Merck’s Appeal Against Unipharm and Teva Refused

May 3, 2013

fosamax once weekly

Mercke Sharp & Dohme Corp. developed a drug called Alendronate for treating osteoporosis which is marketed as Fosamax®.

Fosamax has annual worldwide sales of over one billion US dollars. The drug has a number of unpleasant side effects. Merk filed a patent application for reducing the side effects via a different dosage regime.  Specifically, Merck’s patent proposes a higher dosage taken less frequently. The patent in question is WO/1999/004773 titled “Method for Inhibiting Bone Resorption” and covers a once weekly oral dosage pill for alendronate and other bisphosphonates for the treatment of Paget’s disease and osteoporosis. It was filed in Israel as a national stage entry of the PCT as IL 153109.

The Israel Examiner allowed the patent, but when it published for opposition purposes, Unipharm opposed the patent claiming lack of novelty, obviousness and that it was essentially for a medical treatment and thus was directed to subject matter considered non-patentable under section 7 of the Israel Patent Law. An article summarizing the original decision by then Commissioner of Patents Dr Meir Noam may be found here.  Essentially, Dr Noam (who is a chemist by training) threw out the non-patentable subject matter objection and ruled that that clause was to protect doctors and pharmacists in prescribing and drugs, but the subject matter was patentable. However, he ruled that in light of the prior art, the claimed invention lacked inventive step as it was “obvious to try”. The district court upheld this decision and also the separate decision to award record costs of NIS 550,000 (which is about $150,000).

Merck appealed both the ruling of non-validity and the costs awarded to the Israel Supreme Court.

In a 12 page ruling, Judge N Handel rejected the second appeal, ruling that a further appeal is only justified in cases where there is an important legal principle or particular public interest. He noted that Dr Noam had held 12 days of hearings and had related to all the evidence in a reasoned decision so there was no reason to overturn it. He further noted that the separate decision for costs was based on a reasoned calculation and included NIS 150,000 in expenses and NIS 400,000  in legal fees, whereas the opposers has actually claimed NIS 1,402,854 in legal fees.   He rejected charges that were costs were punitive and, in the circumstances, he didn’t consider the costs awarded were unreasonable. He awarded a further NIS 35000 to the defendants for having to fight this additional appeal.

Appeal to Supreme Court 6837/12 Merck vs. Unipharm and Teva. re Fosamax


Posting RSS feed items not considered copyright infringement

February 22, 2013

RSS

Petah Tikva Magistrate’s Court Judge Oshrit Rothopf has ruled that a News Website News1.co.il did not infringe Tomer Apfeldorf’s copyright by posting items from his RSS feed.

Apfeldorf, a lawyer and blogger, claimed that News1 had posted both written content and visual items from his RSS feed; in some cases changing aspects of the posted items. News1 did not deny that it had posted content from Apfeldorf’s RSS feed, but claimed that because of the nature of RSS feeds and Ofaldorf’s use of this technology, the posting of such items, even without permission, did not violate copyright law.

News1 argued that RSS is a family of Web feeds – data formats used for automatically providing Web users with frequently updated content without their having to search for the content once they have subscribed to the “feed.” Those who subscribe via a weblink from the online site from which they wish to receive the feed will get regular updates aggregated into a standardized format and sent to them. The feed may include anything from blog entries and news headlines to audio and video items.

Apfeldorf had a copyright law expert, Gad Oppenheimer, testify on his behalf that News1’s posting of items from his RSS feed violated copyright law. Oppenheimer emphasized that the purpose of RSS is to maximize distribution and ease of receipt of content from the content creator to others, but that its use does not grant a special right to those who receive the content to post it themselves or to do anything else with the content other than to view it. Oppenheimer essentially argued that there was nothing special about RSS feeds or Ofaldorf’s use of them that would allow posting content without permission.

However, as an expert witness for the defendant, Dr. Yuval Dror testified that RSS and Ofaldorf’s use of the technology did remove the normal constraints of copyright law. According to Dror, using RSS and particularly sending full content through a feed and not mere headlines, is a sign that the content creator wants to maximize the exposure of his content, including by having those who receive the RSS feed post it on their own sites. Dror also argued that the creators of RSS were innovators most concerned with free distribution, sharing and posting of cultural content, not with aggressively defending copyright considerations.

