The Boundaries of Patentability

December 3, 2009

Yesterday,  December 2nd 2009, JMB, Factor & Co. hosted a seminar on the boundaries of patentability. The event was held at the “Israel Yaffa Conference Center”, and was attended by a select audience that included IP Law lecturers, patent attorneys and IP lawyers from the various Israeli firms, representatives of university and hospital tech transfer companies, visiting Korean and German patent attorneys, inventor-entrepeneurs and IP managers of several industrial companies.

After words of wecome from my partner and veteran patent attorney, Jeremy Ben-David, Greg Kirsch, a partner of leading US Law firm, Ballard Spahr, who heads up the software patent group there, spoke on the Bilski case, currently on appeal to the Supreme Court.  He took the audience through the main claim, the Patent Office Ruling and the Federal Circuit Court of Appeals ruling and the interim guidelines to examiners, but noting that the Supreme Court presumably took the case as they intended saying something, he declined to hypothesize which way the Supreme Court would rule. Greg finished by giving some practical guidelines and tips on claim drafting and writing the specification for software patent applications.

Dr. Ulrich Storz, Partner, Patent Attorney of Michalski Huettermann & Partner, Dusseldorf, Germany, spoke about gene patents in Europe and Dr. Aloys Huettermann, another partner of the same firm, spoke about embryonic Stem Cell research being non-patentable in the EPO but patentable in Germany, though on appeal to the European Court of Justice, and how the ECJ and EPO interact.

My brother, Adv. Aharon Factor provided some welcome light relief by briefly discussing the Order Public considerations in trademark law, and cases like Cocaine and Bong-Water for energy drinks, Big Pecker, Dykes on Bikes and Old Glory condoms.  

I then discussed what the Israel Law is and what perhaps it should be with regard to the patentability of business methods, software, genes and embryonic stem cell research.

The seminar finished with a vote of thanks from Mr. Michael Ophir, Israel Patent & Trademark Commissioner  between 1988 and 1998, who made a rare public appearance. Mr. Ophir regaled the audience with witty anecdotes regarding various controversial patent and trademarks decisions from the period of his tenure. He explained why he decided to allow a trademark for Jesus Boat, arguably offensive to Christians, and reminisced on one of his more significant decisions, when, in 1994 he rejected patent application No. 68409 of United Technologies Corporation, that dealt with computerizing a system for the energy-efficient flying of a helicopter, which was subsequently overturned by the Jerusalem District Court, C.A. 23/94 (Jerusalem) United Technologies Corporation v. The Registrar of Patents, Designs and Trademarks, District Court Decisions, Vol. 26 (8), 729.  He explained how he’d unsuccessfully petitioned the Attorney General to appeal the decision to the Supreme Court. Evidently, 15 years later and in his late  Seventies, the court ruling still rankles him. 


Jerusalem Artist Awarded Statutory Copyright and Moral Damages for Pictures Displayed on Internet Site with Signature of Another Artist

December 3, 2009

Molly Cohen, an artist living in Jerusalem’s trendy Nachlaot area, discovered that a Solomon Suissa who she had contracted to sell her paintings, had deleted her name and inserted his own, before trying to sell prints thereof via Yair Medina’s website, Jerusalem Artistic Prints LTD. Cohen sued Suissa, Medina and the company. Suissa’s version of the events weren’t heard, as he didn’t defend herself.

Ms. Cohen was unable to prove any damages, since it was not clear that any prints were sold. Nevertheless, the judge awarded statutory copyright and moral right damages to Ms. Cohen for the display of the goods on the website, ruling that the display was one infringement, noting that the hosting company, Jerusalem Fine Art Prints LTD., had taken the pictures down immediately that the alleged fraud was brought to his attention.

The judge ruled 20,000 NIS damages (the maximum allowable under the 1911 Copyright Law in force at the time of the infringement) and a further 18000 NIS legal costs, which is not bad considering that the plaintiff was not represented.  The judge ruled that the posting of all Cohen’s paintings attributed to Suissa should be considered as one infringement of her moral rights. As they were displayed only for a short period of time however, and none sold, there was no financial losses. 

The website is to be found at http://www.jerusalem-arts.com

The case is a strange one in that there is a lot of conjecture as to whether the gallery had grounds to suspect that the paintings were not by Suissa. Indeed, the whole case reeks of unproved suspicions.

Notably, Ms. Cohen represented herself. With a market price of $300 per painting and none sold, it seems that Ms Cohen is more successful at representing herself in court than as an artist.

There are some interesting aspects of the case however. 

Firstly, it is not clear from the ruling how the fine is to be divided between the defendants.

Under the Copyright Ordinance of 1024, Section 4A, Ms Cohen clearly has moral rights that are infringed if a painting that she has made has her name replaced by someone else. However, under Section  6(3)a of the 1911 Copyright Act that is the relevant Law for infringement prior to the 2007 Copyright Law coming into effect, “if a name purporting to be that of the author for the work is printed or otherwise indicated thereon in the usual manner, the person whose name is so printed or indicated shall, unless contrary is proved, be presumed to be the author of the work.”

