The Ministry of the Treasury has issued an Executive Decree to implement the articles of Intellectual Property Law No. 35 which provide for the enforcement of intellectual property rights in the duty-free zone of Colon City. Under the decree, owners of registered intellectual property rights may record them with the Office of Administration in Colon City to enable the authorities to detect and seize infringing merchandise. The recordal will be valid for the same period of time as the intellectual property right, and may be renewed for like periods.

The authorities will conduct inspections, of their own accord, for potentially infringing goods. They will also act pursuant to an order from a competent Panamanian authority or pursuant to the specific requests of recorded intellectual property right owners, their recorded licensees or distributors, provided that the latter post a bond in the amount of US$2000 for potential damages suffered by the owners of the seized merchandise.

Once goods are seized, the respective parties will be notified and the intellectual property right owner may lodge a formal complaint, within five working days of notification, so that the matter may be forwarded to a prosecutor to commence a criminal investigation.