Trade Secrets Law in Panama
Trade Secrets Law in Panama
1. Legal Framework
Panama protects trade secrets mainly through a combination of:
Civil law provisions on confidentiality and unfair competition,
Labor law (confidentiality obligations for employees),
Criminal law for theft or unauthorized disclosure,
And specific IP-related legislation.
Panama’s laws have been increasingly aligned with international standards, including the Trade Secrets Directive (EU) and TRIPS Agreement.
2. Definition of Trade Secrets
While Panama does not have a single comprehensive statute defining trade secrets, trade secrets are generally understood as:
Information that is secret, i.e., not generally known or easily accessible,
Has commercial value because it is secret,
Subject to reasonable efforts to keep it confidential.
3. Relevant Legislation
Panama Civil Code
Protects confidential information and provides remedies for breach of confidentiality.
Law No. 35 of 2004 on Intellectual Property
Covers patents, trademarks, and copyrights.
Although it doesn’t explicitly define trade secrets, it addresses unfair competition, which includes misappropriation of confidential information.
Law No. 1 of 2011 on the Protection of Confidential Information and Commercial Secrets
Specifically addresses the protection of trade secrets and confidential business information.
Defines trade secrets and establishes legal protection against their unauthorized use or disclosure.
Labor Code
Includes obligations for employees to keep confidential information during and after employment.
Criminal Code
Provides sanctions for theft or misuse of trade secrets under crimes related to industrial espionage or breach of trust.
4. Protection and Enforcement
Civil Remedies:
Injunctions to prevent disclosure or use,
Damages for losses caused by unauthorized disclosure,
Seizure or destruction of infringing goods or documents.
Criminal Sanctions:
Fines and imprisonment for industrial espionage or unauthorized use of trade secrets.
Contractual Protections:
NDAs, confidentiality clauses, and employee agreements are widely used.
5. International Compliance
Panama is a member of WIPO and a signatory of TRIPS Agreement, adhering to international standards for intellectual property including trade secrets.
The country has also ratified various bilateral and multilateral trade agreements that include trade secrets protection.
Summary Table
| Aspect | Panama’s Trade Secret Law |
|---|---|
| Specific law on trade secrets | Law No. 1 of 2011 on Protection of Confidential Information |
| Definition | Secret info with commercial value, reasonable confidentiality measures |
| Civil Remedies | Injunctions, damages, seizure of goods |
| Criminal Sanctions | Fines, imprisonment for industrial espionage |
| Contractual Protections | NDAs, employee confidentiality clauses |
| International alignment | WIPO member, TRIPS compliant |
Recommendations
Use strong NDAs and confidentiality agreements to protect trade secrets.
Implement internal security measures and employee training.
Consult local counsel for enforcement and drafting contracts in Panama.
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