Design Ruling for a Quick-fit Electrical Plug registration Provides Insight into Spare Parts Protection in Israel

December 15, 2010

In Europe, one can register designs for automobile parts. However, as a matter of policy the European courts will not enforce car manufacturer’s claims against suppliers of generic parts, considering that the public interest is served by enabling them to repair their cars cheaply. This decision clarifies the situation in Israel.

 E. Fetaya LTD. Electro Mechanical products. http://www.fetaya.com applied to register a design for an AC power plug, i.e. an electrical power connector.

Their novel plug consists of three elements which can be assembled without a screwdriver or other tool.  The original application as filed showed the separate elements from all sides. The elements are reproduced below:

Technical readers will have little problem seeing how the three-piece puzzle fits together. The design is somewhat different from standard plugs, but in the main is dictated by functional conisderations such as compatibility with flexes and standard Israel sockets.

In a first office action, the Examiner decided that there were two separate elements: (a) the complex construction of the plug, and (b) the locking element. The Applicant was requested to choose one element and to supply replacement figures (line drawings), and if protection for the second element was desired, the applicant could file additional design applications that would bear the original filing date.

In a first response (and not unreasonably), the Applicant pointed out that the two elements were complimentary parts of an integral whole, and were not to be considered separate entities; this being the design concept.

A couple of months later, the Applicant submitted a new figure showing the assembled power plug.

In response, in a second Office Action, the Examiner alleged a lack of similarity between the original figures as filed and the new figures. Additionally, the separate figures of the components were not acceptable.

The Applicant tried in vain to explain that the parts were sold as a complete unit, and not as the separate components and if the separate parts were unnecessary, why require submission of replacement figures for them?

Three months later, following a telephone conversation discussion with the Head of the Design Division, it was agreed to split the application into three separate applications: one for each component – front, back and locking element.

In a third Office Action, 28 months after the original filing, the Design Department ruled that the items shown in the application were not protectable as a design at all, and issued a final rejection.

A month later, the Applicant appealed to the Commissioner to consider the case based on the file-wrapper and pointed out that the Design Ordinance of 1926 (still in force) allows disassembled views of devices to be filed.

Additionally, the applicant pointed out that design registrations for various parts such as rubber gaskets and seals and profiles of aluminium extrusions for window frames were regularly applied for and issued by the israel Patent Office. In a creative argument, the applicant claimed that at that stage, the parts were also sold separately. The Applicant requested that the final rejection be reconsidered rather than the appeal to the Commissioner being considered an Appeal, which would incur unjustified expense. Finally, the Applicant suggested that the parts could be considered a set under the Section 5 of the Design Regulations of 1925.

The commissioner allowed the assembled plug design to issue as the original application, since the parts were all included. The logic being that despite most of the unique design being functional and internal and therefore irrelevant, the assembled construction did differ slightly from other plugs on the market and these differences were partially aesthetic and therefore registerable.

The divisional applications for the individual components were refused as even if now sold separately, they are simply replacement parts and not registerable since parts required to fit into a space as part of a machine were not registerable. The Commissioner cited an English language text-book: On Industrial Designs by Russell-Clarke and Howe, Sweet and Maxwell (2005).

 The two passages quoted follow:

“A design right shall not subsist in features of appearance of a product which must necessarily be reproduced in their exact form and dimensions in order to permit the product in which the design is incorporated or to which it is applied to be mechanically connected to or placed in, around or against another product so that either product may perform its function”  Chapter 2-23. This is actually section 7(2) of the European directive:and is based on the UK Design Law CDPA 1988  Section 213(3)(b)(i). 

“One purpose of this “must fit” exclusion would appear to be to prevent monopolization of replacement parts by a maker of original equipment. Replacement parts may be needed to repair a machine by replacing a part which is worn out or broken…”. Chap 4-16.

As to the set argument, the Commissioner suggested that the regulation related to something like a set of artificial fingernails. 

COMMENTS

The Case and the Decision

The examiner and the Agent for the Applicant could have handled things better. The final ruling was correct, but the time delays and aggravation involved in getting the design allowed were unfortunate and unjustified.

I have had similar experiences with trying to get designs for clock hands registered, and sweated blood trying to explain why I showed the parts separately and assembled on a clock face (disclaimed) at different times, and had various inane requests thrown at me like showing the hands from all six-sided and in isometric projection, followed by a request to show the hands opened and closed. I tried citing the regulations and received the response from the Examiner that she didn’t know there were regulations for designs as well [as for patents and trademarks]!!

Wider Implications

The significance of the decision is, as often is the case, in the obiter and between the lines.

