Israel Patent Law: Adaptability and Global Reach

Israel PatentAn Israel Patent is a kind of protection provided for an invention or innovation that meets the set up threshold and regular requirements that is identified in other patent systems: industrial applicability, inventive step and novelty. Israeli Patent is available for a wide audience from the internet provided by the Israel Patent Office. Investors have access to information on patent grant information, modification and cancellation.

It is wise that investors properly understand all the detail involved and conduct a proper patent search to help save time and money. Having the right information will help reduce the chances of patent cancellation after application. Being informed also protects the investors from law infringements that may bring headaches when operations begin.

There is lots of resemblance of Israeli Patent to that of the United Kingdom, its patentability requirements however resembles those of Europe. The United States patent law however greatly influences the Israel Patent Attorneys.

The Nature of Israeli Patent

Israeli Patent grant and cancellation follows written law and looks to protect both the community and the investor. The law further protects investors from exploitation by any involved parties and ensures that everyone’s rights and interests are considered.

Duration

The Israel Patent duration of protection is 20 years. The patent is granted and expected to last for twenty years from the first priority (filing) date.

Patent Rights

The owner of the registered patent has the right to bar anyone or company from using the innovation by way of sale, production, offer for sale etc. If the right is infringed and the patent holder reports, the offended is entitled to monetary compensation. The damages done by the infringement is calculated retroactively backdated from the date the patent was published. Unlike other global patent systems, Israel Patent only undergoes publication when under allowance.

Filing a Patent in Israel

The inventor has three language options to file a patent in Israel: Arabic, English and Hebrew. The majority patents are usually filed in English.

The Process of Patent Examination

Once the patent if filed, it is queued until the next available examiner reaches it. The patents are reviewed on a first come first served basis. Initially, patents took about three to four years to be reviewed by an examiner IN Israel. Today it takes an average of two years, a major improvement.

Notice Prior to Examination and the Requirements for the Disclosure

The applicant will be required to provide a response to the “Notice before Examination” once the application is received just before the examinations officially begin. This notice is a replica of US IDS (Information Disclosure System). The patent applicant should provide to the examiner any crucial art which may be essential to the invention patentability.

Once the examination kicks off, the applicant is expected to disclose parallel disclosure reference until grant (the references were cited in the report as X or Y for secrecy).

Waivers during Examination

Examination waivers form a very crucial part of the Israeli Patent. The majority of the granted Israeli Patents never undergoes examination, they are approved based on the examination waivers. The most popular Israel examination waiver is Israeli Patent Act section 17 (c). Granted patent in areas like the US, UK, Canada, Japan, Europe, Russia and Australia may amend the corresponding Israel application claim to match those of the issued patent and consequently request for a waiver. In this scenario the examiner should look at the application based on the provided documents.

The other examination waiver type is basically based on the guidelines by the internal patent authority, and the examiner is recommended to amend the provided application to match to a positive patentability PCT opinion.

Even though Israel examination waivers are common, there is a possibility to seek for a stop to the patent examination before it kicks off in order to wait for the grant of a corresponding patent.

Allowance

Once the examination is concluded by either persuading the examiner or passing through examination waiver, the application undergoes publishing on the official patent journal. Any dispute should be filed within three months from this time onwards.

Opposition to the Patent

Patent oppositions resemble court proceedings. The competing parties provide evidence, witnesses and summations. The winning party is awarded the costs involved in the process. The oppositions are decided by the patent commissioner, personal deputy and patent adjudicator. Oppositions of patents in Israel take about 4 years to come to a conclusion due to the huge backlog. The decision of the patent commission is final and cannot be contested in a court of law.

Patent Grant

If an opposition is filed then dropped or if there is no opposition at all, the patent is registered and is republished in the patent journal as a registered Israel Patent.

The Changes to Intellectual Property Law

Israel made changes to the third party submissions, 18 month publication, accelerated examination and filing on electronic media. These changes were made since Israel is a growing economy and rising need for compatibility with the international standards.

The Key changes made to the patent in Israel are as follows:

In addition to the hard copy submissions, DVD/CD shall accompany the submissions

Chronologically publishes the earlier backlog/pending applications and complete about 4500 application monthly.

Following the pending application publication, third parties have the chance to submit the prior work/art. This can only work within 2 months from the application time giving feedback to the notice before the examination.

Third parties can now request for faster examination of the pending patent applications through the provision of affidavit, payment of a certain fee and the reasons for doing so. This happens in about 6 months.

Israeli Patent Unique Facts to Note

Israeli patent is unique from most of the global patent systems in different aspects.

