Burden of Proof in simple words means ‘adequate evidence to prove oneself’. In criminal cases, as every person is presumed to be innocent until the contrary is proved, the burden of proof rests on the prosecutor, unless a different provision is expressly made by statute. In civil cases, the plaintiff is normally charged with the burden of proof, but the defendant may be required to establish certain defenses. In patent law, the patentee or plaintiff, who initiates a law suit, has burden of proof in case of patent infringement.
Whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts, must prove that those facts exist.
When a person is bound to prove the existence of any fact, it is said that the burden of proof lies on that person.
U/S 104A [Burden of proof in case of suits concerning infringement]of Indian Patents Act,in any suit for infringement of a patent, plaintiff has Burden of Proof. When a patent is infringed, patent owner/plaintiff has to establish the fact that the patent has been infringed. Comparison of product of defendant with claims of Patentee’s patent can establish infringement.
However, where the subject matter of patent is a process for obtaining a new product and the patentee could not establish through reasonable efforts to determine the process actually used by the infringer, the court may direct the defendant to prove that the process used by him to obtain the product, identical to the product of the patented process, is different from the patented process. Hence, in case of process patent infringement, Burden of Proof shifts from plaintiff to the defendant.
For various reasons, every inventor wants to file for a patent internationally after filing it in his/her home country. Sometimes it’s about the status that is associated with having a patent filed in the US or Europe, but having an international patent may also enhance the valuation of the technology which ultimately may impress investors and fetch better value to the inventor. Oftentimes, inventors drop the idea of filing for patent internationally because it is expensive, complicated, and long procedure. Laws across the countries are also not unified in terms of procedures, fee and timelines leading to more and more confusions at every stage,
It is firstly of crucial importance to understand the term “International Patent”. In reality, there is nothing called international patent or global patent. Despite there being ways to file for a patent internationally, there is no single authority to grant international patents with validity across the globe. Patents are required to be filed in and granted by each country where the inventor wishes to seek protection.
Two ways to file patent application internationally
There are 2 ways to file a patent in foreign countries. These are:
Patent Cooperation Treaty (PCT) Route
An inventor may file a single patent cooperation treaty (PCT) application or international application within 12 months from the date of filing a patent application in India. PCT is an international patent law treaty that provides a unified system for filing patent applications in each of its contracting states. It is a convenient platform to assist inventors that are seeking patent protection internationally (in the contracting states of PCT) for their inventions. It also helps patent offices with their patent granting decisions by providing comprehensive search reports for the patent application along with opinion on patentability. PCT publishes the patent application filed with it and maintains an online database called Patentscope which facilitates patent searches as well as gives public access to a wealth of technical information in the form of patents.
PCT examines the application, issues examination report and enables inventors to file their application within 30/31 months from the date of priority in any of the member states of PCT. After this, the patent is processed and granted by the national offices of the countries where patent protection is sought, based on the procedures and requirements of the respective offices. PCT enables patent filing in its member states & gives extra time to the inventor to decide about the countries they want to file their application in.
2. Convention Route
The countries which are members of the Paris Convention are called convention countries and an application filed in a convention country is called a convention application. Unlike PCT, convention application is required to be filed in the convention country within 12 months from the priority date.
Reasons to file international application
Filing international application without clarity on the reason to file is not a good idea. It does not help inventors in long run and may actually lead to a very stressful situation if the prosecution is left midway, further making the overall process financially cumbersome. Following parameters should be considered when deciding about the countries to file patent application in:
a. Your future business plans
Patents must be filed in the countries where the inventor wishes to expand the business in the future. It must be remembered that there is a specific time period within which inventors must file the patent application in specific countries. Once this period has lapsed, it is not possible to file an application at a later stage. Therefore, if it is desired by the inventor to expand the business in countries like the US or Japan 5 years later, it would make sense to file patents in these countries within the required time frame.
b. Potential of technology in given jurisdiction
Sometimes, it makes sense for an inventor to file for patent in some countries even if the inventor does not have business there. Countries like the US have a mature system of buying, selling and enforcing patents. If technology has good potential in a specific country, a patent should be filed in that country. Further, licensing and selling options may also be explored to facilitate easier transition of the patented technology to the market.
