RESTRICTED
WORLD TRADE WT/ACC/PAN/9
21November 1995
ORGANIZATION(95-3637)
Original: Spanish
ACCESSION OFPANAMA
Communication from Panama
ThePermanent Mission ofPanama hassubmitted theinformation concerning theintellectual
andindustrial property regime ofPanama including asummary ofthedraftIndustrial Property Law
ofPanama reproduced hereunder.
_______________
REPUBLIC OFPANAMA
Intellectual andIndustrial Property Regime
Protection ofindustrial property
Aspartofitsprogramme ofmodernizing itslegislation, theGovernment ofPanama isinthe
process ofapproving newlegislation onindustrial property which isinconformity withinternational
requirements. Among itsmany benefits, thenewdraftLawsimplifies theprocedures forregistering
marks andpatents, grants equal protection tonational andforeign applicants andcreates aclimate
conducive toinvestment.
LegislationinforceinPanama:AdministrativeCodeof1916,BookIV,TitleVIIandfollowing.
Executive Decree No.1of3March 1939. Other codes suchastheLabour Code, theCommercial
Code andtheCriminal Code contain other provisions which make reference toindustrial property.
Basis forthepreparation ofthedraftLaw: Legislation ofMexico (1991), Chile (1991) and
Spain (1986 and1988), theParis Convention (1883) andtheMunich Convention (1973), international
organizations suchastheWorld Intellectual Property Organization (WIPO), theEuropean Patent Office
(EPO), theGerman Patent Office andtheWorld Trade Organization (WTO).
Present status ofthedraftLaw: ThedraftLawestablishing provisions onindustrial property
isabout tohaveitssecond reading intheLegislative Assembly. Itwasapproved bytheLegislative
Commission onCommercial Affairs.
Structure ofthedraftLaw: ThedraftLawisdivided into10titles, eachdivided intochapters.
Thechapters areinturnsubdivided intoarticles. Sixofthetitleshaveasingle chapter. TitleIIhas
sixchapters; TitleIIIhasthree; TitleVhaseight andTitleIXhastwo. ThedraftLawhasatotal
of207articles.WT/ACC/PAN/9
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SUMMARY OFTHE DRAFT INDUSTRIAL PROPERTY LAW
TitleI.General provisions (Articles 1to4)
Protection isrecognized forinventions, utility models, industrial designs, industrial secrets,
product andservice marks, collective andguarantee marks, indications ofsource andappellations of
origin, andtradenames. ThedraftLawsetsoutthecompetent authority forimplementing thelegislation
(theGeneral Directorate fortheIndustrial Property Registry (DIGERPI) oftheMinistry ofCommerce
andIndustries); itcontains aclause oncompliance withinternational treaties andaglossary with
definitions ofacronyms andterms.
TitleII.Inventions andutility models
Chapter I-Preliminary provisions (Articles 5to9)
Thischapter establishes theinventor 'sexclusive rightofworking, granted bymeans ofpatents
inthecaseofinventions andregistration inthecaseofindustrial designs, andtheconcept ofinventor
isdefined.
Chapter II-Inventions (Articles 10to22)
Thischapter establishes thepatentability ofnewinventions andtheirworking, definition and
scope oftheconcepts ofinvention, state-of-the-art andinventive activity; exceptions totheconcept
ofinvention; exceptions topatents (i.e.living matter); industrial application ofinventions; rights
conferred bythepatent onandagainst third parties; rights ofthird parties, andterm ofpatents
(20years).
Chapter III-Utility models (Articles 23to27)
Thischapter setsoutthenature ofutility models, theirregistration, term(10years) andthe
suppletive nature ofthese provisions withrespect topatents, unless specially provided otherwise.
