State of Ministry of Justice

Israel Annual Report 2016 State of Israel Ministry of Justice

Israel Patent OfficeAnnual - Report 2016 2 State of Israel Ministry of Justice director General

3 irector General d State of Israel Ministry of Justice

Israel Patent OfficeAnnual - Report 2016 4 Preface

2016 was a year of extensive activity, marked by reduction of queues and increase of outputs in all ILPO Departments. A central streamlining measure implemented in the ILPO, experienced also by those using its services, was the transition of all ILPO Departments to full online work. A fully online services and correspondence system was launched in the Trademarks Department on June 2015, such system was also launched in the Patents Department on December 2015, in the PCT Department on July 2016, and in the Designs Department on December 2016. Each system enables the public full online work also in regard to legal proceedings before the Commissioner in each field.

The ILPO has been publishing an Annual Report for six years now, in order to present its various activities. The Report reveals extensive work and advancement in the quality and standards of services provided by the ILPO to the public using its services. Each year, the scope of activities presented increases, and additional areas are exposed to public review. This year, alongside the data concerning use and performance of the various Departments, we included a more detailed data of the financial performance, and for the first time, we present the ILPO’s employment diversity data.

At the end of 2016, out of approximately 200 employees, 59% are women. Professional examiners form the majority of human capital in the ILPO. Most of them are employed in the ILPO Examiners’ Promotion Track, a unique and attractive promotion track for academics in the civil service. The ILPO is committed to equal employment of all sectors in Israel. About 9% of the current employees are members of different minority groups and several positions are designated to people with disabilities. The increase in human capital led to a decrease in employees’ age, and today 38% of ILPO employees are between the ages of 31-40, while 30% are between the ages of 41-50. This diverse and talented human capital is the main factor which enables the ILPO to provide services in the availability and quality to which it is committed. It should be emphasized that the ILPO examiners benefit from an incentive wage plan, based on various parameters implemented in the ILPO work plan, and mostly on the quantity and quality of first examinations and continued examinations. We expect to finish a recruitment process of 20 additional examiners in 2017-2018, for whom the positions were recently approved.

In 2016, many activities towards training and knowledge implementation took place. Know- how courses were purchased (Computers and Communication, Pharma and Optics), new cadets were trained for examination of patents, trademarks and designs. For the first time, the ILPO started a mid-level directors training program for team and field leaders, to form the ILPO management core.

Following the 2015 Annual Report which, for the first time, included financial data regarding the ILPO activity, this report presents a more comprehensive data. In 2016 the surplus of income over expenses transferred to the State treasury was over 43.5 million. Most of the ILPO income originates from fees in the fields of trademarks and patents, while the international activity of the ILPO under the PCT constitutes a growing field of revenue. The patent field’s income is equally based on application and renewal fees. At the same time, in the trademarks field, about one third of the revenue originates from application fees and about two thirds - originate from renewal fees. 5 TheILPO met the goals set it by the Committee for the Setting and Evaluation also of inILPO’s Goals 2016. A peak number ofpendency continued wasexaminations reduced were performed, toamount first 28.5of earlyexamination monthsexamination (an requestsPPH 8% arrangements)in the decrease, wasvarious increased. comparedacceleration With theSeptember means tocontinued (mostly 2016, 2015)training based andof while 15theon cadetsmanning the whichexpected beganof to increaseinadditional and the pendency20 approvedto further reduce.positions, Inthese 2016outputs a are decrease of observed.about 7%On thein theother numberhand, applications theof bypatenttrend Israeli ofapplicantsapplications increase in thefiled applicantsinframework the inof to thebeamount IsraelPCTrated continued.13thofwas in internationalThisthe ledworld maintaining the in Israelitermspatentits status of in this usingarea which thisis important tool. to TheIsraeli ILPOinventors,in the is world and consistentlywas rankedin termsfirst of timeliness as a Receiving Office for internationalIn addition, applications. we observe a continued upwardsincrease trend inof outputs9% ofin ILPOthe patentnumber examiners. increaseof almostofIsraeliAn 12%designationsin patentsthetoInternational grantedSearch andExamination was notedAuthority. simultaneouslyIn with an September 2016,classification the CPC. This ILPO puts efficient the patent ILPOclassification. among examinersA the team firstOfficeof providedinstructors countries started an in-depth usingfrom training usingthe to this all United ILPO innovative patent how States theexaminers. the ILPO and Patent Thismakes is anothersureand new to exampleTrademark use of the internationalasmost an exampleadvanced of itsinternational contribution streamlining to the global toolspatent system.as well In the trademarks field, the of ILPOILPO’s alsoGoals. met Duringits 2016,goals 19,429Trademarksset Department classesby wasreduced thedays,15bywere although Committeethenumberexamined. examinersof remainedfor The theexaminationunchanged. Setting Intime thein coursethe of 2017option tothe view documents Trademarksfound in databasethe trademarks files, is in order expectedto theimprove servicetransparency to alsoprovidedand include to the an public. Inapplications 2016, afiled, decreaseand of 16% in ofthe number 11% of wasclasses notedfiled. ofAfter in 2015, theapplications in whichnumber the number of and classes peaked,designation the ratefigures maintained returned in its to18th the those place Madrid inof internationalProtocol.previous Similarly,trademarksyears. Israelinapplications international2016 Israelunder registration retained under theits Madrid30 Protocol.place as anIn theoffice Designsof Department,origin in the examinationwith average time pendency was for significantlyfirst examination reduced alsothe reduced to 3.5 numberto 3.5months, months. of This, while applications in 2016 attributed filed to was the the growing highest interest Designs in Law,in theexpected this pastto important be 10 enactedfield,law years. will leadat given to Thisthemany revisionstheKnesset rise in promotionthe(the ILPO’s may workIsraeli inofto be this joinfield,Parliament)the asthe it new is Hagueinexpected 2017. toAgreement lead ThisIsrael for countriesthe Internationalparty to the RegistrationAgreement. Aof roundfieldIndustrialof Designs. tableFollowing openDesignsthis event,to importantthe in publicchangesthe were wasmade inthe heldDepartment’s guidelines, in workwhile 2016making adjustmentsin theglobalto trends thefield inconcerning thereproductions of designs.

Israel Patent OfficeAnnual - Report 2016 6 In the framework of the 2017 work plan, the investment in the online work systems and their improvement will continue. A central system to be launched in 2017 is a new operational system in the Patents Department that will replace the current system, which has been in use for the past 13 years. The ILPO will also prepare for exercising the new Designs Law and joining the Hague Agreement, including all operative implications of such move. New work guidelines will be prepared in the Patents Department, updated in accordance with the plan which was published by the Department at the beginning of 2017, following a process of consultation with the public.

The ILPO is a pilot unit for the Governmental Regulation Impact Assessment Project, according to a government resolution regarding this issue. In 2016, a report was completed after receiving comments from the public, and an improvement plan was prepared. For example, given the report’s findings, only one update of the work guidelines will be published in all Departments in 2017. In 2016 a program for reducing the amount of Commissioner Circulars and Notices was launched. After the release for public review and holding a round table open for the public, Commissioner Circular 033/2016 and Commissioner Circular Update 026/2014 in the field of trademarks were published. These circulars unified many subjects, and 9 old circulars and notices were cancelled. In the field of patents, Circulars 34/2016 and 35/2016 were published on December 2016 for public review. A round table in their respect took place in the first half of 2017, and they are expected to cancel 21 circulars and 2 notices.

The ILPO holds leading international status, derived from the increased usages of Israeli applicants in the international tools the ILPO makes available to them. The ILPO has widespread connections with leading patent offices around the world. In 2016, the ILPO hosted many delegations, including a senior delegation from the State Administration for Industry & Commerce of China, with which the Israeli Ministry of Justice signed a Memorandum of Understanding; representatives from the National Institute of Industrial Property of France, who discussed future collaboration, including with respect to appellations of origin and geographical indications; a delegation from the USPTO in the framework of CPC system training; representatives of the Danish Patent and Trademark Office, who took part in the intellectual property forum of the Ministry of Justice hosted by the ILPO; and a senior delegation headed by the vice mayor of Shanghai who is in charge of intellectual property in the district.

The ILPO also holds a status of influence in the World Intellectual Property Organization (WIPO) and conducted many activities with WIPO throughout the year. For example, events to increase awareness to the employment opportunities of Israelis in WIPO, held in academic institutions, and the International Convention on the Economy of Innovation with AIPPI, which was attended by WIPO Director General. For the past 5 years, the ILPO has been holding, jointly with WIPO, a prestigious course for patent examiners in the Pharmaceutical field. Examiners from leading patent offices are invited to attend the course every year. In 2016, the largest course so far was held, with the participation of 16 examiners from 10 countries. A similar course is expected to take place in 2017 in the Computer and Telecommunication field, with the participation of 11 examiners from 11 different countries.

As the regulator of the industrial intellectual property field, the ILPO is responsible for promoting laws and regulations in this field. For the past five years, the ILPO has advanced the new Designs Law that is expected to significantly change the designs field in Israel. The

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ו בברכה המהותי הבוחן דת הבוחן המהותי , סוף עד תבוצע עד סוף Sincerely yours, Asa Kling Director of the Commissioner of Patents, Designs & Trademarks

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צרפת as well as hereinafter in this report, has already brought . 1 , איכ באופן אלו הכשרה משימות מילוי של האתגר בפני תעמוד הרשות תעמוד בפני האתגר של מילוי משימות הכשרה אלו באופן איכ נתונים מחלקות בכל מלאה נת מלאה בכל מחלקות מהבוחנים ת מהבוחנים פולין בישראל רבות משלחות מארחת גם ו מארחת משלחות רבות בישראל ראשונה בקריאה בכנסת עברה אשר העיצובים חוק הצעת קודמה גם האמורים החקיקה הליכי החקיקה האמורים קודמה גם הצעת חוק העיצובים אשר עברה בכנסת בקריאה ראשונה השלמת המסחר וסימני הפטנטים במחלקות רב אדם קליטת כוח של שנה להיות צפויה להיות שנה של קליטת כוח אדם רב במחלקות הפטנטים וסימני המסחר , . בזכ הרשות שדרות מכל העובדים מכל שדרות הרשות בזכ המסחר וסימני המדגמים וסימני המסחר . בבחינת בינלאומיות ביזמות מעורבת הרשות מעורבת ביזמות בינלאומיות בבחינת מובילים וארגונים משרדים עם הרשות של הרשות עם משרדים וארגונים מובילים תשפר אשר הפטנטים בוחני למחלקת חדשה תפעולית מערכת על העבודה תחל העבודה על מערכת תפעולית חדשה למחלקת בוחני הפטנטים אשר תשפר השקיפות כמצוות השקיפות

תקציבה ניהול בתחומי עצמאות לרשות הוקנתה לא כה משעד כה לא הוקנתה לרשות עצמאות בתחומי ניהול תקציבה כך , בצד ותי בצד כלי כגון בינלאומיים פעולה שיתופי באמצעות הבחינה תהליכי את המייעלים בפרויקטים והשתתפות בפרויקטים המייעלים את תהליכי הבחינה באמצעות שיתופי פעולה בינלאומיים כגון כלי ות מעמדה לאור מתבקשת זו נתונים הצגת נתונים זו מתבקשת לאור מעמדה קידום בצד קידום של הצטרפותה תתאפשר חקיקתו שלאחר חקיקתו תתאפשר הצטרפותה של במחלקת מלאה מקוונת לעבודה חדשה מערכת ויר מערכת חדשה לעבודה מקוונת מלאה במחלקת על שקודם חקיקה בהליך השונות התקנות של מבוטלות לא התאמות הצריך מקוונת דה מקוונת הצריך התאמות לא מבוטלות של התקנות השונות בהליך חקיקה שקודם על זה בינלאומי פרופיל מכוח פרופיל בינלאומי זה משמעותי בקידום אופיינה בקידום משמעותי .gov.il/Units/RashamHaptentim/Documents/Final_Report_ILPO.pdf http://www.justice http://www.justice.gov.il/Units/RashamHaptentim/legalinfo/Pages/

data-based public debate. I stress, as I do every year, that dedicatedthis ILPOReport employees yielded and I sendfrom themthe my thanksworkwindow, andof appreciation.presenting the professionalsome This of Reporttheir isextensiveand but a and continued work. This is the last AnnualCommissioner Report of Patents, I wouldDesigns and be Trademarks,setbythe signinggovernment. upon wishIsuccessors my the as greatcompletion success Directorinleading theof ILPO tonewheights,the of 6 whileyear the maintainingterm Israel transparency Patent and public Office, participation field of toindustrial achieve effectiveintellectual regulation property in in the the State of Israel. 1 2 changesand reduced bureaucracy. One area which the ILPO recognized theas requiringpatent pre-grantreform is opposition procedures. In 2016respect, the ILPOthe heldresults an empiricalof which study were inpublished this ILPO expects that through advanced and accessibleofa strong servicesand valuable it canregistration contributeright, tofor thethe benefit creationof both designersa regulator,and the thepublic. ILPOAs constantly reviews itself.the unitsFor this leading reason, the Governmental the ILPO Regulationasked to Impact detailedbe Assessmentamong in theProject, designated which, as reportfurther

Israel Patent OfficeAnnual - Report 2016 8 ILPO’s Vision and Mission

“Creating an environment for the promotion of creativity and technological innovation”

The ILPO provides an environment which enables and encourages proper protection for creative works. It does so, by exercising the designated legal systems and making them more accessible. By registering patents, designs, trademarks and appellations of origin in accordance with the law, the regulations, and the case law which provide proper legal protection for the industrial intellectual property in Israel, after a procedure of examination, the ILPO may guarantee that the exclusive right given following registration is granted to the applicant while maintaining the legal rights of others, along with the publication of the applications and registered rights.

One of the ILPO’s main goals is increasing public awareness regarding the industrial intellectual property system.

In the course of its work, the ILPO acts to maintain relations with other Patent Offices around the world and international organizations which handle the protection of industrial intellectual property, including receiving international patent applications, carrying out international search and preliminary examination under the Patent Cooperation Treaty (PCT), and receiving international applications for trademarks under the Madrid Protocol.

Another main goal is to ensure that the legal system and regulation enable these designations, and that these suit the varying needs of the public.

9 93 107 47 61 65 79 86 96 106 17 23 31 37 50 59 40 42 43

Acceleration of Examination Israel’s International Profile in the Field of Designs Israel’s International Profile in the Field of PCT Israel’s International Profile in the Field of Trademarks Examination Data Examination Data Examination Data Legal proceedings Appeals Legislation Initiatives and Regulation Impact Assessment Project

The information presented in this annual report is aimed at giving out the at readerthe an Israel overviewPatent ofOffice the andactivities the scopecarried of the legal frameworkto provide withinany legal whichadvice or itexhaustive acts. review Thisof the reportlaw. As such, is this notreport meantdoes not present a analysiscomprehensive of the ILPO’s policies, but a general basic description is provided. B. C. B. Freedom of Information Law Designs Department Trademarks Department A. A. A. Patents and PCT Departments Legal Department A. Human Capital and Training ILPO in the Public Sphere Financial Data B. Table of Contents B. C.

