Patents

Israel will grant a patent monopoly for inventive ICT products and processes that are in a technological field. You can patent hardware and software that:

  • improves system performance
  • allows a system to operate in a new way or
  • has a technical effect.

Software running on standard hardware, which automates mental functions, or which embodies a pure method of doing business, will not be patentable unless it can be tied to a technical field.

Ownership considerations

Inventions created by government staff, soldiers and some other specific types of inventors in the year after the termination of service may still belong to the government. Unless the right is waived, an inventor can ask for compensation for their invention, which will be determined by a statutory committee. Cases in this area generally favour the employer.

Australian companies should conduct due diligence when using technology developed in Israel, to ensure that rights in inventions do not belong to a former employer.

Liability to Israeli customers

There is a trend of foreign companies (offering services and products in Israel via the internet) to be sued in Israel according to Israeli law. Attempting to avoid such a suit in a website’s terms of use may be ineffective if the condition in the terms of use is determined to be discriminatory, as the Standard Contracts Law permits the courts to strike out discriminatory conditions.