Chapter IV-Procedures forobtaining patents (Articles 28to53)
Thischapter setsouttheprocedures which mustbefollowed toobtain apatent; requirements
oftheapplication; definition andscope oftheconcepts ofdescription, claims andsummary; theneed
toinclude asample inthecaseofinventions concerning biological products orprocesses; priority
ofthedateofapplication (i.e.inthecaseofaninvention already registered inanother country; in
thecaseofsimilar, independent andsimultaneous inventions); prohibition against protecting more
thanoneinvention under thesame patent (except incases where agroup ofinventions forms partof
asingle inventive idea); division ofapplications; transformation ofthepatent application intoa
registration ofamodel; procedure tobefollowed bythecompetent authority (DIGERPI) ingranting
orrefusing thepatent orregistration; time-limits fortheprocedure, andissue oftitle.
Chapter V-Licences andassignment ofrights (Articles 54to61)
Thischapter covers thetotalorpartial assignment ortransfer ofrights deriving frompatents,
registrations orapplications therefor; assignment oflicences towork bythepatent owner; assignee 's
rights andprotection thereof; rights reserved totheassignor; requirements forapplication foralicence
andgrounds forcancellation (i.e.byexpress request, nullity orforfeiture ofthepatent, byjudicial
order).WT/ACC/PAN/9
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Chapter VI-Nullity andforfeiture (Articles 62to64)
Thischapter laysdown thegrounds fornullity ofapatent orregistration; thetime-limit for
legalactions forcancellation (eight years inthecaseofpatents, fiveforregistrations); andbasis of
forfeiture.
TitleIII.Industrial designs
Chapter I-Industrial designs andtheirprotection (Article 65to73)
Thischapter setsoutwhatismeant byindustrial design andthescope ofprotection granted
under thislaw; whohastheright toobtain protection thereunder (usually thecreator orcreators);
when andhowitwillenjoy suchprotection (itwillbeprotected ifitisnew); itdefines whatiscovered
bytheconcept ofnovelty; theduration ofprotection (twoyears, independently ofprotection conferred
byregistration withtheDIGERPI) andtherights thereby guaranteed.
Chapter II-Registration procedure (Articles 74to77)
Thischapter specifies thecompetent authority towhich therequest forregistration issubmitted
andbywhom itmustbegranted (DIGERPI); therequirements fortheapplication; theprocedures
formakingapplicationincludingtime-limitsandrequirementsforpublicationandtherightsofthecreator
toappear assuchintheregister, unless herequests otherwise.
Chapter III-Rules governing registered industrial designs (Articles 78to81)
Thischapter laysdown theduration oftherights granted byvirtue ofregistration (10years);
their extension onpayment ofafee(five years each time); grounds forcancellation andthe
supplementary application ofrelevant provisions applicable topatents inthisfield.
TitleIV.Industrial secrets (Articles 82to87)
Thislaysdown whatismeant byindustrial secrets andwhen theirdisclosure willbeconsidered
tobepublic orotherwise; confidentiality clauses (byreason ofemployment, agreements); sanctions
incaseofviolation and/or theftofindustrial secrets (compensation fordamages andinjury totheowner
ofthesecret).
TitleV.Trade marks andtrade names
Chapter 1-Marks ingeneral (Articles 88to94)
Thislaysdown whatismeant byamark; elements which mayconstitute amark (i.e.words,
pictures, sounds); whatcannot beregistered either asamark oranelement thereof (i.e.reproductions
ofnational flags, fiscal stamps, famous marks etc.); whatismeant byafamous orwell-known mark;
prohibition against applying forregistration ofmore thanonemark under thesame application or
extending theproducts andservices thatwillbearthemark onceithasbeenregistered.