Annual Report 2016

Israel Patent Office - 10 List of Charts Human Capital and Training

Chart 1. ILPO Structure 2016 20

Chart 2. Segmentation of ILPO Employees by Profession 21

Chart 3. Affirmative Action Positions in the ILPO 21

Chart 4. Segmentation of ILPO Employees by Education 21

Chart 5. Segmentation of ILPO Employees by Gender 21

Chart 6. Segmentation of ILPO Employees by Age 22

Chart 7. Segmentation of ILPO Employees by Place of Residence 22

Chart 8. Segmentation of ILPO Employees by Seniority (Years) 22

Chart 9. Segmentation of ILPO Employees by Religion 22 Financials

Chart 10. Patents Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 34

Chart 11. Trademarks Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 34

Chart 12. PCT Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 35

Chart 13. Designs Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 35

Chart 14. ILPO Expenses (NIS) 36 Legal Department

Chart 15. Appeals Filed in 2014-2016 to the District Court on Decisions of the Commissioner of Patents, Trademarks and Designs, the Deputy Commissioner and the IP Adjudicator 42

Chart 16. Results of Judgments Rendered in 2014-2016 in the District Court in Appeals on Decisions of the Commissioner of Patents, Trademarks and Designs, his Deputy and the IP Adjudicator 42 Trademarks

Chart 17. Trademark Applications and Registered Trademarks in 2007-2016 50

Chart 18. Applications and New Classes Filed and Registered Classes in 2007-2016 51

Chart 19. Top Ten Countries of Origin for Trademark Applications in Israel in 2016 (percentages) 51

Chart 20. Trademark Applications in 2016 - by Classes 53

Chart 21. International Applications Filed through Israel as Country of Origin in 2010-2016 54

Chart 22. National and International Applications Closed in 2010-2016 54 11 69 70 70 73 74 74 75 75 69 68 66 67 67 68 65 66 55 56 56 57 57 58 59 59

Applications in which a Refusal Notice Was issued in 2014-2016 - by Fields Patent Applications Refused, Withdrawn or Abandoned by Applicantsin 2010-2015 (Before and After Examination) Divisional Applications according to Section 24 of the PatentsLaw 2013-2016 - by Fields Divisional Applications according to Section 24 of the PatentsLaw 2013-2016 - by Fields in 2007-2016 – by Departments Notice Had Been Issued in 2014-2016 Status of Applications in which a Refusal Average Pendency (months) for Continued Examinations in 2016 - by Fields Average Pendency (months) for First Examination in 2007-2016 Patents Granted to Israeli Applicants vs. Patents Granted to Foreign Applicants in 2007-2016 (percentages) Patent Applications Filed in 2016 - by Fields Patent Applications by Fields in 2010-2016 Average Pendency (months) for First Examination in 2016 - by Fields Patent Applications Filed at the ILPO, including applicationsfiling Priority Rights, in 2007-2016 Israeli Applicants vs. Foreign Applicants in 2007-2016 Patent Applications Filed vs. Patents Granted in 2007-2016 Trademarks granted to Israeli Applicants vs. Foreign Applicants in 2010-2016 (percentages) Classes examined in First and Continued Examinations in 2010-2016 Pendency for First and Continued Examinations and Total Examination Time in 2010-2016 Accelerated Examinations vs. All Applications Examined in 2010-2016 Trademarks in Force in Israel, including Classes, in 2007-2016 Designation of International Applications Filed in accordanceMadrid withProtocol the in 2015 - by Countries (Israel ranks 18) Israeli Applicants vs. Foreign Applicants in 2010-2016 (percentages) Protocol in 2015 - by Country of Origin (Israel ranks 30)

Chart 40. Average Pendency (months) for Continued Examinations in 2007-2016 Chart 41. Average of Total Examination Time (months) of Patent Applications Chart 42. Chart 43. Chart 44. Chart 45. Chart 46. Chart 39. Chart 38.

Chart 34. Chart 35. Chart 36. Chart 37.

Chart 32. Chart 33. Chart 31. Patents and PCT

Chart 24. Chart 25. Chart 26. Chart 27. Chart 28. Chart 29. Chart 30. International Applications Filed in accordance with the Madrid Chart 23.

Annual Report 2016

Israel Patent Office - 12 Chart 47. Average Time (months) from Filing a Divisional Application until Examination End vs. Average Total Time from Application Filing until Examination End (Second Publication or Abandonment/Refusal) 76

Chart 48. First and Continued examinations in 2016 - by Fields 76

Chart 49. First and Continued examinations, by months in 2015-2016 - Biotechnology 77

Chart 50. First and Continued examinations, by months in 2015-2016 - Chemistry 77

Chart 51. First and Continued examinations, by months in 2015-2016 - Mechanics and Electronics 78

Chart 52. Applications Granted according to Section 17(c) of the Patents Law Out of All Applications Granted in 2007-2016 79

Chart 53. Exercise of Section 17(c) of the Patents Law in 2014-2016 - by Fields 79

Chart 54. Status of Accelerated Examination of Applications According to Regulation 35 of the Patents Regulations in 2010-2016 80

Chart 55. Accelerated Examinations in 2013-2016 - by Fields 80

Chart 56. Average Time (months) from Filing an Accelerated Application until Examination End (Second Publication or Abandonment/Refusal) vs. Average Total Processing Time of Non-Accelerated Applications from Filing to Examination End 81

Chart 57. Patents Expired in 2016 (by Fields) 82

Chart 58. Approved Requests to Delay Examination in 2012-2015, Pursuant the Entry into Force of Commissioner Circular 05/2011 83

Chart 59. PPH Applications in 2011-2016 83

Chart 60. PPH Applications in 2014-2016 - by Fields 84

Chart 61. Applications According to PPH Arrangements in 2015-2016 84

Chart 62. PPH Applications by Receiving Office in 2016 85

Chart 63. PCT Applications Filing in 1997-2016 87

Chart 64. Designation of the International Search Authorities by Israeli Applicants in 2007-2016 88

Chart 65. Search Requests Received with the Israeli International Search and Examination Authority in 2012-2016 88

Chart 66. Patent Registration under the PCT vs. National Registration 89

Chart 67. Timeliness in Transmitting PCT Applications to the International Bureau by Receiving Office in 2015 90

Chart 68. Timeliness of the Israeli ISA/IPEA in Transmitting Search Reports to the International Bureau in 2015 90

Chart 69. PCT Applications Filed in 2015 - by Country of Origin (Israel ranks 14) 91

Chart 70. PCT Applications Filed in 2015 - by Receiving Office (Israel ranks 13) 91 13 106 98 99 99 100 101 102 106 97 97 91 96

Top Top Ten Countries of Origin for Filing Design Applications in Israel in 2016 (percentages) First Examinations vs. Continued examinations in 2007-2016 Designs Accepted After the First Examination vs. ContinuedExamination in 2010-2016 Design Applications Not Registered in 2007-2016 Trends Relating to the Duration of Designs in 2007-2016 Design Applications Filed in 2015 - by Countries (Israel ranks 29) Registered Designs in 2015 - by Countries (Israel ranks 23) Design Applications Filed in 2016 - by Classes Applications Filed in 2001-2016 Design Applications vs. Registered Designs in 2007-2016 Average Pendency for First Examination and Total Examination Time (from Beginning of Examination to Publication) in 2007-2016 Top Top 20 Patent Offices in which Israeli Applicants Filed PatentApplications (Direct + PCT) in 2015

Chart 76. Chart 77. Chart 78. Chart 79. Chart 80. Chart 81. Chart 82. Chart 74. Average Pendency for First Examination vs. Design Chart 75.

Designs Chart 72. Chart 73. Chart 71.

Annual Report 2016

Israel Patent Office - 14 List of Tables Financials

Table 1. ILPO Revenue and Expenses in 2015-2016 35 Legal Proceedings

Table 2. Legal Proceedings Filed in 2013-2016 42

Table 3. Legal Proceedings Closed in 2013-2016 43

Table 4. Pending Legal Proceedings at the End of 2016 47 Trademarks

Table 5. Leading Applicants in Filing Trademarks Applications in 2016 54

Table 6. Leading Applicants in Trademarks Registrations in 2016 54 Patents

Table 7. Patent Applications Filed with and Granted by the Israel Patent Office in 2016 – by Country of Origin 73

Table 8. Leading Israeli Applicants in Filing Patent Applications in 2016 73

Table 9. Leading PCT Applicants at the ILPO as a Receiving Office in 2016 74

Table 10. Leading Foreign Applicants in Filing Patent Applications to the ILPO in 2016 74

Table 11. Top Israeli Applicants who Obtained Patents in 2016 75

Table 12. Top Foreign Applicants who Obtained Patents in 2016 75 Designs

Table 13. Top Five Classes in Design Applications in 2016 100

Table 14. Design Applications Filed and Designs Registered in 2016 - by Classes 104

Table 15. Leading Israeli Applicants in Filing Design Applications in 2016 105

Table 16. Leading Foreign Applicants in Filing Design Applications in 2016 106

Table 17. Leading Israeli Applicants in Registering Designs in 2016 106

Table 18. Leading Foreign Applicants in Registering Designs in 2016 107

15

Chapter 1 Human Freedom Capital of Informationand Training Law

Chapter 1 - Human Capital and Training 19 The ILPO has a designated promotion track for examiners.areas of A practicetradition whichof in-depth exceed projects the ordinaryin The workILPO isconsiders an integral this parta inmean the toassimilationpromotion develop track.of theand ILPO’spreserve tradition theas a ‘learningorganizational organization’. knowledge and During 2016, ILPO team 36 leaders staff meetings participated took in place.three a professional The training tours various in several course teamscompanies, for jointly in Industries with the their IATI (Israel’s - Israel Patents Advanced position, high-tech DepartmentTechnology and and life alsosciencethe industries wentTrademarks to umbrellaand Designsorganization). Departments learnedIn addition, visited about the the Ashdod custom Customs department’sX-raysite, and witnessed House, work,attempts where to seize visitedcounterfeiting they thegoods. tookMost custom’spartof the in ILPO variousemployees exhibits professional room training andcourses lectures (200 the (13 courses) courses andand enrichmentlectures). courses and In the field of emphasizes training,constant knowledge preservation the andacquisition. ILPO In2016 theDepartment isassimilating started independent. a training tracking system, As and its a assimilation ‘learning will be complete organization’, in 2017. the ILPO As the data below reveals, genderthe andhuman sector. The vastcapital majority inventoryof ILPO employeesin Such havethe advanced humanILPO academic is capital education.diverse segmentationin termsservices enablesof the public the is ILPO accustomed to representing provideto receive,and diverse the publicwhile advanced service. meeting professional the government goals to form Following the decision of the Committeenew cadets for from differentthe Setting fields wereand recruitedEvaluation in the ofpast yearILPO’s (August Goals, 2016). 16 The work year summary continues the year, which processeswere intended the to provideDepartment solution todealt challenges thewith human and ingoalsresource. inthe the fieldpassing of handling The purpose of professionalism the and Human wellbeing of Resource the humangoals capital and Department needs.in the ILPO, while in accommodating the to its ILPO is ensuring the quality, Legal Legal Legal Legal Court Officer Interns Judicial Patents Patents Advisor Register Assistants Department Administration Administration Human Human Resources Teams (3) Teams Chemistry Director & Budget Administration Team Biotechnology Director Trademarks Trademarks Deputy

Examiners Administration Team PCT Director Pharmaceutics Pharmaceutics

Examiners Formalities Formalities Administration of Examiners Superintendent Superintendent Library Deputy Deputy Team electronics of Examiners Superintendent Mechanics and and Mechanics Director of the Israel Patent Office (ILPO) Office Patent Israel the Director of Patents Patents Director

Formalities Formalities Administration Team

Designs Designs Director

Physics

Examiners Administration Relations Deputy Director of the ILPO the of Director Deputy International International Team ILPO Structure in 2016: Medical Devices Medical Quality Quality Assurance | Chart 1 | Teams (2) Teams Computers and and Computers Information Information Communications Communications Management and Database Database and

Annual Report 2016

Israel Patent Office - 20 Chapter 1 - Human Capital and Training 21 | 63.8% | 50.0% | 15 | 59% Women Minorities | 29.5% Patent Examiners Master‘s degree B.A. | 10.7% | 1 | 9.0% | 7% | 2.2% | 41% | 3 | 4.5% | 5.0% | 4.5% Men | 13.5% Segmentation of ILPO Employees by Gender Segmentation of ILPO Employees by Education Affirmative Action Positions in the ILPO Segmentation of ILPO Employees by Profession of ILPO Employees Segmentation Ph.D

Ethiopian Lawyers People with disabilities Design Examiners Trademark Examiners Other Academics PCT Examiners Administrative Employees High School Diploma | Chart 5 | | Chart 4 | | Chart 3 | | Chart 2 | | Chart 2 | 72.4% 41-50 | 30% Jerusalem area 31-40 | 38% 6-10 | 40.7% 0-5 | 22.2% 31-35 | 0.5% 20-30 | 7% | 0.5% | 3.1% | 90.8% Druze | 4.2% South 26-30 | 2.1% | 1.6% | 20.1% | 6.9% 90-100 | 1% Jewish 81-90 | 3% 21-25 | 1.5% 51-60 | 12% 11-15 | 31.2% North 71-80 | 5% 16-20 | 1.5% 61-70 | 5% Segmentation of ILPO Employees by Religion Segmentation of ILPO Employees by Place of Residence Segmentation of ILPO Employees by Seniority (Years) Segmentation of ILPO Employees by Age

Muslim Christian Tel Tel Aviv and Central Israel | Chart 9 | | Chart 7 | | Chart 8 | | Chart 6 |

Annual Report 2016

Israel Patent Office - 22 Chapter 12 FreedomILPO in the of InformationPublic Sphere Law

Chapter 2 - ILPO in the Public Sphere 25 Inthe festive launch event of the exhibition took part the Ministry Ms.of Justice Director Emi General, Palmor; WIPO DirectorPermanent GeneralRepresentative , Dr. at Francisthe Mr. Asa Gurry;UN, Kling, Geneva, theand representatives AmbassadorMs. Aviva of anddifferentRaz-Shechter; and Israel’s officecountries directors.the in TheILPOlevels exhibition ofDirector, wasministers, a great success ambassadorsvisitors. and invoked much interest among its The exhibition presented dozens of “made in Israel”arena inventions in three that leftcentral a mark fields: on the globalHealthcare andInformation Life Quality, Technology. Agriculture The exhibition and Sustainability, was part withand WIPOof andthe the productiveIsraeli advocacy collaboration efforts of theof Ministrythe ILPOof Foreign Affairs. In October 3-11, 2016, during thepresented WIPO General in Assemblies, Geneva, an Switzerland,interactivetechnology achievementsexhibition that of wasIsraeli allowed companies. a sneak peek into various breakthrough Israeli Innovation Exhibition in WIPO JobsWipo.aspx http://www.justice.gov.il/Units/RashamHaptentim/Jobs/Pages/ In addition to these events,units of meetings Tel Aviv University, were the set Interdisciplinary betweenof the IsraeliCenter WIPOand Chambersthe delegation President of of and promotethe Commerce alumniFederation employment toof Israelis review in WIPO. possible long-termThe diverse collaborations employment opportunities that in WIPO wouldare available on: WIPO Recruitment Events In March, a delegation from the WIPOthe Human purposeResource Planning of Section increasing visitedspecifically Israel awareness andwith in the UN inin general. Israel to the Eventsorganized employmentby the ILPO, the Ministry opportunitiesof Foreign Affairs and alumni institutes, inunits in the academic WIPO took place on March 8,Center, Hertzliya.2016, Thein WIPOthe delegationHebrew membersUniversity presentedand andfields in thetheseof activity,eventsInterdisciplinary termsthe organizationof employment asand salarywell and asapplication the mannerscreening for positions,interestprocess. in the Manyoptions availablestudents to them.participated in these events and showed

Annual Report 2016

Israel Patent Office - 26 Chapter 2 - ILPO in the Public Sphere 27 On the occasion of this event,WIPO Directorand General,through Francis Dr. the Gurry, arrivedcollaboration to Israel. In hisMinisterbetween short visit,ofWIPO he metJustice, withand the theparticipated ILPO, Israeliin a Chambersround of Commercetable organizedand “Pharma togetherIsrael”innovation and tour withconducted in Tel Avivthe wherean Federationentrepreneurship he visited anof incubator and for junior entrepreneurs. The ILPO took an active invitingpart senior guestsin from parallel the offices convention’sworldwide and its representatives steeringpart in panelstook asignificantcommittee, and lectures. was responsible for In March, “The 2nd InternationalIsrael. ConventionThe convention was onorganized theby AIPPI Economy(International ofIntellectual Association Innovation” for Property).the Protection took of place in Economy of Innovation The 2nd International Convention on the World Intellectual Property Day Each year the World Intellectualinitiative of WIPOProperty was intended to increase Day awareness is to the beinginfluence have overpatents marked ourand everyday copyrights all life, invokearound understanding the thatpromotes protectingworld. intellectual creativityThis property and rights innovation,entrepreneurs praise to developing creativity cultures and andto intellectualsocieties the contribution propertyworldwide, rights as of ofothers.well as creators encourage andrespect In 2016 the ILPO markedcelebrating the 20 years World of PCT (Patent Intellectual Cooperation Treaty) Property activities in Day OpeningIsrael. remarks in at Israelthe event were on spoken by Junethe Director Ms. 6, General Emi of 2016, thePalmor, Ministry and of Justice,the ILPO Director,purposes Mr. Asa andKling. variousA round usestable representatives oftook ofplace PCT technology concerning in transfer theoffices of whichacademic academy are institutions leaders and in PCTand applicationsprivate industry companies filing with in Israel. the Inthe participation event, the ILPO granted its award for of excellent student paper for 2015, and thepresented winners their works to the audience.

