STA Law Firm https://www.stalawfirm.com/en.htmlSTA Law Firm - Court Uncourt (Blog) - Laws of IsraelenCopyright 2024 STA Law Firm All Rights Reserved<![CDATA[Intellectual Property: Patent Registration in Israel]]> Intellectual Property: Patent Registration in Israel

An invention is protected by a patent, which is an exclusive privilege given to the inventor. In other words, a patent is an exclusive license to a device or a method that proposes a new technological approach to a problem or a new way of doing things. Technical information about the invention must be submitted to the public through a patent application in order to obtain a patent.

Patent applications are submitted at the ILPO's Patents Department from all over the world. Each submission is addressed to a special examiner (an engineer or expert) in the area in which their invention is made. A patent will be awarded if the invention meets the conditions of the Patents Law and Regulations.

What are the sources of Israeli patent law?

The main source of patent law is the Patents Law, 5727-1967. the list of the most significant secondary legislations is mentioned below:

  • the Patent Regulations (Extension of Protection ‒ Procedures for Order Application, for opposition to the order and for Application for Revocation), 5758-1998
  • the Patent Regulations (Application of the Patent Cooperation Treaty), 5756-1996
  • the Patent Regulations (Office Practice, Rules of Procedure, Documents and Fees), 5728-1968

Who has the authority to file a patent?

The owner of the invention must file an application to register a patent under Section 2 of the Patents Law. According to Section 1, the inventor or individuals who derive title under the inventor and are entitled to the invention by operation of statute, sale, or arrangement are the owners of the invention. A claimant who is not the inventor is required by Section 11(b) of the Patents Law to explain how it came to own the invention.

When a patent is licensed, what rights do you get?

A successfully registered patent entitles the patent holder to enjoin third parties from using the invention on which the patent is issued without permission or unlawfully, according to Section 49 of the Patents Law. 'Exploitation' means using the invention in the manner specified in the claims or in some other manner that includes the invention's nature in light of the claims. The issuing a patent does not grant authorization to use an invention illegally or in a way that infringes on any legitimate privileges under any statute."

How does a patent holder go about enforcing his or her rights?

Patent holders and exclusive licensees may sue in court to protect their rights. A patent infringement suit may only be filed after the patent has been granted, according to Section 179 of the Patents Law.

What is the period of a patent's validity?

A patent is valid for 20 years from the date of registration of the patent application if extension fees are charged, according to Section 52 of the Patents Law. If the violation occurs within the duration of the patent, it can also be pursued by a petition for damages after the term has expired due to Israel's seven-year statute of limitations. Courts have discussed the prospect of a post-term injunction, but it is uncertain to what degree this remedy exists.

Which regulatory authority is in charge of the registration process?

The Israel Patent Office.

What are the reasons for a patent claim being rejected?

The reasons for a patent claim being rejected are as follows;

  • Failure to include a complete reference list and list of publications (Section 18). Courts also ruled that failure to do so constitutes a breach of contract (see, for example, CC 14/92 (Nazareth Distr) Plasson Maagan Michael Industries Ltd v Freddi Priant et al. [1993]).
  • Failure to meet the enablement, sufficiency, definition (Article 12), and argument support (Article 13) requirements;
  • Failure to follow the procedural provisions of Chapter 3(a) of the Patents Law (payment of relevant fees, the inclusion of proper specification and claims etc.)
  • Failure to meet Section 3 of the Patents Law's patentability criteria (novelty, usefulness, industrial use, and imaginative step); and
  • Lack of clarity of ownership

Are there any forms of statements or claiming formats that are prohibited under your jurisdiction (for example, claims based on medical processes)?

Method claims for human therapeutic treatments are not permitted under Section 7(1) of the Patents Law. Patent applications for new species of plants or animals are also prohibited under Section 7(2) of the Patents Law, with the exception of microbiological species not derived from nature. Furthermore, since they are not considered as process or substance claims, so-called "use claims" are not permitted. Furthermore, so-called "Swiss-type" format statements are not permitted. Additional exclusions, such as business methods, have been established by case law. 

Are there any administrative or regulatory procedures for extending the length of a patent (for example, adjustments for patent office delays, chemical patent term extensions, or supplemental security certificates)?

Yes, but only in the form of patent extension orders for patents on medicinal preparations and medical equipment. As punishment for legal delays that prohibit the patent holder from using the patent, extension orders of up to five years can be issued. The following are the requirements for their award, as specified in Section 64D of the Patents Law:

  • The SAID registry is the first to include the drug, allowing it to be used for medicinal purposes in Israel.
  • A drug registered in Israel's Pharmaceutical Registry is present in the pharmaceutical preparation.
  • If marketing permits have been issued in the United States or a recognized European country, a patent alleging said planning abroad has been granted an extension period that is valid in both the United States (if applicable) and the recognized EU country (if applicable).
  • There has never been another extension order for the patent or the substance; and
  • The drug, method for producing or using it, medical preparations containing the material or process for producing it, or medical devices claimed in the basic patent, as well as the basic patent, are still valid.

The drug, method for producing or using it, medical preparations containing the material or process for producing it, or medical devices claimed in the basic patent, as well as the basic patent, are still valid.

The extension period cannot be longer than the shortest of

  • 5 years
  • the underlying patents' expiration or termination, or their patent term extensions in a recognized country
  • 14 years after the first marketing authorization in Israel or another recognized country; or
  • in recognized patents, the shortest term of expansion of associated patents

What types of subject matters are patentable?

A "patentable innovation" is described as "an invention, be it a product or a method in any field of technology, that is new and useful, has industrial application, and requires an innovative phase," according to Section 3 of the Patents Law.

Is there a way to challenge the patent office's refusal to issue a patent, and if so, to whom?

If there is a rejection of a patent application by the Israel Patent Office, the applicant can seek a hearing before the registrar. According to Section 174 of the Patents Law and Regulation 191 of the Patents Regulations, if a patent is not issued after the trial, the claimant has the right to appeal to the district. Additionally, the registrar can reconsider the rejection at the applicant's request if the request is made within 12 months of the refusal date.

What are the reasons for invalidating a patent that has already been issued?

The reasons for invalidating a patent that has been granted (as mentioned in Section 31 of the Patents Law) are the same as those for opposing the issuance of a patent, as follows:

  • