NexMed Counts their Chickens…

August 25, 2010

In his parable titled “the milkmaid and her pail”, Aesop warns against counting chickens before they have hatched. There is another well-known story about a broody hen, who, because of her clucking, alerts the farmer’s wife that she’s laid an egg. The farmer’s wife makes omelettes, and the hen remains without the fluffy chicks she’s dreamed of.

 I was reminded of both stories by a press-release sent across the Internet by Nexmed who announced that:

 The Israel Patent Office has issued an allowance notice for NexMed’s patent application entitled, “Topical Compositions for Prostaglandin E1 Delivery.”

They go on to state that:

 the patent, when issued, will provide coverage to May 13, 2019, and expand the protection of NexMed’s Prostaglandin E1 (alprostadil)-based products in Israel to seven granted patents.

See http://www.marketwatch.com/story/nexmed-receives-additional-patent-coverage-for-israel-2010-08-23?reflink=MW_news_stmp

I think this announcement is a little premature. The patent may or may not issue since Israel has an opposition procedure that allows third parties to argue that an allowed patent application is invalid, typically as lacking novelty and/or inventive step.

Although there has been a first reading of an amendment to conform Israel’s system to that of other jurisdictions, Currently, Israel patent applications only publish for opposition purposes once granted. If no oppositions are filed within a three-month period, then a patent certificate issues. Until that time, there is no a priori case of validity. One cannot sue infringers.

Israel has a thriving generic drug industry including players such as Unipharm, Teva and Perrigo who have an interest in opposing patent applications for pharmaceuticals.  There are also other ethical players who have an interest in Prostaglandin based drugs.

It should be noted that a successful opposition in Israel could undermine the validity of issued patents elsewhere.

In this instance, as there are corresponding patents elsewhere, the applicant could have obtained allowance by modified examination under Section 17c of the Law,by conforming the claims to the US or European patent without substantive examination in Israel.

From publication of the patent journal, it generally takes time for patent attorneys monitoring the publication to report to clients that are potentially interested in opposing. Often decisions to oppose require committee meetings and internal debate. Three months isn’t very long. there is a backlog of about six months in publication of the patent journal. Thus we can expect publication in March 2011. With Pesach and Easter, sickness, maternity leave, reserve army duty and the like, it is not inconceivable that interested parties would miss the three-month opposition period. Now they have been given six month’s advanced notice.

We have at least two pharmaceutical clients that we have reason to believe might have a commercial interest in opposing this patent. Nexmed have tipped them off now, so that they can prepare in advance by reviewing the file wrappers in corresponding cases and start looking for prior art.


Perrigo Sued By Galderma for Patent Infringement over Clobex

August 24, 2010

Perrigo, an Israel based generic pharmaceutical company has filed an Abbreviated New Drug Application (ANDA) Abbreviated New Drug Application (ANDA) with the U.S. Food and Drug Administration (FDA) for clobetasol propionate shampoo, 0.05%.

In response, on August 17, 2010, Galderma, the listed patent owner for the product, which is commercialized as Clobex, have filed suit alleging patent infringement in the United States District Court for the Northern District of Texas to prevent Perrigo from proceeding with the commercialization of this product.

The product is substitutable to Galderma’s Shampoo, 0.05%, a topical corticosteroid indicated for the treatment of moderate to severe psoriasis of the scalp. Sales for the brand exceed $5o million a year.


Israel Patent Office Issues Warning To Unlicensed IP Practitioners

August 23, 2010

 

In a surprising but welcome development, the Israel Commissioner of Patents has issued a warning to persons based in Israel who are neither Israel licensed patent attorneys nor attorneys-at-law, that ‘help’ others obtain IP rights in Israel and abroad. The warning makes it clear that the problem is not merely one of whether the cowboy service providers sign the papers or not. Helping filling out the forms is also illegal.

The Commissioner considers Sections 154 and 192 of the Israel Patent Law as prohibiting these actions including giving consulting services, and it would appear that a non-licensed Israeli, including a US patent agent that helps someone in Israel file a US provisional application, or an IP consultant that is not licensed, who provides services for a fee is committing an illegal act.

