Proactive intellectual property laws and policies can often enhance local development outcomes by providing protection to categories of small scale creators and creative products that may not easily fit into conventional Intellectual Property categories. This allows such creators to protect markets for their products and benefit from the value added created by a recognised authentic mark.

This is the case in Panama with the introduction of the proactive Law 20. It was supported by additional Intellectual Property policies including a collective trademark Galu Dugbis. The production of Molas is largely a female centered creative economic activity. The new law was instituted to offer protection to Molas produced by women of the Kuna ethnic group in Panama. 

Molas are colourful embroidered textile panels. Traditionally, the patterns and designs on the textile panels tell a pictographic story, and are often attached to the front or back of the women’s blouses. They are also used as decorative objects. As a result of the growing popularity of Molas beginning in the 1980s, local experts recorded an upswing in imitation and copying of traditional Kuna designs and craftsmanship. At that time no specific intellectual property laws existed to ensure Intellectual Property protection of this art form. This trend threatened to affect revenue streams for the Kuna and the cultural legacy of their art.

The Kuna women requested assistance from the Panamanian government to establish intellectual property laws to protect the Mola designs from copying on a commercial scale which represented a threat to their livelihoods. Cooperation between the Panamanian Ministry of Trade and Industry and World Intellectual Property Organization resulted in a law approved in 2000. 

It is a sui generis system of protection which was designed to protect the collective intellectual property rights and traditional knowledge of the indigenous people. The subject matter protected by the Law includes craft creations, inventions, models, drawings, designs. The law protects 10 varieties of indigenous knowledge which have been all been registered in Panama, including Molas. It also offers protection for the history, music, art and other forms of indigenous artistic expression. Penalties include years of imprisonment for individuals who reproduce, copy of modify completely or partially a work protected by the collective rights of indigenous people and traditional rights.

Trademarks such as Galu Dugbis are significant in that they add value and increase recognition and appreciation for creative products. It has not only been able to increase local incomes but also to hold the promise of improving the status of the Kuna women in their communities.  Kuna women have reported that increased revenues as a result of intellectual property protection and branding have given them the ability to fund their children's education. Such outcomes go beyond increased revenues, showing that well designed and targeted intellectual property regimes can produce improved social outcomes and increase economic participation of underserved groups.