Camtek vs Orbotech, the Latest Developments

May 7, 2013

tweedle dee and tweedle dum

In the ongoing patent saga between Camtek and Orbotech, two Israeli manufacturers of optical imaging systems for quality control of semiconductor substrates, Camtek, represented by Adv. Adi Levit, petitioned to correct the statement of case concerning their opposition to Orbotech’s patent no. 179995 titled “SYSTEM AND METHOD FOR INSPECTING PATTERNED DEVICES HAVING MICROSCOPIC CONDUCTORS”

Evidence has already been presented, but some of Camtek’s evidence was struck as irrelevant. This attempt to correct the statement of case was, according to Orbotech, represented by Adv. Reuven Borchowsky, an attempt to bring into discussion material that has already been ruled as irrelevant and subsequently appealed and upheld.

The case was allowed on the 30 October 2011 and the appeal was filed (as is customary to delay allowance for as long as possible), on 31 January 2012. the attempt to correct the statement of case was filed on 19 March 2013, only just over a month before a hearing due for 22 April  2013

Adv. Levit argued that the correction was required because of the public interest of maintaining the ‘purity of the register’. In other words, if Orbtech don’t deserve a patent for lack of novelty, inventive step, and / or utility, civil procedure should be waived in the interest of making sure that they don’t get one.   The issue seems to be about the angle of the azimuth being claimed but not properly supported. Orbotech disagreed with a change in direction late in the proceedings.

The arbitrator (not signed so not sure who), seems to be accusing Camtek of time-wasting shenanigans, and rejected the request, ruling that the purity of the register was not a be all and end all blanket legitimacy for everything, and hinting at inequitable behavior. She also ruled NIS 3000 of costs to the applicant.

COMMENTS

We suspect that both parties are motivated by a mixture of commercial interests and bad feelings, and the purity or otherwise of the register is not a significant consideration here. It is legitimate for the opposer’s counsel to file responses on the last day, as it is his client’s interest to stop the patent issuing for as long as possible. Additional delays, especially when not based on newly discovered evidence, is intolerable.  the ruling is a reasonable one, if a little formalistic and dry.  To be honest, I’ve lost interest in the little skirmishes and await a final ruling on the validity of the patent. On the other hand, a heavy case load could be responsible for not filing request to amend the statement of case a little earlier. We note that most Paris Convention filings seem to wait until the last day. It is not inequitable behavior, just procrastination.


Opposition Withdrawn and Patent Allowed

May 6, 2013

stencil

In Febrary 2007, Israel patent Number 171865 to Speedline technologies, titled METHOD AND APPARATUS FOR SIMULTANEOUS INSPECTION AND CLEANING OF A STENCIL published for opposition purposes, and an opposition was filed in may 2007.  It has now, six years later been  withdrawn. In a brief statement, Ms Yaara Shoshani Caspi has ruled that she does not see any reason to continue the opposition as an in partes procedure with the patent office taking an inquisitional position. The application will therefore be allowed.

COMMENTS

This announcement tells nothing of the reasons for opposition or why Ms Shoshani caspi ruled that there was no public interest justification to prevent the application for issuing. This information is also not on the IPO website. If someone reviews the file and submits a request for cancellation, no doubt we will be wiser.


Design Registrations Cancelled After Court Rules Lack of Novelty on Filing Date

April 8, 2013

Eli Shafir owned three registered designs – 44798, 44799 and 44800.  On suing A. A. Maayanot LTD. for infringement in the Haifa District Court, A. A. Maayanot LTD. filed a cancellation action in the Israel Patent Office. Judge Dr. Adi Zarkan of the Haifa District Court ruled that the marks were invalid since they lacked absolute novelty when they were filed (there is no grace period under the Design Ordinance).

Consequently, the Patent Office cancelled the designs. The parties agreed to allow the patent office to decide appropriate costs. After comparing similar actions in Termo Gumi  see http://blog.ipfactor.co.il/2011/04/06/designs-for-rubber-seals/ and in Wolfman vs. Ackerstein  http://blog.ipfactor.co.il/2009/12/14/israel-patent-office-publishes-decision-on-design-for-kerb-stone/ and on weighing up the relative amounts awarded and the amount of material in each file, the adjudicator of Intellectual Property ruled costs of  NIS 2000 plus lawyer’s fees of NIS 10,000.