3. Your budget
Filing and prosecution of a patent is a long process and strictly regulated by several timelines. A patent may be lost if the inventor does not respond to the office in time or fails to pay the necessary fees. Further, there are standard expenses for each country and renewal fees to be paid post grant of the patent. This leaves a very small window for postponing expenses and timelines, making the overall process of getting a foreign patent extremely time consuming, complex and expensive. The tentative costs of filing, prosecution and maintenance must be assessed in advance and only then should a decision about foreign filing be taken.
Keeping in mind budget, type of invention and area of business, the decision to file patent internationally shall be taken.
Intellectual Property (IP) is a valuable asset for any research and innovation-driven company today. The creation of IP requires investment in terms of money, time and intellect and therefore, it is extremely important for the companies to claim legal rights on IP and prevent others from using the same. At this point of time, India is facing multiple challenges brought upon by COVID-19. Exports and imports have been significantly affected and due to this, it is becoming increasingly important for India to become self-reliant to reduce load on imports and boost local industry. It is now extremely important for startups, SMEs and MSMEs to not only realize the importance of innovation & IP but also to devise correct & effective strategies, processes and policies at the inception stage of ideas to make sure their innovation is well protected, enforced and eventually commercialized.
The most effective IP strategy is the one that is aligned well with the business goals of a company.
The most effective IP strategy is the one that is aligned well with the business goals of a company. For different companies, the importance, effectiveness & meaning of IP strategies may vary depending upon area and type of business, even though the aim of IP strategy may remain the same. Success of IP strategy is dependent upon formulation & implementation of IP practices, processes and policies within the organization.
Five of the most important components of any IP strategy are as listed below:
Reducing R&D cycle: Every company today, especially product development companies, wants to not only reduce time & expenditure on research and development, but also to develop more innovative products keeping in view of the market. Early entry of these innovative products into the market will results in the products having a competitive edge as well as longevity in the market. This can be achieved by strategically performing a comprehensive prior art search to assess the research already done and explore the ways that the existing knowledge can be utilized for existing products or design. Prior art search may reveal existence of IP having good opportunity to be in-licensed.
Protection of IP: For any organization, protection of IP at right time and under appropriate legal framework is essential. Trademarks, patents, designs, copyrights and trade-secret are the most important forms of IP. Multiple IPs can be registered for the same product, where if the product is an invention, then it can be registered as patent. Similarly, name of a product/company may be registered as trademark and literal/artistic/cinematographic/musical work may be registered as a copyright. Trade-secret is another powerful form of IP, which is not registered but owner of trade-secret shall take steps to protect it. KFC’s fried chicken recipe, McDonald’s Big Mac Special Sauce, the recipe of Coca-Cola and Google AdWords are a few examples of well protected trade-secrets.
Infringement risk analysis: For any product company, infringement risk analysis or Freedom to Operate (FTO) search should be an integral part of their IP Policy. This single step saves companies from big litigations and it should be made an integral part of any new product launch process. Let’s understand this with an example; two companies, namely, Anant Electronics and Futuristic Concepts Media Ltd were using “Digital Transmission System” technology to manufacture VCDs using MPEG 1 coding audio compression/expansion system in India. Philips had a patent protection (Patent no 175971) on this technology in India, of which these two companies were not aware of, thus infringing the patent granted to Philips. Delhi High Court ordered both the companies to stop manufacturing the VCDs that infringed Philip’s “digital transmission system” patent. Had they performed an infringement risk analysis before manufacturing and launching the product, they could have saved a significant amount of time and money. Using technology protected by another company can be fatal for any business and prior risk assessment is essential to prevent such undesirable scenarios.
