Patentability of Software – Notice from the Israel Patent Office

December 30, 2010

The Israel Patent Office has published an announcement regarding the patentability of software in Israel. The announcement follows a round table discussion held in November 2009, and a call for amicus briefs from the public.

The announcement relates to the spectrum of positions submitted, consulting with jurists and examiners, and looking at the Law in the US, Europe and the UK.

The following is a translation of the Notice:

  1. An invention as defined in the claims must be in an area of technology. This is implicit in Section 3 of the Israel Law.
  2. The invention will be examined in its entirety without separating between software and hardware elements, without focussing on the software but rather on the contribution of the Invention to the State of the Art. The contribution has to find expression in the Claim-set.
  3. The claimed invention taken in its entirety must have a significant expression in an area of technology.
  4. The inventive contribution as claimed in the claims must be novel and inventive (non-obvious) as required by Section 3. Alternatively, the means by which the invention achieves the contribution mist be novel and must include an inventive step.
  5. If the claimed process is only the steps carried out by the computer, the process will not be considered patentable subject matter. The software per se. is not a technological expression, since the software itself is protected by copyright.

The practicalities of the policy, together with the procedures that will be drafted following the change in policy will be published by the end of January. With their publication, the new policy will be implemented by the Israel Patent Office. The policy will be applied to all applications whose examination has not yet finished by the date of implementation, i.e. by 1 February 2011.

COMMENT

I do not fully understand the ramifications of this change of policy, which is worrying as I do draft software implemented patents for clients and need to advise them and also associates and clients filing in Israel under the Paris Convention or via the PCT mechanism, what is patentable subject matter in Israel. I hope that the guidelines will clarify the issue.

I suspect that the problem with my understanding is more a problem of the notice more than with my abilities. I wrote a semester paper on the subject of software patentability in Israel as part of my Law Degree, and despite getting a 98% grade for it, I wasn’t able to explain why certain patents issued under the old policy were allowed and others weren’t.

Nevertheless, I am pleased that the current Commissioner has ruled on this issue. The decision comes out on his last day in Office, rather like the US Supreme Court’s long-awaited and somewhat of a let-down decision on business method patentability in the US, in re Bilski.

I suspect that the interim Commissioner, Dr Guy Rotkopf, who will be serving as commissioner for the next month until a replacement is announced in February may find drafting clear guidelines and implementation a little difficult.

We await developments.


German Kindergartens to Pay Copyright Royalties on Nursery Rhymes and Songs

December 30, 2010

 The Society for Musical Performing and Mechanical Production Rights (GEMA) contacted 36,000 daycare facilities across Germany warning them they needed to sign contracts with the agency before they can photocopy song texts.

See http://www.rawstory.com/rs/2010/12/german-kindergartens-ordered-pay-copyright-songs/

COMMENT

Technically, the collection agency is correct. AKUM in Israel could do the same thing. The Shocken family who owns copyright for Bialik’s work sued Shuli Rand for not paying license when he adapted a story into a play. Technically Bialik’s nursery rhymes like נד-נד (see-saw),  קן לציפור (a bird’s nest) are equally protected, as are melodies by Nurit Hirsch, such as עושה שלום במרויו.

There are some fair use clauses in the Israel Copyright Law, but the applications are not clear-cut.


Israel Patent Office Awarded Israel Civil Service Efficiency Award for 2009

December 29, 2010

The Israel Patent Office has been awarded the Israel Civil Service Efficiency Award for 2009.

Apparently it takes about a year for this award to be announced. That as may be, it is a nice way for Dr. Noam’s term of office to finish on this high note, which is certainly well deserved.


Dr Guy Rotkopf Appointed Acting Israel Commissioner of Patents

December 29, 2010

The Director General of the Israel Ministry of Justice, Dr Guy Rotkopf, has been appointed acting Commissioner of Patents in place of Dr Meir Noam whose term of office ends on 31 December 2010.

The appointment is temporary, and according to the Chairperson of the Israel Chapter of the AIPPI, is expected to last a mere month until a permanent replacement is found.

It was Dr Rotkopf who announced that the first publication fee collected by the Israel Patent Office for publishing basic bibliographic details of new Israel Patent Filings in the Official Gazette would be refunded to Applicants, after instead of publishing details in print, Dr Noam decided to make do with the faster, more user-friendly and vastly more ecological publication on-line in the Israel Patent Office database.  I wait with bated breath to see whether a month in office will be sufficient for Dr Rotkopf to come up with a satisfactory implementation of this refund, since there must be about 25,ooo applications requiring such a refund, which I estimate will work out as less than $50 per application, with approximately half of these to Applicants from abroad. Personally, I think retroactive legislation to allow publication on-line or creative interpretation of the term publication would have been a more satisfactory approach.

