News & Events

The Supreme Court rules in favor of research and development in Israel, the government must finish the task

By S.Horowitz & Co. | 26/08/2015 print

Recently, the Supreme Court, sitting as the High Court of Justice, handed down a most significant ruling for safeguarding Israel’s leading technology.  Quite a lot has already been written in the past about the fact that thanks to the human assets located here and who are constantly submitting patents, from disk on key to Waze, large international corporations have chosen to establish, precisely here, in Israel, their development centers.


However, a constant fear has reigned over this sector of industry for the past five years.  A decision in 2010 rendered by the Compensation and Royalties Committee, a body operating at the Patents Authority, in the Ilani case, stunned many managers holding office in the upper echelons of high-tech companies.  This is because the decision would have the effect of increasing the possibility that hired inventors would be entitled to demand compensation for their inventions, over and above their fixed salaries, even if they had previously signed an express waiver of this right.  However, the Supreme Court’s ruling is insufficient.  The government has repeatedly declared its intention to advance this sector of industry.  Accordingly, efforts should be taken to regulate in the law several questions regarding the compensation payable to employees for their inventions, that were not decided in the Barzani v. Iscar case.


To read the Op-Ed by Tal Band in TheMarker click here (Hebrew)