Annual Report 2016

Israel Patent Office - 28 Chapter 2 - ILPO in the Public Sphere 29 In the course, the trainees attendedprovided ILPOpatentworkshopsbyexaminers learntILPOandprocedures,theof anddifferentits departmentslectures in differentand Israeliexamination legislation. fields The course participantsHebrew alsoUniversity wenttechnology on professionaltransfer office, toursand Teva the (YissumVolcani Center) and- theculturalas well as touristic tours (in various sites in Jerusalem). In April, as it does every year, the ILPO heldand a Examinationone-week training in theprogram Field on Patentof Pharmaceutical Searchdeveloping countries.Inventions This for for year, theWIPO first time,Academy patent trainees examinersparticipated fromfrom additional in the course countries following the ILPO’s direct invitation.10different Incountries total, representativesparticipated in the fromcourse: Spain, China, Nigeria,Finland, the Jamaica,Philippines, Korea,India, Georgia and Poland.heldfor foreign Thisparticipants. is the Asenior largestWIPO representative course alsoof lectures. participated its kindin the coursethe and ILPO Academy trainees TrainingCourseWorkshopWIPOILPOfor the of

Chapter 13 Financial Freedom Data of Information Law

Chapter 3 - Financial Data 33

2% (3%) -6% -1% 16% 11% (10%) (17%) (-24%) Change in Change Change in Change Results (%) (%) Results Results (%) (%) Results 2015 2015 2015 2015 4,884,981 1,032,653 46,970,702 51,682,962 (5,458,312) 104,571,298 (60,059,938) (30,795,875) (23,805,751) December 31 31 December December 31 31 December For the Year Ended Year the For For the Year Ended Year the For 2016 2016 2016 2016 5,674,251 1,147,866 47,948,238 48,830,636 (5,995,000) 103,600,991 (60,064,041) (35,982,339) (18,086,702) Statements of Financial Performance (NIS) Revenue Revenue Expenses Expenses ILPO Revenue and Expenses in 2015-2016 (NIS)

Total Expenses Rent Personnel and Non-Permanent Positions Expenses Operating Expenses (Acquisitions, Computing, Training) Revenue from Patent Fees │ Table 1 │ (*Note that the data was collected atthe end ofJanuary 2017. The data does not constitute confirmeda report and rely on information gathered from several on thatinternal date).government systems The 2016 state budget sets the ILPOILPO budget adhered at approximatelyto its ILSbudget. 52 million.Mostemployees, ofThis thewhileyear theILPO the expensesmajority are ofinvestment composedthe in informationbalanceof work and iscomputer wagededicated systemsto andits ongoing to procurement.operation expenses, namely, The source of most of the ILPO revenue is its Aactivity growing in therevenue field of fieldtrademarks is andthe patents. PCT fees, activity includes which, revenues alongside from feesinternational paid forconducted applicationsthe byinternational the ILPO filing as an search ISA/IPEA. and examination activity The ILPO acts as an executive agency pursuant to8, 2006.Government Onthe organizational Resolutionlevel this4722 means, datedamong else,March that the ILPO’s expenses on itsdepend income. The entire ILPO revenue originates from fees. Revenue from Trademarks Fees Revenue from PCT fees Revenue from Designs Fees Other Revenue - Differentials Total Revenue

6,100,343

346,594

5,781,588 Other

Other 458,514

798,534 150,288

840,627 147,334 opposition Request for for Request

years for 20

Renewal

142,275

4,557,166

138,902 4,110,255 handling application application International International Last

years)

(19-20

renewal 684,469

519,897 5,283,806 5,405,191 Immediate examination

years)

Fourth 815,360 (15-18 renewal

944,280 6,004,071

Searches

5,483,250 298,205

Third years)

(11-14 renewal 257,294

Time Time

6,315,147 Extension

5,615,797 1,334,967

(7-10 years) Second 1,105,496 renewal year 2016 year year 2016 year

Change in in Change

3,598,425 registrations

19,548,674 3,138,995

First

years) renewal 17,987,078 (up to 6

renewal National National

3,292,799

10,213,258

3,302,601 fee 11,900,899

National National according Allowance to Reg. 52 to Reg.

applications

11,997,947 15,296,546

13,345,707 year 2015 year 18,223,268 year 2015 year Int’l Int’l Patents Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 2015-2016 Fees from Revenue of Segmentation - Department Patents Trademarks Department - Segmentation of Revenue2015-2016 from Fees (NIS) patent

Filing a + renewal + application applications | Chart 10 | | Chart 10

| Chart 11 |

Annual Report 2016

Israel Patent Office - 34

Chapter 3 - Financial Data 35

27,404

25,488

23,320 Fee 34,086 Priority Document

extension

Judicial time

131,830

47,464

129,515 Fee

Examining 42,711 Preliminary

18,370 Administrative time extension

11,939 Fee 93,057

Late Payment 71,700 10,587 Reduced

application

fee of design 28,462

ISA 171,400

Additional fee

145,847 1,592,119

Renewal 1,148,325 third period year 2016 year WIPO) year 2016 year IL(US&IL

Search Fee-

applicants via

196,990

787,050 214,455

period 718,100 Fee

Renewal second Transmittal Transmittal

578,952 3,105,014

2,823,746 - IL 478,800 Filing year 2015 year year 2015 year Designs Department - Segmentation of Revenue from Fees 2015-2016 (NIS) 2015-2016 Fees from Revenue of Segmentation - Department Designs a design PCT Department - Segmentation of Revenue from Fees 2015-2016 (NIS)

application Search Fee | Chart 13 | | Chart 12 | 5,995,000 Rent 5,458,312 18,086,702 23,805,751 Computing, Training) Computing, Operating Expenses (Acquisitions, (Acquisitions, Expenses Operating year 2016 year 35,982,339 Positions Expenses 30,795,875 year 2015 year ILPO Expenses (NIS)

Personnel and Non-Permanent | Chart 14 |

Annual Report 2016

Israel Patent Office - 36 Chapter 14 Legal DepartmentFreedom of Information Law

Chapter 4 - Legal Department 39 1 . and are distributed to 2 /Rasham_Decision.aspx aspx . , free of charge for the public review. 3 In the framework Department of the reviewed Governmental the CommissionerNew Regulation circulars Circulars were Impact regarding composed issues Assessment they trademarks and addressed circulars were Project, andregulated madein patents. law theand work redundant guidelines. were Starting canceled an after RIA the – Regulationpatent attorney Impact profession Assessment (exams, processlicensingpublished and and regarding indiscipline). the course regulationof A2017 call round tablesfor of suggestionswill be the held. was Conducting an empirical study purpose regardingof reviewing the thelevel of use pre-grant of such procedures,that opposition may their point duration procedureto andineffectiveness. other issues with The thestudycourse ofresults 2016 in werevarious presented forums and tothe thedata waspublic uploaded in tothe the ILPO website.

http://www.justice.gov.il/Units/RashamHaptentim/Pages/Nemala. http://www.justice.gov.il/Units/RashamHaptentim/legalinfo/Pages http://www.ilpatsearch.justice.gov.il/UI/MainPage.aspx

1 2 3 The substantive judicial resolutions are published on the ILPO website Appeal on the Commissioner’s decisionsseen frommay Chartbe 15,submitted the rate of appealsto the is low District Court. As can be A large part of theCommissioner, Legalthe Deputy Department’s Commissioner workand amountthe ofnew focusesproceedingsIP Adjudicator. filed inthe on patentsThe fielddata judicialhas somewhat indicate increased. fieldthat decisionsThe trademarks presentsthe issuedan increase by in the the numberclosed remainedof new constant. proceedings filed while the number of files 2. 3. 1. This year the Department was involved in several matters: The Legal Department is involved in the variousILPO’s ongoinggovernment management offices. and Itinteracts also withSummarypromotes the of thelegislative legislative initiatives initiatives relatingthe regardingDepartment to proceedings ILPOwas involved activity.in front in ofduring the Commissioner2016 and aredata included below. In the course of 2016, a Legal Advisor was alsothe appointedLegal to Advisorthe ILPO. Amongassists his positions,the managing ILPO the ILPO’smanagement ongoing activities, in and isreviewing in charge oflicensing. patentlegal attorneys’ issues certification arising and from the The Legal Department includesAdjudicator, supported the by Commissioner,two attorneys theatwhich law. supports DeputyThe theDepartment exercise Commissioner alsoof judicial includes powers andwella ofassecretariat thosetwo theinterns. presiding IP in the legal proceedings as the legal databases. All decisions in the patentswrappers fieldposted mayon thealso ILPO be websitefound in the different file- 64 85 76 100 Total 146 153 160 178 Total 9 5 12 14 1

Total to Patent Oppositions Reinstatement 27 24 40 36 Register 1 4

Motions for Cancellation Order / Correction of Deletion from / Extension to Grant a Oppositions Patent Term 4 6 1 2 6 3 10 13 1

25 27 15 28 a Ruling a Service Invention Regarding Motion for Ex Parte Unilateral Proceeding Proceedings 1 1

Motions Name of Inventor DESIGNS PATENTS for Noting TRADEMARKS 70 86 81 Requests for Determination of Compensation and Royalties 101 3 2 2 1 Oppositions Ex 39 21 30 21 Parte Proceedings Cancellation Motion 5 3 8 24 16 24 13 10 Competing COMMITTEE FOR COMPENSATION AND ROYALTIES Applications Motions for Cancellations Legal Proceedings Filed in 2013-2016 Year 2013 2014 2015 2016

49 38 50 42 Year 2013 2014 2015 2016 Opposition Year 2013 2014 2015 2016 Year 2016 2015 2014 2013 │ Table 2 │ A. Legal proceedings in the ILPO

Annual Report 2016

Israel Patent Office - 40 Chapter 4 - Legal Department 41 83 74 68 82 Total 163 145 154 154 Total 57 103 1 1 Total Total

8 4 9 12 Total to Patent to Oppositions Reinstatement 7 Total 2 1 1 2 32 27 21 31 Term Order to Grant to a Patent a Extension Register Oppositions Motions for Motions 1 Cancellation 19 / Correction of of Correction / Deletion from / from Deletion Register to Patent to 1 4 2 Motions for Motions Oppositions 1

Deletion from Deletion / Cancellation / Reinstatement / Correction of Correction / - Other - 9 7 3 4 Service Inventions 40 21 19 22 Ex Parte Ex 1

Ex Parte Proceedings Parte Ex Proceedings a Ruling a a Service a Invention Regarding Motion for Motion 6 8 11 19 DESIGNS Ex Parte Ex Ex Parte Ex Proceedings Proceedings PATENTS PATENTS DESIGNS 1 1

TRADEMARKS TRADEMARKS Motions Name of Name Inventor 3 1 1 5 Ex Parte Proceedings Parte Ex Requests for Determination of Compensation and Royalties and Compensation of Determination for Requests for Noting for 77 78 95 81 Motions for Motions Oppositions Cancellation Ex 22 31 34 15 Parte Proceedings 10 57 Motions for Motions Oppositions Cancellation Requests for Determination of Compensation and Royalties and Compensation of Determination for Requests 14 19 19 20 5 7 5 5 for Competing COMMITTEE FOR COMPENSATION AND ROYALTIES COMMITTEE FOR COMPENSATION AND ROYALTIES Applications Motions 1 Cancellation Pending Legal Proceedings at the End of 2016 Legal Proceedings Closed in 2013-2016 Year Year 2016 2015 2014 2013 2014 2015 2016

45 40 41 45 Motions for Cancellation for Motions 8 35 Year Oppositions 2013 2014 2015 2016 Competing Oppositions Applications Year 2015 2016 2014 2013 │ Table 4 │ │ Table 3 │ 0 1 6 Designs 0 6 Other* 6 Results of Appeals which which Appeals of Results in 2016 Decided were 8 6 8 Trademarks 3 5 2016 Rejected 3 3 2 Results of Appeals which which Appeals of Results in 2015 Decided were 1 Patents - Extension Orders Extension - Patents 2015 1 3 2 3 0 Patents Appeals Filed in 2014-2016 to the District theCourt Commissioner on Decisions of Patents,of Trademarks andCommissioner Designs, the and Deputy the IP Adjudicator Results of Judgments Rendered in 2014-2016 Appealsin the Districton Decisions Court of inthe Commissioner ofDesigns, Patents, his Trademarks Deputy and and the IP Adjudicator 3

2014 Accepted / Partially Affirmed Results of Appeals which which Appeals of Results in 2014 Decided were “Other” - appeals deleted / case settled / case remanded for rehearing / appellant requested to withdraw appeal | Chart 15 | | Chart 16 |

* B. Appeals

Annual Report 2016

Israel Patent Office - 42 Chapter 4 - Legal Department 43 aspx.

4 http://www.justice.gov.il/Units/RashamHaptentim/Pages/Nemala. Call for Remarks on Patent Pre-GrantOppositionPatentProcedureson Remarks for Call Entry into Force of the Designs Regulations - e-Filing

Data regarding the procedures (in Excel format and in Hebrew) at the basis of the astudy, presentation that includes background for the graphicstudy, analysis of the data and conclusions and Commissioner’s Notice in the matter were posted on the ILPO website:

4 In 2016 the ILPOprocedures. The conducted study inspected an135 pre-grant2015. empiricalAmongexaminedtheopposition parameters status wereendtheprocedures,proceduresof procedure study whichduration, ended regardingin 2012-number of extensions patent requested and pre-grant parties to the procedure. opposition 2. Now, with the completion of this move, all ILPO Designs)departments offer (Patents, full bilateral Trademarks, online PCT work and capabilities.which This took is the about conclusion three ofyears a complex of work move of the ILPOof Justice.together with other entities in the Ministry Within six months from the Regulationsare boundeffective to use an electronicdate, corporations certificate (“smartor card”)representativesregistration must file new applicationswho and for design other documentsapplicants may through continue to file the such documents new on paper. online system. Private unrepresented Following the amendment, the online filing system inAlso, the Designs alreadyDepartment was launched. in 2014 Department applicantsvia electronic mail had(instead of regular the mail). Thereduce optionpurpose theof the loadnew to system imposed is to on receive the Department documents andOne improve main the from advantageservice providedof the theto thetransition Patents public. improvementto full of theonline information work presentedis a to substantialthe public,communication as savewell aswithin forming thepaper applicant. fast andand efficient 1. OnDecember 29, 2016, the Designs Regulations (Amendment) 5777-2016 Theseentered into Regulationsforce. enable full online Designsfiling Department.of all documents, notices and applications to the In 2016,In several legislative moves which theILPO initiated andparticipated wereinconcluded. These long and complex moves are led by the ILPO’s Legal Departmentwith and conductedthe Intellectual jointly Property UnitMinistry at of Justice.the Legislation and Legal Counsel Department of the Assessment Project C. LegislativeC. Initiatives Regulationand Impact The study findings and several conclusions public were forums. presented Following published withina call thefor remarks theregarding study, pre-grant Ministry on opposition Octoberprocedures. ofreview theThe Justice 13, Ministry issue asked and 2016,to andthe public the in was invited Ministrythese to procedures, provide of comments motions Justiceforand amendments suggestions of specification regardingmotions, in patentas well oppositions as regarding and theinterim following topics, among others: The criteria for reviewing a motion to amend specification duringWhat an opposition;happens to oppositions while discussingparallel a discussion,motion tounification). amend specification (delay, The option to file alternative versionsduring ofprocedure; the claims by the applicant and/or opponent

Criteria to validate compromise arrangements betweento partiesexercise to theopposition Commissioner’s procedures, authority pursuantpublishing to Sectionsuch compromise 34 of arrangements.the Patents Law and Option of referral to arbitration and mediation; Regulating preliminary proceedings guarantee; - motion for further details, Procedures discovery, for ruling depositing expenses and the option to determine a pre-setPreliminary table; sessions / pre-hearing; - - Thedistinction between legal arguments, facts and evidence, priorand the publications;stage of submitting The times set in the Regulations and the option or preclusion toAmending their extension; the patent during opposition: - The stages of the procedures (opposition ups);notice, pleadings, evidence, written summing- Improving Regulation - Reducing Amount of Commissioner Circulars Publishing Call Attorney Occupation for Remarks on Regulating the Patent

4. In the course of 2016 the ILPO continuedProject, the in Governmentalwhich Regulationit takes Impact public partAssessment with sincerespect to2015. the ILPOThis services included andrecommendations recommendations identification were for implemented reducingof duringthesethe the loads. annualloads The work plan.on Athe central part of the project is reducingsubject the is presentedamount ofbelow: Commissioner Circulars. Data in this Government Resolution 2118 burden dated requires October review 22, and Therefore, 2014 assessment on September regarding 8, before 2016, loweringthe Ministry formulation ofregarding Justice the ofpublishedconsideration regulatory newa call of for possible regulatorypublic remarks,legislative attorney legislation. amendments occupation: relating certification to regulating examinations, the licensing,patent discipline,Responses ethicsfrom the public andwere more.received following the call for remarks and roundinthe coming tablesyear will be held in these issues. Simultaneously,andregulations the work tohas begunformulate and the anILPO ethicsexpects billthat the bill will Parliament)be ready for Knesset review(Israeli by the end of 2017. 3. 8. 5. 6. 7. 2. 3. 4. 1. Discussions regarding the scope of requiredcope with legislative the difficulties change found are in thecurrently procedure. taking place to 9.