We are a little surprised that the issue has apparently come to the attention of the Israel Patent Office only recently. Evidently not everyone working there reads this blog!


Israel patent application opposed on grounds of novelty and inventiveness – without citing prior art.

August 23, 2010

Back in 2001, Michael Cohen, an inventor from Kfar Ezion filed a patent application for an armor plate for stopping projectiles.

The claimed invention is defined as follows:

A composite, laminated armor panel for absorbing and dissipating kinetic energy from projectiles, said panel comprising:
a) a first outwardly-positioned layer made of a hard material selected from a ceramic material and a metal having a Rockwell-C hardness of at least 27;
b) an intermediate layer softer than said first layer, made of a material selected from aluminium and metals having a Rockwell-C hardness of less than 27; and
c) a third backing layer of tough woven textile material;
characterised in that said three layers are laminated together and wrapped on at least four sides in a further tough woven textile material which is bonded to the outer surface of said composite, laminated armor panel.

In the meantime, he has obtained patents for his invention in the United States (US 06,497,966), European (EP1352207) and Australian AU 2223998BB patents. In Israel, the application was allowed and subsequently published for opposition purposes. Thus examiners in 4 jurisdictions were persuaded that the invention was patentable.

Israel Military Industries (IMI) opposed the patent application and Noach Shalev Shmulovich, the Deputy Commissioner of Patents has now ruled that the patent is, indeed, invalid as lacking inventive step, and awarded costs of NIS 30,000 to IMI.

That the Israel Patent Office independently concludes that a patent is invalid, despite it issuing elsewhere is perfectly reasonable. What is problematic however, is that the six page ruling concludes a lack of novelty and inventive step whilst failing to cite a single prior art document. Furthermore, the decision notes explicitly that no such highly relevant documents were furnished.

There was apparently a large volume of evidence submitted by both parties that describes collaboration between them. The issue of who was the true inventor was, however, considered moot by the decision which ruled the patent lacking inventive step.

Normative practice dictates that novelty and inventive step (non-obviousness) should be considered in light of the prior art, which generally takes the form of published references. There is no problem for an expert witness to produce lab-books or specimens indicating what his group or others were doing at the time the application was filed. In this instance that did not happen, which precludes debate on the correctness of the decision.

Furthermore, the decision implies that where a new combination of elements exists that is based on well-established principles, it is not merely enough to show clear advantage over the prior art, to establish a case of patentability, putting the onus on the examiner or the opponent to produce prior art that is novelty destroying or sufficiently close to render the invention obvious. This raised the bar for patentability over and beyond that previously accepted. It encourages examiners to reject claims based on gut feelings, without producing prior art.  

The published decision indicates a lack of understanding regarding the relationship between hardness and brittleness of a material, the root causes of ductility and the differences between the methods of static energy absorption used in indentation hardness testing, and the dynamic energy absorption involved in stopping a projectile. 

That as may be, Justice Shamgar, in Appeal 345/87 Hughes Aircraft v. State of Israel 44(5) 45, gave guidelines that the lower courts and the patent office should follow when ascertaining novelty and inventive step. See also Annulment decision IL 123976 Yafim Gisser vs. Compucraft. This decision ignores those guidelines.  

During the opposition proceedings, Cohen claimed that his system is better for stopping multiple impacts. It is correct that were the device known, this characteristic would not render the armor patentable. However, no evidence was reported that the device was indeed known. The underlying principles may be well established, but if by combining them in a unique manner a worthwhile improvement results, that should be sufficient to provide an inventive step – just a little one – a scintilla of inventiveness.

Whereas the underlying principles are well established, it is certainly not trivial to implement them in a working system that stops bullets, certainly not multiple impact. The claimed invention includes a strike plate, a softer backing plate, at least partially wrapped by an impregnated textile under tension. That’s four materials arranged in a certain manner with structural limitations. Additional limitations to narrow the scope of the invention may be in order, but only in light of identified prior art, not principles.