COMMENT

The decision doesn’t relate to the nature of the goods at all.  However, the court ruling indicates that the designs related to water purifying equipment imported from China. See ’ת”א (חיפה) 21858-08-10 – אליהו שפיר ואח’ נ’ א.א. מעיינות בע”מ ואח

We note that under the relevant somewhat archaic design ordinance, an importer can register a design for something imported from abroad. Only absolute local novelty is required. Apparently, this wasn’t available locally.

it is not clear why the adjudicator compared this to other design rulings and not to patent or trademark cases, of which there are rather more and these are certainly more recent.


Camtek Successfully Opposes Orbotech Patent for Image Analysis

January 6, 2013

Orbotechcamtek

Camtek and Orbotech are two Israeli companies making automated inspection systems for the microelectronics industry.

There appears to be a fair amount of bad blood between the two companies, and invariably when one receives a patent allowance in Israel, the other files oppositions.

In March 2001, Orbotech filed a patent application number IL 142028 into Israel. The application was a national phase entry of WO00/19372, titled “Pixel Coding and Processing Method” and had a priority date of 28 September 1998. The independent claim as filed reads as follows:

“A method of multi-level pixelization of images comprising: determining at least one edge between a first area and a second area in the image; dividing the image into pixels; assigning a first value to pixels completely in the first area; assigning a second value to pixels completely in the second area; and assigning a value to pixels through which the edge passes, said value being one of the first value, the second value or a different value.”


In June 2006, the patent was allowed and published for opposition purposes. Camtek filed an opposition claiming lack of novelty, obviousness, insufficient disclosure and lack of enablement.
MS Yaara Shoshani Caspi, an adjudicator at the patent office accepted that the claimed invention was obvious based on the teachings of:

  • US 5,148,495 “Line region Segmentation Method”
  • US 5,754,690 “Position Sensitive Detector based Image Conversation System Capable of Preserving Sub Pixel Information”
  • US 4,896,364 “Method of Detecting Boundary Structures in a Video Signal” and
  • US 4,873,577 “Edge Decomposition For the transmission of High Resolution Facsimile Images.”

The opposition was accepted and the applicant was ordered to pay costs of NIS 30,000 to the opposer.

COMMENTS

I think Ms Caspi Shoshani’s ruling as to obviousness of the main claim is reasonable. I note that she does not consider that all four cited patents are required to knock out the main claim.

There were, however, some other aspects of the ruling I was less happy about.

  1. There appears to be an assumption that if the independent claim is obvious, the patent should be rejected without substantially relating to the dependent claims. I reject this totally.
  2. the application was criticized as being confusing and difficult to understand, and without the affidavit of the expert witness, it was beyond the arbitrator to understand what the purpose of the invention was. I reviewed the application, and like many patents for image analysis, it is not easy subject matter. Nevertheless, I didn’t feel that the applicant was trying to obfusticate.
  3. The examples dealt with printed circuit boards but the applicant claimed image analysis in a much wider, context independent manner, without bringing support for so doing. The adjudicator criticized this. Now, I accept that a photograph of copper paths laid down on a dielectric substrate provides one of the easiest types of images to approximate as a binary image and to unambiguously determine the edges of. Nevertheless, the approach taken is clearly application independent, and I can’t see any reason for the applicants to have discussed and brought examples of printed text or other images.

At the end of the day, the adjudicator construed the main claim and compared to the prior art cited to find the approach obvious. She also correctly noted that by assigning edges with a value representing dark, representing light or representing another value, the claim covered all imaging algorithms and was thus too broad. I think the decision could reasonably have been left at that.

We note that although the PCT received a positive international search report, it appears that the application was rejected in Australia and not allowed anywhere else.

Finally, as the two sides were fighting the opposition over a 6 year period, with a hearing, etc., it seems that the NIS 30,000 in legal costs awarded was less than generous.

Israel Patent Office ruling concerning Opposition to IL 142028 to Orbotech by Camtek, adjudicated 9 December 2012, by Ms Shoshani Caspi


Steep Rise in Israel Patent Office Fees

December 31, 2012

inflationThe fees for filing and prosecuting patents, designs and trademarks are generally index linked to the cost of living and there are twice yearly adjustments which are usually fairly trivial. The fees for renewing patent, design and trademark registrations are similarly adjusted.

