Israel, a global leader in the patent law arena, ranks 16th in the number of international patent applications filed with the PCT (Patent Cooperation Treaty) and 4th in applications per capital.
Advantages to Filing in Israel
There are several factors that make Israel attractive for filing patents including: 1) Relatively low filing fees, 2) Preferential trading partner status with the European Union and the United States, 3) Israeli companies are world leaders in a number of advanced technology sectors, including specialty chemicals, pharmaceuticals, telecommunications and software, 4) A patent system similar to that of the United States and the European Union, 5) The Israeli Patent Office has been granted ISA and IPEA status for PCT applications, 6) New legislature favoring the transfer of foreign patents to Israel, and 7) Patents can be filed in English or Hebrew. As a result of these more recent changes, filing foreign patents in Israel has become much more favorable.
ISA & IPEA Capabilities
This year the Israel patent office became one of just ten offices worldwide that operate as an International Searching Authority (ISA) and International Preliminary Examination Authority (IPEA) for international Patent Cooperation Treaty (PCT) applications. Since the agreement between the Government of Israel and the International Bureau of the World Intellectual Property Organization granting the Israel Patent Office the ability to function as an ISA and IPEA under the treaty, there has been a constant increase in the number of PCT applications designating Israel as the searching authority. As of October 1, 2014, an arrangement between the Israel Patent Office and the United States Patent and Trademark Office (USPTO) was reached allowing certain international applications received by the USPTO to be submitted to the Israeli Patent Office. Though Israeli patents are currently dominating in terms of numbers, there are efforts to encourage more foreign companies to file in Israel.
Encouraging Foreign Patents
In order to facilitate this growth, Israel is creating greater incentives for foreign companies to file patents with their office. Recently, a committee submitted a proposal to change the Law for the Encouragement of Capital Investments to offer a tax break to those companies who transfer their patents to Israel. The proposal includes “a reduced tax rate of five percent on revenue generated from transferred patents and other forms of intellectual property.” The tax break is meant to encourage foreign businesses to file patents in Israel, while at the same time increasing tax revenue. In 2015, the number of research patents rose by 20% in Israel. Although domestic companies account for a large percentage of this, there has also been an increase in foreign patent filing in recent years.
Israel | Challenges in Patent Translation
Patent translation requirements in Israel also make filing in Israel favorable. The official languages of Israeli patent applications are Hebrew and English, but patents may be submitted in only English. Patent applications may also be filed in any other foreign language as long as the translated version is submitted within three months from the date of filing. However, it is a good idea to provide patents whenever possible in Hebrew. This may facilitate filing since patent and trademark reviewers are not native English speakers.
Hebrew differs dramatically from English in grammar and structure, which presents specific challenges in translation. A translation services provider therefore must know how to resolve various difficulties posed by the complexities of the language. The two languages also have significantly different scripts. Hebrew is written from right to left making it necessary to account for differences in formatting. Hebrew is not yet one of the languages included in the WIPO multilingual terminology portal, therefore to ensure consistency and accuracy, it is important to employ linguistic experts in the field of patent law.
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