After 10 rounds of negotiations and three different presidential administrations, Panama and the United States finalized the Treaty on Trade Promotion, approved by Panama by means of Law 53 of December 13, 2007 and by the United States Senate on October 13, 2011.
As a result of the commitment between President Obama and President Martinelli that the Treaty would take effect on October 1, 2012, the Legislative Assembly of Panama approved four new laws during the week of September 22 to 26, 2012, which will have a direct impact on the commercial activities in or from Panama, namely:
COPYRIGHT: Copyright legislation was reformed thoroughly and, therefore, Law 15 of August 8, 1994 was repealed. The changes introduced in the new copyright legislation include, among others: certain protection terms were extended; contemplates the new information and telecommunication technologies, the new methods of exploitation of works through digital networks, the new principles applicable to contracts that were not previously regulated, such as the contract of musical edition and radio broadcasting; new administrative and judicial actions and procedures for the perpetration of civil wrongs with respect to Copyright; new border measures to impede the circulation of counterfeit products through customs.
The new legislation will take effect on October 1, 2012.
TRADEMARKS, COMMERCIAL NAMES AND PATENTS: Law 35 of May 10, 1996 was partially reformed. Among other things, the following was introduced: new requirements to start the process of registration of trademarks and patents in Panama, eliminating the requirement of authentication and legalization of Powers of Attorney; elimination of the requirement to provide a certificate evidencing the existence of the applicant company; new requirement to declare a domicile in Panama for administrative and judicial purposes; the concept of registration of Powers of Attorney; the possibility to extend the term of protection of a patent due to delays in the granting of the title; creation of the registry of volunteer licenses for patents; the internal rules and regulations are adapted to the standards of Act 1991 of UPOV; the protection period is extended for all types of plant varieties; the concept of use of a trademark is modified; protection is granted to commercial names without registration being required; special rules and regulations on geographic indications.
The new legislation will take effect on October 1, 2012.
RETAIL TRADE: Before the approval of this new legislation, retail commerce was reserved to Panamanians. Under the new legislation, businesses engaged in the sale of goods and services in Panama, whose investment exceeds three million US Dollars (US $3,000,000.00) are excluded from the definition of retail commerce.
This legislation will take effect from its promulgation.
With the approval of these new regulations, Panama honors the commitment undertaken by the President to have the Treaty with the United States take force and effect on October 1, 2012.