Chapter II-Ownership ofmarks (Articles 95to111)
Thislaysdown therights toregister amark (use) andobtain itsexclusive use(registration);
when thereispreference intherighttoobtain registration ofamark (i.e.dateofpriority); when there
istherighttoobject totheuseofatrade mark (i.e.prior registration); rights oftheowner ofthe
registration ofamark; rights ofthirdparties; whatismeant bytheuseofamark; procedures forWT/ACC/PAN/9
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submittinganapplicationforregistrationofamark;requirementsanddocumentswhichmustaccompany
it;procedures tobefollowed bythecompetent authority (DIGERPI) forregistration, including grounds
forrefusal, time-limits forpublication andcosts; features oftheregistration certificate; duration of
theregistration (10years); renewal ofregistration (toberequested between oneyearprior toandsix
months subsequent toitsexpiry) andforfeiture.
Chapter III-Collective marks andguarantee marks (Articles 112to119)
Thislaysdown whatismeant bycollective marks (those registered byassociations toidentify
theirmembers orproducts) andmarks ofguarantee (certification ofcommon features, particularly
quality). Italsostates whatmust beincluded intheapplication forregistration ofsuchmarks (i.e.
regulations forusebytheassociates orconditions ofquality) andtheobligations oftheowner (i.e.
nottoassign, toprovide information about changes totheregulations foruse,etc.).
Chapter IV-Licences touse(Articles 120to126)
Thischapter provides thattheowner ofaregistered mark maygrant alicence foritsuseto
third parties forallorpartoftheproducts orservices covered bytheregistration. Itsetsout
requirements forapplication toregister thelicence, anddocuments which must accompany it;the
licensee 'suserrights (asifhewere theowner); hisrights against thirdparties; when alicence is
theequivalent ofafranchise, andthecases inwhich thelicence maybecancelled.
Chapter V-Assignment ofrights overmarks (Articles 127to129)
Thislaysdown thepossibility ofassigning rights deriving from anapplication orregistered
mark, following registration withtheDIGERPI soastotakeeffect against thirdparties. Assignment
ofrights willbedeemed toariseintheevent ofconsolidation ormerging oflegalpersons.
Chapter VI-Indications ofsource andappellations oforigin (Articles 130to136)
Thischapter establishes whatareindications ofsource (product orservice fromagiven place)
andwhatareappellations oforigin (ageographical denomination ofaplace which relates tothequality
andnature oftheproduct). Usethereof; prohibition ofuseandprotection.
Chapter VII-Cancellation andnullity ofregistration (Articles 137to143)
Thischapter provides thattheright ofownership ofaregistered mark terminates withthe
cancellation ofregistration, inthose circumstances which maygiverisetosuchcancellation (i.e.
renunciation, failure touse,etc.). Itisfurther laiddown thatanyperson whobelieves himself tobe
soentitled mayrequest itsnullification, andtheconditions andtime-limit forexercise ofsuchanaction
(10years). Theowner ofamark mayrenounce itsregistration. Thechapter laysdown thegrounds
fornullity (total orpartial).
Chapter VIII-Trade names andnames ofassociations (Articles 144to154)
Thischapter laysdown whatismeant byatrade name (aproper orinvented name bywhich
anenterprise orassociation isidentified); prohibition from registration; rights toeffect registration
(use); procedures andsubmission ofapplication (toDIGERPI); requirements andaccompanying
documents toit;possibility ofrequesting protection ofatrade name prior toitsuse; duration of
registration (10years); renewal (thesame provision asformarks); andgrounds forcancellation.WT/ACC/PAN/9
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TitleVI.Notifications andadministrative remedies (Articles 155and156)
Itislaiddown thatnotifications ofDIGERPI decisions, resolutions andnotices shallbethrough
public announcements; time-limits andperiods arestated. Remedies inrespect ofDIGERPI resolutions
arelaiddown (review orappeal, orreview andsubsequent appeal); time-limits andnotifications.
TitleVII. Improper useofindustrial property rights (Articles 157to167)
Responsibility ofthemanufacturer, introducer, retailer andallothers involved initsdistribution,
forimproper useofapatent, registration ofdesigns, trademarks ortradenames. Sanctions areprovided
for(financial andsuspension/cancellation ofrights). TheTitlealsoprovides forthetaking ofaction
intheevent ofviolation ofrights granted under thepresent law.Itlaysdown provisions forpreventive
measures during theprosecution ofsuchactions. Itestablishes theauthority oftheadministration of
tax-free zones, freezones orexport processing zones, tosuspend theoperating permit ofuserenterprises
which make improper useofindustrial property rights.