The court accepted Dror’s argument, noting that News1 credited Apfeldorf each time it posted his items, ruling that others could expect that he did not object to their reposting his items, and doing so was fair use. Furthermore, the court noted that once Apfeldorf informed News1 that it did not have his permission to post from his RSS feed, News1 immediately took down the posts. Both giving credit and immediate removal upon receiving a warning were taken by the court as indicative that News1 was acting in good faith.

It is important to note that the court did not hold that posting items from the RSS feed of a third party was never copyright infringement.

The case: CF 45536-07-11 Apfeldorf v Itzhak et al. – ruled by Oshrit Rotkopf.

COMMENTS

I think that Judge Rothopf got this right. Using RSS feeds implies a waiver to recycle the material with credit.

The present blog article is a reworking of a piece by Jeremy Bob that was published on the Jerusalem Post website – see http://www.jpost.com/NationalNews/Article.aspx?id=303992
I think it is fair use. I generally obtain and review the original court decisions which are public domain, but I do not believe that news facts are subject to copyright – although am, of course familiar, with arguments to the contrary by the suffering newspaper industry. I have both removed Jeremy Bob’s opinions and analysis and credited the source. I consider this to be fair use and indicative of good faith.

Copyright Law really does need to be reevaluated in the modern world. The Current Israel Law provides for very high compensation per infringement without proof of damage. This is often unreasonable and inappropriate  There is a general lack of consistency in copyright rulings by the courts.


Israel Supreme Court Overturns Copyright Ruling Concerning Grammar Textbooks

October 29, 2012

Rivka Motzi, Michal Shachar and Reches Education Publishing LTD published a couple of grammar textbooks for matriculation in Hebrew Grammar.

Both Rivka Motzi and Michal Shachar are experienced grammar teachers. So is Rachel Kabli, who had previously published a range of textbooks.

Judge Pilpel of the Tel Aviv District Court (Court of First Instance) ruled that 6 of Kabli’s textbooks were infringed by Motzi and Shachar’s text, and ruled statutory damages of 20,000 NIS x 6 under the old copyright ordinance. She discounted 10,000 NIS as n one case the publisher who was a co-defendant apparently had rights in the first set of texts, and so found literal infringement of 110,000 NIS. She went on to find moral rights infringed as well, and so doubled this award.

On grounds of Unjust Enrichment and pain and suffering, she ruled a further 300,000 NIS, giving a total award of 520,000 NIS plus a further 50,000 NIS in legal expenses to the plaintiffs.

On appeal, the plaintiff tried to show further cases of infringement regarding teacher’s aids, and to up the damages. The defendants argued that one should consider the works as a whole, not look at examples in isolation and also argued that one was not entitled to statutory and actual damages.

Supreme Court ruled in favor of the defendants that one could not fairly be awarded statutory and actual damages.

The decision, written by Y Amit, emphasized that although copyright subsists in works concerning highly technical subject matter such as grammar text books,  it is not pedagogic tools or concepts that are copyright protected, but rather the expression of these.

The Supreme Court also went on to rule that when considering copyright infringement of literary works one has to consider the work as a whole and not simply look for points of similarity. The judges noted that the subject matter is defined by the rules of the language and the matriculation syllabus set by the Ministry of Education. Conceptually, it makes perfect sense to arrange verb construction tables in order from simplest to hardest, and even if one author was the first to realize that the so-called Kal – Simple Verb Construction, is actually the most difficult, this is factual and there is no copyright protection in the discovery. Similarly, choosing to conjugating a particular verb, such as that for harvesting olives, because of its exemplary nature in demonstrating an irregularity is not the type of thing that copyright extends to.

Summarizing a chapter’s content with flowcharts is another example of a pedagogic tool that cannot be protected. The Judge noted that the actual flowcharts were different, and thus one was not a copy of the other. Other competing grammar texts were examined and the Appeal judge felt that the allegedly infringing texts were at least as similar to those as to the textbooks of the plaintiff.