Annual Report 2016

Israel Patent Office - 44 Chapter 4 - Legal Department 45 After the 5 Comments As per Commissioner Circulars drafts published, 21 Circulars are expected to be cancelled and 2 added. Additional Circulars were cancelled in 2016. Drafts were published in 2016. Commissioner Circulars are expected to be cancelled once the new Designs Law is enacted and the issues regulated by legislation. These Circulars are pending review in 2017 These Circulars are pending review in 2017 These Circulars are pending review in 2017

9 8 5 6 9 15 Impact Number of Regulation Effect after Circulars in Assessment Commissioner’s 8 5 6 9 37 18 2016 Number of Commissioner Circulars in Effect at the beginning of Field of DesignsFormulatingLaw- New,Moderna Lawwith respect to Intellectual Property Rights in Product Designs

Circulars http://www.justice.gov.il/ContactUs/Pages/ListServ.aspx

Patents Trademarks Designs PCT Proceedings before the Commissioner General 5 According to the bill, many different classes of designsthat may be subject they to protection are provided new and icons and different screen presentations from for the 25 years. existing So far, the designs ones. registered The by the bill Ordinance includes protection over In 2015, the government published the DesignsDesigns Law Ordinancebill that would originally replace thecurrently enactedPatents regulates and in the designs 1924 field underin preparesIsrael. far-reachingthefor The thechangesexpected isILPO,introduceit implementingtoits workof the in one British of the bill’s Mandate initiators, department. in currently Israel, which 5. Note that there was no revision of the Circulars dealingcomprehensive with Designs legislation given the inexpected this matter. new draftswhich were published for public remarks are entered into effect, additional expectedCirculars to be arecancelled during 2017. According to Commissioner Circular 001/2011,remarks shouldwhen thebe receivedCommissioner regarding believes beCircular publishedthat ondraftspublic the ILPObefore website theirand by theentry Ministry into of Justiceforce, - ILPOthey mailing will list. It should be added that upon the entry intoat theeffect end ofof 2015,the Patent14 Circulars Regulations in the for patents Online field Filing were cancelled. received maximum 15 years of protection.against breach.Registration That is,of amonga else,design againstwillare production,noallow different itsmarketing protectionthan and thesale generalof designs includesimpression thatprotection formedover unregistered by designs. the Thisregistered is a short-term limited design.todesignsprotection for which for Themarketing three years,bill inIsrael began alsosoon after their publication newand differentand that are from designs existing inthe market. This protection ismore limited protectionthan the over registered designs, since it only protects againstOne copying. the main news of Agreement the - billan international is givingagreement registration theallowing Stateoffiling a design one ofin allinternational member Israel states. application the optionfor theDuring 2016 to the discussion join regarding thethe bill continued Hague in the Knesset’s The Economy discussionsCommittee. are expected serveto forconclude preparation during of theIsrael’s firstRegulationsaccession half to enableto of implementationthe 2017,Hague of Protocoltheand law. thisand yearenacting willthe Designs

Annual Report 2016

Israel Patent Office - 46 Chapter 15 TrademarksFreedom of InformationDepartment Law

Chapter 5 - Trademarks Department 49 In the course of 2017 the Trademarks Database is expecteddocuments to also include found an optionin the to viewtrademarks files, toto theimprove public. transparency and the service provided In 2016 two cadets finished theirDepartment. internship Furthermore,and have thefully trainingintegratedfinish ofheras internshipanotherexaminers at thecadet inend of the2017, continues and two new andcadets joinedshe the Department.is expected to However,inlight ofthe substantial rise inthe amount ofclasses filed in2016, the Department wasable to reduce the examination pendency by about 15 days only. In 2017 the Department is expected to temporarily intake several examiners in order to help reduce this pendency. The Committee for the Setting and EvaluationDepartment of ILPO’s should Goals determined examine thatsurpassed in 18,144 this2016 goal, theas they classes. examined 19,429 classes The throughout Department the year. examiners have met and Over the year, 4,218 trademark applications and 20,730online system.other inquiriesAbout 96% were of filedtrademark using applications the Department filed were and made aboutonline. 81% In addition,of inquiries at the endto of 2016theupgraded the Trademarks and now Database enables was greater search options for applicants. In 2016, the use of the online work system which wasthe launchedDepartment. in 2015Currently, was mostimplemented of the applications in and byinquiries the Trademarks are Regulations.filed online as required

7,643

9,308

4,917

4,391 2016

7,611

10,453

5,691 Total Registrations

4,762 2015

6,816

9,294

4,651

4,643 2014

6,205

9,580

4,930

4,650 2013

4,937 8,733

Total Total Applications 4,226

4,507 2012

11,201

8,804

3,858

4,946 2011

9,121

8,017

463

7,554 2010

8,239 8,366 International International Applications

2009

9,389 10,608

2008

7,621 10,578 Trademark Applications and Registered Trademarks in 2007-2016

2007 National Applications | Chart 17 | In 2016, a decrease of 11% numberwas ofnoted national in applicationsthe number decreased of by aboutapplicationstrademark 7.8%, while decreasedapplications the number by 13.6%. offiled. international The It should be noted that until September 2010, only single-classILPO. As applicationsof September were filed2010, to thewhen IsraelProtocol started for filingoperating international in the trademark framework applications, Therefore,of thethis multi-classchart Madriddoes not fully applicationsexpress the increase may bein the filed.Department’s a betterwork scopes. understanding,For see the nextand registered.chart, presenting data on the number of classes filed A. Examination Data

Annual Report 2016

Israel Patent Office - 50 Chapter 5 - Trademarks Department 51 | 6.8% | 19.1% | 25.1% | 21.4% Israel Germany United States Other Countries Classes Registered Trademarks Classes Registered Classes New Applications | 3.5% | 5% Top Ten Countries of Origin for Trademark Applications in Israel2016 in (percentages) Applications and New Classes Filed and Registered Classes in 2007-2016

| 4.7% | 2.8% | 5.8% | 2.1% | 3.7% Switzerland China United Kingdom Italy France Spain Japan New Applications | Chart 19 | | Chart 18 | The data were compiled based on the applicant’sfiled address. about oneWe canquarter see ofthat the Israeli applications, applicants followed by US applicants. Alongside a decrease of 11% in the numberwas ofnoted applications in the number filed, of classesa sharper filed. decrease of After16% 2015, in which returned the to those number of previous of examinationyears. applications This time indecrease Israel. and may classesbe attributed peaked, to the the relatively figures long clearly 54 53 43 46 37 32 42 38 31 30 60 61 45 24 24 25 25 29 30 33 21 21 22 25 Total Total 0 0 2 0 0 0 19 40 46 22 36 13 31 27 14 18 39 24 14 25 32 19 22 25 No. of No. of Applications Applications International International 0 6 0 3 6 0 0 1 2 0 0 35 13 43 10 25 37 46 43 22 11 29 30 21 No. of No. of National National Applications Applications Applicant Applicant Leading Applicants in Filing Trademarks Applications in 2016 Leading Applicants in Trademarks Registrations in 2016

Gilead Sciences Ireland UC NOVARTIS AG Apple Inc. Apple Inc. Gilead Sciences Ireland UC Abercrombie & Fitch Europe Sagl Société des Produits Nestlé S.A. Syngenta Participations AG Abercrombie & Fitch Europe Sagl Bora Creations S.L. Johnson & Johnson Philip Morris Brands Sàrl L’OREAL Unilever PLC Wikimedia Foundation, Inc. Bayer Intellectual Property GmbH Johnson & Johnson Sanrio Company, Ltd. Bayer Intellectual Property GmbH Shipman Associates, Inc. Philip Morris Brands Sàrl Sanrio Company, Ltd. Hewlett-Packard Development Company, L.P Hyundai Motor Company No. No. Serial Serial 3 2 1 1 2 3 4 5 4 9 8 7 6 5 8 9 6 7 10 10 │ Table 5 │ │ Table 6 │

Annual Report 2016

Israel Patent Office - 52 Chapter 5 - Trademarks Department 53 Fresh Fruits and Vegetables and Fruits Fresh Non Alcoholic Beverages Alcoholic Beverages Articles Smokers’ Commerce Advertising, Finance and Insurance Repair Construction and Communication Storage and Transportation Materials of Treatment Entertainment Education and Technological and Scientific Services Drink and Food of Providing Services Medical Services Social and Personal 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Paper and Stationery and Paper Materials Insulating and Sealing of Imitations and Leather Bags, Leather Materials Non-Metallic Building Furniture Materials, Cleaning Kitchenware, Glass Materials Textile Raw Ropes Threads and Yarns Fabrics Clothing Footwear and Buttons Embroidery, Lace, Carpets, Rugs Games, Gymnastic articles Food Preserved Meat, Milk, Fish, Confectionery Pastry, 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Trademark Applications in 2016 - by Classes

Chemicals Paints Cosmetics Cleaning Products, Industrial Oils veterinary and Pharmaceutical preparations Common Metals Machines Hand Tools Computer Electric and Scientific, Instruments Devices Medical Cooking, Heating Lighting, Apparatus Vehicles Firearms Metals Precious Music Instruments | Chart 20 | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 After class 9, the preparations), leading classes 42 (scientific are cosmetics). 35 and (trade technology and advertising services) services), and 3 5 (Cleaning (pharmacy preparations and Class 9 has been the leading class in Thisthe lastclass decadeincludes in trademarkgoods suchregistration as science, computerapplications. software, electricity etc. In 2016, and class computer9 was requested communicationfor registration i.e. 22% devices,ofin 2,013 applications applications, filed.

1,365

708

287

1,065

561

252

946

605

350

913 411 149

National Applications

905

170 157

1,484

200 17

1,970

National and International Applications Closed in 2010-2016 35 0 International Applications Filed through Israel2010-2016 as Country of Origin in

International Applications International | Chart 22 | | Chart 21 | The Madrid system enables international trademark registrationcountries, andsimultaneously, maintenance inusing member a singlesimple form manner, significantlyand a singlesaving on fee,costs ofin registration a relatively and maintenance. Thisefficient indexand testifies on trend the in the increasing number of Israeli use companies of choosingMadrid Israeli to protectProtocol brands their and trademark abroad.file abroad an viainternational In thecontinued. 2016 Asapplication presented the in Chart upwardsfollowing 30 below, a Israelnational ranked 30 inIsraeli this aspectapplication, in 2015.

Annual Report 2016

Israel Patent Office - 54 Chapter 5 - Trademarks Department 55 25.1% 74.9% 24% 76% 25.5% 74.5% Applications filed by Foreign applicants by Applications filed 23.2% 76.8% 75.1% 24.9% 71.8% 28.2% Israeli Applicants vs. Foreign Applicants in 2010-2016 (percentages)

70% 30% Applications filed by Israeli applicants by Israeli Applications filed | Chart 23 | In 2016, a total of 5,628 trademarks were removed fromthe therenewal register fee. due to non-payment of A notice of closure of either international following applicationsan owner’s express is effect receivedrequest of theto from basic close theapplication the Internationalapplication in the It country shouldor Bureau followingbeof notedorigin that ceasingduringthe applications theof 5-year abandoned dependencethe in most 2010, partperiod. 2011 single-class and even in applications. 2012 were for Thus, withnumber the transition of abandoned to a applicationsmulti-class system,is expected the to go down. In the absence of entirety, the applicant’s whereas international response, nationalservices applications which applications arehave been abandoned arerefused. client only abandonedIt should cannot with inberequest respectnoted their withdrawal that to inof appropriate goodsinternationalthe application written or applications requestdirectly in thisthefrom regard thewith theILPO, International but must Bureau. file an In 2016, 708 international applicationssame time,and 1631,365 national national applications applications and 20 international were closed.applications At werethe restored. 15,354 21.9% 79.1% 19,429 15,646 22.5% 77.5% 17,597 14,166 22% 78.0% 14,798 Trademarks Granted to Foreign applicants to Foreign Granted Trademarks 10,299 22.8% 77.2% 17,281 Continued Examinations 7,514 29.6% 70.4% 9,258 6,897 72.2% 27.8% 11,798 7,431 Classes examined in First and Continued Examinations in 2010-2016 Trademarks granted to Israeli Applicants vs.2010-2016 Foreign (percentages)Applicants in

74.4% 25.6% First Examinations 12,584 Trademarks Granted to Israeli applicants to Israeli Granted Trademarks | Chart 25 | | Chart 24 | The increase in the amount effortsof investedfirst by the Department’sexaminations examiners in to try2016 and preventcan the beincrease attributed in pendency. to the special These two charts indicate that the majorityby of foreigntrademark applicationsapplicants. filed Thesein Israel markets recordsare infiled Israel, may whichtestify are usuallyon ratelocatedthe of Israeli overseas.nature applicants On of testifiesthe otherthe that hand, thisgoods registrationthe relativelyand mean servicesislow underused.

Annual Report 2016

Israel Patent Office - 56

Chapter 5 - Trademarks Department 57 17.7

10,161 1.4

625 14.3 18.3

9,387 1.4

438 14.8

Total Time from Moment of of Moment from Time Total Grant Filing to 17.2

8,070 1.3

449 14

Examined Application 15.8

8,899 1.5

311 12.9 14.3

5,086 2.2

293 11.2 10.5

8,360 2.7

179 7.6 16.6

13,622 2.4 Immediate Examinations Immediate Accelerated Examinations vs. All Applications Examined in 2010-2016 Pendency for First and Continued ExaminationsTime and in Total2010-2016 Examination

200 12 Pendency for First Examinations (Months) First Examinations for Pendency (Months) Continued Examinations for Pendency | Chart 27 | | Chart 26 | In 2016, some 6% ofexamination all (most of applications them national marks). examined had been granted prioritized accelerated We can see a minor decrease in pendency for first examinationefforts in 2016, thanks made to the special by remained the the same. Department examiners. The pendency for continued examination

192,716

145,099

184,840

144,490

173,632

141,906

164,183

139,223

153,861

136,097

141,494 130,599

Classes

129,472

124,979

122,994

119,914

120,411

117,437

81,484 Trademarks in Force in Israel, including Classes, in 2007-2016 79,033 Trademarks in force in Trademarks

| Chart 28 |

Annual Report 2016

Israel Patent Office - 58

Chapter 5 - Trademarks Department 59

5,241

Philippines

Portugal

236 5,510

Belarus

Israel

246

5,599

Israel

Hungary

266

5,820

274 Bulgaria

Kazakhstan

6,670

280 Norway

Viet Nam Viet

7,696 337

New Zealand New Czech Republic Czech

7,828

Ukraine

884

9,310

Norway

947

Russian Federation Russian 10,102

1,101

Singapore

Republic of Korea of Republic

Austria 10,418

1,104 Turkey

Turkey 10,569

1,260

Mexico

Spain

11,391

1,278

India

12,997 1,830 Netherlands

China

1,951 14,292

Republic of Korea of Republic

Australia Australia

2,197 14,584

Japan

2,628

Switzerland

15,776

Italy

Japan

2,704

17,436

Russia 3,146

United Kingdom United 21,721

UIPO Switzerland 4,143

21,996 France

USA 6,759

International Applications Filed in accordanceProtocol with in the 2015 Madrid - by Country of Origin (Israel ranks 30) Designation of International Applications FiledMadrid in Protocol accordance in 2015with -the by Countries (Israel ranks 18)

24,849

Germany

7,361

China USA Israel’s International Profile Trademarksin the Field of

| Chart 30 | | Chart 29 | B.