Monetization of IP: Licensing or assignment are the most popular ways to monetize IP. Licensing is a method to transfer technology rights for a particular period of time, whereas assignment is a permanent transfer of rights. Licensing helps innovators to quickly collaborate with more partners and launch their product in the market quickly, whereas assignment of IP, usually worked out at the time of acquisition/merging, is a way to generate more money in a single transaction. Sree Chitra Tirunal Institute of Medical Sciences & Technology developed the technology for the manufacture of blood bags conforming to international quality requirements. They identified Peninsula Polymers Ltd. for setting up a plant based on indigenous technology and further provided equity assistance of up to 25% of the total equity. The production of the blood bags started for the first time in the country in 1987 by this company. Subsequently, Sree Chitra Tirunal Institute of Medical Sciences & Technology licensed this technology to a number of companies in India who not only met indigenous requirement of blood bags but also provided the product at an affordable price and exported their products to various countries such as the UK, USA, Germany, Netherlands, Kenya and Bangladesh.
Enforcement of IP: After registration, IP can be enforced by the innovator, if there is any violation. In Merck vs. Glenmark case, Delhi High court passed an injunction against Glenmark for manufacturing the generic drug Sitagliptin and using patented product of Merck as there was prima facie infringement of patent rights of Merck. Delhi High court passed injunction order against Glenmark from manufacturing and selling of Zita and Zitamet. Thereby, patent rights of Merck were protected and enforced.
There is another interesting case-study to see how IP rights can be enforced. VirnetX is an internet security software and technology company based in Zephyr Cove, Nevada. This company’s patent portfolio includes American and international patents in areas such as DNS and network communication. Since 2010, VirnetX has been involved in litigation with big companies like Apple, Cisco, Microsoft, etc. In December 2014, Microsoft and VirnetX settled patent disputes over Skype technology for $23 million. VirnetX, in another law suit with Apple was awarded $368 million in damages for FaceTime infringement.
An effective IP Strategy, aligned with business strategy plays a vital role for growth of a business. Devising strategy itself is not enough till there is a process to implement the same effectively.
Video Link:https://www.youtube.com/watch?v=fJXcXBp8lPI
Generally, a patent application is published in official website of the patent office after expiry of 18 months from date of filing or date of priority, whichever is earlier. In case of the inventions, which are considered by Central Government as relevant for national defence and security, Patent Act 1970provides for secrecy directions, meaning that such inventions shall not be published till the time it is considered relevant for national defense.
In case it appears to the Controller that the invention falls in one of a class notified to him by the Central Government and is relevant for defence purposes, he may give directions for prohibiting or restricting the publication of information with respect to the invention or the communication of such information.
Once such secrecy direction is given by the Controller, he shall give notice of the application as well as the directions to the Central Government. The Central Government shall decide whether the publication of the invention would be prejudicial to the defence of India or not. If the publication of the invention doesn’t appear to be so prejudice, notice to the Controller shall be given by the Central Government; the Controller shall revoke the directions and notify the applicant accordingly.
In case the Central Government is of opinion that an invention in respect of which, the Controller has not given any directions is relevant for defense purposes, it may at any time before the grant of patent notify the Government. If the invention belongs to one of the class notified by the Central Government, the provisions of secrecy directions apply and Controller shall give notice to the Central Government of the directions issued by him.
Section 36 [Secrecy directions to be periodically reviewed], explains that the question whether an invention in respect of which directions have been given continues to be relevant for defence purposes shall be reconsidered by the Central Government at intervals of 6 months or on a request made by the applicant. If request of the applicant is found to be reasonable by the Controller or if it appears to the Central Government that the publication of the invention would no longer be prejudicial to the defence of India or in case of an application filed by a foreign applicant, it is found that the invention is published outside India, it shall give notice to the Controller to revoke the direction and the Controllers, shall revoke the directions previously given by him. The result of every re-consideration shall be communicated to the applicant within prescribed time and manner (within 15 days of the receipt of the notice by the Controller).
