Israel - a viable middle east business destination.

EMERGING BUSINESS CULTURE

On a recent visit to Israel I met with an intellectual property law firm, several technology businesses and entrepreneurs. I was impressed by their international focus, speed of their commercialisation processes and importance placed on intellectual property.

Israel is an emerging economy in the Middle East and may currently present attractive business opportunities for Australian companies. Presently, the USA is investing considerable funds in Israeli start up technologies, which has helped stimulate the recent economic and technological boom.

Similarities exist between Australia and Israel, such as a rain deprived environment, a small local population as well as a strengthening relationship with the USA. Israel appears to be receptive to business dealings with international entities, and have set up an innovative funding scheme to facilitate joint venture arrangements between Israel and Australia.

It was reported by the Israeli Trade Commission¹ in June 2007 that there was a breakthrough in economic ties between the two countries as Australia’s second-largest investment firm, Babcock & Brown, was opening a branch in Israel to target major investments. “Babcock & Brown’s decision is part of a growing recognition by international investors of the opportunities the Israeli market holds” states Israeli Trade Commissioner Nili Shalev. Over the past two years, Israel has seen its gross domestic product increase by more than 5%.

As far as intellectual property is concerned, Israel has developed a robust system of IP protection and enforcement and has an educated audience. Statistically, Israel is ranked 14th overall for patent filings and is ranked 8th in the Patent Cooperation Treaty (PCT) for patent filings out of the 150 signatory countries. There are upwards of 7000 patent filings each year and interestingly 85% of these patent filings are from foreign companies who are either doing business or seeking business in Israel and the Middle East.

Many Israeli companies are excelling and the industries of relevance to Australia include agriculture, electronics, environmental technologies, medical, biotechnology, security, software, telecommunications and research & development.

INTELLECTUAL PROPERTY PROTECTION

Israel’s registered intellectual property system has compatible laws to Australia and the international community, and includes providing protection for patents, trade marks and designs.

• Patents

  Israel is a signatory country of the Patent Cooperation Treaty (PCT) and may be designated in PCT applications. The requirements for patentable matter are similar to Australia and require the invention to be novel, capable of industrial or agricultural application and possessing an inventive step. A major difference however, is that software inventions are not patentable in Israel, but are protected under copyright law.

• Trade Marks

  Israel is a member of the Paris Convention for Protection of Industrial Property, the Madrid Agreement for the Prevention of False Indications of Origin, the Nice Agreement for the International Classification of Goods and Services and the Lisbon Arrangement for the Protection of Appellations of Origin. The filing requirements are similar to Australia with the focus on the distinctiveness of the mark. A trade mark, which is not prima facie distinctive, can be accepted on the basis of significant evidence of use in Israel. A difference exists in that Israel does not allow the registration as trade marks of shapes, colours, smells or aspect of packaging which are registrable in Australia.

• Designs

  Filing a design application in Israel is relatively straight forward. A design may be an industrial object or product which has form, shape or decoration which is noticeable to the eye, novel or original and has not been published. The examination system is similar to Australia’s previous system, where the design on application is automatically fully examined and either registered or rejected.

GETTING STARTED IN ISRAEL

If you are considering doing business in Israel or with an Israeli company then it is important that you set up an appropriate intellectual property portfolio in Israel prior to the commencement of negotiations.

At EKM patent, we are able to assist in protecting your intellectual property in Israel as well as any other international countries with which you are intending to undertake business activities.

If you would like any further information in relation to this article, please do not hesitate to contact Brian Goldberg