Chapter 16 Patents Freedom and PCT of InformationDepartments Law

Chapter 6 - Patents and PCT Departments 63 2016 was also marked by continued effortsexaminers, to improveby instructionthe search sessions capabilities on theof usethe ofpatent new tools available on databases the ILPO In 2016, the transition to the CPC classificationfiled as systemof September has2016 beenwere classifiedcompleted. in accordance All applicationswith theintended new system. Thisto transition improve the quality ofto searchthe andILPO’s examination,advanced technologicaland was capabilities madecapabilities. possible place IsraelItthanks among is the worldnoteworthy leading countriesthat thesein this field.technological During the year, two editions of relatingthe workto Sections guidelines 7(1) and were8 of thereleased. Patentshuman Law, body Thewhichand criteria dealrevised withfor unity medicalguidelinesof the treatmentinvention, simplified of the cases.the procedures concerning such During this year, efforts to improve the numberquality of regular of andexamination periodical qualitycontinued, checks. byAccordingly, improveincreasing additional the the efforts work wereguidelines made to concerningemphasis the examinationon issues ofarising patent fromapplications the programquality wasand alsochecks.placing put in Inplace addition, to deal withduring professionalregular the ongoing year, gapsa qualityidentifiedtraining checks. on the periodical and In mid-2016 the mandatorythe Department online entered filing into of force.efficiency. all This mannerhad many of implications communications on examination submitted procedure to At the end of AugustofendtheAt2016, recruitmentthe cadetsnew15Departmenttheofto completed.was Facingthis significant recruitment, the training program for the new cadets andwas reconstructed improved. This new program was thecreated previous trainingby examinersprogram, who workedwho jointlywere withtrained thethe team leaders,accordinglessons taking learnedintoto account from past introductionyears. It courseis noteworthy was taughtthatrather thanthe in by externalprofessional full, lecturers. for content the in firstthe time, by the Department’s examiners The effect of the organizational changestaffing which of endedthe in middle-management2015, marked significantbytier the increase completionpositions in Department of outputs(team in 2016,leaders), a decreaseall offields,was overall examinationevident,and further timeshowing in attention a to theinternational quality standards.of the examination and to its compliance with At the2016,endofAtthe average firstexamination pendency was28.5months, less8%than the pendency in 2015. Average total examination timehas for patentsignificantly applications indecreased all departments compared shorten topendency 2015, time in continueddue examinations.to efforts made by the Department to In 2016 the Patents DepartmentEvaluation met ofthe ILPO’s goalsGoals. setThis byincludes 1,367the firstCommittee foreign examination for applications of the5,232 SettingIsraeli withinAdditionally, applicationsand the 9,441 framework and continued of theexaminations examinations International carried were out, Searching performed.204 Authority.applicationsOn these Of applications, were the theconducted totalIsraeli examinersthrough number were theaccelerated first of to examine firstprocesses. the application. is subscribed to, and by increasingproprietary the databases.budget for procuring professional publicationsAs part fromof the decision of the Committeethe forILPO’s the commitment Setting toand decreaseEvaluation pendency of ILPO’sinnew the cadetsGoals Department, isand expected another to take recruitmentplace in 2017. of 13 In 2017, the Department is expected newto receiveoperational the substantivesystem of examinationthe Patent overallmodule Department, of activity.the whichThis wouldmeans providethat operationalfullthe support entiresystem, to examinationtheas opposedprocess to to willthe document take current the place situation examinationwithin inthe manners report.which of examination,the This system quality transition ischecks, used istask-management in orderonly expected to draw and conclusions data to collectionregarding significantly theand quality analysis of alterexamination. theIn 2017, the microorganisms) work and guidelines 23 (amendmentsPatents relating Law are expected to to to the be revised. specification Sections of 4 Achange patentinthe work guidelines (novelty), applications)format and arevision ofthe Patent of 7(2) Journal are also thein expected,order to (patentability make them more accessible to of the public.

Annual Report 2016

Israel Patent Office - 64

Chapter 6 - Patents and PCT Departments 65

4,935

6,425

4,496

6,904

3,984

6,273

3,698

6,184

3,386

6,793

5,105

6,885

2,291 Patents Granted

7,300

2,013

6,800

1,906

7,789

2,641 Patent Applications Filed vs. Patents Granted in 2007-2016 8,051

Patent Applications Patent Examination Data | Chart 31 | In 2016, a decrease of aboutevident, 7%while thein upwardsthe trend amountin the amountof ofof applications patentgrants sincefully applications 2011examined continues.and patented filedThe constantly number in grew since Israelof 2011. aboutIn 2015, was an 9%increase was found in the numbercan beof attributedpatents togranted the preferencecompared givento 2014.inwhich the examinationThispast yearincrease startedto finish over 5handling years ago.applications In addition,refusal for innotices 2016, thefor procedureapplications for sendingthat underwentconditions 4 to examinationbe accepted, roundscontinued. and As ahave result, notsooner moremet applications thanthe in reachedprevious the years.grant stageIn addition,of the Patentsa Lawrevised dealing guidelinewith medical treatmentwith respect in the a human todecrease bodySection was issued. in 7(1)the This lednumber to of correspondencenumber on ofthis applicationsissue, compared accelerated to the therebypast.based increasingAlso,on the the the number ofuse grants. of PPH arrangements has increased, A. 804 9.7 90.3 5,621 830 9.2 90.8 6,074 825 10.0 90.0 5,448 889 11.2 88.8 5,294 Applications filed by Foreign applicants by Applications filed Applications Claiming Priority Right Priority Applications Claiming 11.4 88.6 1,015 5,778 994 11.5 88.5 5,891 11.5 88.5 1,078 6,222 12.7 87.3 1,078 5,722 12.3 87.7 1,208 6,581 Patent Applications Filed at the ILPO, includingPriority applications Rights, in 2007-2016filing Israeli Applicants vs. Foreign Applicants in 2007-2016

Applications first filed in Israel filed in Applications first 13.4 86.6 1,320 6,731 Applications filed by Israeli applicants by Israeli Applications filed | Chart 32 | | Chart 33 | Chart 33 indicates that the number ofincrease Israeli inapplicants the number remains of Israelisteady overapplicantsprovided the years.in to2016 The may the be attributed public to sinceapplications the e-filing December and foroption submitting 2015, communications significantly by the applicants. facilitating procedures for filing The number of applicationsapplications filed first in Israel filedunder the PCT inor the Paris Israel Convention We decreased remainedshould in aboutnote stable,8%. that in whereaslight applicants of the toSections file number 98overseas or of is 103limited securityof withtheor respectPatentsnuclear to Law,energy. inventions the Such small rightin applicationspart fields ofof the that applicationsIsraeli must relate firstbe to filedfiledstate in Israelin are Israelfiled Regardingin lightfirst.applications of theseHowever, firstlimitations. filed onlyinIsrael on2016, a 202 applications inout of804 thewere examined accelerated track pursuant Commissionerto Commissioner’s Circular Notice withdated November respectapplicants 28, to 2010, do “green and not applications”. makeexamination. This sufficient indicates use that the of Israeli the services the ILPO offers to accelerate the

Annual Report 2016

Israel Patent Office - 66 Chapter 6 - Patents and PCT Departments 67 | 437 | 2,734 14.3 85.7 | 418 H - Electricity 17.4 82.6 B - Performing Operations; Transporting A - Human Necessities 17.3 82.7 16 84 Patents Granted to Foreign applicants Foreign to Granted Patents 14.3 85.7 14.4 85.6 15 85

14.8 85.2 | 1,757 | 84 16.5 83.5 | 14 Patent Applications Filed in 2016 - by Fields Patents Granted to Israeli Applicants vs. Foreign2016 (percentages) Applicants in 2007-

13.4 82.6 | 766 Patents Granted to Israeli applicants Israeli to Granted Patents | 217 | Chart 35 | | Chart 34 | C - Chemistry; Metallurgy D - Textiles; Paper E - Fixed Constructions F - Mechanical Engineering; Lighting; Heating; Weapons; Blasting G - Physics The decrease in the number of patentsfact granted that to applicationsIsraeli applicants for whichmay originateexaminationmade to from began concludethe over the5 yearsexamination, ago, onmostwere applicationswhich mostly a arefocusfrom made bywas foreignthe lifeapplicants. sciences Anothernumber reason fields.of may allowances be theOn increasethis of in applicationsfield,the examinedmajority ofbased which onare alsothe fileduse byof foreign PPH applicants.arrangements, the

437

550

577 H

532 562

28.5 766

Average 962

817 G

760 2016

930

217

115

124 F

123 25.5

335 Pharma

84 Chemistry and 2015

115

124

E 123

150

14

50 23.2

31

40 D

41 2014

Biotechnology

1,757

1,999

1,767

1,878 C 2,112

33.3

418 Physics

2013 595

501 Mechanics and

566 B

534

2,734

2,336

2,096

31.3 1,956 A Average Pendency (months) for First Examination in 2016 - by Fields Patent Applications by Fields in 2007-2016

2012 Devices 2,128 and Medical IT, Electronics IT, | Chart 37 | | Chart 36 | As a result of the decrease in the number of applicationsdecrease, filed yet in Israel,a dramatic most fields increase present is a foundfield Human(A–in Necessities). the numberAnother fieldof whichapplications demonstrates anincrease in Mechanicalis“F-the Engineering; life Lighting;sciences Heating; Weapons; Blasting”. Thisattributedcanbe thedevelopmentto of the solar energy market, in which we note an increase in the number of applications.

Annual Report 2016

Israel Patent Office - 68 Chapter 6 - Patents and PCT Departments 69 28.5 (in Hebrew) Hebrew) (in 2016 5.3 30.4 Average 2015 29.4 2014 5.1 28 Devices 2013 and Medical IT, Electronics IT, 32.5 2012 5.4 34 Physics 2011 Mechanics and 35.7 2010 5.6 40.4 Pharma 2009 Chemistry and il/Units/RashamHaptentim/Units/patent/DochBchinot/Pages/default_.aspx 46.4 2008 5.1 Average Pendency (months) for First Examination in 2007-2016 Average Pendency (months) for Continued Examinations in 2016 - by Fields by - 2016 in Examinations Continued for (months) Pendency Average

51.2

2007 Biotechnology every quarter. 1 http://www.justice.gov. | Chart 38 | | Chart 39 | 39 Chart |

1 We invite the public website to follow the first examinations status report, published in the ILPO Inaddition, the Committee for the Setting and Evaluation oftime, ILPO’s Goals averagehas set, durationfor the first goals for first examinationuponcompleting inrecruitment 2016. Theseof additional durationexaminers, goalsthe arewhich ILPO. subjectare currently under training with Since 2007, the average pendency for firstdemonstrated examination continues in to decrease. 2014 Theapplications increase and under 2015 the resulteddespite PCT. the visible In from increase 2016, in the additional number the of PCT applications average examinations examined. pendency of has international significantly decreased, The Committee for the average Settingpendency for and first Evaluation examinationhas met this of should goal and ILPO’s beeven decreased29 Goalsmonths, pendency toand determined 28.5 themonths. Patents that Department in 2016,

Average 26 31 16 5.3 24.3 2016 2016 30 29 40 21 5.5 2015 2015 24 34 22 4.2 26.6 2014 2014 27 37 23 5.6 26.8 2013 2013 29 32 24 27.6 5.6 2012 2012 28 17 9.7 21 20.4 2011 2011 Mechanics, Electronics, IT, Medical Devices Electronics, IT, Mechanics, 22 21.3 28 19 10.1 2010 2010 21.1 22 2 23 20 10 2009 2009 Chemistry 20 23 18 9.9 2008 2008 19.5 Average of Total Examination Time (months) of Patent Applications2007-2016 in – by Departments Average Pendency (months) for Continued Examinations in 2007-2016

20 9.9 17.1 2007 2007 18 17.9 Biotechnology (in Hebrew) Hebrew) (in http://www.justice.gov.il/Units/RashamHaptentim/Units/patent/DochBchinot/Pages/StatusBochanim_NEW.aspx | Chart 41 | | Chart 40 |

2 In 2016, 9,441 continued applications were682 applicationshandled by inthe comparison patent examiners,to 2015. a decrease of Average pendency for continuedSetting and examination Evaluation of ILPO’s has Goals, which met statesexamination the that in 2016 goalwill the pendencynot surpass set for continued6 months. by the CommitteeinvitepublictheWe follow to continuedthe forexaminations statusdesignatedusing a information module in the ILPO website.

Annual Report 2016

Israel Patent Office - 70 Chapter 6 - Patents and PCT Departments 71 0 2 0 0 18 119 171 395 Granted 12 14 18 19 24 26 33 37 41 90 No. of Patent 2 5 1 0 0 Applications in 2016 107 112 764 Filed Patent Applications* 30 32 613 171 310 275 996 Granted 1,805 Total patents granted: 4,937 Following patent applications*: 705 Following PCT applications: 4,232 74 50 604 194 424 413 Filed 2,521 1,156 Applications in Israel National Phase of PCT Applicant Name Patent Applications Filed with and Granted by thein 2016Israel – byPatent Country Office of Origin Leading Israeli Applicants in Filing Patent Applications in 2016

Country

Elta Systems Ltd. Ramot at Tel Aviv University Ltd. ISCAR Ltd. Teva Teva Pharmaceutical Industries Ltd. Yissum Research & Development Company Universityof the Hebrew in Jerusalem Ltd. Israel Aerospace Industries Ltd. BG Negev Technologies & Applications Ltd.University c/o Ben Gurion Technion Research & Development Foundation Ltd. Yeda Research and Development Company Ltd. Biosense Webster (Israel) Ltd. Rank 10 9 8 7 6 5 4 3 2 1 China South Korea Other Countries Japan United States European Patent Office (EPO) Israel International Bureau (IB) Total applications: 6,427 Total patent applications*: 991 Total PCT applications: 5,436 │ Table 8 │ * Patent applications - applications first filed in Israel or requiring priority pursuant to the Paris Convention. │ Table 7 │ To further To reduce the examination time, the Department continues durationto focus of continuedon shortening examinationsthe and the pendency time for first examinations. The decrease in average examinationreorganization time inresults the mainly ILPO, were from manned. in the Another which reasonentry is the allinto implementation teamforce of of theof leadercorrespondences reduction the in positions the maximalbetween amount in the increased theexaminer the Patents efficiencyand applicant Departmentof the examination to process.4 time correspondences Infor addition, examiner’s a reduction only, response ofwhich the pendencyto theadditional applicant’s effect onarguments the overall wasexamination implemented, time. which had an Total examination time concluding was the examination measured rounds (ending from withthe granttime the requiredor refusal). to resolve date The data an opposition,does ofnot include if filed starting after grant. first examination until 9 9 8 26 15 10 45 43 33 29 29 13 13 in 2016 43 44 46 51 52 55 57 69 86 87 Applications Number of 6 8 8 5 22 52 46 29 27 31 13 13 18 Applications in 2016 in 2015 Applications Applicant Name Applicant Name Leading Foreign Applicants in Filing Patent Applications to the ILPO in 2016 in ILPO the to Applications Patent Filing in Applicants Foreign Leading Leading PCT Applicants at the ILPO as a Receiving Office in 2016