Israel is attached to the Patent cooperation and the Paris Convention Treaty. A national phase patent application can only be done within 30 days from the first filing date. “Due care” is the standard for accepting late applications.

Israel Patent Office recruited several examiners to hasten the examination process and to deal with the accumulated backlog.

Examination waiver is a plus in cases of examination reports, commissioner published patents of allowed patents in other countries or positive PCT search.

All You Need to Know On israel trademark & Patent Law in Israel

patent law Israel

an exemple of an israel trademark

What Is a Patent? A patent is a legal statute, which gives you the exclusive production rights to a product and it’s symbol is called israel trademark. Once you get it, anyone who manufactures a product similar to yours can face legal consequences. There are many patents, the most common one being the utility patent and israel trademark, lasting for 17 years.

 

Steps on how to get patent law in Israel

 

1. Check whether you qualify for a patent. There are usually three categories of patents, and your idea must fall into one of them.

 

• Utility patent- This is a patent that covers a new and original product that is of benefit to the society. These benefits must be clearly listed out. It can also be given to a product that is an improvement on the original product in terms of the functions. A utility patent is effective for 17 to 20 years from the time it is offered and so is the israel trademark.

 

• Design Patent- is a patent covering only the design of a new product. For instance, you might make a product that has the same function as another that has been in production before, but you have a different design. The patent will ensure that no one else can legally make a product like yours in terms of the look. It is usually for ornamental designs, and when issued lasts for 14 years.

 

• Plant Patent- this is a patent that is issued for a new product that has been developed by biomechanical processes. The people that are most likely to take up this patent are those that run science labs. This kind of patent lasts for 20 years from the time of issue.

 

If your product or israel trademark cannot fall into either of these categories, you do not qualify for a patent. However, you might see an attorney to give you some of the additional options, or to advise, you on how you can adjust the product so that it can qualify for a patent.

 

2. Check for the originality of your patent as well as your israel trademark. Go online and see whether there are other patent owners that have covered for the same product, or that of a similar nature. It will save you a lot of money to know this before you spend time and money on making a product only to find out someone else has the patent rights to the product. To make things easier, go to the website of the organization in charge of the patents and search using keywords for similar products.

 

3. Consult a patent/israel trademark lawyer. A patent lawyer is a normal lawyer like others, and must have a legal license. In addition, they must have the relevant patent skills, which they prove by taking a patent law exam. Be very careful on the kind of lawyer that you choose, since the process requires a lot of dedication, and a little slip up might see all your efforts go to waste.

4. Weigh all your options. Though there might only be three major patent kinds, you might get certain leeway to apply for special patent. There are international patents, which protect your product from being copied by another manufacturer and wont have a israel trademark, no wonder where they are located.

 

5. Have a provisional application. A provisional patent is a patent that will cover your product or israel trademark  for a period of one year, giving you time to come up with a complete plan of the product, while at the same time qualifying you to get funding to carry out your idea. However, this only applies to special production methods.

6. Once you have filed the provisional one, file in the appropriate patent/israel trademark application. Your patent might contain an accurate drawing of the. If you are not really good at making the design, have a professional artist do it for you. The drawing must contain all the details of the product. If you had submitted a sketch of the product, now is the time to get a complete detailed sketch of the products and send it. When finished writing up the patent application, have your lawyer look it over to ensure that it is flawless. They will be able to tell if there are any flaws in the application that will make it are disqualified. If need be, get someone who is in the field of manufacturing to go through it too and ascertain that all the technical terms used therein are in tandem with scientific regulations.

 

7. Now, file the patent application so you will also get israel trademark. There are two ways of filing a patent application. The first way is the electronic application. Here, you go online and submit a copy of the patent application form. This method is quick and easy, and makes it simpler for you to keep track of the patent certification. If you are submitting online, remember to scan the diagram of the product and send it too. However, the electronic application method only applies to the design and utility patents. The plant patent can only be submitted manually. The second way is to submit it by mail. This covered for all the three patent categories.

8. Pay the filing fee. A patent cannot be offered without you having to pay the filing fee. At times, the patent may be quite costly, depending on the product that you are wishing to patent, so that it can cater for the authentication cost. Before you think of filing a patent, talk to your lawyer and tell them to update you on the charges, so that you can source for the funds early enough.

 

9. Wait for patent approval or denial. You have to be really patient with the process, as it takes a long time. The process takes longer since the product has to be assessed by a team of professionals to determine its authenticity in the design and the structure. There are expedited examinations for patents, which are helpful if you really need a speedy approval of your patent idea.

A word of advice, as you file your patent, you should cater in the maintenance costs. With that, you are ready to patent will be covered all through the stated period and in israel trademark laws just as well. It is also important to search for more information about it.

