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.


Genentech Withdraws Israel Patent

May 6, 2013

genentech

Genentech filed and received allowance of Israel Patent Number 175885 titled “ANTIBODY, A FRAGMENT THEREOF, A METHOD OF PREPARING THE SAME AND A USE OF THE ANTIBODY”. the patent issued on 29 May 2011 and was next due to be renewed on 17 December 2014.

On  24 April 2013, Genentech requested to withdraw the patent. Actually, the claim this was their second attempt to withdraw the patent, having first asked to do so on 21 March 2013.

Patentees are able to request that a valid patent be withdrawn, and the effect of so doing is as if the patent had never issued. The request has published for opposition purposes.

COMMENT

I wonder what is going on here?


Reviving Lapsed Israel Patents – Human Error Preferable to Financial Problems

May 5, 2013

meter lapsed

Eli Tiar allowed his patent number 148847 titled “EARTH SCREW ANCHOR ASSEMBLY” to go abandoned. The patent was filed in March 2002, and granted in February 2011. The first and second renewals, for years 1-6 and 7-10 were timely paid, but the third renewal, due March 2012, was not paid, due to lack of funds and commercial interest.

The Deputy Commissioner, Ms Jaqueline Bracha, did not consider this excuse as a legitimate reason to allow the abandoned patent to publish for reinstatement, since the law requires the patentee to take immediate steps on becoming aware that the patent lapsed. In this case, the patentee was aware that the patent would and then had lapsed, but made a financial decision to allow this to happen. This cannot be considered unintentional. The request to revive was therefore rejected.

On the other hand, Israel Patent 151594 to Biomar Israel LTD. for a FUNGICIDE COMPOSITION CONTAINING TEA TREE OIL was supposed to be renewed on 4 September 2012, and lapsed six months later on 4 May 2013, after the grace period passed. However, as evidenced by an affidavit, the agent responsible for maintenance was changed, from Dr Eyal Bressler to Daniel Faigelson, and a human error was made in entering the renewal data.  The applicant never intended the application to lapse, and so Ms Jaqueline Bracha ordered that its reinstatement was allowed to publish for opposition purposes.

Israel patent number 161941 titled SHELF-STABLE VEGETABLE COMPOSITION AND METHOD OF MAKING to the Societe des Produits Nestle SA lapsed since the patentee misinformed a renewal service, informing them that the next renewal was due in 2012, but in fact it was due in 2008. The mistake was spotted in 2013,  and the company took immediate action to rectify the situation. Ms Jaqueline Bracha ordered that its reinstatement was allowed to publish for opposition purposes. She also has set up an inquiry to determine why a notice of the patent becoming abandoned wasn’t sent out earlier, although notes that this service is not obligatory on the patent office, and cannot, itself be blamed for patents lapsing.

Israel Patent Number 158611 to IBM titledMETHOD FOR INTEROPERATION BETWEEN LEGACY SOFTWARE AND SCREEN READER PROGRAMS” lapsed as from 11 March 2012, due to non-payment of the third renewal, due with extension period by 11 September 2012. IBM’s attorneys did not provide a sufficiently detailed affidavit explaining the reason for the patent lapsing and were given an opportunity to rectify this. It turns out that the renewal company they use gave insufficient information to their local agents who handle the renewals in Israel. This was considered adequate to allow a  notice of reinstatement to publish.

The relevant law is sections 57 and 60 of the Israel Patent Law.


Israel Patent Office Adopts New standards of obviousness for pharmaceutical patents

May 3, 2013

Morris Dancers and MaypoleCialis

IL 147642 to ICOS Corp. is a patent application for a treatment of erectile dysfunction that is marketed under the trade-name Cialis®. The treatment is based on the pharmaceutical active ingredient Tadalafil, where the distinguishing feature of the claimed invention concerns the size distribution of the particles of active ingredient.  A size distribution where 90% of particles are less than 40 micron diameter is claimed, with a preferred distribution being 90% of particles having a diameter between 10 micron and 25 micron.

In a decision of 24 October 2012, the Deputy Commissioner, Ms Yaara Shoshani Caspi, upheld an examiner’s decision to reject the application. The applicant, represented by Reinhold Cohen, filed a request for an oral hearing, the date of which was set for 1 May 2013.