Section 37 [Consequences of secrecy directions]saysthatas long as the secrecy directions are in force, the Controller shall not pass an order refusing to grant of the patent. The orders passed by the Controller in this regard cannot be appealed. The application may proceed up to the stage of grant of the patent, but the application and the specification found to be in order for grant of the patent shall not be published, and no patent shall be granted in pursuance of that application.
Where a complete specification for an invention in respect of which directions have been given (Section-35) is found to be in order for grant of the patent during the continuance in force of the directions, then:
If during the continuance in force of the directions, any use of the invention is made by or on behalf of, or to the order of the Government, the provisions of sections 100, 101, 103 shall apply in relation to that use as if the patent had been granted for the invention and
If it appears to the Central Government that the applicant for the patent has suffered hardship due to secrecy directions, the Central Government may make to him reasonable payment by way of solatium having regard to the novelty and utility of the invention and the purpose for which it is designed, and to any other relevant circumstances.
Where a patent is granted in pursuance of an application in respect of which directions have been given (Section-35), no renewal fee shall be payable in respect of any period during which those directions were in force.
There is prescribed time to perform a particular task under this Act e.g., prescribed time to pay examination fee is within 48 months from date of filing or priority date, whichever is earlier. But when secrecy direction is imposed and later revoked, the Controller may extend the time within which any step or any act shall take place under section 38 [Revocation of secrecy directions and extension of time], The time line for paying examination fee is 48 months from date of filing but if the secrecy directions were imposed on the application, the Controller may extend this time line of 48 months.
Section 39 [Residents not to apply for patents outside India without prior permission], says if the applicant is resident of India but wants to file patent application in foreign country, it is important that he either files application in Indian Patent Office and waits for 6 weeks to receive any objections or takes permission from Indian patent Office to file patent application in foreign country.
Section-39 is one of the important Sections of the Act which says that the applicant who is resident of India and interested in filing application in foreign country shall:
Either file application first in India before foreign filing and wait for 6 weeks to receive any objections from the Controller or
Shall take permission from the Controller on Form-25 [Request for permission for making patent application outside India] before filing application in foreign country in order to safeguard national defense and security.
There shall not be any secrecy direction imposed on the application in relation to the application in India, or all such directions have been revoked.
If the invention is relevant for defence purpose or atomic energy, the Controller shall not grant permission to file patent in foreign country without the prior consent of the Central Government.
This section shall not apply in relation to an invention for which an application for protection has first been filed in a country outside India by a person resident outside India.
Under Rule 71 [Permission for making patent application outside India under section 39], the request for permission for making patent application outside India shall be made in Form-25 [Request for permission for making patent application outside India]. The time within which the Controller disposes of such request shall ordinarily be within a period of 21 days from the date of filing of such request. In case of inventions relating to defense or atomic energy, period of 21 days shall be counted from the date of the receipt of consent from the central government.
Under Section 40 [Liability for contravention of section 35 or section 39], applicant shall not disobey any direction by the Controller under:
Section-35 [Secrecy directions relating to inventions relevant for defense purposes] or
Section-39 [Residents not to apply for patents outside India without prior permission]
If applicant violates any of the direction under Section 35 or 39, the application of patent is:
Deemed to be withdrawn or
If the patent has been granted already, it is deemed to be revoked.
All orders of the Controller giving directions as to secrecy as well as all orders of the Central Government under this Chapter shall be final and shall not be called in question in any court on any ground [Section 41: Finality of orders of Controller and Central Government].
Section 42 [Savings respecting disclosure to Government] explains that even if the application has been imposed secrecy direction and such application shall not be disclosed, the Controller can disclose information concerning the application or a specification filed to the Central Government for the purpose of the application or specification being examined for considering whether an for secrecy direction should be made or whether an order so made should be revoked.
