KOROR, Palau (July 24, 2025) — A new legislative proposal introduced in the Olbiil Era Kelulau seeks to establish Palau’s first comprehensive trademark law, aiming to protect intellectual property and stimulate sustainable economic development in the Republic.
Senate Bill No. 12-36, titled the “Trademark Act,” proposes to amend Title 29 of the Palau National Code by adding a new Chapter 10. The legislation is based on the Model Law for Developing Countries on Marks and Unfair Competition by the World Intellectual Property Organization (WIPO) and is tailored to Palau’s small but growing service-based economy.
According to the bill’s findings, Palau lacks a formal system to protect trademarks, trade names, and brand identity, leaving local and foreign enterprises vulnerable to misuse and unfair competition. With the country seeking deeper integration into the global economy—especially in tourism, e-commerce, fisheries, agriculture, and digital services—the absence of intellectual property protections is seen as a barrier to investment and innovation.
“This bill will ensure businesses can protect their brand value, prevent misappropriation, and foster consumer trust,” the proposed legislation states. “Legal safeguards help consumers by ensuring accurate representation of goods and services.”
The Trademark Act outlines rules for registering marks, trade names, and geographical indicators, and includes provisions for protecting foreign trademarks, appealing registration decisions, and taking legal action against infringement. Notably, it would empower Palau’s Supreme Court to handle disputes and the Trademark Office to oversee registration and enforcement.
The bill would also establish penalties for willful infringement, with repeat offenses classified as felonies. It allows for licensing and royalty agreements, potentially creating revenue streams for businesses and the government.
Beyond its domestic impact, the proposal envisions Palau becoming a regional hub for trademark registration, drawing foreign companies seeking legal clarity and efficiency in intellectual property protection.
A strong IP regime, lawmakers argue, is not only about enforcement—it also supports innovation, boosts investor confidence, and creates job opportunities, especially in emerging sectors like blockchain and fintech.
The bill’s proponents say aligning with international norms will also support Palau’s trade negotiations and deepen cooperation with development partners.
The bill is currently under legislative review and awaits further action by the Olbiil Era Kelulau.