Absorption of energy of impact includes crack propagation in the ceramic, ductile (plastic deformation) in the backing plate, delamination, fiber pullout and crack deflection in the fiber-resin wrap, and a host of other mechanisms. It is very difficult to predict up front how such a system would behave in response to an impact.

Inventive step must be considered in light of prior art. One useful feature of opposition proceedings is that persons familiar with a field can produce prior art that Examiners may have missed or misinterpreted. It seems elementary that without evidence to the contrary, a patent claim should be considered just that - patentable.

Based on the decision as published, if Cohen were my client, I’d urge him to appeal to the Courts.

Note - in this case, I have a fairly detailed understanding of the technology. In addition to my qualification as a patent attorney, I am also a materials scientist. I started a PhD in polymer matrix polymer fiber composites in the Casali Institute of the Hebrew University (Applied Chemistry – under Professor Gad Marom). Due to lack of project funding, I switched to Applied Physics and ended up obtaining a PhD in analysis of hard coatings that was a spin-off of a project at Soreq -NRC that attempted to develop hard coatings for various applications. Despite being somewhat a “person of the art” and certainly well able to put myself in the shoes of persons of the art having shared lab space with graduate students developing armor stopping composites and having clients in the field - I am unable to decide whether the application is novel or inventive without evidence.


Scouring pads considered non-inventive and application considered abandoned

August 22, 2010

Israel Patent Application Number IL 110548 claims a cloth covered foam scouring pad with one side more abrasive than the other, and the abrasive side having two sections of different roughness. The application was allowed, but the publication fee wasn’t paid on time.

A couple of years later, claiming a breakdown in communication with their attorney due to a fire, the application was revived and published for opposition. 

Huglah Kimberly, who manufacture such scouring pads under the name Sushi pads, opposed the patent, claiming wrongful revival and lack of novelty / inventive step.

The applicant, Samuel Sadomsky waived attorney – client privelege and it turned out that the attorney of record, Amir Friedman, was requested not to pay the publication fee. On further inspection, it turned out that that fire happened after the granted patent application was abandoned. Attempts to claim that subordinates were acting without authority and that the abandonment occurred due to a change of premises were considered not sufficiently persuasive. Though justifying his earlier decision that in exceptional circumstances an application could be revived after a couple of years, in this case, the evidence made such a claim untenable.

Having ruled that the patent was abandoned intentionally and could not be revived, the issue of novelty and inventive step was moot. Neverthless, the Commissioner of Patents and Trademarks Dr Noam ruled that US 4,354,530, US 4,581,287 and US 4,966,609 rendered the claimed invention non-patentable. 

Costs of NIS 25,000 were awarded to the opponent.


Reporter trademark cancelled due to lack of use

August 22, 2010

Fin. Ing. S.R.L. an Italian company, has an international line of clothing and accessories branded as  Reporter.

A Polish company, Spolka z ogranczona odwoiedzialnoscia who also uses the name, were successful in having the Israel trademark numbers 74787 and 74788 voided due to lack of use over a 3 year period, since the mark holders were unable to provide evidence of use or to explain the lack of it due to extenuating circumstances.

the decision was issued by Commissioner of Patents and Trademarks, Dr. Meir Noam.


Israel Ruling on trademarks for slogans

August 22, 2010

The Deputy Commissioner for patents and trademarks, Noach Shalev Shmulovich, has issued a ruling concerning three slogans, two filed in name of Shufersal (sometimes mispronounced as Supersol) a chain of Israel supermarkets, and a third mark, filed in name of Gidron.

The two Shufersal marks were as follows: “Your money buys more” and “Because time is a valuable commodity”.  They were both canceled as not being indicative of the source of goods.

The Gidron mark “Gidron -bakes freshness for you” was allowed with disclaimers for the words freshness and baked.

COMMENT

The decision is clear and well written. It is also perfectly reasonable.