After an erudite and highly grammatical analysis, Judge Amit went on to throw out the claims totally and to award the defendants 100,000 NIS in legal fees. Judges Fogelman and Chayot concurred.

The Case: Appeal and Counter-appeal to Supreme Court re 10242/08 Motzi, Shachar and Reches Education Publishing LTD vs. Kabli, decided 10 October 2012.

COMMENT

We note that Judge Pilpel has got IP Law, specifically Passing Off ‘ trademarks and design law wrong in the past. See here  and  here.

We think that the Supreme Court’s reasoning is correct. I have not reviewed the various grammar texts and since my wife is a native Israeli and I am an immigrant who studied Hebrew in Ulpan aged 24, I shall let my wife help the kids with their matriculation in Hebrew Grammar, and concentrate on trying to explain the peculiarities of English to them.

This case may have ramifications on the Shapiro vs. Ragen plagiarism case that is on appeal to the Israel Supreme Court.


Intellectual Property In Israel, Law & Practice – the book is launched

July 22, 2012

On Thursday, a small group of IP enthusiasts gathered in Tel Aviv to participate in the launch of Dan Adin and Eran Liss’ new book. It was the first time I had participated in an academic book launch and wasn’t sure what to expect.

The program consisted of four lectures, one by Ms Robyn Lederman of Brooks Kushman on trademark changes in the US, one by Dr Amir Khoury, on what he considered to be the major issues in Israel IP, a lecture by Gerson Panitsch of Finnegan, on what to do if you get a Cease and Desist letter, and a presentation by Eran Liss on using competitor’s trademarks as paid Google ad words in Israel.

The turn-out seemed to me, to be disappointing – with maybe 40 people present. I don’t know who was invited, but received separate invites from Amir, Gerson and Eran, and had never met Robyn before. The audience included lawyers, patent attorneys, trainees and IP managers in industry, so assume that organizers had made a fair attempt to invite the profession and most practitioners received at least one invitation. So why was the turn-out so poor?

Noticeable for his presence, that was highlighted by the absence of other leading IP litigators, was David Gilat, the chief litigator of Gilat Bareket, of the Reinhold Cohen Group. I suspect that many of the absent litigators decided to ignore the book launch out of professional jealousy or envy of Adin and Liss. But doesn’t Adv. David Gilat also feel threatened by these up and coming court room attorneys of the next generation? Perhaps he simply realizes that litigation requires counsel on both sides and the book is a contribution to the profession. Who knows? I was pleased to see him as I think it is fitting for a representative of Israel’s largest IP firm to patronize an event celebrating publication of an important professional book.

Of course the absence of other litigators could simply reflect the fact that the timing of the program, at 5 to 8 PM on a Thursday night in mid July, was not the best choice.

My personal suspicion is that the program, with four speakers, was simply too heavy. If anyone ever asks me to help them organize a book launch (or if I ever write a book and launch it myself), I think I’d advise one entertaining and informative speaker, and lots of mingling over cheese & wine or similar, with live music in the background. I’d look for a complimentary presentation, such as one by AKUM on royalties and cover versions of songs. Maybe my thinking that an academic book launch should be a party is indicative of my being less of an intellectual than I previously supposed. I suspect that the attempt to have something intellectually stimulating for patent attorneys, something for trademark litigators, something for IP managers and something for academics, simply made the program a little heavy, particularly for a hot and sultry July evening.

Robyn Lederman spoke about the need to use a trademark in the US, and not to be too aggressive in listing long lists of goods and discussed recent inititiatives to tidy up the US trademark register. Dr Amir Khoury listed the main issues in IP as he saw them, and briefly commented on half a dozen of them. Amir is a competent and experienced lecturer and comes over as such. however, he seemed to cram in too much for the time available. As usual, I found myself agreeing with some of his points and disagreeing with others. What was disconcerting was that there were some ideas that he raised, that I didn’t have time to decide whether I agreed or not before he’d changed the subject completely. He made a double entendre about Teva which I caught, but most of the audience missed, and so he repeated the joke. I suspect that the audience as a whole were simply too tired to follow his bright academic intellect through the various alleys and cul-de-sacs he navigated through with GPS enabled ease.

Gerson Panitsch’ presentation was much lighter. His main point was that if you get a Cease & Desist, instead of talking money and trying to resolve issues quickly, one should respond with requests for clarification, drag things out and maybe the problem will go away.  Some Cease & Desists are genuine litigation threats. Others, are simply attempts to force a licensing deal. One cannot ignore such letters, but maybe they are less serious than they first appear.  There was a subliminal message to his talk, that if one received such a letter, one should engage competent US counsel, such as Gerson Panitsh of Finnegan. Engaging a big US firm to represent you in US infringement proceedings does, however, seem to be a fairly reasonable strategy, and he did give the impression that sometimes cases can be dealt with without actually needing to go to court.

Eran Liss tried to reconcile conflicting rulings concerning using competitors trademarks, and showed that the Israel Courts do not follow precedent as they should, nevertheless, with some mental gymnastics, one can perhaps reconcile the differences. His thesis seemed to be that if using someone elses name for competitive advantage was not allowed in TV advertising, but using someone else’s name as a keyword for internet searching was allowed, this was a ridiculous state of affairs since internet advertising was becoming the dominant form of promotion.

The underlying assumption of Liss’ position was that trademarks are a form of property. However, if one takes a more conservative position that they are not property per se. but merely an indication of the origin of goods, much of his criticism of the Matim Li case disappears. In general, the Adin Liss book starts from a pro-Barak position but notes that application of the three strand trademark test to specific cases tends to be somewhat unpredictable and the identity of the judge seems to be the most important variable in affecting the judgement. I would expand this insight to IP law in general, with certain judges being strongly pro-plaintiff and certain judges viewing access to films and music over the internet as being a type of human right. I am rarely surprised when the case-law is contradictory and judges fail to follow precedence. Nevertheless, I found Eran Liss’ attempt to reconcile the different decisions rather enjoyable.  He would be surprised that the adjective that came to mind was Talmudic.

Those that attended left with food for thought. The pastries weren’t bad either.

Both Eran and Dan were suits and ties, which seemed reasonable for authors launching a formal book. When hosting IP conferences and seminars in the past, I’ve also dressed formally. Still, the airconditioning was working…


Book Review: Intellectual Property Law and Practice in Israel

July 15, 2012

When I first saw this book I suspected from its thickness (36 mm (1 15/32″  thick) that the authors had resorted to the well known strategy of adding appendices such as copies of the Israel Patent Law, Trademark Regulations, Copyright Ordinance and the like. This is not the case. The book runs to 632 pages of analysis, with a further 50 pages taken up with a table of cases and an index. There is no gratuitous padding. The book is simply a fair attempt to provide a detailed overview of IP in Israel and its length reflects its comprehensiveness.

As a thorough overview of intellectual property law in Israel, the book succeeds. It covers patents, copyrights, trademarks and designs, unjust enrichment, trade secrets, passing off and related rights.  It is the result of significant research by the authors, and though one can quibble with the odd opinion expressed, the book is authoritative. It is certainly a worthwhile addition to the library of any practicing Israeli patent attorney or IP lawyer.

Unfortunately, the readability of the book suffers from the lack of professional editing and the writing style provides constant reminders that the authors are not native English speakers. Paragraphs are long-winded and repetitive. Sentence syntax reminds one that the authors are used to writing in Hebrew. Sometimes, such as where copyright infringement by DJs at ‘wedding hauls’ is discussed, the typos are amusing. Generally, they are simply tiresome. I suspect that tighter writing could have slimmed down the book, shortened paragraphs and made it easier to comprehend without compromising on its comprehensiveness. That said, when allowing for the fact that the authors are not writing in their native language, the standard of the English is impressive. It is certainly better than my Hebrew. Nevertheless, the book is a little tedious and difficult to read because of language issues, and it’s a shame.

As would be expected from a legal text, judicial doctrines are discussed with reference to the case-law. Since the cases referred to are rarely available in English, I believe that the book would have been enhanced by an appendix abstracting the details of each case and providing a one page overview covering the specific issues and the legal significance. The cases could be arranged by subject or chronologically, with reference keys to facilitate the reader to find precedents of interest. I note that Machshavot who publish such overviews of case-law (in Hebrew) do not have a volume covering IP decisions. Although such an appendix would make a long reference work even longer, I think this would be a worthwhile addition, and would probably result in the thematic sections being shortened and would minimize repetition.

I suspect that the authors, who are both attorneys-in-law, in choosing to refer to follow the US convention and refer to licensed Israel patent attorneys as ‘patent agents’ will not endear themselves to their fellow professionals with technical backgrounds who universally and correctly translate the Hebrew term as Patent Attorney and refer to themselves as such. The training in IP law that Israel Patent Attorneys undergo includes two-year mentoring which is twice as long as that of law students. Both the written and the oral exams are difficult and the oral exam in particular, has a very low pass rate, particularly when considering the academic qualifications of the participants. Indeed I suspect that this book will be very widely used by trainee patent attorneys preparing for the Israel Patent Office oral exam.

The book, including it’s cover, weighs in at 1022 grams. It’s an attractive volume.

Intellectual Property Law and Practice in Israel by Eran Liss and Dan Adin, Oxford University Press May 2012  – ISBN: 9780199917419 (13-digit)  ISBN: 0199917418 (10-digit) – $225 from the publishers.


Are ‘Design Concepts’ Protectable in Israel?

July 11, 2012

Haya Rivka Windling-Yoskovitz imports and sells wrapping materials and decorations for events through a company variously named “The Tasteful Choice”, Organza and Organza 2010, from 2006. Some of her wrapping materials were used in a retail outlet called ‘Petite Sweets’ in Ashdod. She carries a range of about 2000 goods.

Dekel Manufacturing, Import & Export of Decorative Goods LTD., managed by Amir and Haim Sandick imports and distributes ornaments and presents. Their catalog includes a range of some 6000 goods.

Windling-Yoskovitz sued Dekel and the Sandick brothers claiming that they were distributing two wrappings that she had designed and had manufactured in China. The first design was for “tallit bags” – organza bags with blue or black stripes and fringes, available in three sizes, that were intended to recall the Tallit, or ritual prayer shawl. The bags were intended for use for holding party favours or cutlery, and to be used for decoration at Bar Mitzva events.  The second design was for cellophane wrapping material including the words Yom Holedet Sameyach (Happy Birthday in Hebrew) and Mazal Tov (literally, good luck but perhaps congratulations would be a better translation).

Dekel had imported the cellophane wrapping material from China and it seems that it was superfluous manufacture from  Windling-Yoskovitz’ order that had found its way onto the Chinese wholesale market.  The tallit bags sold by Dekel were made from them, and were slightly different from Windling-Yoskovitz’ design, but clearly inspired by her.

The case was brought before Judge Grosskopf of the Tel Aviv District Court in September 2009, with a request for an injunction and that the defendants produce financial details regarding sales of these items. The defendants countered by requesting that the court throw out the charges, arguing that the plaintiff had no exclusive rights and that there was no legitimacy to prevent free competition regarding the distribution of these goods.

The plaintiff claimed a range of grounds using what Judge Grosskopf referred to as the “try it” approach. These included copyright, passing off, theft of trade secrets, misleading the consumer and unjust enrichment.

COPYRIGHT – Judge Grosskopf noted that Section 7 of the new Copyright Law follows Section 22(1) of the Copyright Ordinance and rules that there is no copyright in articles of manufacture that could be protected by a design registration, unless there was never any intention to mass produce. Since the plaintiff did not register her design, she was not entitled to IP protection under copyright or registered design rights.

PASSING OFF – As to passing off, quoting Judge Rivlin from the recent Tali Dadon Yifrach case and noted that the tort of ‘passing off’ created a  monopoly and so its use should be excised with care. The requirement for passing off to be grounds for legal recourse were that the plaintiff had a reputation for the goods and that consumers would wrongly assume that the goods originated the plaintiff.  In this case, he ruled based on witness statements, that the clientele were ambivalent as to who the importer was and were interested only in price.

THEFT OF TRADE SECRETS – Grosskopf dismissed this, since the articles were easily retro-engineered and purchasing or manufacturing in China wasn’t a trade secret.

MISLEADING THE CONSUMER – Grosskopf noted that the consumer here was the retailers, not the end users, and thus consumer protection was not an issue. Furthermore and unnecessarily, there is no likelihood of confusion, since the customers were ambivalent of who the importer was.

UNJUST ENRICHMENT - Judge Grosskopf established that this was the only real legal question and then embarked on a detailed analysis, widely quoting from Professor Grosskopf’s (himself) treatise on the topic. Grosskopf’s position is that enrichment for the innovator comes from market lead. Where appropriate, this can be extended by registering designs. Grosskopf felt that the organza bags were registerable but the cellophane wrapping lacked the minimal requirements to be considered a design. Were Dekel to have systematically copied the plaintiff’s designs, unjust enrichment would be appropriate, but that was not the case here. The cellophane was bought off-the-shelf in China and the bags were not on-on-one copies, but merely shared the same design concept and thus just enrichment should be limited to the natural advantage of the plaintiff by virtue of being the first to distribute.

Based on his analysis, Grosskopf dismissed the charges, but refrained from awarding costs.

The Case: T. A. 18395-09-09 Haya Rivka Windling-Yoskovitz vs. Dekel Manufacturing, Import & Export of Decorative Goods LTD., 10 June 2012 by Judge Professor Ofer Grosskopf.

COMMENTS

In my opinion, Judge Grosskopf is one of the better IP judges. This decision is erudite and generally correct, and contrasts nicely with the Karshi decision issued by Shapira of the Jerusalem District Court. See here.  Reading between the lines, and noting that Grosskopf mentioned that the wording Mazal Tov and happy birthday were rendered in simply fonts, I think it is clear that he was aware of Shapira’s decision and is criticizing it in veiled form. It is unfortunate that the verdict in these cases seems to depend more on the judge than on the facts of the case.

Neverthless, Grosskopf is wrong both in his original essay and in his quote of it, in stating that after seeing commercial success, creators can register their designs, and that failure to do so requires explanation. In Israel this is not the case. Once a product is available, it cannot be registered as a design as absolute (local) novelty is required. There is no grace period.

As to the cellophane with Hebrew writing on it lacking the minimal standards to be registered as a design, I am not convinced. By that I mean that the wrapping material is sufficiently designed to establish that it was designed by Windling-Yoskovitz  and purchased off the shelf in China by Dekel. It is an object of manufacture and can be described and illustrated. I think it is a design that could have been registered in Israel. Of course,  ruling is of value in indicating if a judge would uphold such a design registration.

 


Protecting Designer Clothing from Cheap Imitations

July 9, 2012

The Israel clothing designer Tally Dadon-Yifrach sells her designs under the label Vision.  The clothing was available through various outlets, including Griffin Fashion in Azor and Givatayim, in Forty-Second in Tel Aviv and elsewhere. Her clothing is also worn by singer Sarit Hadad, and she’s had joint ventures with Uri Geller, but these nuggets of information in the ruling are somewhat irrelevant as the clothing that was the basis of this ruling, is not related to those designs.

Ms Dadon-Yifrach was rather put out to discover a dress and some Bermuda shorts that were virtually identical to her designs sold under the label Odevo in these outlets and others for rather less than the price tag on her clothing.

The designer sued the various shop owners and people behind the Odevo label for passing off under the trade laws, unjust enrichment, inequitable behavior under the Law of Contract, false labelling and unacceptable interference in trade practices under the trade laws, misleading under the Laws for protecting consumers, and so on.  With a mix of statutory damages and estimated loss of sales, the designer sued for NIS 440,000.

The defence offered by the defendants was that the dress in question was itself a copy of a Lee Cooper design, and that the Bermuda shorts and other items were generic to the fashion industry, and similar items were available from a number of designers and also from general retail outlets for the previous couple of seasons.

Judge Esther Stammer  of the Central District Court acknowledged that the fashion industry did not generally file designs and that registration generally took longer than fashions to change, but nevertheless ruled that in the absence of a design registration there was no copyright in clothing.  She dismissed the credibility of some of the key witnesses for the defence and accepted testimony from private investigators that salespeople offered the cheap look-alikes as substitutes. She also differentiated between clothing sharing a common inspiration and close copies and accepted that the Odevo garments were cheap copies of the Vision garments. Nevertheless, since they were marketed under a different label she dismissed the charges of Passing Off. 

As to Unjust Enrichment, Judge Stammer accepted that there were grounds for ruling unjust enrichment in this case, but ruled that the complainant had failed to prove that she had invested heavily in developing the designs and the other side had benefitted financially, since she had not invested sufficiently in assembling evidence showing sales revenue and the like.

The case was dismissed and both sides ordered to bear their own costs.

The case: T.A. 9278-08-08 Dadon Yifrach vs. A. T. Snap LTD and Others.   

COMMENT

This case is interesting as Judge Stammer seems to follow Judge Grosskopf’s criticism of A.Sh.I.R. regarding the ‘additional element’ required for the tort.  Should clothing design be protected without registration? This is a worldwide issue. I suspect that one’s viewpoint on the issue is probably a reflection of one’s income and fashion consciousness as much as ideology.


AKUM sues Kul al-Arab on behalf of Arab Musicians

June 18, 2012

AKUM – the Association of Composers, Authors and Publishers of Music in Israel, together with the French guild Sacem, which protects the copyrights of many Arab musicians around the world, is suing Nazareth-based Kul al-Arab,Israel’s leading Arabic-language media outlets for one million shekels, claiming copyright violation.

Akum claims that Kul al-Arab has not paid royalties for hundreds of songs its online radio station has played and that it allows website users to illegally download songs for their unlimited use.

The Haifa District Court has imposed a temporary injunction prohibiting Kul al-Arab from making any use of the musical repertoire created by Acum members. The temporary injunction specifically targets the Kul al-Arab website, which the suit says “serves as a platform for callous copyright violation.”

“Acum represents all artists from every sector of the population, so any media outlet that violates the copyright law will be targeted,” said Acum CEO Yorik Ben David. “The owners of Kul al-Arab do this consistently and callously, and the time has come for them to give an account for this to the artists who have been harmed by their actions.” “The website features more than 800 music videos, more than 10,000 musical compositions, hundreds of movies and hundreds of TV shows,” the suit claims, alleging that anyone who goes to the site can download pirated copies of copyrighted compositions and use them with no restrictions, licenses or payment to those who own the copyright.


The judge’s role in IP rulings and forum shopping

March 18, 2012

When an IP complaint is filed, there is an aggrieved party, the plaintiff, who believes that his IP rights are infringed.

If the case is one of clear cut infringement, much of the time, the parties settle out of court. So, where a case actually reaches trial, both parties think they have a case, and often, there is some merit in arguments put forwards by both sides.

As I endeavor to review all IP related rulings from the Israel patent office and Israel courts, I can compare and contrast the IP related rulings of different judges and different court.

From reviewing their decisions, it seems that Judge Y Shapira of the Jerusalem District Court is generally pro-plaintiff. Judge Michal Gonen of the Tel Aviv Court appears to generally find for the defendant and is concerned about encroachment of the public domain.

I am somewhat critical of the rulings of both judges, and believe that the correct balance between the various rights is somewhere in the middle. It is however, clear, that both judges are generally familiar with the caselaw and write with conviction.

Regarding Shapira, in a trademark case he upheld the term Kaynes, as being a distinctive brand for cane based schach (sucka coverings) despite the word meaning canes in Yiddish. In Schocken vs. Hebrew University, Judge Shapira held the university responsible for contributory copyright infringement for failing to adequately police copying on campus (the new legal doctrine he created was upheld by the Supreme Court, but his judgment of applying it in this case, was overturned.

In Shapiro vs. Ragen, Judge Shapira elevated copyright into a fundamental human right (despite the fact that the copyright ordinance dated from the British Mandate and is totally utilitarian and lacks moral right considertions altogether, he ignored laches and the statute of limitations and showed a strict view regarding derivative work.