  1. The Commissioner refers to a European textbook and the European directive.
  2. Israel case-law is not cited.

I have tried in vain to find Israel court decisions in cases brought by original automobile and printer manufacturers against importers of generic spare parts.  Grounds for such actions may include registered design infringement and unjust enrichment.  It seems that the Commissioner couldn’t find any Israel decisions either…

In Europe, designs are registered without substantive examination, so one can register automobile parts. However, the courts will not grant injunctions or damages to the car manufacturers. This is a matter of policy. They consider that the public interest is to enable cars to be repaired cheaply and efficiently, and they therefore prefer to prevent the manufacturer from selling the car twice by awarding monopoly rights that enable extortion of locked in consumers.  

It appears that the commissioner is taking this position, at least as far as registering internal functional parts are concerned.  Possibly, repalcement wing mirrors and headlamps might be considered differently. (Since my driving and parking skills are inferior to my IP acumen, I am aware how expensive the suppliers parts can be).

At least until now, it has been possible to register designs for ink and toner cartridges in Israel. In previous discussions with the head of the Design Section at the Israel Patent Office, it transpires that at least prior to this decision, he had no qualms about registering car parts.

As to the fingernail example of the meaning of a set for design purposes, this seems to be an overly narrow interpretation. Until now, it has generally been considered that the various elements in a set of cutlery (flatware / silverware), the various chessmen, and other elements sold together would be considered as a set that can be filed in a single application.


Are fonts registerable designs or creations that are automatically protectable by Copyright?

October 12, 2010

 When Hebrew versions of Microsoft Windows and Office applications were released, a number of Hebrew fonts were part of the package. These included Narkisim, a serif font created by the late Zvi Narkis, and the Koren Publishers Jerusalem Ltd’s Koren font, which was specially developed for use in the first Hebrew Bible to be typeset and printed in Israel.

The estate of Zvi Narkis and Koren Publishers Jerusalem Ltd, together with Masterfont Ltd. filed suit against Microsoft Israel and Microsoft Corporation, claiming copyright infringement. Microsoft’s defense was that the correct form of protection for typefaces is design registration. Since copyright and design are mutually exclusive, typefaces are not copyright protected. No design registrations were filed and even if they had been, they would have lapsed 15 years after filing. Consequently, the fonts are in the public domain.

The moral right of the creators is acknowledged as the fonts bear their names. If copyright protected, the protection would last for life of creator plus 70 years, and the owners could prevent Microsoft from using the proprietary fonts, or could demand royalties. Since there is an issue of pure law at stake – the correct kind of protection for fonts and typefaces — with the complainants’ agreement, Judge Ofer Gruschkopf combined the two proceedings as far as the legal question of the correct form of protection is concerned and his ruling follows.

Copyright protection for typefaces

A typeface is designed for reproduction and multiple reuses but as something that merely marks the paper, is it an article of manufacture at all? Does the shape of letters provide the minimal requirements of creative expression to be protected by copyright?

Judge Gruschkopf’s ruling starts by defining a typeface. The 1976 US Copyright Act defines typefaces using the term “repeating design elements.” The Vienna Agreement for the Protection of Type – which was never implemented — also refers to sets of designs of letters and alphabets, with accents, numerals, punctuation marks, symbols, etc. The essential feature of a typeface is that it is not purely functional.

Microfont and Zvi Rosenberg, the co-plaintiffs with Narkis Estate and Koren Publishers Jerusalem Ltd, digitized the fonts for modern use. Judge Gruschkopf noted that both sides agreed that typefaces per se are protectable and merely argued as to the correct form of protection to apply.

Citing the New Copyright Law 2007, Judge Gruschkopf ruled that legislation in Israel Law prevents something registerable as a design from also being protected by copyright. Essentially Section 4 of the New Copyright Law extends copyright to original artistic works and Section 7 excludes designs as covered by the Patents and Designs Ordinance, unless not intended as objects of manufacture.

I find this a little strange. The fonts and Microsoft’s use thereof predates the 2007 Law and I think the old law is the one that should be used. The judge does relate to this issue in footnote 10 – a piece of Talmudic erudition. In the Interlego case, where the issue of copyright protection for Lego pieces was discussed, Supreme Court President Shamgar ruled that the protections are mutually exclusive and where something is protectable as a design, it should not be entitled to copyright protection. The judge also points out that passing off and unjust enrichment could be relevant grounds for suing.

Apparently, the only time the issue came before the Israel Courts in the past was in a 1949 decision by Judge Isaac Kister regarding a font called Aharoni. In that case, Kister ruled that fonts could be registered as designs, but as the present ruling notes, at that time the term “fonts” meant the article of manufacture used for printing rather than the marks they leave on the paper.