Changing market dynamics and pressure to compete globally have encouraged the growth of ‘creative destruction[1]’trends, leading to worthy innovation. To run parallel to the novel needs and demands of the market, it is essential for every country to scrutinize the scope of innovation, which ultimately affects the economic progress of a nation. The Organization for Economic Co-operation and Development (OECD) defines innovation as, ‘the implementation of a new or significantly improved product or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations.’[2]
The impact of innovation on the growth and development of a country is multifold. An innovation economy is one, ‘which experience sustained growth through the creation and implementation of new technologies, product or processes in an ecosystem of inventors, entrepreneurs and investor.’[3] Mainly, four factors are attributed as contributory in shaping an innovation economy. These include economic incentives, to provide value to inventor to motivate them to invest in the innovation; financial stability; skilled human capital; and accessibility and smooth flow of information.[4]In addition to these, the Government is also required to play a role and provide its support in adopting such public policy that can help in leading the innovation driven economy.[5] This article will discuss and analyze the innovation model of Israel that led to its significant recognition throughout the globe.
Israel’s method of investing in innovation led to the creation of sustainable economic prosperity, subsequently leading to tremendous economic productivity and value
Israel is a small country in the Middle East with a population of only 8.5 million people. Despite its history of wars for freedom and continuous conflicts with neighboring countries, Israel has managed to maintain its reputation as an exceptionally prolific country in terms of nurturing an innovation-based ecosystem. Israel has long understood the importance of R&D and innovation, and how these concepts are an essential element for their country’s’ prosperity. Israel’s method of investing in innovation led to the creation of sustainable economic prosperity, subsequently leading to tremendous economic productivity and value.[6] Israel has seen a shift from being a knowledge economy to being recognized worldwide as an innovation economy. It has set an example for getting exceptional results with combined efforts of both their Government and private sector. It has been bestowed with the title of ‘Start-Up Nation’.[7]
The history of specific developments in Israel dates back to the 1960s, when Israel transformed into an emerging economy by transitioning from a country making no significant R&D contributions, to a country whose major focus was directed towards innovation led by novel R&D and technological creation.[8] The current figures may make someone believe that Israel has a rich history of strong industrial innovation, but around the year 1965, Israel saw a GDP growth of less than one percent with the lowest ratio of expenditure on R&D compared to any OECD countries except Italy.[9] The constant threat of war and terrorism that it experienced since its independence in 1948 had limited the prospects of stimulating growth.
Another significant problem faced by the economy was free immigration into Israel, resulting in an exponential rise of population in Israel during the time of its independence, almost doubling during the years of 1950-65.[10] The Government took this as an opportunity and started shaping the knowledge economy by investing heavily in education and training programs, which led to the rise of the skill and education level of the labor pool.[11] The shift was seen during the war phase of the 1970s when the focus was directed towards their defense industry which employed almost half of Israel’s scientists and engineers. Efforts were also made towards restructuring and privatization, to decentralize the economy.
During the mid-1980s, when Israel experienced an inflation rate of 375%, economic growth stunted abruptly. In response, Israel implemented a stabilization program focused towards financial reforms that helped in liberalizing the economy and bringing the inflation rate down to 20% by 1990.[12] From the 1990s onward, Israel shifted its economic model to transform into an innovation-based economy. This shift resulted in the economic growth reflecting a GDP growth of 5.9% on an average per year between the years of 1990 and 2000.[13]This growth also affected change in various domains throughout the country, including employment, inventions, etc.
By the year 2000, the employment rate in the Information and Communication Technology (ICT) sectors and software sectors rose to 87%.[14]Israel also saw a steady rise in the number of patent applications filed by Israeli inventors in the United States.[15] Companies started engaging in expertise likely to attract public offering to extend their link towards foreign capital markets. Interestingly, in a short span of time, Israel started representing the highest percentage of NASDAQ-listed companies in the world outside of the US along with significant recognition for most start-ups per-capita of any country.[16] It also became a country with the second largest Venture Capital industry.[17]
These achievements are the results of careful implementation of certain parameters with long-term planning mechanisms. This article will now discuss such parameters and the methodology of implementation of such factors by Israel in detail.
