By IPS Correspondents
PANAMA CITY, Mar 26 1996 (IPS)

A 2.5 million dollar suit brought by songwriter Milton Vargas against a publicity agency that used his jingles without paying royalties is expected to set a precedent for what could be a flood of similar cases.

Until the passage of a law on royalties and intellectual property rights in August 1994, which states that publicity agencies and television and radio stations must pay royalties each time a jingle is used, neither local nor national artistes were protected in Panama.

The Vargas lawsuit, the first of its kind to be filed in Panama, could be followed by a flood of other such cases brought by local artistes and musicians “who feel they have been ripped off”, the Panamanian Association of Musical Producers warned.

Vargas was commissioned by Publitres, a publicity agency, to write jingles for certain advertisements. But his creations were later used in other commercials for which he did not receive royalties.

“They use my creations all the time without paying me one cent,” said Vargas.

But according to Vicente Garibaldi, a lawyer who specialises in royalties and intellectual property, Publitres “is the owner of the compositions because it commissioned and paid for them,” and whoever commissions a jingle “becomes its owner.”

According to Vargas, Publitres earned some 60 million dollars with the commercials in which his jingles were used. He said he had never charged them royalties because he was not aware of his right to do so.

Similar long-forgotten cases have come to light since Vargas filed his lawsuit.

Since its creation in the 1960s, “Historia de un Amor” (Love Story), a famous “bolero”, has been surrounded by rumours regarding its creation. A local musician is said to have been commissioned to write it, and although one of its versions won a Platinum record, he was never paid royalties.

Carlos Changmarin had similar experiences. He never received royalties for the song “From My Wheelchair”, which he was commissioned to write, and which was a hit on the airwaves and in dance halls in Panama over 40 years ago.

And his 1960s protest song “Uncle Alligator” has now been adapted to merengue and salsa by several orchestras – again, without him seeing any of the benefits. The Panamanian Association of Musical Producers said the Vargas case will play a key role “in the outcome of future intellectual property claims.”

Excerpt: