foreign companies doing business in Israel are faced with unique business, legal and cultural challenges. Lawyers, Adi Barkan-Lev and Beverley Zabow give an overview of some of the business and legal issues that your likely to encounter in the Israeli business arena - with a particular emphasis on innovative and developing technologies.

1. DOINGBUSINESS
WITHISRAELI
COMPANIES
PRESENTED BY
BL&Z LAW OFFICES & NOTARIES
All rights reserved to BL&Z, Law Offices – September 2019

2. BL&Z provide legal services and
consulting in the following areas of
practice:
• Intellectual Property
• Hi-tech
• Investment rounds
• Licensing
• Internet and computer law
• Commercial and Business 2
About Us
BL&Z are a boutique law firm that
offers the twin pillars of
Intellectual Property protection
and Transactional Negotiation,
necessary for firms to thrive in
the global arena and in Israel.
http://www.ht-ip-law.com/

3. BeverleyZABOW
Beverley@ht-ip-law.com
Tel:+972544877985
3
Beverley is an experienced
transactional and M&A attorney
with extensive knowledge and
experience supporting Israeli and
foreign companies in their
commercial and corporate activity,
and amongst others specializes in
international transactions such as
mergers, acquisitions, investment,
distribution, reseller and agency
agreements as well as licensing and
technology transfer.
AdiBARKAN-LEV
Adi@ht-ip-law.com
Tel:+972545313709
Adi is an experienced attorney
specializing in Intellectual Property
matters, including copyrights,
trademarks, industrial designs,
patents, commercial wrongs,
counterfeit goods, and imitations
and has vast experience in
commercialization of intellectual
property assets.
http://www.ht-ip-law.com/

4. NOTLEGALADVICE
4
A presentation like this by its nature can only provide very general guidelines to
Israeli law. The presentation should not be construed as legal advice. In any
particular case our advice may be quite different from what is described herein.
It is essential to obtain specific legal advice prior to entering into any transactions
in Israel.
http://www.ht-ip-law.com/

5. http://www.ht-ip-law.com/
Basic facts
on Israel
Business models
for the
commercialization
of Intellectual
Property
Relevant
Israeli
Legislation
Commercialization
of Intellectual
Property
Summary
5
Today’sAgenda:
http://www.ht-ip-law.com/

6. BasicrelevantfactsonIsrael
 Almost NO natural recourses
 Investment in human resources – Intellect
 Well known research schools – Technion, Weizmann Institute,
Volcani Institute etc.
 Well known Health Institutes – Tel Ha’shomer hospital, Hadassah
Ein-Karem hospital etc.
 Compulsory military service – for both men and women
6http://www.ht-ip-law.com/

7. StatisticsandInfo
 #5 in the number of patents per capita
 More than 6,000 new patent application are filed every year for the past 10 years
 The most substantial number of startups per capita in the world - there’s 1 start-up for
every 400 people
 #1 country in terms of high tech employee concentration: 250 000 high tech employees
(around 1 per 10 working people)
 The state support inventors and entrepreneurs – financing, research and business model
assistance
 The Israel Innovation Authority – an independent publicly funded agency
 Israel is today home to over 350 R&D centers of multinational corporations - INTEL, IBM,
Verint, Google etc.
7
http://www.ht-ip-law.com/

8. 8
Multinational R&D and innovation centres in Israel
http://www.ht-ip-law.com/

9. 9
Strong VC ecosystem
 There are roughly 150 active VCs in Israel
 In 2017, Israeli high-tech companies raised $5.24 billion in 620 deals
 In 2017, Israeli start-ups exited $23 billion in 112 deals
 Some of Israeli VCs are known for their sector expertise like
cybersecurity, life sciences or manufacturing. Others for their huge
track record (Magma, Pitango, Gemini)
http://www.ht-ip-law.com/

10. Patentapplication
filedinIsraelin
2017–byareasof
practice
10
Human Necessities
42%
Performing
Operations;
Transporting
7%
Chemistry;
Metallurgy
28%Textiles; Paper
0%
Fixed Constructions
1%
Mechanical
Engineering;
Lighting; Heating;
Weapons; Blasting
3%
Physics
12%
Electricity
7%
Human Necessities
Performing Operations; Transporting
Chemistry; Metallurgy
Textiles; Paper
Fixed Constructions
http://www.ht-ip-law.com/