A. Foundation of Office of the Chief Scientist (OCS)
Israel realized the need for forming a strong base for building science and technology by the late 1960s. Israel started by creating a strong base to strengthen the roots of future prospective innovations. The Government took the decision to start building their ‘science economy’ which subsequently led to the formation of the Office of the Chief Scientist (OCS) in 1969 under the Ministry of Industry, Trade and Labor.[18] The OCS used to provide grants to encourage R&D activity, promoting innovations that carved the way for developments in various sectors. At the same time, Israel was also forced to invest in the military sector which boosted the R&D in the civilian and military domains. This led to a fruitful exchange of skills and technology between military and civilian sectors. The OCS also helped in building relationships with foreign companies by extending their co-operation through bilateral programs which resulted in access to global information.[19]
B. Focusing on Marketing and Business
Towards the end of the 1980s, Israel realized that a funding gap existed between growing startups and the potential market. Lack of financial intermediaries made it difficult for investors to trust startups enough to invest in them. This resulted in the failing of many companies, owing to their inability to sustain in the market. To counter this, the Government came up with a funding initiative called Yozma in 1993 which initially funded around 200 startups in Israel. These links with the foreign capital market came to fruition by pocketing successful IPO and acquisition deals from global companies, giving startups a much-needed financial boost. Furthermore, Israel saw foreign investment banks establishing their offices within the country and the emergence of Israel-specific funds by foreign venture capital firms. This indirectly helped market players to be aware of the global information which helped in better decision-making. Thus, it led to the harmonious development of entrepreneurship and innovation in Israel.
C. Government role in promoting R&D
Israel’s transition from a knowledge economy to a science economy and finally to a globally-recognized high-tech innovation economy reflects careful planning and significant efforts put forth by the Government to guide Israel’s path to global recognition. The need for a ground-breaking R&D is associated with the history of Israel freedom and subsequent wars and terrorism it faced owing to its political instability. To strengthen its military base, it started investing in military-driven technologies such as aviation and securities. It further extended it support for civilian R&D in the late 1960s, to compensate for a lack of natural resources.[20]
To develop a national science-based industry, the Government passed a law for the encouragement of R&D. The law provided incentives such as loans, discounts, tax exemptions, grants, etc. to promote industrial growth and to accelerate the exports. It was the first country to adopt the principle of ‘horizontal and neutral’ policies[21] to observe the market’s best practices that were best suited for commercialization.[22] The tax policies under these laws were framed in a startup-oriented manner to promote R&D initiatives.[23]
Some of the ground-breaking initiatives introduced by the Israeli Government are as listed below:
The Direct grant program: Under this program, the Government comprises a research team which selects firms based on their proposals and grants them 50% of their stipulated R&D budget. The firms that receive such grants are obliged to conduct all of their manufacturing in Israel itself. Grants are available for firms proposing to instill improvements in existing civilian or military products which are fixed at 30% and 20% respectively. Start-ups may avail 66% of their R&D cost for duration of two years, which should not be more than $250,000 per year. To create a balance in spreading economic benefits throughout the country, additional 10% grants are offered to those start-ups who choose to operate in certain specified geographical locations.
The MAGNET program: This program was introduced by OCS in 1993 with a vision to bring together companies and academic institutions to engage in practical research on innovative technologies. The Government provides an incentive in terms of 66% fund grants to encourage companies to tie up with research centers.
The Incubator program: This program is specifically focused towards the immigrants in Israel. By the early 1990s, immigration in Israel was at its peak. Although these immigrants were professionally skilled, they found it troublesome to form their base owing to the language barrier and their unawareness about market demands. To tackle this, the Government launched the incubator program in 1991 to support budding entrepreneurs amongst the immigrants. Incubators are physical locations with basic amenities, along with professional support systems such as lawyers, administrative staff, accountants, etc. The entrepreneurs are provided guidance on their business ideas along with funding for two years.