In preparation for the hearing, ICOS submitted a reasoned statement showing the difference between the claimed invention and the prior art. On reading the decision, Ms Shoshani Caspi was persuaded that the claimed invention was not described in any of the citations and was therefore novel and fulfilled the requirements of Section 4 of the Israel Patent Law. Furthermore, although reducing the size of the active ingredient clearly increased the surface area thereof, aiding and facilitating dissolving and uptake of a fairly insoluble material, and increasing its effect, Ms Bracha considered that the priority date there were other techniques that might be considered, such as wetting the active ingredient.  She ruled that decreasing the particle size was not the only candidate for a technique that would be tried first, suggesting that persons of the art might try co-precipitation, for example. Indeed, there were various known disadvantages with decreasing the particle size, that although would not rule out this approach a priori, would, nevertheless, make it a less favorable choice.

Applicants argued that although β-carboline was made more instantly available by shrinking the particle size, persons of the art might not make the required analogy. Ms Shoshani Caspi found applicants arguments convincing and allowed the application to continue to publication rendering the hearing moot.

COMMENTS

In a recent attempted appeal to the Israel Supreme Court concerning  Merck’s treatment Fosamax®, Judge Handel of the Israel Supreme Court upheld the District Court and former Commissioner  of Patents, Dr Meir Noam’s ruling that the standard for rejecting a pharmaceutical invention as having inventive step or non-obviousness, is ‘obvious to try’.  Ms Bracha is specifically ruling that obvious to try is not enough to render a pharmaceutical patent to be considered non-inventive, demanding a higher standard – that of ‘obvious to try first‘ or ‘obvious to succeed’.

Since Handel rejected the request for an appeal, I am not sure that his ruling can be considered a binding precedent of the Israel Supreme Court. Nevertheless, it is clear that Ms Shoshani Caspi is adopting a more lenient standard than that required by Dr Noam. Time will tell if this indicates a change in policy by the Israel Patent Office. What seems most likely is that Unipharm and / or Teva will challenge the validity of this patent at least on the grounds of it being based on an invention that was obvious to try so at some stage, we will receive more clear guidance as to whether this is sufficient to render a claimed invention obvious.

I understand that May Day as the choice of date for the hearing has nothing to do with the impotence of International Workers or with Maypoles being a clear example of a phallic symbol.  The rather English image of Morris Dancers around a Maypole has nothing to do with the rather English Israel Patent Attorney, Michael Morris,  - a licensed practitioner that I trained some years ago. Indeed, I have no idea if he knows Morris Dancing.


Israel Trademark Application 24/7 Refused as Lacking Distinctiveness

May 3, 2013

247

A. D. Tuval LTD. filed Israel Trademark Application Number IL 233243 for “24/7″ covering travel agent services. Although a notice of allowance issued, the trademark office canceled this, stating that it was send by mistake, and refused the mark. In an oral hearing, the applicant claimed that providing travel agency services around the clock was a revolution in the field and differed from standard practice. Deputy Commissioner Jaqueline Bracha noted that the mark was required to be distinctive, not the service being provided, and considered 24/7 a standard term for round the clock services that did not have a distinctive character. Applicant argued that the term 24/7 was an Americanism not widely understood in Israel, and noted that another firm that specialized in last minute travel deals had successfully registered Daka Tishim, literally the 90th Minute.

Ms Bracha considered Daka Tishim more distinctive than 24/7 on the scale of things, but noted that that mark was not under appeal.

The mark was refused.

Ex Partes Decision re Israel Trademark Application Number IL 233243 for “24/7″, 29 April 2013.


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


Israel Patent Office Closures 15-16 April 2013

April 11, 2013

Israel 65

The Israel Patent Office is closed on Monday 15th and Tuesday 16th April 2013 for Israel Remembrance Day and Israel Independence Day.

Any deadlines (including PCT filing deadlines) falling on these days are expended until Wednesday 17th April 2013.

Note however, in Israel, Sundays are regular working days.

 


Unipharm Challenges Validity of Patent Term Extension for Neurim’s Circadin in Israel

April 9, 2013

Cool-Animal-Sheep-Sleeping-520x347

Unipharm has challenged the validity of the patent term extension obtained by Neurim for Israel Patent 103411 for a drug for sleep disorder based on melatonin and marketed as Circadin.

BACKGROUND
Neurim has developed a drug for sleep disorder called Circadin. The drug is based on melatonin, and in the UK, a patent term extension was refused since the active ingredient is used in a drug called Regulin that is used to get sheep to enter the mating season a month early.

Anyway, the UK Patent Office decision was appealed through the UK courts, and eventually the Rt Hon Sir Robin Jacob referred the issue to the European Court of Justice, since although Circadin wasn’t the first approved use of the active agreement, insomnia in humans and tupping in sheep are not exactly the same, and the intention of the law was to provide compensation for the long time it takes to get regulatory approval.

In Israel, the Law allows patent term extensions for the shortest period granted by a Bolar country that grants extensions, so the Israel Patent Office refused to grant an extension.

However, the ECJ then overturned the UK ruling and allowed a patent term extension, so the Israel Patent Office decision was appealed to the District Court.

The 20 year period (sans extension) lasted until 11 October 2012, and after Judge Ben-Zion Greenberger of the Jerusalem District Court ruled that an extension was in order, Adv. Assa Kling, the Commissioner of Patents awarded a temporary extension of six months until 11 April 2013.

The original application for an extension in Israel was filed three months late, but the previous Commissioner of Patents retroactively allowed the application to be considered.

Unipharm opposed the patent term extension on three legal points:

  1. Equitable behaviour of the Applicant and whether the extension was legal
  2. Whether the patent in question was to be considered the “basic patent” under Section 64a of the Israel Law
  3. Whether Circadin was the first drug containing the active ingredient as required by 64d of the Israel Law

THE ISSUE OF (IN)EQUITABLE BEHAVIOUR

The request for a patent term extension is conducted by the applicant in an ex partes procedure, and so Unipharm argued that a high standard of equitable behaviour was required and alleged that Neurim had withheld or suppressed relevant information. The Commissioner of Patents accepted that the Law required equitable behavior and had no problem with Unipharm challenging on these grounds, but found the claim of inequitable behaviour to invalidate the patent term extension was not sufficiently substantiated to invalidate the patent term extension.

The first issue raised was that the request for a patent term extension was filed late, and Section 164 -1a of the Law only allows extensions in cases where neither the applicant nor his representative had control and where the delay could not be prevented. Dr Kling was not convinced that the relevant facts were withheld from his predecessor and so saw no reason to retroactively cancel the extension provided.

Regarding Regulin, the Applicant’s position was that the fact that Regulin had previously received marketing permission and registration in the list of pharmaceuticals was irrelevant since it wasn’t “for medical use” as required for a previous registration by Section 64D(3) of the Law. Furthermore, the Applicant considered that the District Court’s ruling supported this interpretation and rendered the issue moot. On this issue, Commissioner Kling considered that Regulin should have been discussed at the first opportunity, but had, nevertheless, been fully considered in earlier hearings and so could not be considered inequitable behavior as far as patent term extensions are to be considered.

Another issue raised was the availability of Melatonin as a non-regulated food supplement for treating sleep dissorders. Here Neurim’s position was that the Law requires first regulatory approval and does not relate to unregulated preparations that may be available.  Here Dr Kling was unconvinced that Neurim was obliged to report melatonin that was available as a food stuff.

A melatonin containing preparation called Prime-x was available in the US, and was not reported. Here, Commissioner Kling ruled that the requirement to report this was similar to that concerning Regulin.

Regarding the issue concerning Regulin in the UK; here Neurim apparently failed to inform the IPO that the patent term extension was refused due to the earlier registration of Regulin. Neurim claimed to be unaware of the requirement to inform the Israel Patent Office regarding developments in the UK, claiming that they believed these to be irrelevant. The Israel Counsel handling the patent term extension was not representing Neurim in Europe, and wasn’t in the loop. Here Commissioner Kling was critical that the full picture wasn’t provided, but felt that this was insufficient proof of equitable behavior to invalidate the request for patent term extension.

Regarding developments in the US – in August and October 2011, the Israel Patent Office asked whether the applicant had requested a patent term extension in the US, and was informed that none had been requested. The Opposer considered that Neurim had witheld information in this regard. It transpires that a request for an investigational New Drug (IND) had been filed, but no request for a New Drug Application (NDA) had been filed.

Adv. Kling considered that the statements and explanations were sufficient to overcome arguments that there was sufficiently inequitable behaviour to warrant the patent term extension being cancelled, but emphasized that the applicant for a patent term extension is required to document all these issues in a timely manner.

IS THE PATENT “THE BASIC PATENT” AS REQUIRED BY THE LAW

The Opposer claimed that the Circadin patent in question was not a “basic patent” in that it claimed a new use for a known active ingredient, and that the legislators never intended to grant patent term extensions in Israel for such patents, but only for those with new active ingredients.  Neurim claimed that the 103411 patent is for controlled release of melatonin and considered this a “basic patent”. The requirement of “basic patent” is not necessarily synonymous with first patent. Furthermore, Neurim’s position was that most ground-breaking pharmaceutical patents were tied to uses, and not merely to active ingredients.

Since Section 64a defines the basic patent as a patent that protects a material, manufacturing process, use of material or a medical formulation that includes… Commissioner Kling rejected the Opposer’s interpretation. Furthermore, he ruled that the 103411 patent wasn’t a use patent per se, but rather a novel formulation that was used for a specific purpose.

It seems that the issue here was whether a Swiss type claim formulation made the subject matter a secondary use. Dr Kling wasn’t convinced, and didn’t believe that Dr Tomer of Unipharm was really convinced either.

In summary, Dr Kling ruled that the 103411 patent could be considered a basic patent in accordance with the Law.

WAS CIRCADIN THE FIRST PATENT CONTAINING THE ACTIVE INGREDIENT TO OBTAIN  REGULATORY APPROVAL?

Adv. Kling considered that the District Court’s ruling did not prevent him from analyzing this question directly. Professor Zisapel’s interpretation of the term “first medical approval” was to exclude non-regulated usage on one hand, and regulated usage for animals on the other hand. Dr Tomer of Unipharm followed the argument of the British Patent Office, and noted that there is one register. There was an interesting discussion concerning a treatment for head lice, that incapacitated lice and so had a physiological effect on lower animals, but was used to treat humans infected with lice. Adv. Kling adopted the interpretation of the ECJ and ruled that since the registration for causing sheep to breed earlier was of no help in receiving a patent of regulatory approval for Circadin for treating insomnia, the narrow interpretation was inappropriate.

CONCLUSION

The Opposition was rejected and a patent term extension until 22 April 2017 was granted.

COMMENTS

Circadin is a very rare instance of an Israeli drug brought to market from first development through trials and regulatory approval.

I have been following this case with interest, as my former partner, the late Dr Stanley Davis wrote the original application.

I am probably unable to comment substantively on the ruling due to attorney client privilege, and I think we should let sleeping sheep lie…


A clearer than usual trademark ruling

April 9, 2013

Clearasil allClearex(3)

Reckitt and Colman filed a trademark application for Clearasil Stayclear.

Mediline LTD., who manufactures and markets a facewash called Clearex,  filed an opposition, claiming trademark infringement, unfair competition and unjust enrichment.

One argument submitted was that the adolescents who suffer from acne might be more likely to confuse the products and to have poor English skills.

In a ruling that is unfortunately not signed, so I don’t know who was responsible, the adjudicator at the Israel Patent Office applied the triple test and considered that the marks looked and sounded sufficiently different that there was no real likelihood of confusion, noting that Clearasil stayclear is rather longer than Clearex.  Although the two products are sold for similar purposes and via similar outlets, since both names are derived from the English word clear, there were no convincing grounds of bad faith. Somewhat confusingly, the adjudicator ruled that the respective marks are promounced Clea-Rex and Clea-Ra-Sil, whereas I would have put the R at the end of the first syllable, but then again, English is my first language.

In a neat twist, the arbitrator noted that for the ClearEx trademark to be registered, the opposer had had to argue that clearex was not confusingly similar to Clearasil, and it is certainly more similar to Clearasil than to Clearasil  Stayclear.

I suspect that Israeli high school kids practice their English and speak English at least as much as their parents. I phoned my daughter (aged 15, non-English speaker) to ask if the two words were similar, and she announced that they both mean נקי – clean. So perhaps there is something in the claim that teenagers are easily confused. I didn’t ask my Israeli, Hebrew speaking wife…


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.


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