In a Notice dated 3 December 2012, the Israel Patent Agency announced a radically different price regime for some patent related services. However, design and trademark related fees will only have the expected index linked adjustments.

The fee for filing a patent application which until January 1, 2013 stood at NIS 1025 (about $275 US) have  gone up to NIS 2000 (about $540) which is a sharp increase of nearly 100%. However, companies having an annual turnover of less than NIS 10 Million (about 2.7 million dollars) who are prepared to sign a declaration to that effect, and also individual applicants – who do not need to declare anything – are entitled to pay a reduced filing fee of NIS 1200, which is actually fairly close to the filing fee prior to it being discounted as there is no longer a publication fee for first publication, since the data is made available on-line. It should, however, also be born in mind that the publication fee for allowed applications has also been cancelled.

Very sharp increases in extension fees and renewals fees have also been introduced. Each monthly extension fee for responding to an office action or for paying a renewal, etc. will now be NIS 200 (about $54), whereas until now, this has been NIS 64 (about $17).

Renewals have gone up considerably as well. Whereas the first renewal for years 1-6 from filing was NIS 157, and the second renewal for years 6-10 was NIS 320. These are now NIS 800 and NIS 1600. In other words, the first renewal has gone up by over 400%!

Expedited examination and oppositions are also more expensive.

The Dollar- Shekel exchange rate has also dropped, so the cost in dollars has gone up even more disproportionately.

COMMENT

A condition for the Israel Patent Agency becoming an International Search Authority for the PCT was that it would maintain a team of 100 examiners. Presumably this has increased running costs of the patent office. Not only do these examiners presumably receive salaries, but they also require office space, etc. Perhaps there has also been a perceived increase in value of an Israeli patent, both due to the Israel Patent Agency becoming an International Search Authority, and because of books like Start-up Nation: The Story of Israel’s Economic Miracle, 2009 by Dan Senor and Saul Singer.

Sometimes high prices do not deter investments. Nevertheless, it remains to be seen whether these sharp increases have an effect on the number of patent applications filed in Israel and on whether or not they are maintained.


Michael Ophir Z”L

December 16, 2012

Israeli_flag_at_half_staff (1)Former Commissioner of Patents and Trademarks, Michael Ophir passed away today. The funeral will leave tomorrow at 1 PM from the Sanhedria Funeral House.

Michael Ophir, formerly Martin Oppenheimer, was born in Furst in Germany, and after Christelnacht, hid family escaped to the UK, where he later studied law at Kings College London. Living in Golders Green, Michael worked as a solicitor in the UK for over 20 years. He emigrated to Israel in the early 1970s, and was a librarian in the Law Department of the Hebrew University of Jerusalem. He served as the Israel Commissioner of Patents and Trademarks in the period of from 1988 to 1998. Perhaps the biggest change that occurred under his stewardship was Israel joining the PCT mechanism for International filings.

In addition to his interest in intellectual property, Michael had other interests. He was a choir master, and gave weekly lectures on the Torah portion and on the Mishna. One of the regular attendees was Dr Bernard Crammer who was the head of the Chemistry and Life Science Examination Department at the Israel Patent Office.

Suffering from ill-health and frailty in recent years, he moved to sheltered accommodation near Ramat Eskhkol, the Jerusalem neighborhood where he’d previously lived.

I entered the IP profession after Michael Ophir’s term as commissioner, but got to know him a little, and found him very helpful whenever I consulted with him. I was extremely grateful for his attending an event I held with my previous partnership JMB, Factor & Co. where he gave a vote of thanks and reminisced on a couple of rulings he’d issued. See http://blog.ipfactor.co.il/2009/12/03/the-boundaries-of-patentability/

He is survived by his wife Anne, and children Jacqueline, Zvi, Frances, and Jonathan.

May his memory be blessed.


State of Israel Sues Academics Claiming Inventions are Service Inventions and State Owned

November 28, 2012

Professor Shlomo Ben Chaim and Dr Amir Arev of the Volcani Institute filed patents for freezing cells, tissues and limbs through a company Core Dynamics IMT that is  by the researchers. However, according to the Ministry of Agriculture, the technology was developed during work at the State owned Volcani Research Institute, and so the State  considers that the inventions are service inventions that are owned by the State.