Before citing US Law on the Issue (specifically Mc Carthy on trademarks and Unfair Competition), the Deputy Commissioner of Patents cited the Talmudic dictum regarding Japhet (Noah’s third son, believed to have sired European nations, particularly Greece – dwelling in the tent of Shem – Semitic ancestor of the Jewish people). The attribution of the native Americans to any of Noah’s sons was, of course, outside the scope of the Talmudists who were unaware of the New World. The relative proportions of European and Jewish influence in the development of American trademark law is an open question. Nevertheless, I for one, am always happy to see a citation from the Jewish sources in a patent office ruling. 

Surprisingly, however, earlier Israel decisions regarding slogans were not cited.

I would have thought that before citing foreign law, no matter how persuasive, and before citing Talmudic dicta of dubious relevance, an Israel decision should relate to Israeli precedents. Preferably, it should follow same. In this regard, Dr. Noam, the Commissioner of Patents and Trademarks issued a Circular on the subject (M.N. 29) and subsequently ruled on “Do what feels good” – a slogan filed by Coca Cola that wasn’t allowed as lacking inherent distinctiveness – See Decision from 2006 re IL 171183-171187. Indeed, Shmulovich himself has addressed the issue in the past – albeit not convincingly – see 187420 – “a diamond in your pocket” – which was generic, descriptive, a slogan and non-indicative of source of goods, but was nevertheless allowed.

Both the diamond and the “Do what feels good”Coca Cola decisions cited earlier rulings. Why doesn’t this one?


Israel Patent Office gets ISO Certification

August 16, 2010

We are pleased to report that the Israel Patent Office has fulfilled the requirements and obtained ISO Certification for its patent prosecution process.

We congratulate the Israel Patent Authority, the Commissioner, Dr. Meir Noam, and also the patent office ombudsman Moshe Cohen who was heavily involved in this initiative. 

Broadly speaking, ISO is not a certificate of quality, but rather a management standard. This is the official abstract:

ISO 9001:2008 specifies requirements for a quality management system where an organization

  • needs to demonstrate its ability to consistently provide product that meets customer and applicable statutory and regulatory requirements, and
  • aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

All requirements of ISO 9001:2008 are generic and are intended to be applicable to all organizations, regardless of type, size and product provided.

Where any requirement(s) of ISO 9001:2008 cannot be applied due to the nature of an organization and its product, this can be considered for exclusion.

Where exclusions are made, claims of conformity to ISO 9001:2008 are not acceptable unless these exclusions are limited to requirements within Clause 7, and such exclusions do not affect the organization’s ability, or responsibility, to provide product that meets customer and applicable statutory and regulatory requirements.

In other words, the certification says nothing about the quality of the examination in terms of whether prior art is found by the examiner, or whether an issued patent relates to an invention that is truly novel or inventive.

 It does, however, serve as an indication that there are standardized procedures in place. What this means is that things should flow more smoothly, less patent applications should get lost, etc.  This coupled with Israel being recognized as an International Search Authority (ISA) and International Preliminary Examination Authority (IPEA) does imply that applicants will get a quality examination to consistent standards with less arbitrariness.

Israel being invited by the US to join the patenting superhighway is one indication of this additional value added. Indeed we suggest that the Israel Patent Office should consider providing  outsourcing services to other patent offices. The US is now looking to recruit an additional 1000 examiners a year to cope with their backlog. Outsourcing and offshoring could be the answer. 

The ISO Certification covers patent prosecution only, but there are plans to widen this to other departments such as designs and trademarks as well.


Should Israel Join the Patent Examination Superhighway?

August 15, 2010

We were intrigued to receive a letter from the Israel Patent Office asking for feedback to a proposal that it joins the patent superhighway.

Background – with growing piles of unexamined patents, a number of patent offices have joined forces such that successful examination in one or other of them can be used to get start the patent prosecution process in other member patent offices.

Israel participating would presumably have two consequences.  (i) Allowance elsewhere could accelerate the process in Israel, and (ii) issuance in Israel could help speed up prosecution elsewhere.

Allowance elsewhere already speeds up the process in Israel. Section 18 of the Israel Patent Law requires reporting citations in other jurisdictions and providing copies on CDs of anything of particular interest (X and Y citations).  Section 17c of the Law enables obtaining patents in Israel that correspond to those issued in a list of countries having thorough examination procedures. These measures, plus a slew of innovative Patent Office Circulars have resulted in situation where applicants who have filed in Israel can already take advantage of successful examination elsewhere to speed up the prosecution in Israel.

