossesses it as an industrial or trade secret if it is provided for the purpose of obtaining a
licence, permit, authorization, registration or any other instrument of authority.”
“ARTICLE 87:  Anyone who, by reason of his work, employment, office, position,
occupation or business relationship, has access to an industrial or trade secret of whoseconfidentiality he has been forewarned shall refrain from using it for his own commercial
purposes or disclosing it without good cause and without the consent of the person keeping
the secret or the authorized user.  Any infringe ment of this provision shall give entitlement to
claim the immediate cessation of disclosure of the secret and the payment of damages.”
D. 
ENFORCEMENT
1. Concerning Panama's reply to question No. 3 of the Checklist of Issues on
Enforcement3, please explain the relevant provisions concerning procedures in areas other than
those related to copyright, notably in the patent and trademark area.
                                                     
3Document IP/N/6/PAN/1.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 10
For patent and trademark cases governed by Law 35 of 1996, there is no rule on the subject of
discovery as specific as that laid down in Law 29 of 1996 in relation to the cases specified in its
Article 141.
These industrial property proceedings rely on a provision stipulating that at any stage of the
proceedings the Judge may examine evidence ex officio, specifically Article 190 of Law 35 of 1996,
and on the supplementary use of the Judicial Code.
Under Article 189 of Law 35 of 1996, which governs trademark and patent cases, a party may
request judicial inspections of places, documents or things with a bearing on points at issue in the
proceedings.  In our opinion, this provision can lead  to the obtaining of things or proofs in the
possession of one of the parties for introduction into  the proceedings, subject to compliance with the
procedures established for that purpose by our rules of civil procedure.
2. Concerning Panama's reply to question No. 5 of the Checklist of Issues on
Enforcement4, please explain the relevant provisions concerning remedies that may be ordered
by judicial authorities and the criteria for th eir use in the areas not addressed in the reply,
notably on copyright and related rights.
With respect to copyright and related rights, Article 117 of Law 15 of 1994 stipulates that,
upon seeing his rights infringed and without prejudice to other actions which may lie, the holder ofrights recognized in that Law may request the Judge to order the infringer to cease his unlawful
activity and may demand compensation for material injury and distress caused by the infringement.
The same Article establishes a period of five years for the institution of civil proceedings reckoned
from the point at which proceedings could have been instituted.
As regards the criteria for the application of co mpensation, in each case the material injury is
assessed in accordance with the rules of fair comme nt.  Article 770 of the Judicial Code relating to
fair comment requires the Judge to give a reasoned account of his examination of the evidence and its
value.
In accordance with Article 1644-A of the Civil Code, in determining the amount of
compensation for distress, the Judge shall take into  account, among other things, the rights infringed,
the degree of responsibility, and the economic situation of both the person responsible and the victim.
3. Concerning Panama's reply to question No. 5 of the Checklist of Issues on
Enforcement
5, please explain the remedies that may be  ordered for the destruction and disposal
of infringing goods and materials for their production.
Trademarks and patents
Article 166 of Law 35 of 1996 stipulates that in the event of industrial property rights being
misused the articles and the machinery used in infringing the property right shall be seized andforfeited and donated for charitable purposes, free of any encumbrance, after the removal or
elimination of the distinctive marks, where appr opriate.  For the articles to be donated, the
authorization of the holder of the protected right is required, otherwise they will be destroyed by the
competent authority, in the presence of a representative of the protected right holder.  The period
during which an action can be brought for infringeme nt of rights conferred by Law 35 of 1996 expires
six years after the last infringing act.
                                                     
4Document IP/N/6/PAN/1.
5Document IP/N/6/PAN/1.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 11
Copyright and related rights
Under Article 117 of Law 15 of 1994, the holder of rights recognized under that Law may
petition the Judge for suspension of the infringing use, prohibition of the infringer from resumingsuch use, the withdrawal and destruction of the in fringing specimens, and the rendering unfit for use
and, if necessary, destruction of elements such as moulds, plates, dies and negatives used exclusively
for illegal reproduction.
The injured right holder may also ask for the in fringing specimens and the equipment used for
reproduction to be surrendered.
Similarly, on the basis of Article 119 of Law 15 of 1994, at the request of the holder of the
right infringed, the Judge may order, inter alia , the following measures:  attachment of the proceeds
of the unlawful use;  seizure of the specimens unlawfully reproduced and the apparatus used for their
reproduction; and suspension of the unauthorized reproduction, communication or distribution
activity, as appropriate.
4. Concerning Panama's reply to question No. 8 of the Checklist of Issues on
Enforcement
6, please provide data on the costs for proceedings.
We suggest contacting the associations of lawyers who practise in the areas of industrial
property rights and copyright.  However, one of the factors contributing to the cost of proceedings is
the costs and expenses incurred by the litigants in the course of the proceedings for the proper defence
of their rights, which may vary from case to case.  The party against which judgement is given is
ordered to pay the costs, unless the Judge considers it has litigated in good faith.
5. Concerning Panama's reply to question No. 9 of the Checklist of Issues on
Enforcement7, please provide answers on administrative procedures other than those related to
copyright and related rights.
Law 35 of 1996 and Decree No. 7 of 17 February 1998 govern the administrative procedures
relating to inventions and trademarks. However, these instruments do not establish an absolute
time-limit for registration or other formalities or give  details of all the costs involved in completing
those formalities.
Nevertheless, in normal circumstances, the procedure comprises the following steps:
application for registration; examination of the application; publication of the application in the
Bulletin; if no opposition is entered within two months of publication, registration is granted.
6. Concerning Panama's reply to question No. 14 of the Checklist of Issues on
Enforcement8, please provide answers on administrative measures other than those related to
copyright and related rights.
                                                     
6Document IP/N/6/PAN/1.
7Document IP/N/6/PAN/1.
8Document IP/N/6/PAN/1.IP/Q/PAN/1, IP/Q2/PAN/1,
IP/Q3/PAN/1, IP/Q4/PAN/1
Page 12
In trademark and patent opposition proceedings the Judge intervenes in the administrative
procedure as soon as he notifies the Directorate for Industrial Property Registration that an action has
been brought. This causes the registration process to be suspended.  The judgement of the court will
determine whether this process is reactivated and the corresponding registration certificate ultimatelyissued or registration is finally refused.  This situation has its legal basis in Article 195 of Law 35 of
1996.
__________