Fonts are no longer articles of manufacture in the same way. Kister’s ruling from another district court is not binding as the two courts are of the same competence in terms of judicial hierarchy. Furthermore, only the abstract of Kister’s ruling appears to be available because district court decisions were not always published in full.

Other “relevant” rulings include the Peleg decision, where ritual calligraphy (STaM) is seen as being protected by copyright. However, by nature, calligraphy is a hand-drawn artistic work that is not intended to be reproduced. In a June 2010 decision regarding a temporary injunction, Jerusalem District Judge Noam Solberg stated that study of the case -law teaches that computer fonts are creative works protected by Israel Copyright Law.

Here I have a problem. Either Judge Solberg is correct and there are other relevant rulings other than Kister’s, or else his ruling is baseless. Why didn’t Judge Gruschkopf pick up the phone to him?

Regarding Comparative Foreign Law, the US has declined to allow the design of typefaces in the 1976 Copyright Act and in the subsequent 1978 Eltra Corp vs. Ringer 579 F.2d decision, apparently to the dismay of the Nimmers (Nimmer on Copyright 2.15). It seems that the decision implies that a physical separation between function and creativity is required, whereas arguably a theoretical separation should suffice. Nevertheless, it appears that in the US, a design patent is the way to protect fonts.

The UK 1988 Copyright, Designs and Patents Act defines copyright in fonts including typefaces but limits protection to 25 years for reproducing and distributing the fonts, but not for typing with them. Judge Gruschkopf sees this as indicative that they are protectable by copyright.

I tend to view that this indicates that hard fonts in type metal are protected as designs. I agree that this isn’t of cutting relevance to the protection in question. 

The judge seems to get hung up over the design law relating to designs for different articles whereas a printed letter is not an industrial article. There is a little ramble through other non-design protected articles and quoting Terrence J. Carroll on Protection for Typeface Designs. He rules that a typeface design is no more a design for a font than a photograph for a book cover is a design for a book cover. Where we are left is some creative linguistic definitions and an understanding that a mold or die is the opposite of that molded or printed and that modern printing is different.Judge Gruschkopf goes on to quote Judge Cheshin’s musings in the Tele-Event decision that extended copyright to live broadcasting. In this decision Cheshin  points out that the old and good Copyright Law dating to the British at the turn of the 20th century is anachronistic and does not adequately relate to modern issues like the Internet, satellite broadcasting etc.

After deciding that he can choose between the forms of protection and is not bound by either, the judge decided that copyright is more appropriate for protecting fonts and prefers to avoid the mental gymnastics required to read fonts into design law. Not entirely happy with 70 years of protection, he suggests that the Knesset should enact  special legislation for fonts since he can only choose between the protections available.

Comment

We note with approval but the published decision – which in all probability was written in MS Word® — did not use either font in question.

The Koren Publishers Jerusalem Ltd themselves only use the font for the Bible. Even in their prayer books they reserve the original biblical font for psalms and other biblical passages. Other prayers are in a variant font. We suspect that obtaining an injunction against Microsoft to prevent the font being usable by all and sundry for all purposes may be an aim of the litigation. 

Philosophically, as a materials scientist and engineer I find the question a little like discussing the macro-properties of materials in the context of atoms and molecules or the chemistry of subatomic particles. It is really getting down to the nuts and bolts of creativity and manufacturing. 

Despite the Former Supreme Court President Shamgar’s ruling in Interlego and the position of the current Commissioner of Patents which is mentioned in the present decision in an aside relating to an academic paper regarding copyright for architectural creations. I do not agree that the doctrine against double IP protection should prevent the aspects of a creation that are manufactured objects from being protected as objects of manufacture – registered designs – and the creative aspects of their footprint being awarded copyright protection.  Therefore I don’t agree with Microsoft’s position that design protection should rule out copyright protection.  I believe that the design protection would cover the typeset in type metal as an object of manufacture and the printed typeface on the paper, if considered sufficiently creative should be protectable as copyright.

If the doctrine of double protection is correctly applied in this case, I would argue that Narkis and Koren could have gotten design protection for the cast metal typeset and thus the print thereof is not copyright protectable. If so, the fonts were in the public domain by virtue of being produced using traditional printing and I do not see why the mere act of digitization should create a copyright in something already in the public domain.

One could argue that awarding design protection to traditional typesets and copyright protection to post-digitization modern True Type fonts is problematic. Is it really? Isn’t this the opposite of copyright protection for one-off creations but design protection for objects of manufacture?    