The ramification of Israel joining the patent prosecution highway appears to be the opposite. It seems to provide a mechanism to speed up prosecution elsewhere following allowance in Israel. 

In theory, this is a good idea. Different patent offices relying on each other’s work offers an opportunity to be more efficient by avoiding duplication of work. However, I think the question that the letter from the patent office is really asking is whether we Israeli practitioners (and foreign patent offices) have confidence in the ability of the Israeli examiners, to use Israeli examination as basis for examination elsewhere. 

That is a difficult question to answer. Israel having been accepted as an International search and preliminary examination authority of the PCT, able to issue ISRs and IPERs is a an official rubber stamp of their ability. One of the requirements for acceptance is having 100 examiners, leading to massive recruitment. Some of those examiners are not yet that experienced. However, many of the established examiners are very experienced indeed.

Although most patent specifications filed in Israel are in English, the examination of patents in Israel is conducted in Hebrew. All correspondence from the Israel Patent Office to the applicant is in Hebrew, and much of the return correspondence is in Hebrew as well. This somewhat limits transparency of substantive Israel examination to other patent offices.

I think that user confidence in the Israel examination will depend on the quality of the International Search Reports (ISR)s and International Preliminary Examination Reports (IPER)s of PCT applications that are examined in Israel, and the key to international cooperation in general lies in better PCT examination.

That said, the ISR only examines the first invention claimed, and if the ISR is unfavorable, the applicant may amend his claims. These two factors combine to limit the value of the International search Report as an indication of patentability of the invention eventually patented.

Israel has a talented multi-lingual, academic workforce to draw on and has the population base to recruit examiners that are competent in all European languages (Western and Eastern) and in Arabic. Israeli salaries are low compared to those in the US and in Europe, so the Israel Patent Office should be able to compete effectively with the USPTO and EPO. That said,  with more and more cutting research and patent filing taking place in Korea, Japan and China, Israel’s linguistic advantage from the ingathering of the exiles, may not be so valuable after all. There are Israelis that speak Chinese and Japanese, and probably Korean as well, but not that many.  

Using the Israel Application as an indication of patentability worldwide would be a fine thing, and I hope that the quality of the Israel examination will be such that other patent offices will rely on it. I think this new initiative is premature. Time will tell.


Merck’s patent application for once-weekly alendronate (Fosomax) successfully opposed in Israel

August 10, 2010

WO/1999/004773 titled “Method for Inhibiting Bone Resorption” is a patent application to Merck for a once weekly oral dosage pill for alendronate and other bisphosphonates for the treatment of Paget’s disease and osteoporosis and was filed in Israel as a national stage entry of the PCT as IL 153109.

Alendronate is marketed by Merck as Fosomax®, which has annual worldwide sales of over one billion US dollars.

Once granted, the application was published for opposition purposes, and both Teva and Unipharm, Israel’s leading generic companies opposed the application. We note that Unipharm was responsible for the cancelation of the basic alendronate patent in the Israel Supreme Court. As would be expected, Merck was represented by Richard Luthi, Unipharm by Adi Levit and Teva by Tal Band.

The main claim is as follows:

A pharmaceutical composition useful for inhibiting bone resorption in a human comprising from about 70 mg to about 140 mg of alendronic acid or a pharmaceutically acceptable salt thereof, or a mixture thereof, on an alendronic acid active weight basis, in association with a pharmaceutically acceptable carrier, wherein said composition is adapted for oral administration as a unit dosage form according to a continuous schedule having a periodicity selected from once-weekly dosing and bi-weekly dosing.

The grounds for opposition were lack of novelty, lack of inventive step, lack of utility and non-patentable subject matter. The Commissioner of Patents, Dr Meir Noam, complimented all the expert witnesses, both those recruited locally and those flown in from abroad, for their objectivity and professionalism, and pointed out that he had spent 12 days conducting oral hearings.