More interesting is the composition of the appointment committee which is unknown, even to applicants apparently, presumably in the cause of transparent government.   Most interesting is who will be the next Commissioner, after Dr Rotkopf’s caretaker term???

Another question that this curious blogger asks himself: I understand that Dr Noam took a summer holiday and went incommunicado for about a month during the summer when the courts were in recess. The walls didn’t come tumbling down. If a replacement is expected within about a month, why bother appointing a temporary commissioner, instead of having the Deputy Commissioner serving as acting commissioner in the interim?

Another thing I am interested in is what Dr Noam will be doing next? No doubt we’ll know soon.


End of An Era – Dr Noam’s Tenure as Commissioner of Patents ends on 31 December 2010

December 26, 2010

Dr Meir Noam

Dr Meir Noam, the Israel Commissioner of Patents has announced his retirement from office, effective as of December 31, 2010.

The move came as no surprise, since it is Israel government policy to cap the amount of time civil servants can hold senior level positions, such as that of Commissioner of Patents. Dr Noam took on the job in the summer of 2002, after it had been vacant for several months.

Soon after he assumed the position, the patent office had to make an unexpected move due to structural faults in the building where it was located. The problems weren’t confined to bricks and mortar. He also inherited a small number of aging patent examiners, mostly past retirement age. The level of examination was not very high, and the pendency periods were inordinately long.

In the 7 1/2 years since taking the helm, Dr Noam managed to recruit a large number of young Examiners, to computerize the patent office, and to relocate to a permanent building in the Malcha High Tech Park where the office now has court rooms for hearings and a conference hall.

Under his leadership, the Israel Patent Office has rebranded itself as the Patent Agency, and has become a closed government agency, able to use filing and other fees to pay staff salaries. Israel has joined the Madrid Protocol for Trademarks.

The Israel Patent Office has been approved as an International Search Authority for PCT applications and has been invited to join the Patent Super Highway, and the patent department has received ISO 9000 quality certification.

In a series of Patent Office Circulars Dr Noam has brought about procedural reform and in a number of well-reasoned decisions has indicated patent office policy in various areas.

The name Meir in Hebrew means to enlighten or illuminate, and Noam means pleasant, and Dr Meir Noam has in fact enlightened the profession while being pleasant to patent office professionals.

As a blogger, reporting developments and rulings issued by the Patent Office, I have been occasionally critical of some policies and decisions. Nevertheless, it must be stated that on the whole his rulings have been well-reasoned and balanced.

In my view he may have occasionally exceeded the authority of his position by making decisions that would have been best decided by the Minister of Justice or by Knesset legislation. Cases in point include recognizing gene strings per se as being patentable subject matter and ruling that if published designs in the databases of other patent offices are accessible over the Internet, this is equivalent to them being published in Israel and thus lacking local novelty.

Ironically, Dr Noam was recently criticized by MK David Rotem, Chairman of the Knesset Constitution, Law and Justice Committee for exceeding his authority in deciding not to publish basic filing details of patent applications in the Official Gazette and publishing them instead on the Internet in the database of the Israel Patent Office. The criticism centered around the Patent Office collecting the publication fee from all applicants for four years despite not publishing on paper. That particular efficiency measure was ecological, sensible, saved time and made the data more readily accessible. Nevertheless, it sparked a class action and resulted in the Ministry of Justice announcing that they intend to refund the fees paid. It is not clear how this will be implemented. It is a shame that this development and public criticism came at the end of a remarkable term of office.

Dr Noam’s tenure as Commissioner of Patents will be remembered for modernizing and upgrading the Patent Office and for generally bringing the Israel patent process into the 21st century. Whoever replaces him will have a tough act to follow.


Orthodox Union Sue For Fraudulent Use of their Kashruth Mark, Claiming Trademark Infringement

December 26, 2010

The Orthodox Union, an umrella organization of centrist orthodox synagogues in the United States, is suing a fish importer for false use of its Circled U kashruth mark.

In a suit filed this month in Manhattan federal court against the OU accused the Pennsylvania-based seafood importer of trademark infringement and deceptive trade practice. The OU alleged that the company falsely declared that its tilapia had OU kosher certification.

Although any fish having fins and scales is kosher, processing can introduce Kashruth problems.

Apparently, Kosher certification agencies are particularly vigilant about controlling use of their kosher marks in the fish industry, where “species substitution” – selling an inexpensive fish as a higher-priced fish – is a recognized problem.