I am happy to consider digital printing as a form of manufacturing and I see no reason why a letter cannot be the building block of an industrial printing process and should be protectable as a design. I prefer that line of reasoning rather than to see fonts as creative works in a copyright sense. Then again, conceptually I believe that software inventions should be patentable and consider life plus 70 year copyright protection for the code to be inappropriate.  

The idea of lex specialis copyright for fonts to provide a shortened term but not requiring registration does seem reasonable. Certainly if chip circuitry is protected by copyright, why not fonts? However, I am not sure why chip design should not be design protected. After all, they are objects of manufacture.

Judge Cheshin’s obiter regarding copyright limitations is not overly relevant as fonts existed when the design ordinance was drafted. Therefore, in my opinion, there is a 1949 Israel ruling that fonts are designs and so the current ruling is an about face. This should at least minimize the damages that Microsoft should pay in the future ruling.

The real question seems to be whether digital printing should change the protection of fonts from design to copyright. I think not, as this simply extends protection from 15 years to life plus 70 years following digitization.

T.A. 5311-04-08 Narkis and Others vs. Microsoft.

T.A. 5311-04-08 Koren and others vs. Microsoft.


Israel Judge Allows Import of Copycat Scooters – Despite A.Sh.I.R.

August 5, 2010

Hsin Lung Accessories Co. Ltd., a Taiwanese company has developed and patented or registered designs for collapsible aluminium scooters that are distinguished by having two back micro-wheels and one front wheel, and that they incorporate a split base with a propulsion mechanism such that by alternatively shifting weight from one foot to another and twisting the body, it is possible to drive the scooter forwards. The scooter is sold in Israel as “Streeter” and worldwide as “Fliker”.  It is patented in the US, Germany and China.

The US Patent Number US 7,073,805 titled “User-propelled riding toys and methods”, has the following abstract:

This invention is a user-propelled riding toy. A platform on which a user stands is supported by a steering mechanism that transfers a directional force from the platform; and a geartrain mounts to the wheels. The geartrain is adapted to receive a downward force from the platform, and translate a portion of the downward force into a rotational force on the wheels. The geartrain also provides an upward return force acting on the platform, and translates a directional force into a lateral force acting on the wheels. The platform is propelled forward direction by the rotational force on the wheels. Lateral forces cause two sets of wheels to pivot in opposite directions, and thereby directionally steer the platform.

The importer also claims copyright on the packaging, having a unique design on the box.

When other traders started selling similar scooters in Israel, Hsin Lung and their local distributor, both represented by Saar Plinner, sued the importers, distributors and customs.

The problem was that the design was never registered as a patent or an industrial design in Israel.

Unperturbed,  Hsin Lung Accessories Co. Ltd. and the importer sued for passing off, unjust enrichment and copyright infringement; it being noted that in Israel, copyright does not require registration.

The defendants claimed that the generic scooter manufacturers in China that manufactured the goods suggested the brand name “Mover”, and gave various packaging options, including a picture of the goods within, in attractive colours. What is clear, however, is that apart from the name being different, printed in a different colour and appended to a different position, the two scooters are identical.

The complainants asserted that the issue is not parallel importing of similar goods, but rather importing of fake goods, and that they had developed a market by heavy investment in marketing. They alleged that the choice of identical colours was intentional, and that the suffix “er” on the names “Streeter” and “Mover” was designed to confuse.

The defendants claimed to be acting properly, in that the complainants had not registered their design or patent in Israel, the names were different and copyright on designs does not extend to goods that could have been registered.

Judge Rafi Carmel of the Tel Aviv District Court noted that copyright was not infringed and that the scooters were sold under a different name that appeared clearly, in different colours three times on the article in question. The free-riding charges, that the defendants were fulfilling a demand created by the advertising of the plaintiffs was also dismissed since free-riding is not a tort in Israel.

Ruling that the plaintiffs had not proved that unjust enrichment rights in the scooter accrued to the plaintiffs, he rejected the Unjust Enrichment charges. All charges were dismissed and the plaintiffs were required to pay legal fees of NIS 20,000.

COMMENT

In this case, although the design is a clear copy, albeit with a different name, there is no case of passing off and no trademark infringement. I would argue that by failing to register their patent in Israel, the plaintiffs were conscientiously opening the door to third parties marketing competing goods here. They had the opportunity to file for protection and failed to do so. Consequently, they have no case and the judge is correct.

However, since the Supreme Court ruling in the (in)famous 5768/94 A.Sh.I.R. case 

רע”א 5768/94 א.ש.י.ר – מדינת ישראל הרשות השופטת

in certain cases it is possible to obtain compensation under the doctrine of Unjust Enrichment, even where complainants have not registered designs and patents locally, where there is an additional element of bad faith.

