Information Technology in Panama

IT Legal Environment

Overview

Important factors when assessing the IT legal environment includes intellectual property rights, enforcement of copyright laws, piracy, digital signature laws, domain name issues, privacy issues, and censorship. Since Panamá has not yet experienced high penetration rates for computers and Internet users, issues such as digital signatures, domain issues, privacy issues, and censorship are not of vital importance. On the other hand, intellectual property rights are of the utmost importance.

Intellectual Property

Intellectual property, and the enforcement of copyright laws are of some importance in for Panamanians. Enforcement of laws to the highest extent possible is uncommon, but there is a general respect of intellectual property laws at the national level. Specific laws follow below.

Copyrights

Software Copyrights, Decree No. 359-DNI, October 4, 2000: establishes that all users must have appropriate licenses for the utilization of software, mentions "logical security and confidentiality of information."

Law No.15, Author's Rights, August 8, 1994: includes software
Article 2: defines software as a "set of instructions expressed through words , codes, blueprints, or any other form that, when incorporated in a automatic reading device, is capable of making a computer an electronic apparatus or similar able to elaborate information, execute a determined task or obtain a determined result."
Title 6, Chapter 1, article 42: duration, author's life, and fifty years after death
Title 6, Chapter 1, article 44: duration, software: 50 years after first publication
Title 12, Chapter 1, article 118, Civil Procedures
Confiscation of income obtained as a result of the illicit activity.
Confiscation of items illicitly reproduced, and of the mechanisms/apparatus utilized for illicit reproduction.
Suspension of reproduction activity, and unauthorized communication and distribution.
Title 12, Chapter 1, article 118: Confiscation will not be in effect against who acquired, in good faith and for personal use, an item or copy that was illicitly reproduced.
Title 12, Chapter 2, depending on offense
Article 121: will be penalized with 30 days to 18 months of jail time
Article 122: 2 to 4 years of jail time
Article 125: a fine of $1,000 to $20,000

As is evident above, Panamá does not have extremely strict laws regarding intellectual property. The highest penalty would be of up to 4 years of jail time, and a fine of $20,000. It is most likely that the most common offenses do not require of the highest penalty. However, a lack of stronger repercussions for common offenses means that these occur frequently.

Piracy

The lack of enforcement of laws to the utmost extent translates into high piracy rates. For the year 2001, the piracy rate was 61%, and revenues lost amounted to $8,390. Although the revenues lost are not very high, this is detrimental to a country that is trying to attract software and hardware manufacturers, as well as companies in high IT sectors. Specific piracy information is presented below.