Bi-National Industrial R&D Foundation (BIRD): BIRD was launched in the year 1977 with the United States to promote the private industry in both the countries by encouraging harmonious development in marketing, manufacturing and R&D. Companies are eligible for conditional grants of 50% of the total R&D budget or $1.5 million, whichever is lesser. The repayment of such grants is required only if the companies are successful. This partnership helped Israel build a strong connection with the United States.[24]
MATIMOP: It is a Hebrew acronym for Israeli Industry Centre for R&D, launched to administer both international and bilateral cooperation agreements. It encouraged international companies to open their centers in Israel by providing tax reductions and other related relaxations as incentives.
D. Tackling Immigration to create a skilled human capital
Israel’s skilled human capital has helped tremendously in shaping its innovation economy. Its one-of-a-kind liberal immigration policy has helped Israel turn its disadvantage, i.e. a heavy influx of immigrants, into a profitable opportunity. This policy has contributed extensively in ameliorating Israel’s economic development. The Ministry of Immigrant Absorption was given the task to organize immigrants. Israel’s Government paid living expenses for immigrants in addition to teaching them regional languages, connecting them with professionals in their industrial domains, setting up incubators for immigrants and funding their startup ventures.[25]
E. Carving out human capital from Military base
Young people from the ages of 18 to 21 are required to serve the Israel Defense Force (IDF). There exist army units with different levels that admit people based on their score on a standardized test. Soldiers with the highest scores are placed with a unit specializing in military R&D. One such popular unit is unit 8200 which is known for its advancements in technology and intelligence. The culture of the IDF has shaped a lot of soldiers into entrepreneurs. Abilities such as taking impromptu decisions, shouldering responsibility, making quick decisions, analytical thinking, and loyalty have also contributed in shaping a business culture within the IDF.[26]
F. Promoting Intellectual Property Rights
Innovations, when shielded by private rights, encourage the nation as well as creators to indulge more in creativity and development. Israel recognized the importance of protecting intellectual property rights very early on. It revised its Patent Act in 1967 and increased the term of patent protection to 20 years including the application date. To enforce its patent rights in foreign countries, Israel became a signatory of all major treaties and conventions supported by the World Intellectual Property Organization[27](WIPO) and World Trade Organization[28] (WTO). Israel began including software under copyright protection in 1988, extending the protection period to 70 years. Creating ties with developed countries like the U.S. helped Israel to create an inexhaustive IP regime. This helped in fostering its innovation and creating a high-tech economy.[29]
Conclusion
Israel has earned a commendable name around the globe for its innovations. The R&D support provided to investors has credited Israel with plenty of profitable inventions. Around 250 companies with a global presence have R&D labs in Israel today, which includes Fortune 500 companies and tech giants like Facebook and Apple. Between a span of 1999 to 2014, Israel has started more than 10,000 companies, and is hence justified in claiming the title of Start-Up nation.[30]Israel is remarkable in that their relatively small population of approximately 9 million people is now competing with highly populated countries like the U.S. and China[31].As discussed above, the innovation sector flourishing in Israel is a result of its ability of converting its liabilities into assets.
For example, Israel tackled the lack of freshwater by developing world-class technology in drip irrigation, thereby focusing on desert agriculture. Israel also carefully planned its development in high-tech innovation to attract market leaders from developed countries. This led to only minor setbacks when their Arab neighbors decided to boycott Israeli products. Further, Israel has always focused on global customers to study the global market unlike other developing countries that helped its indigenous companies penetrate global market. Following the principle of ‘open innovation’, Israel helped startups to be guided by flourishing high-tech companies, thereby encouraging and mentoring entrepreneurs to contribute further to Israel’s economic development. This has also resulted in an exchange of ideas between enterprises, benefiting innovation on a whole and further contributing to Israel’s innovation index. By strengthening its intellectual property protection, Israel has aggrandized the value and utilization of innovations. Lastly, Israel’s history with innovation that resulted from an interplay between academic, industrial and Government sector reflects a strong foundation for Triple Helix Model of Innovation.[32]
List of 10 breakthrough innovations by Israel
S.No.