I am not a great fan of A.Sh.I.R. since I like clear-cut law. Like most patent attorneys, I would encourage exporters to Israel to register their inventions as patents and to register their designs thereby creating clear in rem rights in Israel.

Nevertheless, A.Sh.I.R.  remains good case-law and is supposed to create a binding precedent that the Tel Aviv District Court should follow where applicable.

In this case, the plaintiff has a US patent which indicates that they are the inventors, and the Taiwanese manufacturers are selling identical models as a generic article.  In such a situation, I think that the A.Sh.I.R. ruling could be applied.

The A.Sh.I.R. decision was a triumph for Former Chief Justice Barak. It indicated that registering designs and patents was not necessary to prevent other manufacturers and distributors producing similar goods.  If there was evidence of bad faith, wilful copying, etc., then one was entitled to injunctions and compensation despite failing to register ones goods. Barak was into doing ‘justice’ rather than formalistically applying the law. There is evidence that the current Supreme Court is more formalistic, and I see that as a good thing.  However, unless this case is appealed we’ll not know if A.Sh.I.R. is still good case-law or not. Therefore, it would be useful if the complainants appeal this decision to the Supreme Court.

The case: T.A. 1126-07-10 Hsin Lung Accessories Co. Ltd and Shed On It  LTD. vs. B.S. Toys and Brands and others.


Israel Patent Office Refuses Reinstatement Appeal for Design

July 4, 2010

Sanplast LTD. is an Israeli manufacturer of plastic goods.  Back on 13 June 2004 they submitted a request to register a design No. 39381 with the Israel Patent Office.

In March 2005 there was a first Office Action to provide additional Figures showing further views and in April 2006, as no response had been submitted, and 12 months had passed since the design application was filed, the patent office sent applicant a notice regarding imminent closure of the file. In lieu of a response being filed, the file was closed in July 2006.

Two years later, in 2008, the CEO tried to revive the file and the head of the design registration department ruled that there were no grounds to do so.

A further attempt to open the file was submitted by ex Commissioner Moshe Goldberg, who claimed that the file was closed after successful examination back in 2006, and with the only thing missing being the publication fee.

On examination of the file, the Arbitrator of Intellectual Property Ms Yaara Shoshani Caspi ruled that the grounds submitted were in contradistinction to the contents of the file-wrapper and that the facts did not support the request for reinstatement. Since (i) she could find no evidence of the patent office making a mistake or acting improperly, (ii) the correspondence reached the applicant in good time, and (iii) third parties’ rights would be potentially compromised, she rightly refused to allow the case to be reopened and the design registered.

COMMENT

Design rulings are sufficiently rare that any of them are newsworthy. Since the design never issued, we cannot tell what plastic item is under discussion – which could be the most interesting thing about the case. One point of note is that Adv. Goldberg either didn’t check the facts out and/or was misled by client. In such cases, as apparently the patent office does review the files and checks out allegations,  it seems worth getting a POA and inspecting the file before submitting requests for revival / reinstatement.


Israel Patent Office Refuses to Allow Lapsed Design to be Reinstated

April 18, 2010

Concerning registered design number 39367, the Judicial Review Officer at the Israel Patent Office, Yaara Shoshani Caspi has refused to allow a lapsed design to be reinstated.

In Israel, designs are registered for 5 years at a time and may be renewed twice, to a maximum of 15 years. The design should be renewed before the 5 months are up, but registrant has a grace period of six months.

The registered design in question was up for renewal in June 2009 and so the grace period ended in December 2010. The request for reinstatement was made and the fee paid in April 2010.

The Judicial Review Officer found claims of ill-health and financial straits not supported by evidence, but ruled that since the Design Ordinance grants a six month grace period without talking about extensions or giving the Commissioner of Patents discretion in the matter, there was no mechanism for revival even were a compelling case made.


Israel Patent Authority Refuses Revival of a Design Four Years’ After it Lapses

March 21, 2010

In Israel, registered designs are registered for 5 years. This period may be extended for two additional periods of 5 years each. i.e. up to 15 years. The renewal should be paid during the period that the design is registered, and the Israel Patent Office sends reminders to the registrants. If the design is not renewed in time, the applicant may renew retroactively during a grace period of up to six months, on paying extension fees.

In this case, design number 34297 lapsed on 26 April 2004 due to failure by the applicant to pay the renewal. It appears that during the grace-period, the original renewal was paid, but it is not clear that details were sent to the Patent Office. Also, the extension fees were apparently not paid.