ASML NETHERLANDS B.V. PFIZER INC. REGENERON PHARMACEUTICALS, INC. ֿ F. HOFFMANN-LAF. ROCHE AG NOVARTIS AG GENENTECH, INC. RAYTHEON COMPANY PHILIP MORRIS PRODUCTS S.A. ISRAEL AEROSPACE INDUSTRIES LTD. DOW AGROSCIENCES LLC YISSUM RESEARCH DEVELOPMENT COMPANY OFHEBREW THE UNIVERSITY OF JERUSALEM LTD YEDA RESEARCH AND DEVELOPMENT CO. LTD. TECHNION RESEARCH & DEVELOPMENT FOUNDATIONLIMITED RAMOT AT TEL-AVIV UNIVERSITY LTD. B. G. NEGEV TECHNOLOGIES AND APPLICATIONS LTD., AT BEN-GURION UNIVERSITY STRATASYS LTD. ISCAR LTD. HADASIT MEDICAL RESEARCH REVICES AND DEVELOPMENT LTD. ELBIT SYSTEMS LTD. THE STATE OF ISRAEL, MINISTRY OF AGRICULTURE & RURAL DEVELOPMENT, AGRICULTURAL RESEARCH ORGANIZATION CORNING OPTICAL COMMUNICATIONS WIRELESS LTD KETER PLASTIC LTD. FACEBOOK, INC. Rank Rank 10 9 8 7 6 5 4 3 5 2 1 2 3 4 6 7 8 9 10 1 Comparing Tables 8 and 9 reveals that, in many cases, Israelinational applicants stage do not in continue Israel tofollowing a a PCT application. 10 │ │ Table Biosense Ltd., ranked first, has filed the majorityacademic of its applicationsinstitutions’ first inTechnology Israel. OutTransfer of first the Offices,in Israel. Compared theto Biosense, Technion the Technion leadsalso chose inaccelerated the Commissioner’sfilingtracks according applications Notice to dated November 28, 2010, for most of its applications. │ Table 9 │

Annual Report 2016

Israel Patent Office - 72 Chapter 6 - Patents and PCT Departments 73 10 10 43 12 44 13 46 14 51 15 52 18 18 55 19 57 29 69 30 86 31 87 0 Number of Number of Application Refused 2 Patents in 2016 Patents in 2016 3 2016 7 68 Patent Granted 5 26 13 2015 15 79 Application Abandoned Applicant Name Applicant Name 4 Allowance 22 17 2014 2 18 Top Foreign Applicants who Obtained Patents in 2016 Top Israeli Applicants who Obtained Patents in 2016 Status of Applications in which a Refusal Notice2014-2016 Had Been Issued in

ISCAR Ltd. Ramot at Tel Aviv University Ltd. ASML NETHERLANDS B.V. Elbit Systems Ltd. PFIZER INC. Yissum Research & Development Company Universityof the Hebrew in Jerusalem Ltd. REGENERON PHARMACEUTICALS, INC. Verint Systems Ltd. F. HOFFMANN-LAF. ROCHE AG Elta Systems Ltd. NOVARTIS AG Technion Research & Development Foundation Ltd. Rafael Advanced Defense Systems Ltd. GENENTECH, INC. Ben Gurion University of the Negev RAYTHEON COMPANY Yeda Research and Development Company Ltd. PHILIP MORRIS PRODUCTS S.A. Biosense Webster (Israel) Ltd. DOW AGROSCIENCES LLC Israel Aerospace Industries Ltd. FACEBOOK, INC. New Application SN | Chart 42 | Rank 10 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 │ Table 12 │ │ Table 11 │

3,593

216 21 2016 7

7 3,730

2016 41 130

Applications abandoned Applications abandoned Applicants by

25 24 2015

5,357

209 15 2014 19

9 5,667

2015 60 204

50 15 2013

Mechanics and Physics and Mechanics Medical Devices Electronics and IT,

3,470 Applications withdrawn Applicants by 230

9 10 2012

13

2014 4,933 21

20 105 3 2011 Patent Applications Refused, Withdrawn or inAbandoned 2010-2015 by (BeforeApplicants and After Examination) Applications in which a Refusal Notice Was issued in 2014-2016 - by Fields which a Refusal Notice Was issued Applications in

Biotechnology Pharma and Chemistry Refused Refused Applications | Chart 44 | | Chart 43 | As demonstrated in chart applications 43, inthe fields of noticespharma and biotechnology. can priorWe assume the reason applicationsisthat to most refusalin these fields are highly are complicated, mostlyand the decision theapplications issuedmaking process is also regarding wheninfluenced from examiningother Patent Offices the numberin the ofworld. examinationsWe should note inthat these fields is greaterleads tothan a greaterin fields number outside of lifenotices sciences. prior Thisto refusal. The chart indicates that in applicant41 applicationshave reached consent,intended the forexamination was refusalgranted. concluded in In successfully2015,18 refused theand theexaminerapplications defectsapplication andpresented in 2015in thethe notice applicant prior toare wasrefusal. still unable pending However, 79into 2016.refusedovercome applications the from 2015

Annual Report 2016

Israel Patent Office - 74

Chapter 6 - Patents and PCT Departments 75

51

48 35

H

264 55

257 95 38

185 Pharma 50

G

Chemistry and 50

228

20 15

2016

2016 7

F 199 18

211 3

5

171

3

E

Biotechnology 2

198 1

2015

2015 2 0

D 103 1

79 249 328

84 Physics 255

C Mechanics and 288 92

2014

2014 22

21 18

B 146 26

134 270

235

72 Divisional Applications according to Section2013-2016 24 of the - byPatents Fields Law 147 Divisional Applications according to Section2013-2016 24 of the - byPatents Fields Law

A 2013 99 178 Medical Devices 2013 IT, ElectronicsIT, and | Chart 46 | | Chart 45 | A significant decrease in the number of thatabandonedmore applicants applicationswish to receive protectionis noted.in Israel It andmay maintainthe be ILPO’s deducedasustained notices. response Furthermore,to since 2010, refuseda continuingpatent applications, increaseduetothe risingis notedstandards in ofthetheexamination numberalongatthe Department,of with the reduction of the number of examination rounds to 4 per application. Application is considered abandonednotices. when In the theapplicant absencefails applicant ofto or replyto a his or responsetoher representative,one andof thethe application followingILPO’s is considered the abandoned. issue of a notice of alert to the 52.75 31.4 2016 2,985 2,533 34.6 Medical Devices 37 Mechanics, Electronics, IT, 59.9 32.8 2015 36.1 3,289 1,733 Chemistry 40.9 Continued Examinations Mechanics and Electronics TimeAverage Total from Application Filing until Examination End (Second Publication or Abandonment/Refusal) 56.4 35.2 2014 34.8 961 1,952 40.9 Biotechnology First and Continued examinations in 2016 - by Fields Biotechnology Chemistry Average Time (months) from Filing a DivisionalExamination Application End vs.until Average Total Time fromExamination Application End Filing (Second until Publication or Abandonment/Refusal)

First Examinations | Chart 48 | | Chart 47 | The processing time processing for time of divisional non-divisional applications. applications This isDepartment a result of anda is focus instructions to this matter significantly given by the to the patent examiners. shorter than the average The number of divisional applications increasedcancellation in nearly everyof field.Commissioner’s The reason Circular may be theM.N. only be81, divided stipulating from parent that applications. divisional applications may

Annual Report 2016

Israel Patent Office - 76

Chapter 6 - Patents and PCT Departments 77

362 164 150 100

12/2016 12/2016

319 210 203 116

12/2015 12/2015

318 125 205 74

11/2016 11/2016

334 231 217 110

11/2015 11/2015

125 82 48 37

10/2016 10/2016

297 153 183 79

10/2015 10/2015

224 109 150 72

09/2016

09/2016

204 106

94 45

09/2015 09/2015

265 161 125 76

08/2016 08/2016

346 153 213 69

08/2015 08/2015

315 159 233 70

07/2016 07/2016

432 165 164 81

07/2015 07/2015

338 161 184 90

06/2016

06/2016 408 159 243 72

06/2015

06/2015

283 149 183 67

Continued Examinations Continued Examinations

05/2016 05/2016

369 177 277 82

05/2015 05/2015

180 98 119 79

04/2016 04/2016

232 156 140 77

04/2015 04/2015

257 171 170 89

03/2016 03/2016

343 167 191 82

03/2015

03/2015

296 186 205 107

02/2016 02/2016

347 161 191 63

02/2015 02/2015

168 326 100 180 First and Continued examinations, by Months in 2015-2016 - Chemistry First and Continued examinations, by MonthsBiotechnology in 2016-2015 -

First Examinations

First Examinations

01/2016 01/2016 92 188 184 281

01/2015 01/2015 | Chart 50 | | Chart 49 |

12/2016

12/2015

11/2016

238 11/2015

270 236

10/2016

274 196

10/2015

208 277

09/2016 136 297

09/2015

203

150

210

08/2016 299

163 08/2015

212

194

170 07/2016

266

07/2015 271

210

305 267 06/2016

216

06/2015 270

219 Continued Examinations 284 05/2016

205

05/2015 260

245

321

04/2016

155

244 04/2015

198

289 249 03/2016

03/2015 278 157

281

219

02/2016

255

357 02/2015

First and Continued examinations, by MonthsMechanics in 2015-2016 and Electronics - 243

284 First Examinations

01/2016

202

264

01/2015

287 253 | Chart 51 |

These charts demonstrate the changes in the ILPOthe workannual throughout goals the year:set whileby meetingthe DepartmentCommittee forprepared the toSetting recruit and andEvaluationand thetrain timeliness ofnew of theILPO’s Internationalcadets, Goals,a Search cadetthe and Examination mentors’ Authority course work was well-met.took place, 300

Annual Report 2016

Israel Patent Office - 78 Chapter 6 - Patents and PCT Departments 79 22.6 2016 397 21.5 2015 294 IT, Electronics and Electronics and IT, Devices Medical 2016 270 24.2 2014 163 20 2013 344 24 2012 Mechanics and and Mechanics Physics 216 2015 26 307 2011 133 32 2010 31 2009 Chemistry and and Chemistry Pharma 340 267 26 2008 2014 228 Applications Granted according to Section 17(c)out of of All the Applications Patents Law Granted in 2007-2016 Exercise of Section 17(c) of the Patents Law in 2014-2016 - by Fields

112

10 2007 Acceleration of Examination

Biotechnology | Chart 52 | | Chart 53 | This chart presents the total number of applicationsof Section filed in 17(c)2014-2016 of inthe which Patents the exercise Law exercisewas requested. this It Sectionis noted werethat mostfiled examination of inthe requeststhebased fieldto on theof useIT, alongsideof fields,PPH thewith examinationarrangements. a process requestThis was quickerisfor ondue several acceleratedandto countriesthe PPHthe arrangement fromfact which wasthethat, requested.use of 17(c)on these B. 22 29 180 2016 6 462 2016 16 47 13 160 2015 309 36 27 Accelerated Examination based Examination Accelerated Application” “Green on a 8 134 9 2014 2015 96 61 18 132 2013 28 40 Biotechnology Medical Devices Electronics and IT, Accelerated Accelerated Examination 3 21 2014 18 121 2012 44 7 38 109 2011 22 1 3 8 2013 16 49 Status of Accelerated Examination of ApplicationsRegulation According 35 of the to Patents Regulations in 2010-2016 Accelerated Examinations in 2013-2016 - by Fields 54

2010 Mechanics and Physics and Mechanics Pharma and Chemistry Accelerated Examination Examination Accelerated arrangement on PPH based | Chart 54 | | Chart 55 | Increased use of the accelerated examinationthe option slight decreaseis apparent, in the numbermostly ofunder applications PPH, despite filedbe attributed in Israel. Thisto the significant assimilation increase of maythe use offor the PPHimproving and GPPH amongthe the efficiencypublic, as a toolofregarding the the useexamination. of the option of acceleratedAn additional examinationwhich didinincrease applicationsnot previously was first claim filednoted priority in Israel, inright elsewhere.2016

Annual Report 2016

Israel Patent Office - 80 Chapter 6 - Patents and PCT Departments 81 52.75 19.6 2016 22.1 24.4 59.9 23.9 2015 23.7 20.5 PPH Applications Non-Accelerated of Processing Time Total End Filing to Examination from 56.4

27 2014 29.9 32.6 Average Time (months) from Filing an AcceleratedExamination Application End (Second until Publication or Abandonment/Refusal)Average Total Processing vs. Time of Non-AcceleratedFiling Applicationsto Examination from End

Green Applications Green Examination Accelerated | Chart 56 | Incomparison to the average total processing time, applications requestedin which an wereacceleration fully was processed in about halfin which of accelerationthe time wasit nottook requested. to fully process applications Most of the applicationsComputers, Physics in and Medical which Devices - theleading fields examination in the Israeli industry. was accelerated were in the field of 5 3 2 1 2 2 15 Request of Patent Reinstatement H 2 28 35 16 51 514 235 144 Renewal G After Fifth 3 1 98 50 32 35 41 25 13 295 F Renewal After Fourth 1 E 5 3 1 36 21 30 13 110 Renewal After Third D 2 21 19 55 40 137 After Second Renewal C 5 1 6 6 78 36 10 14 Renewal After First B 7 4 2 10 22 28 23 21 117 A Grant of After the the Patent Patents Expired in 2016 (by Fields)

1 47 15 84 147 Expired | Chart 57 | Chart 57 reveals that most patents thatrenewals, reach arethe inend the of Lifethe Sciencespatent periodfield. - fourth and fifth

Annual Report 2016

Israel Patent Office - 82 Chapter 6 - Patents and PCT Departments 83 492 2016 2.0% 2016 309 2015 1.9% 2015 94 2014 1.8% 2014 28 2013 0.9% 2013 7 2012 1 1.5% 2011 2012 PPH Applications in 2011-2016 Approved Requests to Delay Examination in 2012-2015,Entry into PursuantForce of theCommissioner Circular 05/2011

Rate of delays of examinations out of the applications for which applications for the out of examinations of delays of Rate 18 Section with in accordance received was response a | Chart 59 | | Chart 58 | As Chart 56 indicates, arrangements, upon ILPOtheexaminers receivingprovide fastestthe processing, a compared accelerationallto motion of examination to acceleratetracks offered by thethe ILPO. examination using PPH In 2016, 492 applicationsincrease of 183 wereapplications compared acceleratedto 2015. This signifies basedand familiarityan increase on in withpublic thisawareness tool, the together use with the accruedled of experienceto PPHan of theincrease ILPO. arrangements,All thein above the public’s anoptions trust on inthe thisILPO’s tool,part: andby tothe onlinetheuse filing.facilitationof a uniform of applicationthe application form and the new option of Thischart concerns thesuspension ofexamination inaccordance with Commissioner’s 05/2011,Circular whereby the examination may thebe requirementssuspended only underafter Sectionthe applicantpublic18 ofdoes responds notthe maketo Law.much useThis of thisyear mechanism,soonalso, as possible.asthe it prefersdata toindicates start the thatexamination the as 21% H 16% 23 20% PPH 26% 125 G 28% 15% 4% 312 F 6% GPPH 4% 97 1% 1% E Electricity Physics Mechanical Engineering; Heating;Lighting; Weapons; Blasting Fixed Constructions

2% - - - -

91 H G F E 0% 48 PCT-PPH 1% D 0% 16% 31 2016 C 15% 2016 26% 22 PCT-GPPH 9% 9% B 2015 11% 35 23% 17 PPH Applications in 2014-2016 - by Fields A Applications According to PPH Arrangements in 2015-2016 2015 25%