Product Name
Product Details
Developing company
Product Image
01.
MyEye
A visual assistance device wearable by a person that includes a camera and a processor. The processor captures multi-image frames from the camera. A candidate image of an object is searched in the image frame. The person wearing the device is notified of an attribute related to the object. For more details click here.
OrCam Technologies Ltd. [Jointly founded in 2010 by Prof. Amnon Shashua & Mr.Ziv Aviram]
This device absorbs moisture from the atmosphere to provide drinking water. It works as an Atmospheric Water Generator (AWG) with a defrost system. For more details click here.
A software that enables Advances Driver Assist Systems (ADAS) and is designed in a way to support the three pillars of Autonomous Driving- Sensing, Mapping, and Driving Policy. For more details click here.
A device used to facilitate at-home ultrasound, which docks with a patient’s mobile phone to deliver high quality images, which are stored on a remote drive and forwarded for clinical review or online consultation. For more details click here.
A compact handheld device that measures exhaled breath for early diagnosis of cancer. It won 2018 Innovation Award by the European Commission for Most Innovative project. For more details click here.
Technion Research & Development Foundation Limited. Invented by: Prof. Hossam Haick.
A tube-shaped device that opens up arteries to treat coronary heart disease and blockages without requiring open-heart surgery. For more details click here.
Epilady introduced the first epilator to the market in 1986, revolutionizing hair removal for ladies all over the world by providing a cost-effective, mess-free alternative to shaving and waxing. For more details click here.
A device equipped with a handheld examination kit and app that allows an individual to perform guided medical exams anytime and anywhere. For more details click here.
Tyto Care Ltd. Invented By: GILAD-GILOR David, Even Yehuda.
[5]HarryYuklea, ‘An Integrated Approach to VC Financing Policy: ‘The Plumber’s Model of Entrepreneurial Finance’ (2009) ERPN.
[6]MK Eli Cohen, ‘Innovation in Israel 2017 Overview, Israel Innovation Authority’, innovationisrael.org.il.
[7]Dan Senor & Saul Singer. ‘Start-up nation: The story of Israel’s economic miracle’ (Random House Digital, Inc., 2011).
[8]DanBreznitz, ‘Innovation-based industrial policy in emerging economies? The case of Israel’s IT industry’ (2006) Business and Politics 8.3.
[9]Daphne Getz &Vered Segal, ‘The Israeli innovation system: An overview of national policy and cultural aspects’ (2008) SamuelNeaman Institute for Advanced Studies in Science and Technology.
[10]MeirPugatch, Morris Teubal, &OdedaZlotnick, ‘Israel’s High-Tech Catch-Up Process: The Role of IPR and Other Policies’(2009) in Odagiri et at Intellectual Property Rights, Development, and Catch Up: An International Comparative Study: An International Comparative Study (2010), Oxford University Press, Oxford, England.
[12]World Bank, ‘Inflation Rate, Israel 1961-2009’ World Development Indicators.
[13]GDP Growth: Israel & OCED, 1990-2010, World Bank WDI Data; See above, supra note 7.
[14]GilAvnimelech&Morris Teubal, ‘Creating venture capital industries that co-evolve with high tech: Insights from an extended industry life cycle perspective of the Israeli experience’ (2006) Research Policy 35.10, 1477-1498.
[17]StefanoBonini&SenemAlkan, ‘The political and legal determinants of venture capital investments around the world’ (2014) Perspectives on Financing Innovation, Routledge, 161-192.
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