TitleVIII. Procedural rules (Articles 168to187)
ThisTitlelaysdown procedural provisions tobeapplied inthecaseofdisputes arising asa
result ofobjections torequests forregistration ofindustrial property; andinthecaseofnullity and
cancellation ofindustrial property rights andinproceedings forimproper useofsuchrights. Itspecifies
thecompetent authority todecide (thecircuit court), thejurisdiction court andtheauthority responsible
forresolving conflicts ofcompetence. Itlaysdown requirements forapplications, time-limits,
notifications andtime-periods; andingeneral alltheprocedural rulesgoverning theproceedings, at
firstandsecond instance. Itprovides forthecreation ofsome special courts withcompetence inthis
area.
TitleIX.Feesforservices
Chapter I-Untitled (Articles 188to190)
This chapter setsoutthefeesandtariffs tobecharged byDIGERPI (forapplications,
registrations, certificates, etc.); control, accounting anduseoffunds created bythecollection ofsuch
fees.
Chapter II-Registration fees(Articles 191to202)
Pecuniary feespayable onregistration ofamark ofproducts andservices, assignment ofa
patent, assignment ofautility model oranindustrial design. They must bepaidtotheDIGERPI.
Non-payment shallcause revocation orcancellation ofassignments orregistrations. There isaprovision
allowing inventors oflimited means toclaim anexemption which reduces thecosts to10percentof
thetotalvalue.
TitleX.Transitional provisions (Articles 203to207)
ThisTitleprovides thatmarks andpatents granted prior totheentry intoforce ofthepresent
lawshallretain theirregistration number, andshallnotbeaffected bythenewprovisions. Allprovisions
which arecontrary tothenewlawarerepealed.WT/ACC/PAN/9
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INDEX TOTHE DRAFT LAW
TITLE 1-General provisions
Single chapter (Articles 1to4)
TITLE II-Inventions andutility models
Chapter I -Preliminary provisions (Articles 5to9)
Chapter II -Inventions (Articles 10to22)
Chapter III -Utility models (Articles 23to27)
Chapter IV -Procedures forobtaining patents (Articles 28to53)
Chapter V -Licences andassignment ofrights (Articles 54to61)
Chapter VI -Nullity andforfeiture (Articles 62to64)
TITLE III-Industrial design
Chapter I -Industrial designs andtheirprotection (Articles 65to73)
Chapter II -Registration procedure (Articles 74to77)
Chapter III -Rules governing registered industrial designs (Articles 78to81)
TITLE IV-Industrial secrets
Single chapter (Articles 82to87)
TITLE V-Trade marks andtrade names
Chapter I -Marks ingeneral (Articles 88to94)
Chapter II -Ownership ofmarks (Articles 95to111)
Chapter III -Collective marks andguarantee marks (Articles 112to119)
Chapter IV -Licences touse(Articles 120to126)
Chapter V -Assignment ofrights overmarks (Articles 127to129)
Chapter VI -Indications ofsource andappellations oforigin (Articles 130to136)
Chapter VII -Cancellation andnullity ofregistration (Articles 137to143)
Chapter VIII -Trade names andnames ofassociations (Articles 144to154)
TITLE VI-Notifications andadministrative remedies
Single chapter (Articles 155to156)
TITLE VII-Improper useofindustrial property rights
Single chapter (Articles 157to167)
TITLE VIII-Procedural Rules
Single chapter (Articles 168to187)
TITLE IX-Feesforservices
Chapter I -Untitled (Articles 188to190)
Chapter II -Registration fees(Articles 191to202)
TITLE X-Transitional provisions
Single chapter (Articles 203to207)