The company, represented by its patent attorney, Matti Barzam, attempted to revive the application some 4 years later. The Review Officer and arbitrator of Intellectual Property, Ms. Shoshani Caspi rejected the revival application, stating that procedurally there was no basis in law for revival at such a late stage,  and that additionally, the applicant for revival did not have a case. She also noted that the fact that the design had lapsed was published in the Patent Journal, and third parties could rely on this to manufacture competing products.   


Wedding Dresses and Fabric Exclusivity

March 9, 2010

Mally Levy is an Israeli model. When she married   back in 2003, there were many other brides that wanted to be married in similar dresses and rented or bought them.

Galit Levi, the designer of Mally Levy’s wedding gown, calculated that by selling and hiring similar dresses, she would make a small fortune. When the orders dropped off faster than she suspected, she recorded a conversation with the fabric dealers in which they agreed that she’d been promised exclusivity, then hired private investigators to see which of her competitors were offering similar dresses. She sued the fabric wholesalers for breach of contract and other designers for passing off, and the competing designers and the cloth distributors for breach of contract regarding exclusivity for the fabric, unjust enrichment, damage to her reputation and passing off. The compensation claimed was NIS 2,532,652 (about US $ 840,000).

In a long, but beautifully reasoned and well written decision, Judge Achikam Stoler dismissed the claims, upheld the counter-claim of the fabric wholesalers and awarded legal costs to 4 or the five defendants. Instead of collecting in damages, Galit Levi ended up having to pay NIS 312,356 awarded to the defendants in legal fees and counter-claims.

The judge accepted that the plaintiff had proven that there was a verbal agreement between her and the importers as to exclusivity for the fabric, but found that such an agreement was poorly defined as to what the obligations of both sides were. Based on the testiment of the importer and of a leading designer, it was established that the nature of the verbal contract was a first right of refusal. In other words, the importer would import small quantities of the fabric and offer them to the plaintiff and, if the plaintiff would purchase the stock, would have exclusivity thereby. Otherwise, the importer could offer the fabric to other parties. The plaintiff understood the exclusivity as meaning that she was entitled to exclusivity for at least the season, however the importer, Trobolski Brothers LTD., were more convincing with their version, particularly as they were able to bring another leading designer, Danny Mizrachi, to collaborate their version. Judge Stoler ruled that although the Israel Courts had latitude to write details into a contract, there was a limit to what missing details and clarification he could add to a verbal agreement, and that the plaintiff had not established her version of what was agreed. 

The various designers were not necessarily using the same fabric but arguably, another flowery gifyur (French lacy fabric), of which there were a range available from various wholesalers. Indeed, the plaintiff had made Mally Levy’s dress from one fabric and the rental dresses from 54 meters (4 bolts) of a different version.

It was clear that Mally Levy’s dress was made from the 9.5 meters of flowery gifyur fabric that the supplier had in stock and that he had previously sold to other parties.

The various competing dress-makers all claimed that even had the importer offered some type of exclusivity, they were not bound by this agreement that they could not know about and were not party to.

the judge accepted that following A.Sh.I.R. it was possible to get compensation under the Law of Unjust Enrichment where the plaintiff had failed to register her design. However, the judge was not convinced that the plaintiff deserved wide protection as another Israel designer had exhibited a similar dress in a previous season and admitted that he himself had been influenced by foreign designers.

 The private investigators were able to order Mally Levy style dresses, but on cross-examination, admitted that they had no knowledge of fashion or the law, and thus were unable to give competent testimony that the dresses were similar enough to establish a case of unjust enrichment or passing off.  The judge ruled that in a case like this, the plaintiff should have produced her dress and those of the various defendants to enable the court to directly compare. A video of the model in the dress was inadequate.

Three of the four defendants were able to show that their dresses were somewhat different, one using pearls, where the plaintiff had used crystals, etc. Galit Levi’s creation is based on a bustier or corset, whereas one of the defendants was using a different type of body. One of the allegedly passing off designs was apparently a two piece creation!

One defendant who had not fought throughout but relied on the work of the others was not awarded costs. The others were each awarded NIS 50,000 (about US $15,000) in costs.

The importer also cleared up a further in debts for orders not paid for and for damage to his reputation.

Judge Stoler also ruled that the plaintiff had not established the accuracy of her figures for months prior to the copies being made. She had not isolated rentals and sales for the dress in question from other styles and had not proven that the drop in rental income was due to brides renting the allegedly plagiarized versions.

COMMENT

Wedding dresses tend to share some common characteristics. They are usually full length and white. They are made from expensive fabrics. Some have plunging necklines, others are more modest. Some have backs, others are backless.