Venture Capital In Israel

 

Venture capital basically involves all the capital in terms of finance that is provided to companies in a country. Therefore, venture capital in Israel refers to the financial capital that is provided to companies in Israel. Either these companies could be new companies that are just starting operations or they could be companies, which have been in existence for several years. The country currently has several active venture capital funds, both national and international, that are active and this number keeps growing. The trend of venture capital financing in Israel began towards the end of the 20th century and has since continued to grow and its popularity has increased quite considerably.

 

The main role of venture capital investments is to provide startup capital to new business establishments and venture capitalists in Israel have been successful in doing this. Though most venture capitalists in Israel are very selective when it comes to deciding what to invest in, major economic fields have been able to develop considerably due to the help accorded to the by venture capitalists.

 

Some of these fields include life sciences, software, telecommunications, defense and homeland security systems, medicine, energy, environmental technology among others. Also benefiting from venture capital is water technology. Due to the diversity in venture capitalism in Israel and the development that comes with it, the country has also been able to attract leading multinational companies, which have invested in the country. These companies include Sony, Microsoft, Unilever, Hewlett Packard, Cisco, and Fuji. This has in turn continued to increase the rate of economic growth in the country.

 

Obtaining startup capital by borrowing venture capital in Israel is very much different from borrowing any other loan. The process of applying and qualifying for a venture capital loan involves a series of stages. These stages begin from writing a good business plan and then submitting it to a venture capitalist. The venture capitalist will then read and access the business plan. Depending on the conclusions drawn after analyzing it, the lender will decide if or not he is interested in investing in your business. If the venture capitalist decides to go ahead and become invested in the company, he then becomes actively involved in the company’s operations. The lender of venture capital will provide funding to a company in stages. These funds are provided after the company meets the requirements of previously agreed-on milestones. It comes a time a when the venture capitalist exit the company and this is usually after several years preferably after 4-6 years. This is usually in the form of mergers IPO has or even acquisitions.

 

Venture capitalists in this country in most cases provide capital to entrepreneurs in exchange for an equity stake in the company. In addition, they also have a right to be paid the full amount of capital that was lent together with the interest on such a ��loan.’ In addition, they also take the responsibility of nurturing a company up to the stage where the venture capitalists can assessments of the valuations are favorable to both parties i.e. the entrepreneur and the capitalists. This actually how venture capital providers make their money.

 

Upcoming and Common Trends in Venture Capital in Israel

 

In the past few years, there have been new trends and policies, which have become quite popular in the sector of venture capital in Israel. These include:

 

• Largest Venture Capital providers in Israel are continuously proving providing follow up capital to the companies they invest in.

• Local venture capital funds are also continually finding it difficult to raise money for new investments while foreign investors keep increasing their investments.

• Venture capital providers are increasing investing in mid-level companies more than in new companies and fully-grown companies.

• Venture capitalists have been able to deliver successful exits in the past few years thanks to the emergence of mergers and acquisitions. For instance in 2011 alone, there were at least 85 mergers and acquisitions of Israeli companies whose total value was $5.23 billion. This was a 134% increase from that of the previous year.

• Venture capital providers are continuously investing in four major sectors. These sectors include (in order from the most heavily invested in) internet, communications, software and finally life sciences.

 

The country’s venture capital industry is globally represented by the Israeli Venture Association commonly known as an IVA. This association is actively involved in carrying out research regarding venture capital in Israel and cultivating relations with other venture associations in the world. The association maintains the IVCA website (www.ivc-online.com) where it posts its research reports and anything else regarding this industry and the economy of Israel as well. In addition, the association also holds a conference each year in Israel where they discuss matters relating to and affecting venture capital industry among other things.

 

The one thing that has enabled the increase in venture capital investments in Israel is that the country has relaxed currency regulations that allow easy repatriation of funds. This has made it easy for both local and foreign investors to raise venture capital. In addition, Israel has already entered into various free trade agreements including agreements with the European Union, Czech Republic, USA, EFTA, Hungary, Poland, Turkey, and Canada among others. There are also trade agreements that are in progress. These have made it easier for foreign venture firms invest it in the country. The country is also part of various tax treaties with the some of the most industrialized countries in the world. Owing to these agreements, there are currently more than two hundred venture capital companies that have invested in the country.

 

The venture capital industry in Israel has also grown to a point where the country now has the highest number of start-up companies than any other country in the world. This is of course excluding the United States of America, which has the highest number of start-up companies.

 

At this point, it can be accurately stated that venture capital trend has really boosted the rate of economic growth. Different sectors of the economy have benefitted from venture capital funds and job creation has increased with development of companies.

