On July 31, 2017, the Knesset approved the Designs Law, 5737 – 2017 (the "Designs On Law")

The Designs Law actually supersedes the existing arrangement in this matter in the Patents and Designs Ordinance, 1924 (the "Ordinance" ) (except for samples submitted for registration until the law takes effect).

The design law is expected to come into force in about a year, bringing with it an important and easy line for local designers who have not registered their designs formally and have had difficulty enforcing their rights to protect Israeli designs of a variety of industrial products (profiles, furniture, housewares, jewelry, clothing, etc .

The new law is intended to provide protection for unregistered designs, but only by virtue of the Designs Law, while denying the grounds for protecting an unregistered sample under other laws as it was in the past (the cause of Passing Off under the Commercial Torts Law, 5759 - 1999 and the Unjust Enrichment Law, 5739-1979).

The protection of unregistered designs is designed to protect them especially when the designer is unable to bear the costs of registration or is not aware of the registration requirement for protection, and also when the product has a short shelf life, such as fashion products, especially clothing.

Designs that are not formally registered will first enjoy protection for 3 years (a very significant matter in the field of fashion design, textiles and household goods), provided that the design is new and unique in nature (Including via the Internet), within six months of the date on which it was first published publicly, in Israel or abroad.

Protection of unregistered designs will allow design owners to prevent the commercial production of a product that is copied in the same way or a designed product that creates a general impression that there is a similarity between the designs.

An unregistered designer who believes that his design is eligible for protection as an unregistered design may mark the design product and indicate that it is an unregistered design and the determining date that applies to the design - the date of its public publication for the first time. If an unregistered design owner has marked its product, it is presumed that the person who took advantage of the unregistered design or who committed an indirect violation knew or should have known that the unregistered designer believed that its design was eligible for protection as unregistered design.

The new law extended the design protection period to 25 years from the date of application for registration in Israel. A sample submitted to the registry prior to the entry into force of the new law will be granted an 18 year protection period (instead of 15 years according to the existing arrangement in the Ordinance).

Design shall be deemed to be new if, prior to the date of its submission in Israel or the date of the preliminary law, has not been published in public, in Israel or outside it, identical or distinct design in non-substantive details. In other words, the requirement in the Designs Law is now for a global, non-territorial renewal. However, a "grace" period is given for protection as a registered design if the publication was done within 12 months prior to the record date - the date of its submission in Israel or the date of the preliminary law.

Both graphical Icons and graphical screen display can be considered protected designs. In addition, the Designs Law distinguishes fonts and thus effectively corrects copyright laws and recognizes their bodies as an artistic work under the Copyright Law, 5767 - 2007, which is entitled to protection for seventy years from the publication of the font and excludes a number of permitted uses in their fonts (typing, word processing, Etc., even if they were made using computer software or other product that violates the right in their fonts).

Infringement of design (registered and unregistered), provides the holder of rights in the design the right to compensation without proof of damage in the amount of up to NIS 100,000 for any violation. In addition, a registered design owner may request customs to delay the release of goods suspected of violating his right to design (as opposed to an unregistered design).

The manufacture or import of a product with the same design as a design registered by way of business and commercial use without the permission of the registered design constitutes a criminal offense under the new law.

The Design Law includes provisions that will allow Israel to join the Hague Convention on Designs, which will allow Israeli applicants to submit international applications to the WIPO Office for Industrial Designs Registration and, by a single request, to request the registration of the design in all the States that are Parties to the Convention.

For further information please contact the Authors of the article:

Ido Chitman, Partner

YigalArnon & Co., Israel

Lihi Katzenelson, Associate

Media & IP Practice Group

YigalArnon & Co., Israel

After a seven year legislative process, on March 21, 2017, the Constitution, Law, and Justice Committee of the Knesset finally approved the new Israel Privacy Protection Regulations (Data Security) 2017 ("Data Security Regs"). The Data Security Regs shall come into effect and crystallize into a binding piece of legislation on May 2018, which happens to coincide with the date upon which the new EU privacy legislation, the GDPR, shall come into effect. Similar to the GDPR the Data Security Regs significantly expand Israel's data security laws, and further broaden the Protection of Privacy Law, 5741-1981 ("PPL") by adding an additional, voluminous layer of requirements applicable to Database Owners (controllers), Database Holders (processors) as well as Database Managers. Such new layer of requirements complements the existing, unique and numerous requirements under Israel Laws which, inter alia, include obligations in respect of: notification requirements; obtaining informed consent from data subjects; purpose, transparency and proportionality principles; database registration requirements; restrictions on onward transfers of data abroad ; outsourcing/processing requirements; direct marketing limitations; safeguarding various rights of data subjects etc. Such rights safeguarding privacy are further guaranteed by the fact that although there is no written constitution in Israel, the right to privacy in Israel has a de-facto constitutional status, as it is protected under the Israel Basic Law: Human Dignity and Liberty. Failure to comply with the Data Security Regs will constitute a breach of Section 17 of the PPL, which may expose a non¬compliant entity to criminal and civil liability, as well as to administrative fines.

The Data Security Regs apply while distinguishing between four categories of databases, classified as: Individually-Maintained Databases; Basic-Level Security Database; Medium-Level Security Database; High-Level Security Database. The differences between each category derive from the number of authorized users and data subjects; and the nature of the data included therein.

The Data Security Regs require having in place a broad list of manuals and policies, according to the category under which the applicable database falls, such as: Data Security Policies; Database Specification Manuals; System Mapping and Risk Assessment Protocols; Data Authorization Policies; Documenting Access and Controls; Breach Incident Documentation etc. In addition, the Data Security Regs impose various physical, environmental and logical security measures; access, verification and authentication measures; on top of security measures to be implemented in IT systems and in HR management; and measures in respect of means of communication used (including: use of mobile devices, internet, media and IT systems).

Furthermore, the Data Security Regs add to the existing outsourcing guidelines issued by the Israel Privacy Authority ("IPA"), which in effect would expand the requirements applicable when outsourcing processing services, even prior to entering into a data transfer agreement between the Database Owners (controllers) and Database Holders (processors) and enhancing the requirements to be included therein.

The Data Security Regs additionally impose regular audit, inspection and training obligations; and list retention, restoration and back-up obligations.

Data Breach notifications are required, depending on the severity of the breach and the category of the database. Such notifications are generally to the IPA which might require that further notification be provided to the data subjects.

It is currently difficult to determine how aggressively the IPA will enforce the Data Security Regs once they formally come into effect. However, it is clear that all entities whether controllers, processors or database managers should prepare; have in place applicable policies and procedures and redraft their data transfer agreements accordingly.

For further information please contact the Author of the article:

Ms. Sharon Aloni, Partner

Goldfarb Seligman & Co

Lihi Katzenelson, Associate

Media & IP Practice Group

YigalArnon & Co., Israel