To see Ms Galit Levi’s current collection: http://www.galitlevi.com 

It is likely that in a season, distinctive styles will be popular, and these may ape the dress worn by a celebrity or model. That which is considered in such a style may be different from a copy that is fairly considered as plagiarism.   

Most importantly, the dresses have to fit the bride, and many brides do not have the figure of a model.  That other designers chose to put a similar flower in the bride’s hair and claim that the dress was Mally Levy style was not enough to establish that Ms Galit Levy’s rights had been infringed.

This is a good decision. It is also an important one as it establishes what a plaintiff needs to prove to show that her design is being plagiarized.

Tel Aviv Central Court 2237-08-07 G. L. Couture LTD. vs. Trobolski Brothers LTD., Ovadia Cohen, Alon Solimny, Sabina Millenium LTD. and Hinuma Bridal Centre and Feminine Beauty LTD. 16 February 2010.


Israel Patent Office Refuses Revival Of Design Applications, But So What?

January 4, 2010

Back in March 2008, Zippi Honey Ltd. filed a series of design registration applications (45607 through 45611) for some items. Design applications do not formally publish in Israel, and these are not avaiable for inspection, but for argument’s sake, let’s assume decorative honey pots, spoons and similar goods for vending honey in, perhaps for Rosh Hashannah.

Israel’s archaic design law is covered by the Patent and Design Ordinance that was last amended in 1937, and the Design Regulations of 1925.

According to Section 31 of the Design Regulations, the applicant has 12 months from filing to complete the design registration. The applicant in this case, failed to do so, ignoring letters and reminders from the Israel Patent Office. As there were 5 designs, it appears that the Patent Office sent out a total of 10 letters that were ignored, (but to be fair to the applicants, these may have gone out in the same envelope). 

Over a year later, after engaging a lawyer to operate on their behalf, the applicant took steps to revive the design application, and noted that one of the designs was being copied and that they had even received a temporary injunction against the alleged infringer. IP Judicial Review Officer Shoshani Caspi rejected this revival attempt as there was no indication that the Israel Patent Office was at fault in any regard in this case.

Comment

Clearly, Shoshani Caspi is correct, but who cares? The applicant has a date by which he applied for a registered design thereby establishing a connection with the design from a date of over two years ago. Without the registered design, the applicant got a temporary injunction in this case.  In a recent posting, http://blog.ipfactor.co.il/2009/12/31/jerusalem-court-issues-temporary-injunction-against-copycat-challah-cover-manufacturers/ a company who didn’t bother to file a design application at all, nevertheless obtained  sweeping temporary injunctions against a third-party under the Doctrine of Unjust Enrichment, that even prevented marketing abroad items manufactured in China that were similar to, but distinguishable from the ‘originals’!  In such a state of affairs, it hardly matters that the design registration has been rejected on a technicality. The registration seems to be redundant!


Jerusalem Court Issues Temporary Injunction Against Copycat Challah Cover Manufacturers

December 31, 2009

Karashi is a leading manufacturer of mass-produced Judaica with some 1800 product lines, and 200-300 new products a year. One successful line they do is a series of challah and matzah cloths, for ritual leavened and unleavened bread, that have the words Shabbat and Yom Tov (Sabbath and Festivals) embroidered on a translucent material, within a contrasting and opaque framework.

One of their clients decided that this style was so successful that they ordered a large quantity to be made directly for them in China. Understandably Karashi was somewhat annoyed by this and sued for IP infringement.

Since the products were conceived for mass production, they are not protected by copyright. They could have been protected by filing for registered designs but Karashi failed to do this. The main grounds for filing charges were thus Unjust Enrichment and Passing Off.

Judge Yosef Shapira of the Jerusalem District Court reviewed the various decisions he considered relevant and issued a temporary injunction against the defendants, forbidding them from marketing illicit challah covers with the words Shabbat and Yom Tov on a translucent material surrounded with opaque borders.

Comment

After the Supreme Court upheld the A.Sh.I.R. decision back in 1994, there are unregistered intellectual property rights available in Israel under the doctrine of unjust enrichment, at least where the court is convinced that the copying was with intent.  Since Shapira is supposed to follow legal precedent, it is not unreasonable to rule unjust enrichment. That said, though resplendent with references to the case-law, the decision appears to apply tests for the likelihood of confusion regarding trademarks to other areas of IP and in general shows little understanding of basic IP issues. Personally, I cannot see the unique design contribution of the words Shabbat and Yom Tov embroidered on a challah cloth. This seems to me to be totally generic to products of this nature. 

Shapira relates to property rights and infringement when there is no property and no infringement. It may be that there is unjust enrichment, but maybe not. Perhaps after a full trial, the defendants will find pre Karashi examples of challah cloths of similar designs. Whilst accepting that the A.Sh.I.R. Ruling is a relevant legal precedent, I was never happy with the decision. Registered rights last for a specific period of time and follow various rules. Unjust Enrichment is too vague both with regard to scope and with regard to duration. The interaction between Unjust Enrichment and the Basic Law, freedom of business activity, is not clear.

Granting a temporary injunction is particularly problematic on the basis of unjust enrichment, as there are no prima facie rights infringed, and temporary injunctions are by their nature, issued before weighing up the evidence, so the defendants should be considered guiltless until the plaintiffs rights to a monopoly are established. Competition that drives the price down is generally public interest and monopolies are not. If one can get preliminary injunctions under the laws of unjust enrichment, then why bother registering designs at all? Why limit oneself to something objectively new, why pay registration fees and why limit one’s protection to 15 years if you can sue under unjust enrichment without any of these limitations?

What is really missing, of course, is an up-to-date Israel Design Law rather than an out-dated ordinance. There should be limited period unregistered design protection, and probably a grace period. Novelty should be universal and not local.

The temporary injunction prohibits the defendants from manufacturing or selling their made-in-China challah cloths to third parties, directly or indirectly.  Somewhat surprisingly, in this intermediate ruling Judge Shapira has forbidden the defendants from directly or indirectly selling similar challah cloths in Israel or abroad. Thus these non-registered design rights are extra-territorial! I think this is a little beyond Judge Shapira’s jurisdiction.

The range of Karashi designs are found on their website. See

http://www.karshi.co.il/shop/retail/store/listCategoriesAndProducts.asp?idCategory=70

The intermediate ruling relates to rectangular cloths with opaque borders, translucent centers and the word Shabbat and Yom Tov embroidered thereon, with additional decoration being possible.  Not that difficult to have filed a design for that. In most things there are trends. Should the first person to introduce low slung jeans or some other clothing variation to be able to prevent others from doing similar designs? I can’t see why they should be able to without registration. It leaves too much at the discretion of the judge.  

Intermediate Ruling 8858/09 in 3402/09 (Jerusalem District Court)  Karashi International LTD., vs. Gift Center 2006 LTD., Ezer Deker, Ami decorative Products LTD. and Shlomi Nahisi.


Israel Patent Office Publishes Decision on Design for Kerb-Stone

December 14, 2009

 

In a  cancellation proceeding regarding Design Number 39519 to Ackershtein Ltd, Wolfman Industries Ltd. have managed to cancel a design for a kerb-stone.

The Law (Section 36 of the Patent and Design Ordinance) allows third parties to initiate design cancellation proceedings where a design was published in Israel prior to registration.

The case is interesting as grounds for the cancellation concerned what constitutes publication, both in terms of where and to whom, and in terms of whether a previously published single view of a three-dimensional object, which is rather less than generally required to register a design, is sufficient to cancel a registration by rendering it lacking in novelty.

The applicant apparently discussed the design at a closed meeting where a representative of Wolfman was present on 14 April 2004, which was prior to filing the application on 25 July 2004. Additionally, on the following day to that meeting, Yoval Winter, an employee of Wolfman, found the design on a website belonging to Brett Group and Profilebiton, where apparently the design was viewable from 2001 onwards.

The Arbitrator of Intellectual Property and Assistant Commissioner, Noah Shalev Shmulovits ruled that both the meeting and the internet publication constituted publication under Israel Law.

Furthermore, the fact that the bottom and back surfaces of the design were not published is immaterial, since the side that matters, i.e. that facing the road and viewable to the public when the kerb stone is in place, was published.

The assistant-commissioner ruled that the design registration was voided and further awarded 30,000 NIS costs to Wolfman.

One criticism I have is that the two Internet publications appear to be from abroad. One from Brett, a UK company, and the other from Profilbeton, apparently a German company. In a quirk of the Law, dating back to the mandate and never updated, designs in Israel require local novelty only. In circular M.N. 69, from December 2008, the commissioner of patents, Dr. Noam, extended this to include that published on the Internet and available from Israel. See http://blog.ipfactor.co.il/2008/12/28/new-israel-design-regulations/. At the time of the infringement, I would argue that the Law, though hopelessly out of date, required local novelty. Thus, I am not sure that the Internet publication can fairly be considered a publication.

That said, I agree that the meeting was sufficient to be considered a publication under the Law. Note - Profilbiton may be an Israeli company. I couldn’t find them on the Internet, although the Assistant Commissioner claims to have with no problem.


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