2014 SELF PCT-PPH 22% Textiles; Paper Human Necessities Performing Operations; Transporting Chemistry; Metallurgy

- - - - Self PCT PPH - International Applications Examined by the Israeli International SearchingAuthority. and Preliminary Examining

| Chart 60 |

| Chart 61 |

* A B C D

Annual Report 2016

Israel Patent Office - 84 Chapter 6 - Patents and PCT Departments 85 0

6 Russia 0

1 Germany 1

1 Singapore 2

4 Sweden 5

4 Canada 5

5 China

8 UK 1

18 Korea

18 20 of Republic

13 Japan 2016 24

20 Australia 35

17 Israel

109 EPO 57

PPH Applications by Receiving Office in 2016 2015

265

USA 162 | Chart 62 |

Israel’s International Profile in the Field of PCT of Field the in Profile International Israel’s The summary of 2016 presents a systemcontinuation by Israeliof applicants.the upwards Accordingly, trendIsraeli theInternationalin hightheSearching rateuseand Preliminary ofof ExaminingPCT the Authorityapplications PCT (ISA/IPEA) hasincreased. designating In the 2016, as part of conduct the transitionfull online ofwork, allthe new ILPO enables filing Departments onlinesite filing of of to the international PCT providing Department applications and the vouchers was and possibilityfromlaunched.other the documents, Department The via to receivingsite email, and documents provides file.the option to view the application In the course of the Department passing as receiving year, office 1,429 by Israeli applicants, international a riseis noteworthy of about applications 7% comparedthat 98.2% to 2015.of these It were applications filed weree-filing filed to online system. theusing the Department’s PCT new In2015 too,the ILPO wasranked first intheworld intimeliness ofprocessing PCTapplications and presented impressive data of 99.9%scope of ofIsraeli processingapplications work were in transferredrequiredits timeframe activityto ofthe up toasWIPO 4 weeks. anInternational ISA/IPEA. Bureau within In 2016,the more than 60% of all Israeli applicantsdesignated designated the Israeli the ISA/IPEA. US The others and applications European of Israelis filed ISA/IPEAs. in the WIPO International In the Bureau ILPO addition in Genevaas the in 2016,ISA/IPEA. to designating By the these end of December figuresapplications 2016, awere theretotal received of 652 from areinternational the International 135 searchIsraeli Bureau. applicants These figureshave in theindicate ILPO’s work,of the as trustthey prefer to designate the Israeli ISA/IPEA. C. During 2016, 1,354 international wereestablished. search This compared reports to1,085 search andreports and 8285examination internationalreports in2015. Since examination October reports2014, the ILPO toprovides applicants international from the searchUS. In andApril ILPOexamination10, 2016, and servicesa thecurrent USalso agreement Patents was Searchsigned and andbetween Trademarks Examinationthe Office Authority (USPTO) forThe concerning currentinternational agreement the patent ILPOstipulates applications activity that theto asfiled ILPO100 willtoPCT servetheapplications asUSPTO. an ISA/IPEAper fiscalforprevious a quarter quotaagreement). of (anup Also,increase under of the 25 currentregardlessapplications agreement, of the technological comparedthe ILPO classificationto willthe provide of theIt applicationthis shouldservice (including be business stressed methods). thatPCT theapplications said in limitationthe framework is agreement, of only by thethe end excluded ofILPO’s 2016, 530 with activityinternational respectas applications US applicants.an to forISA/IPEA. search examining were receivedAccording from to the Aiming to enable the users of these services to track thelimit, status and ofto preventcompliance recall with of the applications quota designatingpresent the ILPO, the numberthe ILPO of USdeveloped applications a tool filed to and received in the ILPO. This tool can be viewed

Annual Report 2016

Israel Patent Office - 86 Chapter 6 - Patents and PCT Departments 87

1,429 2016

2015 1,331 1,698

1211 2014 1,596

1,199 2013 1,611

967 2012 1,377

1,452 2011 1,062

1,488 2010 1,098

1,555 2009 1,238 2008 1,882 1,704 of Origin - Israel of

2007 Country PCT Applications by 1,635 1,746

1,513 2006 1,584

1,401 2005 1,456 2004 1,191 1,229 2003 1,161 1,124

2002 1,065 1,199

2001 1,222 1,248

874 2000 . Following this development, which enables full transparency of the 924 3 710 1999 729 636

672 1998 PCT Applications in 1997-2016

Receiving Office Receiving

PCT Applications via Israeli PCT Applications via 449 445 1997 http://www.justice.gov.il/En/Units/ILPO/Departments/PCT/Pages/PctDashboard.aspx

The other data is taken from the ILPO database, and is updated for 2016. | Chart 63 |

applications inventory designated by US designateapplicants, the ILPOas evenof ifJanuary they filed 2017, their USapplication applicantsIB), notin onlythemay WIPO in the International USPTO receiving Bureau office (RO/ (RO/US), as was the case so far. 3 Asthe chart indicates, in 2016 the upwards trend in number of international byIsraeli applicants applications continued. filed There also appears to be growing preferencethe PCTof Israelis Departmentto use as a receiving onlineoffice. serviceThis, whichamong enables else, improvedin lighte-filing Departmentof systemthe were –improvement filedas 98.2%using thisofof newthe onlineapplications system. to the * Thefigures* regarding PCT applications countryby originof were taken from WIPO database, and are updated for 2015. in the ILPO website 236

278 2016 915 327 193 135 2016 317 2015 885 819 200

292 2014 719 195 220 2015 128 321

2013 802 658 Applications filed by US applicants applicants by US Applications filed RO/US via 420 USPTO 2012 424 8 269 2014 134 661

718

761 2011 712 0

744 2010 EPO 192 2013

652 2009 622 889

850

2008 0 1,031 63 2012 219 979 Designation of the ILPO as an International2012-2016 Searching Authority in Designation of the International SearchingApplicants Authorities in by2006-2016 Israeli

2007 ILPO 754 Applications filed by Israeli applicants via RO/IL via applicants by Israeli Applications filed RO/IB via applicants by Israeli Applications filed

| Chart 65 | | Chart 64 | By the end of December International 2016, Bureau. a total of 652 applications were received from the WIPO In2016, 64% ofIsraeli applicants designated the Israeli ISA/IPEA (compared 59%to55% in2013, in 2014 and 62% inThese 2015).figures Theare othersan indicationdesignated designateof thethe the IsraeliongoingUS ISA/IPEA. andtrust Europeanof Israeli ISA/IPEAs.applicants, as they prefer to

Annual Report 2016

Israel Patent Office - 88

Chapter 6 - Patents and PCT Departments 89

Russia

0.03%

China

0.04%

Korea

0.09%

Poland 0.10%

Brazil 0.12%

India 0.12%

0.18% Japan

0.21%

Turkey

0.22% USA

0.23%

New Zealand New 0.27%

Mexico

0.30%

Germany

0.30% Italy

0.32% UK

0.42%

Spain

0.44%

France

0.50%

Austria

0.55%

Denmark

0.58%

Norway

0.59%

Belgium 0.70%

0.74%

Netherlands

Finland

0.81%

0.81%

Switzerland

Ireland 0.95%

1.08%

Singapore

Canada 1.22%

1.26% Sweden

1.42% Luxembourg

Patent Registration under the PCT vs. National Registration 2.22%

Australia

Israel Direct resident to PCT application conversion ratio (%) ratio conversion application PCT to resident Direct Patent Cooperation Yearly Review, 2016Treaty - The International Patent System | Chart 66 | In 2015, the “conversion rate” of Israeli applicationsthat manywas high Israelis (2.2%). This prefer reflects tothe claiming fact file priority, or international claiming priority in applications other countries (such directly as the US) underand not in Israel. the PCT, without Data presented in this WIPO report indicatesthe thatuse Israeli of applicantsthe PCTare themechanism. world leadersnumberThisofnational in patentcharts applications presentsfiled later onunder a Thethe conversionPCT. hypotheticismade dividing by “conversion the total PCT rate”applications of filedthe in a certain year by the number of local applications. * Chart is taken from WIPO report:

26.9 31.1

Turkey Sweden 31.7 39.5

33.0

40.4 India India More than 9 months 9 than More

54.5

56.0

Russian Federation Russian France

71.9

56.2

United States of America of States United Israel Germany 82.1

68.2

Canada Russian Federation Russian

86.0 More than 8 weeks Spain 75.3

8-9 months 8-9 86.1 Finland

76.3 Total

89.3

Netherlands

81.2 Office Patent European 91.5 Austria

as Receivingas Office termsin timelinessof in 81.3 Brazil

93.4 Total

87.2 International Bureau International 5-8 weeks

94.5 6-7 months 6-7 90.3 Receiving office

97.4

United States of America of States United China 91.9

98.8

Australia

95.1 Institute Patent Nordic

Share of PCT applications transmitted within 4 weeks (%) Republic of Korea of Republic 99.0 Office Patent European

firsttheinworld Canada International Searching Authority

96.6

99.1 Singapore China Republic of Korea of Republic 98.4

99.2 Chile

4-5 months 4-5 Sweden

99.0

United Kingdom United Share of international search reports transmitted within 3 months (%) Within 4 weeks

99.7

Spain

Australia 99.1

99.7

Japan Japan Timeliness of the Israeli ISA/IPEA in Transmittingthe International Search Reports Bureau to in 2015

Timeliness in Transmitting PCT ApplicationsBureau to the by International Receiving Office in 2015 100.0 99.8

Finland

99.9 100.0 Singapore

Israel Egypt 0 0 75 50 25 75 50 25 100 100

Within 3 months 3 Within

Distribution by time category (%) category time by Distribution Distribution by time category (%) category time by Distribution Chart is taken from WIPO report: Patent Cooperation Yearly Review, 2016Treaty - The International Patent System Patent Cooperation Yearly Review, 2016Treaty - The International Patent System Chart is taken from WIPO report: | Chart 68 | | Chart 67 |

* processingapplications.PCT Israeli99.9%ofapplications weretransmitted Internationaltheto Bureau at WIPO within the required timeframe of up to Finnish4 weeks. By this, andIsrael Japanesesurpasses the patent offices.Department atOnce the ILPOagain demonstrates (third excellence time in thein servicea itrow provides since the applicants.2013), the PCT * 2015Intoo, theILPO was rated

Annual Report 2016

Israel Patent Office - 90

Chapter 6 - Patents and PCT Departments 91

1,009

1,537

Spain

Finland

1,148 1,592

Spain

Finland 1,698 1,331

1,752 Israel

Israel

1,469

Australia

Sweden 2,848

1,577

Canada

3,083

Germany

1,622 Italy

3,858

Australia Australia

2,000

Sweden

4,280 Canada Canada

3,545

4,357 France

Switzerland

4,118

UK UK

5,313

10,430

Netherlands

8,476

IB

United Kingdom

14,657

France

14,626

of Korea Korea of 31,031

18,072

Republic of Korea of

Republic

China

34,302

29,846

Germany

EPO

43,285 China

44,235

Japan Japan Japan 57,881 PCT Applications Filed in 2015 - by Country of Origin (Israel ranks 14) 57,385

PCT Applications Filed in 2015 - by Receiving Office (Israel ranks 13)

USA USA | Chart 69 | | Chart 70 |

In 2015 Israel continued the upwards trend and now ranksone 13th more in the spot world. compared This iswith a rise 2014 of when Israel was ranked 14th. Since 2014 Israel’s rankinternational rose applications by filed by Israeli two applicants. spots in the ranking, from 16 to 14, in terms of Some60%ofthe international search reports were timely transmitted totheIB(threefrom months receipt of the internationalranks search ahead ofapplication). the US, Russian Thus,and Swedish in ISAs.terms of timeliness, the ILPO

Turkey

Sweden

India

India

Russian Federation Russian

France

United States of America of States United Israel

Germany

Canada Russian Federation Russian

Spain

Finland

Total

Netherlands

European Patent Office Patent European

Austria

Brazil

Total

International Bureau International

United States of America of States United China

Australia

Nordic Patent Institute Patent Nordic

Republic of Korea of Republic European Patent Office Patent European

Canada

Singapore

China Republic of Korea of Republic

Chile

Sweden

United Kingdom United

Spain

Australia

Japan Japan

Finland

Singapore

Israel Egypt

1

36 Chile 5 34

24 20 New Zealand New

6

44 Germany

3

79 Organization PCT National Phase Entries

13 94

Eurasian Patent Patent Eurasian South Africa South

12 116

Mexico

85 Kingdom United 47

Singapore 138 SAR

47 101 Russia

6

187

Brazil China, Hong Kong Kong Hong China,

26 245 Direct Applications Korea

32 301 India

239 113

Australia

75 299 Canada

362 154 Japan

513 187 China

828 270 EPO Top 20 Patent Office in which Israeli ApplicantsApplications Filed Patent(Direct + PCT) in 2015

521 764 Israel

2,198 5,684 USA | Chart 71 | The data above was taken from relatesthe toWIPO the enddatabase of 2015). (data is current Thefor dataFebruary presented 2017 in and the chart countryincludes as a wellcombination as PCT applicationsof applications thewhich US filedenteredis thedirectly thepreferred nationalin destinationeach phase. andTheby fourthIsraelidata place, revealsapplicants, respectively. that as Europe and China Itisnoteworthytake thethat thedata third isnotabsolute anddoes notindicate thetotal number ofpatents forIsraeli applicants. This, since this chart includes in severalpatent families countries).(a similar application filed

Annual Report 2016

Israel Patent Office - 92 Chapter 17 Designs DepartmentFreedom of Information Law

Chapter 7 - Designs Department 95 We expect the coming work year tonew Designs be Law dedicatedin the Knesset, tothe bill’s preparationsentry into force and fordeveloping thethe framework work enactmentcapabilities of thein of Haguethe Agreement, to whichlegislation Israel of thisis expectedmodern law. to accede following the Another change entered into force in 2016to isregistering the cancellation the design. of Thissending change grant reduces noticesboth on an the prioradministrativeILPO and the public, regulatoryand contributes burdento reducing imposedthe notedexamination above - time is currentlywhich - as three and a half months. Inaddition, andfollowing meetinga theDepartment held with thepublic onMay16, 2016, the policy regarding appropriateness of reproductionswas determined attachedthat reproductions to applicationsof indeterminate waslength length changed. doeswill notbe acceptedItmaterially when affect the object the design anexplodedfor whichview may be accepted, protectionwhen all object is componentssought; influencereproductions its appearance; reproductions of and of a magnified view maypart be isfiled, visible as anin additionalone of view,the trendwhenother in thethis submittedmagnified matter views.and willThese help changesLawthe billILPO’smatch is joining enacted,the toglobalization sincethe Haguemost ofSystem the such once drawings.contracting the Designscountries of the Hague Agreement accept Pendency time for examination 2016, and the average total pendency examination time for examination time examination was have 3.5 months,time significantly andwas the 3.5average reduced. monthsof total too. Ingiven These thesignificant great shorteningrise inof timesthe numberarenumber of prominentapplications of filednew in 2016design was the applicationshighest in the pastfiled decade. in Israel in 2016. The On December 29, 2016, a new E-filing site was launched.to file The online E-filing all documents,site enables notices the publicand applications completed to the Designsthe transition Department. to full This online launch work in all ILPO Departments. The Designs Department underwent many changes in 2016improve as thepart services of the providedconstant toefforts the applicants, to andDepartment in preparation is about of the to experiencemany changes in the the near future.the newThis, Designs givenLawand Israel thejoining expectedthe Hague Agreementenactment for the of international registration of industrial designs in multiple territories.

1,388

1,866

1,744 1,532

1,285

1,396

658

1,351

636

1,584

861

1,536

847 Designs Registered

1,648

1,107

1,767

1,077

1,775 1,301

Design Applications vs. Registered Designs in 2007-2016 1,722 Design Applications Design Examination Data

| Chart 72 | A. After several years of moderate rise in the number of design1,351 applicationsapplications in Israel,in 2013, whichin 2016 was-1,866 applications were filed. of applicationsThis is the largest filedamount in the past decade. This can beof considered the applicants a clear intrend this of registrationincreased use tool and public recognitionAlongside of its growing this importance. impressive rise designsin registeredthe wasamount noted. Thisof decrease applications, can be attributedof examiners to thea reduction in thedecrease Department in the number andin the specialthe effortamount madeDepartment in 2015of to reduceis meant pendency. to The preserve such pendency manpower.in the coming year despite the reduction in

Annual Report 2016

Israel Patent Office - 96

Chapter 7 - Designs Department 97

1,866

98

1,532

7

3.5 3.5 228

1,386 360

12

4.5 7.5 1,343

450

1,571

19.5

7.5 12 270

1,531 180

19.5

1,651 4.5 15

Design Applications Design 150

Average of Total Examination Time Examination Total of Average (in Months)

1,753

15.5 105

6.5 9

1,773

135

1,703 14

8 6

135

1,617 150 16.5

11.5 5

1,676

270

1,407

17

13.5 3.5 420

1,366 600

13

1,354 8.5 4.5 600

Average Pendency for First Examination and (fromTotal BeginningExamination of TimeExamination to Publication) in 2007-2016 Average Pendency for First Examination vs. inDesign 2001-2016 Applications Filed 1,401

Average Pendency Time for Design Design for Time Pendency Average Days) (in First Examination

16 480 11.5 4.5 Average Pendency Time for Design First Design for Time Pendency Average (inMonths) Examination It should be taken into consideration that during 2016 the reports measuring this information were amended to allowinclusion of the pendency for divisional applications.(In the past,parent time application,was measured while by the currentlyapplication timedate of is the We would measured also note from that data the for past actual years in date this chart of is slightlyfollowing receipt the differentimprovement in of thethan information data systems the inpublished this matter. divisionalin previous application).reports | Chart 73 | | Chart 74 |

* A significant decrease in total examinationreducing time is examinationapparent. This pendency decrease resultstime registration bothand fromfrom in theceasing second halfto of send2016. grant notice prior to design 9.6% 8.2% 7.5% 13.8% 10.9% 8 7 6 9 Percentage of Total Design Applications 5 10 4 3 2 257 203 180 153 140 11 1 Applications Number of Design 31 Unknown 30 29 12 28 27 26 13 Class 14 21 25 Furnishing building units and construction elements Means of transport or hoisting Articles of adornment Packages and containers for the transport or handling of goods 15 18

- - - - -

17 24

20 22 19 23 16 Top Five Classes in Design Applications in 2016 Design Applications Filed in 2016 - by Classes

Class 12 Class 11 Class 9 Class 6 Class 25 No. | Chart 75 | Serial 2 3 4 5 1 │ Table 13 │ As noted in previous years, we can see a consistenttime trend for of inverseexamination ratio betweenand pendencythe amount ofexamination design applicationscontinues filed.to Asdecrease, the indicationpendencythe timeamountof for the of importancedesign applicationsthe needusers to continue ofrise. maintaining this This the service trendis of reducingascribea clearpendencynote to that forfast examination.data forreaction past We wouldyears alsointime this chartand is slightlythe reports different following than datathe improvementpublished in in previous the information systems in this matter.

