The pitfall of Section 17c – Varicom Communications LTD shoot themselves in the foot

September 12, 2010

Varicom Communications LTD, an Israel company, http://www.varicom.co.il/ filed a patent application (number IL 135684) in Israel. The claimed invention was quite nifty. It allowed mobile phone owners to know who had tried calling them and when. Back in April 2000 when the application was filed, the idea was less obvious than it seems today.

Over the course of the year, the idea was developed somewhat, and a PCT application claiming priority from the Israel application but with added material, was duly filed. 

A national phase entry into the US, number USSN 08/569,209, eventually issued as US 6,754,316, and the applicant requested allowance on the basis of the corresponding equivalent US Patent, conformed the claims and specification of the Israel application to that of US 6,754,316, and the patent was granted and published for opposition purposes.

Herein lies the problem. The additional material which is necessary to support the allowed claims is only entitled to the date when it was added, sometime in 2005, way after the PCT application published. Thus the PCT application became prior art to the invention and torpedoed the patent.

Comverse LTD http://www.comverse.com/, an International company with a large Israel presence, filed an opposition also claimed that prior art mentioned in the International Search Report of the PCT was not placed on record by the applicant during the Israel examination, contrary to Section 18 of the Law (duty of disclosure). They also claimed that a product of theirs – Trilogue INfinity Platform anticipated the application in its entirety, using affidavits to support their claims that the product was sold to clients before the priority date. The applicant did not respond to the opposition procedure so the historic truth of these allegations was not examined on their merits. This leaves the validity of Varicom’s corresponding US patent somewhat unclear.

The morals of the story:

  1. First filing in Israel is a great idea, as the application only publishes on allowance
  2. Adding material before filing a PCT or regular Paris convention applications is also OK, but amend the priority application to include the additions before the PCT or foreign filings publish 18 months from priority
  3. Cite everything of relevance under Section 18, and if adding the specification prior to allowance under Section 17c, check that anything relevant to the added material is also cited
  4. Be careful when invoking Section 17c
  5. Use counsel when fighting oppositions – Dr Oded Cafri, founder and president of Varicom didn’t use professional representation. Not a good idea. 
  6. If you are caught out probably best to abandon the application rather than letting an opposition proceedings publish which is minimally embarrassing and potentially very damaging.

IBM Attorney Discusses Open Source With LES Israel

May 12, 2010

At a meeting of the Israel branch of the Licensing Executive Society, Adv. Suzanne Erez (IP Law Counsel at IBM Israel) spoke on “Use of Open Source — an In-house Point of View, Plus More “.

The workshop was held at Beit HaPraklit, 10 Daniel Frisch, Tel Aviv.

Suzanne shared some thoughts on dealing with copyright issues in software development, particularly with alleged open-source procedures available on the Internet,  including copyright software.

Suzanne spoke with authority and kept the audience’s attention. She explained the theoretical background and then covered practice. Seeing how a firm like IBM deals with the subject gave an insight into good practice. The importance of having a company policy and ongoing education was stressed. 

She explained the problems that something including copyright material of a competitor getting into a commercial prduct could cause the company, such as compromising licensing agreements in other countries, and went on to explain how risks could be minimized by searching through code for (c), words like copyright, proprietary, etc. problems could be avoided.

 Unfortunately the presentation was in a sort of Yiddish type mix of Hebrew and English. Since the slides were in English, it would probably have been better for the whole presentation to have been in English.


Hallachic Perspectives on Copyright

April 25, 2010

I was privileged to attend a seminar on practical and theoretical Jewish Law (Hallachah) regarding software and music / film downloads. The seminar was hosted by the Advanced Rabbinic Program at Psagot, which aims to train judges of Jewish Civil Law (Dayanim).

There were three presentations by leading Rabbinical scholars, and this article attempts to put across their positions for the layman. Of necessity, I am simplifying their positions. I also admit that I am out of practice in following presentations of this sort, and possibly, some of the subtleties went over my head.

I will attempt to obtain a Hebrew transcript for any interested parties.

All three authorities accepted that since Halacha considers Civil Law on monetary matters as binding anyway, Copyright and Contract Law were sufficient to obligate parties not to make illegal downloads or installations. The following discussion is, therefore, theoretical, in the sense that Talmudic or halakhic sources are not strictly speaking required. 

Rabbi Zalman Nechemia Goldberg spoke first. His biography may be found here:

http://en.wikipedia.org/wiki/Zalman_Nechemia_Goldberg

Rav Goldberg took it as assumed that a creative work was the property of the originator and argued that there was Talmudic precedence for a seller or donator to sell with restrictions, thereby finding a basis for licensing agreements. The basis brought was that Rabbi Meir claimed that one could give charity specifying that the money donated was for the purpose of buying shoes. Evidence that this was codified as Law came from the fact that the Medieval Authority Rav Alfazi accepted that when hiring out an animal to someone, it was legitimate to condition the transaction on preventing the  renter from lending or renting to a third-party. By analogy, software and copyright licenses were considered as upheld by Jewish Law.

