Why should one file patent applications in Israel?

Israel is a first world economy, and, notwithstanding its challenging geopolitical situation, has been ranked as one of the best-performing economies for decades. Furthermore, Israel is the source of many cutting-edge technological developments.

Despite being a small market, many start-ups are being acquired by multi-international companies (MNCs), a process which involves technology transfer transactions, with the result that numerous technologies, which originated in Israel, are being integrated into the core business activities of international corporations. Protecting the main IP assets of MNCs in Israel is important in order to establish an IP competitive edge in Israel vis-a-vis Israeli originated technologies that may be acquired by competitors.

Thus, any sound patent strategy cannot neglect Israel as a jurisdiction for protecting important innovations through filing of patent applications.

ECONOMIC HIGHLIGHTS

Israel, with a Gross Domestic Product of about $50,000 per capita, is a first world economy. Notwithstanding its geopolitical situation and consequent large defense-related expenditure by the Israeli government, the Israeli economy has been one of the top performers in the world in recent years. Inflation and unemployment are relatively low, and it outperforms most other economies in many key economic indices. Consequently, the New Israeli Shekel (NIS) has gained the status of an internationally tradable currency.

Israel is ranked between the top five countries in the number of holders of academic degrees per capita and is ranked first in the number of engineers per capita, while Israel’s high ranking is particularly pronounced in advanced academic degrees. The highly educated Israeli workforce generates Intellectual Property (IP), which is at the forefront of the world’s new developments. Israel is a society of entrepreneurs, and indeed, many cutting-edge technological developments originate in Israel.

ENTREPRENEURSHIP

Israel is ranked first in the number of startups per capita, first in the number of Unicorns per capita, and first in the number of VC invested per capita. With more than 9,500 active start-up companies in Israel, and about 380 Venture Capital funds operating in Israel, many billions of dollars under management are earmarked for investment in technology-based companies. Excellent technological achievements of Israeli startups have led to many technology transfer transactions, e.g., by means of M&A transactions, with the result that numerous technologies, which originated in Israel, are integrated in the core business activities of international corporations. By way of example, it was already recognized that about a third of all medical technology breakthroughs originate in Israel. The acknowledgement of Israel’s excellent engineering skills has led world-class players, such as Intel, IBM, Microsoft, Siemens, Alibaba, and many others, to operate R&D centers in the country.

It is also not surprising that a large portion of the country’s export consists of innovative products, which are at the forefront of technological development, and embody locally generated Intellectual Property. Furthermore, many foreign investors and corporations have made significant investments in Intellectual Property companies, buying into patents and other IP assets.

Israel is a significant market which is a driving force in its own right for protecting at least the most important IP assets in the country. However, filing patent applications in Israel is of particular importance in view of the very significant generation of IP in the country. In particular, protecting the main IP assets of a foreign company in Israel is important in order to establish an IP competitive edge in Israel vis-a-vis Israeli-originated technologies, which later may leak to competitors within the framework of technology transfer transactions or M&As by large multi-national companies.

The patent environment in Israel is strengthened by a legal and judicial system that respects patent and other IP rights. The Israeli legal and judicial system is reputed worldwide for its high standards, and lack of any bias: Israelis and non-Israelis alike enjoy the same treatment by the courts.

The increasing number of filings at the ILPTO per year in recent years also supports the above atmosphere.

The specified advantages for filing patents in Israel are supported by a fast and inexpensive route of filing and prosecution. In particular, patent applications can be filed and prosecuted in English, and, additionally, it is possible to obtain a patent in Israel with no examination of some basic requirements (following a so-called “Modified Examination” procedure) based on a counterpart patent granted in the US, EP, or other jurisdictions. Modified Examination is very convenient, considering the fact that, typically, by the time the National Phase Israeli application is examined, a counterpart patent has often already been granted. Another option is to invoke accelerated Examination through the GPPH route.

Note also that the IPO has adopted a unique program for priority applications that are filed in Israel. According to the program, a Search Report (at a low official fee) conducted by a high standard search quality can be issued within three months of the priority date in English, and in case of successful accelerated examination, the Applicant can apply for GPPH prosecution in many jurisdictions, based on such a positive outcome.

The advantages of filing patent applications in Israel include:

• A fast and inexpensive route of filing and prosecution, which offer both of the following:
  • Modified Examination
  • GPPH
• Filing and prosecution in English;
• Priority filing in Israel, which facilitates issuance of a Search Report, in English, within 3 months;
• Achieving competitive edge with respect to Israeli-originated technologies that may leak to competitors.