Annual Report 2016

Israel Patent Office - 98 Chapter 7 - Designs Department 99

| 3% | 3% | 2% | 2% | 2% | 2% | 9% | 9% 1,635

Italy Brazil 1,761 France

Sweden

Germany 2,078 Netherlands

Luxembourg

United States 2,361

2,151

1,831

1,750 1,549

No. of Continued Examinations of No.

1,978

1,054

2,570

1,259

2,664

1,857

2,225

1,794

1,875

1,987

1,787

1,682 2,106

First Examinations vs. Continued examinations in 2007-2016 Top Ten Countries of Origin for Filing Design2016 Applications (percentages) in Israel in 2,439

No. of First Examinations of No. | 1% | 67% | Chart 77 | | Chart 76 | Switzerland Israel As the chart indicates, the vast majority of design withNow,applicationsexpectedthe enactment Designsnewtheof are laterandLaw accessionthe filed Haguetheto by Israeli applicants. Agreement, we estimate that the percentage of foreignuse applicants of the Internationalwill increase, Designfollowing System the which will simplify the filing process in Israel. 65% 35% 70% 30% 74% 26% Designs granted following granted Designs First Examination 78% 22% 79% 21% 12% 88% Designs Accepted After the First ExaminationExamination vs. Continued in 2010-2016

Designs granted following granted Designs Continued Examination 22.5% 77.5% | Chart 78 | The trend observed in recent yearsthe offirst riseexamination in continues.the percentage This, followingof applicants applicationsexpansion through of theaccepted theinformation ILPOafter website.provided toIncreasedall the ILPO Departmentstransparency is beneficialand certainty also in forthe Designsthe publicDepartment. in This chart indicates that this examinationsyear also, than firstas examination.in the This isprevious due to thereduce continued year, thethere effortamount of are theof Departmentcontinuedfewer to examinationscontinued inand the number total examination of continuedtime. The decrease examinationsnow have, after canthe publication also of the be examination attributedmanual guidelines that to and iscomposing the also a betterdetailedposted user certainty in the the transparency usersDepartment’s levelpage hason theimproved applicantsILPO the knowwebsite. morequality what It are theofappears requiredapplications conditions.that filed and examined as the

Annual Report 2016

Israel Patent Office - 100 Chapter 7 - Designs Department 101 557 1,178 282 525 521 - on July 1, 2014, the Designs Regulations - according to this Regulation, processing a 690 612 782 587 Design Applications Not Registered in 2007-2016

1,045 | Chart 79 | Now, in 2016, as the exercise of theseamount oftwo unregistered Regulations applications no longer back tooverlaps, the usual size.we can see the Paragraph 28 of the Designs Regulations 2015,pastalldoneInyears,inas many design applications wereclosed pursuant Regulationto 31 following the applicant’s failure to manycomplete applications handling thewere registration. closed Atdue theexercise tosame offailure time,the now effectiveto respond Regulation to28. examination reports, given the Paragraph 31 of the Designs Regulationsdesign application must be completedlack ofwithin the applicant’s12 months. response If to thisnotices abandoned. wasof deficiencies,Thisnot datecompleted may thebe extendedapplicationdue byto threewill bemonths, closedbe considered afterif the which applicant the applicationdoes not complete file willhandling it. (Amendment) 2014 have Regulation entered 28, into stating force. that three These the months applicant Regulationsfrom notice should included delivery, respondthe applicantor amendment to ask will a forbe of noticeconsideredextension oftoRegulation to have deficiency provideabandonedby way ofa the withinclosing response; design a designapplication.otherwise reportsapplications sent Exerciseafter July due1, 2014 ofbegan to atthis thefailure end of 2014. This,to after respondsending issue remindersto which examination earnedin this no response. Needless to note thatregistration design applications and were that closed did notin reachlight of the laterimplementation close pursuant of this to RegulationRegulation 31 do noted not above.need to Some details about these two Regulations and their overlapping exercise in 2015: Now, when the exercise the of exercise Paragraph of 28 Paragraph of 31 applications the of not the registered Designs Designs have gone Regulations back Regulations, to figures nosimilar we to longer canthose of previous see overlaps years. that the amount of

0 0 8 9 5

196 22 29 10 23 40 30 60 98 437

Registered

178 Foreign

3 0 4 9 1 496 36 60 14 40 34 27 67

Applications

175 Filed

164 436 0 9 1 8 2

77 51 62 47 38 52 78 28

160 Registered 401 7 2 4 0 65 65 82 72 86 10 27 from Israel

Applications

104 120

Filed 132

405

Designs which were renewed which were Designs a third period for

82

385

132

280

181

272

152 330

Classification 150

Design Applications Filed and Designs Registered in 2016 - by Classes Trends Relating to the Duration of Designs in 2007-2016 320

Designs which were renewed which were Designs period a second for Clocks and watches and other measuringinstruments, checking and signaling instruments Articles of adornment Means of transport or hoisting Furnishing Household goods, not elsewhere specified Tools and hardware Packages and containers for the transporthandling or of goods Articles of clothing and haberdashery Travel goods, cases, parasols and personal belongings, not elsewhere specified Brushware Textile piecegoods, artificial and naturalmaterial sheet Foodstuffs

| Chart 80 | 1: 2: 4: 5: 6: 7: 12: Unknown 11: 3: 8: 9: 10: │ Table 14 │ This year also we can notice a thethird upwardsperiod oftrend registeredin thedesigns Thisamount isand an indicationofextension requests to the ofvalue oftheirfor the registeredrenewalvalidity right, registration.forfor even afteran quiteadditional a few years period. from its

Annual Report 2016

Israel Patent Office - 102 Chapter 7 - Designs Department 103 6 2 0 1 5 4 0 0 0 0 4 0 3 50 11 34 16 16 19 505 Registered 43 40 34 30 26 17 16 15 14 117 Foreign 7 0 0 6 3 0 0 0 4 7 0 7 31 21 16 52 16 23 20 Applications 683 Filed Applications Number of Design 4 4 2 3 6 8 1 3 0 7 6 4 0 23 40 10 23 19 883 267 Registered 6 8 9 6 6 0 2 0 8 0 24 55 32 29 10 12 34 36 from Israel 257 Applications Filed 1178 Name Classification Leading Israeli Applicants in Filing Design Applications in 2016

KLIL INDUSTRIES LTD. Na’ale Naot Agricultural Cooperative Society For BusinessALKO Ltd. advanced aluminum systems l.t.d. DORIT JUDAICA LTD. KETER PLASTIC LTD. HAZORFIM LTD. PRIVATE APPLICANT PHOTAX MOLDS LTD. MONKEY BUSINESS DESIGN ISRAEL LTD. Travel Smart Ltd EXCLUSIVE LIGHTING FURNITURE LTD. OTOTO DESIGN LTD. Articles for the care and handling of animalsMachines and appliances for preparingdrink, food ornot elsewhere specified Medical and laboratory equipment Building units and construction elements Lighting apparatus Tobacco and smokers’ supplies Pharmaceutical and cosmetic products,articles toilet and apparatus Devices and equipment against fire hazards,accident for prevention and for rescue Games, toys, tents and sports goods Arms, pyrotechnic articles, articles fishingfor hunting, and pest killing Fluid distribution equipment, sanitary, ventilationheating, and air-conditioning equipment,fuel solid Musical instruments Printing and office machinery Stationery and office equipment, artists’teaching and materials Sales and advertising equipment, signs Equipment for production, distributiontransformation or of electricity Recording, communication or informationretrieval equipment Machines, not elsewhere specified Photographic, cinematographic and opticalapparatus

Rank 28: 30: 31: Total 16: 17: 18: 19: 20: 21: 23: 26: 14: 1 2 3 4 5 6 7 8 9 10 13: 25: 27: 29: 15: 22: 24: │ Table 15 │ Note that in addition to the above data,origin due wasto notmistake identified in applicationin five applications. filing data, country of 7 6 12 15 11 10 10 17 12 21 13 22 21 14 23 21 41 22 35 127 160 Number of Applications Registrations Number of Design Name Name Y. ARICHA Y. AND SONS LTD.

Leading Israeli Applicants in Registering Designs in 2016 Leading Foreign Applicants in Filing Design Applications in 2016

SHAHAM R. PORTAL PROJECTS MANAGEMENT LTD. SHL ALUBIN LTD. Peleg Design Ltd. PRIVATE APPLICANT P.C.O.A. DEVICES LTD. PRIVATE APPLICANT LIEBLING SHOES LTD. OTOTO DESIGN LTD. AMITY. SYSTEMS LTD. DIESEL S.P.A FURNIPART Merck KGaA MICROSOFT CORPORATION KONINKLIJKE PHILIPS N.V. Traeger Pellet Grills, LLC Minka Lighting, Inc. SAVERGLASS FERRARI S.P.A FCA ITALY S.P.A. PRIVATE APPLICANT JARDIN NETHERLANDS B.V. MONKEY BUSINESS DESIGN ISRAEL LTD. Juicero, Inc. KETER PLASTIC LTD. GRENDENE S/A Inc.Ty ALKO advanced aluminum systems l.t.d. CURVER LUXEMBOURG SARL Na’ale Naot Agricultural Cooperative Society For Business Ltd. MAN TRUCK & BUS AG KLIL INDUSTRIES LTD. H. STERN COMERCIO E INDUSTRIA S.A. SCANIA CV AB No. Rank Serial 7 8 9 10 8 9 10 6 7 5 6 4 5 3 4 2 3 1 2 1 │ Table 17│ │ Table 16 │

Annual Report 2016

Israel Patent Office - 104 Chapter 7 - Designs Department 105 7 6 81 34 25 18 17 15 14 10 Applications Number of Design Name Leading Foreign Applicants in Registering Designs in 2016

SCANIA CV AB CURVER LUXEMBOURG SARL MEDELA HOLDING AG JARDIN NETHERLANDS B.V. FURNIPART MAN TRUCK & BUS AG H. STERN COMERCIO E INDUSTRIA S.A. DYSON TECHNOLOGY LIMITED DIESEL S.P.A DART INDUSTRIES INC. KONINKLIJKE PHILIPS N.V. APPLE INC. Inc.Ty COLGATE-PALMOLIVE COMPANY a Delaware Corpor MICROSOFT CORPORATION FERRARI S.P.A HANS GEORG HAGLEITNER Reckitt Benckiser (Brands) Limited SANOFI No. Serial 10 1 2 3 4 5 6 7 8 9 │ Table 18 │

Israel

Israel

Argentina

Spain

Singapore

1,538 Egypt

1,744 Singapore

1,581

Malaysia 2,039

1,619

Italy

2,445

1,712

China, Hong Kong SAR Kong Hong China,

Switzerland

Spain

1,762 2,580

Mexico

1,919

2,638 South Africa South

1,927 Ukraine

Ukraine

2,852

1,960

Brazil

Viet Nam Viet

3,143 2,080

2,445

3,285 Indonesia

Indonesia 2,769

China, Hong Kong SAR Kong Hong China,

3,505

Thailand

Mexico 3,972

3,711

3,999 Thailand

4,150

4,461 France

Iran (Islamic Republic of) Republic (Islamic Iran

4,908

5,459

Russian Federation Russian

4,929 Germany

5,609 Russian Federation Russian Canada

5,846

Brazil

5,690

6,039

United Kingdom United

Canada

5,728 6,472

United Kingdom United

7,024

6,592 Australia Australia

7,155

7,461 Germany India

8,896

Turkey

10,462

10,290

Turkey

India (In 2014 Israel ranked 25)

11,856

24,667

Iran Iran EUIPO

22,638

26,645

USA

EUIPO

29,451

26,708

Japan

Japan 38,468

USA 54,706

esign Applications Filed in 2015 - by Countries (Israel ranks 29) 67,326 egistered Designs in 2015 – by Countries (Israel ranks 23)

D 482,659 R

569,059

Republic of Korea of Republic

China

China Republic of Korea of Republic Israel’s International Profile in the Field of Design of Field the in Profile International Israel’s

| Chart 81 | | Chart 82 | The data above was taken from therelates WIPO to the databaseend of 2015). (data is current for November 2016 and The data above was taken fromrelates the to theWIPO end ofdatabase 2015). (In (data2014 Israelis rankedcurrent 30) for November 2016 and B.

Annual Report 2016

Israel Patent Office - 106 Chapter 18 Freedom of Information Law

Chapter 8 - Freedom of Information Law 109 ). http://www.justice. gov.il/Units/RashamHaptentim/YetziratKeser/Pages/LyrisPatents.aspx To completeTo the picture regarding information that may be obtainednote that from judicial the ILPO, resolutions we would of the Commissioner, Vicepublished Commissioner on theand IPILPO Adjudicator website, areand distributedmailing to the commonlist legalfor databasesupdates and (youthe ILPO may subscribe to this mailing list here: In 2016, one request was filed to the Commissioner overto Freedom receive of information Information by in thethe ILPOFreedom of Information Law. The ILPO Director appointedhandle requests a for Commissionerinformation andCommissioner for the Providingimplementationperforms his Informationofrole theunder Publicprovisionsthe to professional Inquiresof the this guidance UnitLaw. Public Theon DirectorAdv. Ministry to Michal of andTeneh,Justice. the Commissioner over Freedom of Information Law in the TheFreedom ofInformation Law5758-1998 determines that every citizen orresident hasofthe Israel right to receive information on the activity of a public informationbody. The Law lists thatthe types shouldof be made public, and themakes manners sure tofor provide making the it publicaccessible. with completeThe ILPO subjectinformation,to the limitations to the extentapplicable it isby law, required,while recognizing and of thethe processesimportance andof transparency decisions it makes. Administrative instructions of the ILPONotices Director, are postedsuch on asthe ILPOCommissioner website and Circularssent to the distributionand Public list.

/about/Pages/annualreport.aspx [email protected] .gov.il hofesh and the ILPO Facebook page: Israel Patent Office .gov.il Report URL: http://www.justice.gov.il/Units/RashamHaptentim www.patents Mr. MosheMr. Cohen Phone: 02-5651702 CommissionerFreedomforInformation of MinistrytheinLaw Justice: of Michal Teneh, Adv. Phone: 02-5425513; email: Patent.Customer-Serv@justice Tel: 02-5651702 Commissioner for Providing Information to the Public in the ILPO: Public Inquiries Office of the Israel Patent Office Director, 1 Agudat SportTechnology Hapo’el Park, BuildingStreet 5, Jerusalem ZIP: 96951 To reviewTo resolutions and further current information please visit the ILPO website on

Annual Report 2016

Israel Patent Office - 110

Report Editing: Ms. Ruth Elhav, International Relations Officer, ILPO

Israel Patent Office Management

Graphic Design: Maor Wallach Press LTD.