Of interest, he pointed out that when the Vilna Talmud was printed in the 19th Century by the Widow Romm and Sons, it challenged an hegemony by the Slavuta press. Although there were Hassidic vs. Mitnagdic / Haskalic overtones, at least part of an attempt at creating a 20 year ban against the Vilna press producing copies of the Talmud, was the investment of the Slavuta press. I note that this is rather like the first Copyright Ordinance, the Statute of Anne, also intended to protect the publishers and not the authors.

Rav Goldberg went on the rule that all illegal copies and downloads were separate sins, and that it did not matter whether the copied material was copied from a Kosher version or from an illegal copy. He referred the audience to Tchumim Vol 6 where he had published extensively on copyright topics.

Rabbi Shlomo Dzialowski

Rav Dzialowski purposely kept his presentation superficial. He won over the audience by talking about his computer skills as compared to that of his grandchildren, and claimed to lack the computer skills to make illegal downloads from the Internet.

Rav Dzilowski quoted Rav Vozner (Emek Mishpat), that copyright infringement was ‘Gezel’ – best translated as robbery, particularly highway robbery, and thus equivalent to piracy.

Quoting the leading rabbinic authority of recent years, Rav Auerbach, Rav Dzialowski ruled that one had ownership of one’s creations.

Finally, he quoted Rav Shkop (1860 - 1939), that the reason why someone was liable for damage caused by an obstruction in a public thoroughfare of his creation was just as every inventor of something new was entitled to it, he . (Novela on Baba Kama, first section).

Rav Dzialowski went on to explain that in the same way that the eggs of one’s chicken, or the calf of one’s cow were one’s property despite no Biblical source to that effect, an invention or creation was similarly the property of the inventor or creator.

As to intangibles, to explain why, despite the lack of a tangible loss to the creator by copying software or music, he drew an analogy to Maimonides’ ruling that one had to pay a Doctor for his consultation; the payment covering skill, training, etc., regardless of the fact that the doctor was not poorer for providing his service.

In other words, Rav Dzialowski’s argued that despite the Torah discussing stealing of tangible objects such as cows and sheep, there is, nevertheless, a long tradition and understanding that intangibles have value. 

In summing up, Rav Dzialowski ruled that one can sell one’s knowledge, skills and creations and can create conditions for their resale, in other words, licensing.

Rav Yitzhak HaLevi Clab rejected the arguments of robbery. In his opinion, robbery required the victim to have a tangible loss, and arguing that a robbery construction would be problematic as a basis to prevent one from copying a copy. Rav Clab’s position was that under the general principle of Loving thy Nabour as One’s Self, that, according to Rabbi Akiva is the basic principle of Judaism,  whenever one benefitted from someone else’s creativity or toil, one had to pay the market price. Generally the creator can fix his own prices.

Based on this reasoning, it is immaterial where a software program is purchased or a song is obtained, the person downloaded is morally obliged to compensate the rights holder, usually the creator, for benefit from the creation.

The program was well constructed and informative. I congratulate the organizers.


“Radio Israel” – too generic to be protected by a trademark

April 18, 2010

An internet radio service provider has attempted to get a trademark for ”Radio Israel” in Hebrew letters. The Israel Trademark Application No. 218060 is reproduced below.

Whilst accepting that competition from similar services damages the applicant’s business, the Deputy Commissioner of Patents and Trademarks ruled that the trademark was highly descriptive and near the generic extreme of the distinctive-to-generic spectrum. Furthermore, there was a problem that the logo could confusingly be understood as implying links to the State and some official national authorization. In this regard, the turquoise and white colour scheme cannot have helped.

Applicants submitted evidence from Google clicks to show that their business was being harmed by copycat service providers. The Assistant Commissioner rejected their arguments, by noting that the Google searchers were apparently looking for the service, i.e. links to Israeli radio channels, and not a particular service provider. This, according to the Assistant Commissioner, merely emphasized the generic nature of the name.


Israel Court Issues Stiff Sentence to Fake Viagra Distributors

December 31, 2009

The Tel Aviv Public Prosecution has successfully tried a ring of counterfeit impotent pill distributors under the Criminal Code.

In a plea bargain the first two defendants admitted importing fake Viagra over the Internet and selling it as genuine Pfizer impotence pills.

 Judge Hadassa Naor over-ruled an opinion from the Assessment Service that recommended rehabilitation, and sentenced them to 16 months in prison, with a further 8 months suspended on condition that they do not repeat their crimes for 3 years. In addition, they were fined of 50,000 NIS (about $14,000).