In Karshi, Shapira found unregistered design rights in challah cloths, and unfair trading where he establishes that the defendant ordered similar but different challah cloths from the Chinese supplier.

I can’t fault Shapira for not reviewing the case law, which is extensively quoted, but in each of these cases I find the rulings unpersuasive. It seems that Shapira has a more stringent approach to IP rights than I do, and is generally pro-plaintiff. I note that he is a judge and I am not. In Karshi his ruling is not at odds with A.Sh.I.R. and so he is following Supreme Court precedence as he should.

As a patent attorney, I am pro IP. I think there is a delicate balance though and don’t think that judge Shapira’s balance is in the correct place.

Judge Michal Agmon Gonen found four-stripe Adidas like trainers were not confusingly similar or diluting against the registered and well-known Adidas three-stripe logo. She also believes that streaming music, film and other copyrighted material is not infringing.

It does seem a good idea for plaintiffs to file their IP suites in Jerusalem on Judge Shapira’s shift, whereas defendants would do well to get their cases transferred to Ms Agmon Gonen’s docket.

It will be noted that although I think both judges come to the wrong rulings, I note that both are thorough and judges.

IP is only about money. It’s not as if Judge Yosef Shapira is trully a hanging judge.

I note that from July 3, Judge Yosef Shapira will serve as the State Comptroller. I hope that the IP rulings of his successor will be more to my liking.


Halla Cloth Monopolies

March 11, 2012

 Halla cloths are decorative napkin-like covers used on the Sabbath, that symbolize the dew on the double portion of manna collected by the Children of Israel on Fridays in the wilderness.

Back in 2008, Judge Y Shapira issued a temporary injunction against importers of halla cloths, which are decorative napkin-like covers that symbolize the dew on the double portion of manna served to the Children of Israel on Fridays in the wilderness, that are used to cover the traditional double plated loaves used for grace before meals on Shabbat and festivals.

The importer’s designs were similar to those of the plaintiff in that they had “For Sabbath and Festivals” written in the middle, were square, had a semitransparent central region and solid border, they were not copies but variations on a theme. The plaintiff, Karshi, had not registered his design. Since his design was mass-produced, there was no copyright. Nevertheless, Judge Shapira issued a temporary injunction. Oddly, the injunction ruled that selling the product anywhere in the world was illegal, despite IP rights being local and the judge not having territorial jurisdiction outside Israel. See here

In January 2012, Judge Shapira ruled on this case. In his ruling Judge Shapira felt that the evidence shows that the defendant went toChina and ordered similar products to those imported by Karshi, exploiting the market research and product performed by Karshi.

It appears that Shapira believes that one can acquire rights in a design concept. After cross-examining the witnesses, Shapira decided that the imported cloths were inspired by, though not identical to Karshi’s. Shapira then decided that making the temporary injunction permanent was in order, and awarded statutory damages and costs.

the case: T.A. 3402/09 Karshi International vs. Merkaz HaMatanot (2006) LTD, Ezer Deker, and Ami Decorative goods LTD,
15 January 2012, by Judge Y Shapira.

COMMENT

In A.Sh.I.R. the Israel Supreme Court ruled that even if a design is not registered, where the defendant is guilty of non-equitable behavior it is possible to grant injunctions or rule damages under the Law of Unjust Enrichment. Shapira evidently sees this case as falling into that category. Personally, I would prefer to see the Law of Unjust Enrichment being used more sparingly and don’t believe it provides grounds for sanctions against an importer who manufactures similar but not identical goods, having a common design concept.

Whilst accepting the Honorable judge’s argument that sometimes the reputation lies in the design itself, I don’t believe anyone looking for a modest engagement or wedding present cares two hoots about the identity of the importer of a halla cloth. I think people buy such items if they like the design.

As with clothing, any trend or fashion will ultimately start with some brave individuals who dress differently or sell clothing that is slightly different in cut or material. I believe that these leaders are entitled to the advantages accruing of being first off the blocks. They may be entitled to prevent direct copying, which is passing off. They are not entitled to rights in their design concept. We all build on the work of others. No design is totally original.


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