Where an artist brings a series of paintings to a gallery for sale on commission, and the paintings bear his name, the owner of the gallery can reasonably assume that the paintings are those of the signed artist unless proven otherwise. The judge in this case has placed a huge burden on gallery owners to be check that artists bringing in work are the true artists. Posting photos of pictures to be sold, on a website that sells pictures does seem to be fair use.

The ruling, by District Judge Yoef Shapira, claims that the fact that the Internet gallery owner immediately took down the pictures when Ms Cohen contacted him is indicative that he was suspicious. I find this hard to accept. I can see a reasonable person taking down pictures from his website when such an issue is raised, pending investigation. Furthermore, since the subject matter was Christian, and the alleged artist, Suissa, was apparently a religious Jew, Judge Shapira ruled that Medina should have been suspicious. But if Medina was convinced that Suissa was religious, he would presumably not suspect that he was passing off someone elses pictures as his own.

I am thus not convinced that there is a reasonable case against Yair Medina, the gallery owner.

The case: 9080/07 molly Cohen vs. Suissa, Medina and Jerusalem Artistic Prints LTD.


Israel Court Releases Impounded Moped of Impotence Drug Dealer

December 3, 2009

Avi Paz Gillert, a distributor of fake fertility drugs, including Viagra, Levitra and Cialis was arrested whilst distributing same on his moped. The Police IP Fraud Unit have impounded the vehicle, pending trial since, as a vehicle used in a crime, it may be sold to pay a court imposed fine. Having been held for 180 days already, and is depreciating in value, the court has ruled for it to be released to the drug distributor on condition that he posts bail, guaranteeing paying of 3000 NIS himself, with third-party guarantees for a further 1500 NIS. The Case: H.T. 2462-09 Israel Police Fraud Squad vs. Gillert.


Israel Magistrate Court Throws Out Family Dissagreement, Ruling that IP Related Issues Takes it Out of His Jurisdiction

December 1, 2009

M. Delicious Food Manufacturing and Marketing LTD. has requested an injunction against Quality and Interantional Taste LTD, Rivka Malchi. Binayamin Hesishina and Calculated Manufacturing and Marketing of Foods LTD. to prevent the defendants from using its name. On the basis of the owner of the plaintiff being a brother-in-law of the second defendant, the defendants claimed that the Tel Aviv Magistrates Court was the wrong forum and that the case should be heard by the family court.

Judge Harel rejected this position, but noted that due to the IP related issues, the correct forum was the District Court and cancelled the case, awarding the defendants costs of 5000 NIS+VAT.


Versace 83 LTD. vs. Gianni Versace S.P.A. – the saga continues

December 1, 2009

Back in November 2000, the Italian fashion house Gianni Versace S.P.A. sued the Israeli menswear chain Versace 83 LTD. for trademark infringement, passing off, unjust enrichment and willful misleading of the consumer under the law to protect the consumer 1981 (2960/00 Tel Aviv-Jaffa District Court). The Italian company was awarded a temporary injunction forcing the Israeli chain to display a prominent sign to the effect that they were not connected to the Italian fashion house in any shape or form.  This was followed by other temporary measures – (See B.R.A 3579/01 and 4852/05).

The main ruling was held up whilst the Commissioner of Patents and Trademarks ruled on an Annulment Appeal by the Italian company to cancel Versace 83 LTD.’s trademarks. The Adjudicator applied the provisions of Section 39(a)(1) of the Israeli Trade Marks Ordinance (New Version) – 1972 as amended in 1999, whereby “application for removal of a trade mark on the grounds that the application for registration of the mark was filed in bad faith may be filed at any time” ruling that the amendment is applicable with regard to registrations obtained more than five years before the amendment was introduced.

Despite Versace being a well-known brand, their case against Versace 83 LTD. was complicated by the fact that when the Israeli chain filed their trademark applications, the Italian company opposed the registration but eventually, in 1989, decided to abandon the opposition proceedings, since at that time, the Italian company wasn’t active in Israel. This created a situation where arguably the Italian firm had given up their rights to the name and come to terms with the Israeli usage. The adjudicator of IP rejected the statute of limitation and res judicata arguments in view of the withdrawal of the oppositions and also noted that there were grounds of fraud. The trademark applications were canceled in June 2008 and the Israeli company appealed to the courts, so the marks are considered undergoing a second examination.

Judge Binyamini of the Tel Aviv District court then ruled that the Israeli company had a year to stop using the Versace mark, thereby granting a grace period to sell off goods carrying the label. The Israeli company has now tried to obtain an injunction, requesting suspension of the requirement to change the name of the shops, until the appeal is heard, claiming that the chances of the appeal being successful are high and that the costs involved in possibly unneccessary implementation are exorbitant. 

Judge Hayot, has now rejected the request for suspension, pointing out that regardless of the likelihood or otherwise of success, in Israeli Law, appeals are not supposed to prevent implementation of rulings, but to reverse or cancel the implementation if successful. Furthermore, not unreasonably, she noted that the appellants had anyway received 12 months to get their act together, and that the ruling hadn’t exactly come out the blue one fine day. 

In the meantime, we note that the Israeli firm’s website indicates business as usual, see http://www.versace.co.il/ The line in Hebrew across the bottom is a disclaimer of any connection to the confusingly named Italian fashion house. We will not be surprised if the Italian’s don’t claim contempt of court.


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