11. Cyber
Security
Digital health Fintech
Agri-tech
11
PopularAreasofactivity
http://www.ht-ip-law.com/

12. Water-tech
Artificial
Intelligence
Environmental
Solutions
Medical
Instruments
12
PopularAreasofActivity
http://www.ht-ip-law.com/

13. FREEDOM OF
CONTRACT
13http://www.ht-ip-law.com/

14. 14
General Provisions
* Good Faith
• In negotiation
• In performance
* Specificity required - no requirement for
signed document
* Israel Courts may take jurisdiction
http://www.ht-ip-law.com/

15. RelevantIsraeli
Legislation
15http://www.ht-ip-law.com/

16. 16
Specific Legislation
* Companies Law
• Company – limited liability
• Partnership
• Not Delaware – takes years to litigate
• Not Florida – LLP/LLC – minority rights
http://www.ht-ip-law.com/

17. 17
Specific Legislation
* Agency Law
*Protects agent (similar to Europe)
* Labor Law
* Protects employees
* IP owned by employer
http://www.ht-ip-law.com/

18. 18
 Transfer of ownership
 Intellectual Property legislation
 Unjust Enrichment Act/Passing off tort
 Customs Ordinance
Specific Legislation
http://www.ht-ip-law.com/

19. 19
 Agreements with public health institutes
 Agreements with universities and its research departments
 Agreements with state employees
Defence and Security related inventions
http://www.ht-ip-law.com/

20. 20
• Provides various tools to support industry R&D
• Grants
• Incubators
• International Collaboration
* Bilateral Programs for Parallel Support
Taiwan – Israel R&D Program – IIA and ITRI
Israeli Innovation Authority
http://www.ht-ip-law.com/

21. 21
Israeli Innovation Authority
http://www.ht-ip-law.com/

22. 22
• IP registration in Israel and must stay in Israel –subject to
exceptions
• Supports/shares in up to 50% of the project’s R&D costs
• Repay via royalty payments from sales, if the project succeeds in
reaching the commercialization stage.
Israeli Innovation Authority
http://www.ht-ip-law.com/

23. FOODCOMPANY
AT INCUBATOR OF INNOVATION AUTHORITY
23
FUNDING 2.150 MI. OUT OF NIS 2.5 MI.
INCUBATOR FUNDING NIS 350 FOR 20% OF FOOD
COMPANY
WIN-WIN
http://www.ht-ip-law.com/

24. 24
* Equipment, Services and Knowledge
• Guns, Tanks, Developing Guns or Tanks, Training soldier or
knowledge regarding guns, tanks, etc.
* Also Dual-Purpose
• who is it being sold to?
• Can you track it?
* Also encryption
* Need license even to discuss (market) not only to sell.
Defence Export Control
http://www.ht-ip-law.com/

25. CYBER-INTEL
PROPRIETARY ALGORITHM
25
SOFTWARE AS A SERVICE – WHITE LABEL
http://www.ht-ip-law.com/

26. 26
Digital Health and Privacy
Artificial Intelligence and Intellectual Property
Privacy trend – Israel Adequate under GDPR
Lagging Legislation -Uncertainty
http://www.ht-ip-law.com/

27. Commercialization
ofIntellectual
PropertyRights
27http://www.ht-ip-law.com/

28. Joint Venture
Distribution,
Agent
Sale
Transfer of all
rights for
perpetuim
License
Right of use
of IP against
payment of
royalties
SAAS and
other
IP Commercialization
Legal structures
28http://www.ht-ip-law.com/

29. MOBILEYE
SOLD TO INTEL
JERUSALEM UNIVERSITY
29
ROYALTY DISPUTE
http://www.ht-ip-law.com/

30. FOODCOMPANY
AT INCUBATOR OF INNOVATION AUTHORITY
30
ANGEL FUNDING BY IIA - RESTRICTIONS ON
EXPORT OF IP
EXCLUSIVE LICENSE – ROYALTY BASED MODEL
REGULATIONS SINCE 2018 I- PARTY OF
MULTI-NATIONAL CAN GIVE EXCLUSIVE
LICENSE WITHIN GROUP
http://www.ht-ip-law.com/

31. CYBER-INTEL.
PROPRIETARY ALGORITHM
31
SOFTWARE AS A SERVICE – WHITE LABEL
http://www.ht-ip-law.com/

32. • Enormous Potential for cooperation with Israel
• Few legal restrictions but many traps
• Various organizations promote e.g. TAITRA and
IIA
• Cultural Differences
32
Summary
http://www.ht-ip-law.com/