Tilapia is a kosher fish but it can become non-kosher during processing. According to the Wall Street Journal, in 2007 Western Edge applied for OU certification for its tilapia imported from China, but withdrew the request soon afterward. A company spokesperson told reporters that the letter claiming OU certification came from its plant in China, and that the company is working to resolve the issue with the OU.


Copyright in Schindler’s List?

December 25, 2010

Oskar Schindler, a Nazi, womanizer and playboy saved a large number of Jews from extermination in the Holocaust by forcing them to work in his factory. The story is told in Schindler’s Ark by Thomas Keneally , renamed Schindler’s List after the producer Steven Spielberg made a full length feature film about the story, see http://en.wikipedia.org/wiki/Schindler’s_List.

The original list of names has come up for sale and is being offered by a Manhattan dealer in Memorabilia, http://momentsintime.com/.

 Schindler’s heir Marta Erika Rosenberg tried to block the sale by claiming copyrights. Judge Louis York rightly dismissed the claim as being irrelevant since the issue is not whether one copy the work, but ownership of the original.

I very much hope that someone purchases the list and donates it to Yad Vashem or one of the other Holocaust museums.  Indeed, there are a number of items being sold by Moments in Time that I’d like to see in museums.

I think Schindler’s legacy is that he wasn’t a saint. He was a real person with real faults. Yet, despite his flaws he saved hundreds of Jews from the death camps. His actions show up the non-action of church leaders, and of the Allies who didn’t bomb the railway lines to Auschwitz.


‘Teach for Israel’ trademark refused as being descriptive

December 22, 2010

Teach for America Inc. is a company with a pedagogic agenda. The company attempted to trademark “teach for Israel” in various categories, for goods and services related to pedagogical applications. The trademark examiners refused the marks (nos. 20637-20640) as being descriptive and as lacking distinctive nature.

The term teach is generic for teaching, and generally, geographic place names do not provide distinctiveness.

The applicant appealed to the commissioner of patents claiming acquired distinctiveness, that the mark could be allowed on the basis of the US registrations and by offering to disclaim the phrase.

No evidence of acquired distinctiveness was submitted and the Commissioner used the negative google result for the term as submitted by the Applicant to show that the term was not generic, to show that there was no acquired distinctiveness.

The offer of disclaiming rights to the phrase was rejected as the commissioner viewed this as a strategy that was opposed to the idea of the trademark as being indicative of origin of the goods and services.

An attempt to register based on the US registrations was also rejected, since the US registrations were for ’Teach for America’ and thus were not for the identical mark.

Finally, attempts to argue that other marks including the word Israel had been registered were rejected out of hand; the commissioner pointing out that arguably those marks had themselves issued in error.


Teva settles diabetes drug patent litigation with Takeda

December 22, 2010

Teva has announced reaching a settlement with Takeda regarding two Type 2 diabetes drugs, ACTOS and ACTOplus. Takeda has granted Teva a license to market an authorized generic version of ACTOS in the U.S. from August 17, 2012, or earlier under certain circumstances, and a license to market an authorized generic version of ACTOplus from December 14, 2012, or earlier under certain circumstances.

The combined annual sales of the drugs in the United States is approximately $4 billion.


הקפיטליזם של הידע מאת חגית מסר-ירון

December 18, 2010

 This little 133 page Hebrew book describes technology transfer from universities to industry and explains why it is important.

   To me, the significance of the book is not so much what it says, but that it says it in Hebrew. There is, therefore, a reasonably chance that it will have an influence on Israeli policy makers. Briefly, the book explains the differences between academia and industry, and why academics should have State support whilst doing basic research, yet should be able to benefit from their inventions.

The book argues its points well. This is not surprising.The author, Professor Messer-Yaron is the Dean of the Open University and a former Director of Ramot, the Technology Transfer Company of Tel Aviv University. Nevertheless, the book is more of a polemic than a balanced analysis. Although isolated examples are given to support arguments raised there is little supporting statistical evidence included.

It is significant that the Israeli model of rewards to academic inventors has been adopted elsewhere. The Baye Dohl Act and subsequent experience in the US does show that providing incentives to academics to patent their research does oil the wheels of progress.

From time to time, Israeli politicians and liberal arts professors do try to suggest more equitable solutions,than providing academic inventors with a share of the royalties generated by their inventions. Whether motivated by genuine Marxist convictions or, as we suspect, by envy, Whilst this is the situation, an easy accessible, short and authoritative argument showing the benefits of the system is required and this book provides it.

The Capitalism of Knowledge, by Chaggit Messer-Yaron The Broadcasted University (Galei Zahal, 2008)


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