Naor considered the public interest to put the perpetrators behind bars as over-riding rehabilitation considerations since she considered fake Viagra, taken without a prescription, potentially life threateningly dangerous. The defendants have 45 days to appeal.


Vanessa Hudgens Claims Copyright in Décolletée Images of Herself

December 28, 2009


Generally speaking, the subject of a photograph does not have copyrights therein. These accrue to the photographer, unless there is a contract to the contrary.

Actress Vanessa Hudgens has apparently been shocked to find full frontal, nude images of herself on the Internet, specifically on the site of moejackson.com, but as tends to happen with such things, the images are already available more widely.

Sometimes, such pictures are the result of paparazzi voyeurs and can be taken down by court order as being an invasion of privacy. In this case, it looks suspiciously like the actress is posing.

In an interesting move, Ms. Hudgens has claimed that she took the pictures herself and thus owns the copyright, which she has registered with the US Copyright Office. However, there is no indication that she was actively controlling the camera since there is no indication of a remote control, for example.

If the camera was operating automatically and filming everything, then arguably there is no copyright in the images. Perhaps it would be like a sports event. On the other hand, shouldn’t a model or actress who sets up a picture and then gets into the frame to be part of the image be considered as the photographer? Come to that, should it matter if someone else presses the shutter?

OK! magazine speculated that she would be dropped from High School Musical 3 when, in September 6, 2007, a photo of Hudgens appeared online, showing her nude. A statement from her publicist claims that the photo was taken privately and it was unfortunate that they were released on the Internet. Hudgens later apologized, saying that she was “embarrassed over the situation” and regretted having “taken [those] photos.” naked photos of Hudgens surfaced the Internet in late 2007. The Walt Disney Company denied the reports, saying, “Vanessa has apologized for what was obviously a lapse in judgment. We hope she’s learned a valuable lesson.”
A link to the article is here:

http://www.nydailynews.com/gossip/2009/12/24/2009-12-24_vanessa_hudgens_sues_over_nude_pics.html

As the subject matter is not part of the claim for copyright protection, but only the identity of the photographer, I am not posting the images. Despite not being convinced that Ms Hudgens took the compromising pictures of herself, herself.


Judge in Tenenbaum Case Condemns US Copyright Act

December 8, 2009

U.S. District Court Judge Nancy Gertner, the federal judge who presided over the recent file-sharing lawsuit against graduate student Joel Tenenbaum by the RIAA has called on the US Congress to reform the copyright law.

In a decision issued Monday, Judge Gertner stated “As this court has previously noted, it is very, very concerned that there is a deep potential for injustice in the Copyright Act as it is currently written. It urges — no implores — Congress to amend the statute to reflect the realities of file sharing… there is something wrong with a law that routinely threatens teenagers and students with astronomical penalties for an activity whose implications they may not have fully understood.”

The US Copyright Law currently provides for damages ranging from $750 to $150,000 per infringement, and this summer, a Boston jury under Ms. Gertner found Tenenbaum guilty of  using peer-to-peer software to share 30 recordings and ordered him to pay $22,500 per track, i.e. a total of $675,000.

So there you have it. A judge noting that the law is an ass.

Meanwhile, in an interesting development, it transpires that the Canadian recording  companies that lobbied so hard for stiffer penalties may owe royalties of perhaps billions to song-writers and artists for using songs in albums and compilations. See Prof. Michael Geist’s blog: http://www.michaelgeist.ca/content/view/4596/135/


Israel’s Emblaze Accuses Apple of Patent Infringement

December 7, 2009

 Israeli technology company Emblaze Ltd. has accused Apple Inc. of patent infringement. the allegations concern a live video-streaming application that the technology giant plans to provide for its iPhone and iPod Touch.

It is not clear which application is intended, but Apple approved an application last week called “Knocking”, that is the first to allow live video streaming, on the 3G network, directly from one device to another.

Meanwhile, Emblaze recently announced its own mobile platform, known as ELSE, that will allegedly integrate the patented technology for streaming video between devices. Emblaze has announced that it is open to licensing its technology to Apple but has set a deadline at December 15th for the iPhone maker to respond.


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.


WIPO Provides Access to Israel’s Patent Data

November 23, 2009

WIPO’s PATENTSCOPE® now includes the patent data collections of eight patent offices: African Regional Intellectual Property Organization (ARIPO), Cuba, Israel, Republic of Korea, Mexico, Singapore, South Africa and Vietnam.

WIPO has been working closely with these patent offices to ensure the data collections are fully searchable and has provided partial funding for Israel’s computerization process.

The availability of Korean patents is important as there is a lot of technology developed there and these are otherwise rather difficult to access. They have not yet been carried by Delphion, for example.

 


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