Learn Why You Need Venture Capital For Your Business

Business CapitalToday, many companies and organizations are emerging as profitable and sustainable in the long run because of venture capital. In as much as venture capital funding doesn’t guarantee success in any way, they have a significant number of benefits to the entrepreneur who wants to make profits. If so many companies and organizations are creating sustainable wealth out of venture capital, why are you so adamant at trying to seek for one?

 

It’s a trend that came with the ”dot com” generation, where entrepreneurs raised capital through venture capital funding to enable them fund their ideas. Then they worked towards building and growing their businesses with these funds. Today, individuals who are starting out and those who are already established benefit equally.

 

Prior to the idea of venture capital, most businesses were started the traditional way. Entrepreneurs had to source capital from family, friends and from banks too. Even though a few individuals had started the idea of venture capital funding, just a few entrepreneurs went for the funds. Actually, it’s less than 2% of individuals who started business at that time used venture capital.

 

Thanks to venture capital funds because starting a company and running it is now a reality to all individuals, as long as they have an idea. It’s certain that banks and other financial institutions are too hesitant to provide start-ups loans. They fear losing their money, and so they tend to shun away these groups of entrepreneurs. They will only provide loans to people who are already established.

 

Now your only viable alternative is through equity financing or borrowing money. The equity financing option allows you to sell equity of your company in terms of shares or stock that is a representation of ownership interest, in exchange for capital you can use to build your business. On the other hand, borrowing is only listed as debt, you won’t be able to provide equity in return, and that means you have to repay or face legal action. And debts also come with unreasonable interest in some cases.

 

So, venture capital funding is one way of getting money from investors. With that, you should ask why you need venture capital over other sources of funding.

Of course venture capital has a number of benefits compared to other sources of funding. Let’s see them below:

 

1 You won’t sell Equity but you’ll get capital

This type of funding is essentially a debt that your company borrows. That means you must pay this debt at an agreed time frame. This is very beneficial to organizations that would like an extra capital without ever selling their equity while retaining full control over the ownership of their company.

2 It provides entrepreneurs with alternative funding option

Whereas venture capital funding can keep you from selling your Equity, you could still mix the two depending on your needs or priorities. For instance, you could sell your Equities to help you minimize the potential for risks, while at the same time apply for venture capital funding to buy new equipments such as PCs for your office.

3 They provide you with that extra cash to invest

It’s quite obvious that individuals go for venture capital funding because they want to raise money to invest. You don’t necessarily have to go for this capital when your starting a new business, you can apply for it when you want to expand your business as well. For example, you could improve your research and development or use the capital for developing other aspects of your business. You can also use the money as a form of insurance just in case your company runs a risk of losing money somewhere in the middle.

4 Management

Besides funding your businesses, capitalists also get strategic, operational and financial advice to companies who borrow from them. They actively involve themselves in your company’s direction, and that could be the motivation you needed to get you where you’ve always wanted to be.

5 Alliances

When you approach these capitalists for venture capital funding, you are exposing yourself to a wide network of strategic individuals, both locally and internationally. Of course this could bring more opportunities to your company and that means profits in the long run.

6 They facilitate exit

Venture capitalists are experienced in preparing companies in readiness for an initial public offering of its shares and this facilitates trade sales.

7 No collateral needed

One of the reasons why you need venture capital funding over other sources of funding is that there’s no collateral needed in order to receive funds. This is one requirement that financial institutions put in place to discourage businesses and companies that are just starting out. However, with venture capital financing, you don’t have to go through frustrations because the funds can be provided as long as you are qualified.

That said, it is worth to know which companies or businesses would qualify for venture capital funding.

Well, businesses that qualify for this type of funding are those with a significant growth potential, and are in situation where they need funding above what can be provided by personal resources. In most cases, these are companies or businesses that are not bankable. That means they can’t go to the bank to get a loan because they don’t have collateral or asset against which the loan can be borrowed.

Again, in most cases, these companies often deal with some category of technology, which could involve software, chemicals, biotechnology or medical equipment. So if someone was starting a small manufacturing business, or distribution for that case, that wouldn’t be an appropriate candidate for venture funding.

Finally, it would be necessary for the founder of the business to understand that this funding is only temporary. An exit strategy is what a venture capitalist would look for, typically within a 4-7 year time frame.

The question of why you need venture capital, therefore, has a number of different ways it can be answered. The benefits of getting this type of funding, so far surpasses the disadvantages. Provided one believes that they are qualified for these funds, and that their idea has a significant potential to generate sustainable profit in the long run, they can apply for it.