Adv. Dikla Shalev Amsalem of the State Attorney Office together with a litigator in a private Law firm sued the researchers for 40,000,000 Shekels.

COMMENTS

Unlike the universities which have a mechanism in place to ensure that patent applications are filed and that inventors are compensated with 40% – 50% of the royalties, the govt. research institutes and hospitals have only recently began to look into developing tech transfer offices and to compensate inventors.  Presumably if the development initiative is commercially successful, the inventors and their firm are paying taxes and providing employment in Israel, so the country is getting some not insignificant compensation from the commercialization without having taken the risk of investment therein.

There hasn’t been a serious ruling by the Israel Courts on rights by the State to inventions by civil servants, and how the Patent Law is or isn’t modified by the basic laws of property. Maybe this case will result in such a ruling.

This is the second time that the State has sued entrepreneurs and private companies alleging that the patents for the underlying inventions  were developed by government employees and claiming them to be service inventions of the State. The other case, State of Israel vs. Omrix, concerned an adhesive that includes a blood clotting factor. For further details,  see here.


Legal Costs and Allegations of Bad Faith in Israel Patent Opposition

October 30, 2012

Omrix Biopharmaceutials filed a patent opposition against IL 157360 to CSL Behring.

The patent application opposed is titled “Storage- Stable Liquid Fibrinogen Formulation and Uses Thereof” In response to the Opposition being filed, which was based largely on a corresponding opposition filed in the EPO, the Applicant requested that the Notice of Allowance be withdrawn, effectively requesting continued examination.

Despite the relatively early stage of the opposition, the Opposers claimed actual legal expenses of 135,417.66 NIS, since they had to analyze scientific papers, the prosecution file in Israel and in Europe and the opposition filed in Europe. They also accused the applicant of bad faith and asked for exemplary expenses.

The Adjudicator of Patents did not uphold the accusation of bad faith, but did accept that despite the allowance being withdrawn early on, the opposers must have spent considerable resources in preparing for the action. Furthermore, the applicants and their representatives were criticized for not requesting that the allowance be reconsidered as soon as the opposition was filed in the European Patent Office.

Expenses of 5000 NIS and costs of a further 65,000 NIS were awarded.

The Case: Opposition to IL 157360 to Behring, filed by Omrix. The decision was ruled by adjudicator of patent oppositions, Ms Jaqueline Bracha on 12 September 2012.


Patent Extensions for Pharmaceutical Compositions in Israel Cannot be Obtained on the Back of Patent Term Extensions in the US, Due to TRIPS change in Law to 20 years from filing

October 30, 2012

Kirin Amgen Inc sells a treatment for amemia called “ARANESP” which contains the active ingredient DARBEPOETIN ALFA. Kirin Amgen requested a patent term extension in Israel on the basis that the corresponding US patent was extended by the Uruguay
Round of the TRIPS agreement under which the USPTO adopted a 20 years from filing rule. The Registrar of Patents in Israel, Asa Kling, rejected this argument. By the time the drug expires, it will have benefited from 14 years of post FDA approval in the US and also in Israel, and the extension to all pending applications in the changeover period as the US implemented TRIPS is not to be considered a patent term extension.

The Agents of the Applicant claimed that there was a lacuna in the Israel Law, but the Registrar did not accept this. Since neither the US nor any other Bolar jurisdiction awarded a patent term extension, there was no grounds under the amendment to the Israel Law to allow an extension in Israel either.


Seminar – Recent Changes in US and Israel Patent Law

September 3, 2012

There have been some substantive changes to both the Israel and US patent law and practice recently.

In the US, there is now a procedure for oppositions. Israel applications now publish before allowance and third parties can submit prior art to the Israel patent office. 

On Monday 10th September, between 4 PM and 6 PM we are holding a cosy seminar in our Rosh haAyin offices where Greg Rosenblatt of Wiggin & Dana will present on the changes in the US Law and I will discuss the changes in Israel Law.

There is no charge, but our conference room is not very big, so pre-registration is essential. Drop me an email mfactor@ipfactor.co.il if you are interested in participating.

A tea of honey cake, wine and other seasonal refreshments will be served.


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