In his ruling, Dr. Noam concluded:

  1. That a specific formulation indicated for a specific dosage regime was patentable subject matter in Israel, and fell outside the ambit of section 7(i) which excludes methods of treatment of a human from patentable subject matter.
  2. Although there were suggestions in the literature – specifically in a professional journal called Lunar – to try administering a higher dosage less frequently, including once a week, as away of overcoming certain side effects, these were insufficient to rule out absolute novelty.
  3. The combination of the Lunar references and some of the previously reported filed tests were sufficient to render the invention obvious and lacking in inventive step, since although some of the papers indicated that a higher dosage would cause more gastrological irritation, there was sufficient evidence that the problem was caused by pills sticking in the throat, and so the frequency of dosage was more significant than the size of the dose. This coupled with the well established long half-life of the drug and the Lunar publications actually making the suggestion rendered the idea of reducing the frequency and upping the dose obvious to try. Furthermore, the 70 mg dose and once week administering of the treatment were both found in the literature.
  4. Having ruled the claimed invention as lacking in inventive step, the question of utility was moot, so Dr. Noam excused himself from ruling on the hundreds of pages of evidence submitted on the issue by both sides.

One interesting argument, put forward on behalf of Unipharm by Adi Levit, was that Haber’s rule applied, i.e. that  ”the time of exposure makes the poison”. In other words, where the problem is local irritation, a higher dosage for a shorter exposure time is likely to be beneficial, and thus there was no invnetive step. Merck tried to get this argument suppressed on technical grounds, claiming that it wasn’t in the original opposition as filed.

After ruling the patent invalid, the opposers, Teva and Unipharm, were given 30 days to submit breakdowns of costs incurred.

The case: Opposition to IL 153109 to Merck, titled “Pharmaceutical Composition Useful for Inhibiting Bone Resorption in a Human Comprising Alendronic Acid or a Pharmaceutical Acceptable Salt thereof or a Mixture Thereof”.

COMMENT

The decision as to lack of inventive step is clear and correct. We note that the same patent was disallowed in Korea and the UK as relating to a method of treatment, and in Europe as lacking inventive step. Dr. Noam is correct, however, that a decision in Israel should attempt to interprete the local law in light of local precedent, and that the courts and patent office should be aware of but not bound by decisions in corresponding cases in other jurisdictions.

The applicants claimed that Circular MN 30 allows Swiss type claims, i.e. new uses for old treatment, and the claimed invention was directed to a formulation. I tend to side with the opponents though and find the Commissioner’s ruling on this point not convincing. I see this as a patent for a method of treatment where the dosage regime is an inherent part of the treatment, since the product lacks inherent novelty, and the novelty is a function of the dosage, which is a method step. Arguably, however, because of the long half life, the product is the high dosage pill – regardless of the exact dosage regime.

There is an underlying issue of principle as well. Is it good public policy to allow a manufacturer to ‘evergreen’ by changing dosages and making similar ‘inventions’ to keep a product under patent protection indefinitely?

Section 7(i) strikes a balance between the rights of doctors and their patients on the one hand and those of manufacturers on the other. With Israel’s pharmaceutical industry being heavily skewed towards generic manufacture it is certainly preferably politically to refuse a patent like this on grounds of inventive step rather than on patentable subject matter which could be viewed as protectionist.

That said, the issue of patentable subject matter is a ‘hot potato’ that may require updating from time to time, due to TRIPS, world wide developments and as economic issues change. Nevertheless, I think that interpreting claim 1 as not being a method of treatment goes beyond fair interpretation of the Law and as such, the revision should be for the Legislature not for a Commissioner of Patents to decide. That Dr. Noam has chosen to allow Swiss type claims is indicative of Patent Office Policy but should not be sufficient to overcome Section 7(i) which is a clear statement. In this regard however, it is noted that Israel Patent Law is not frequently the subject of Knesset debate, so creative interpretation is probably required to keep practice up to date.  

The applicant is correct that a new dosage of an old treatment is patentable, but I believe this should be true only if the dosage is indeed new. If the dosage existed previously for a different administration regime, the pill is not new. Only the method of treatment is.