What Is Venture Capital, and How Does It Work?

Venture capitalVenture capital has been used in businesses for many decades. However, it is only until about three decades ago that people actually embraced and opened up to the idea of venture capital funding. Records show that this form of capital was being used since time in memorial. There have always been many misconceptions about what it is, and how it can be used to fund a business.

What Venture Is Capital?

Venture capital can simply be said to be the start-up capital for a business. It is a loan that is primarily used at the initial stages of a business, or a firm in a “turnaround” stage. At this point, the business has no market penetration or any customer base. The funds will thus be used to start the business, attract customers, and also run the business. Due to the lack of security or collateral, providers of the venture capital will always require a share in the company’s equity. This may entail having a percentage in the company’s shareholding, controlling the business, as well as sharing in the company’s profits. There are usually six stages in a business that is starting, these are seeding, start-up, growth, working capital, mezzanine (expansion), and finally exit (bridge financing).

Difference Between Venture Capital and Other Forms OF Funding

Venture funding just like ordinary business loans share a common goal which is to grow and develop a business. However, venture capital is quite different from other loans in the following ways:

· Type of Business: – Normal loans rarely fund start-ups; they prefer a business which has existed for some time, while venture capital is targeted at start-ups.

· Collateral: – Most business loans require the person or business seeking the funding to have a tangible asset. This may be a car logbook, a land title deed, or any other valuable asset. A venture capitalist will seek to become a part owner of the business.

· Control: – A person providing the funding may also want to be part of the team that is running a business. This is because a business is most prone to risk during its start-up stage. The type of control will vary according to the percentage of the money loaned out in relation to total equity.

· Sourcing: – Unlike business loans which are provided by financial institutions such as banks, credit unions, and cooperative societies, Venture capital is provided by venture capital firms or rich individuals known as “Angel investors”.

· Flexibility: – Ordinary business funding will usually have a defined period of time where it is to be repaid. The payments are also done whether a business is profitable or not. On the other hand, venture capital is very flexible. It will depend on the business performance, and also the nature of the fund provider. A venture capitalist may hold back from deducting the funds when the business is not making any returns and recover the money when it is profitable.

Types of Venture Funding

In principal all venture capital is the same regardless of the situation. It focuses on starting and turning around new business. The fund providers also have the chance to become part of the team running the business. Nonetheless, the capital also comes in different forms according to the source. The different types are as follows:

· Equity capital: – A venture capitalist or angel investor becomes a shareholder of the company. He will therefore enjoy the losses as well as the gains just like any other shareholder. The contribution will determine the number of shares to be provided. It is seen as a more permanent funding. Equity capital usually offers a larger capital base with less restrictive terms of paying back the investor.

· Debenture Capital: – This is a form of long-term loan that also comes with a lower rate of interest. The venture capitalists become creditors to the company and have no obligation to the running of the company or voting during shareholder meetings. Unlike normal credit, debenture capital has a lower interest since it is tax deductible.

· Preference share capital: – This capital is a hybrid between a debenture and equity. A portion of the funds will be used as equity, while the other percentage goes to debenture.

· Term loan: – Term loan is also known as term finance. It is a loan that is spread from 1 year up to 10 years. The credit is commonly used to fund working capital as well as purchase of fixed assets.

Pros of Venture Funds

Advantages of venture funding are as follows:

· Business start-up: – This capital enables a person start business from its initial stage which is not only the hardest, but also the most risky.

· No collateral: – A person with a good business idea and plan is able to start a business without having any security.

· Better Management: – Although a business may be required to give away part of the company control or shareholding, venture capitalists are usually very astute businessmen. They will bring on board new business ideas gained from previous businesses as well as hands on knowledge. This is an added bonus to a new business with limited skills.

· Long-term growth: – The venture partnership may be long-term. It will not cease after the seeding stage, but may also include start-up, growth stage, working capital stage, expansion stage, and finally the bridge financing or exit stage.

Cons of Venture Capital

· Dilution of Control: – A business owner will have to give-up some control. This usually does not go well with a person who likes to work using solo effort. The venture capitalist may also bring new ideas that undermine the running of the business especially if he lacks knowledge on the business.

· High interest: – due to the risk factor, the funds may come at a much higher rate of interest.

· Sourcing the Funds: – getting venture capital is a very hard task. It entails going through a lengthy process as well as convincing the investors that the business will actually succeed.

Venture capital is a good source of funds for start-ups. Many large companies have succeeded through such funding. However, it is important to carefully consider the reasons for engaging a venture capitalist. For instance, a business that is able to make huge profits within a short period will be more suited than a business which has to go through many growth stages before finally making a profit.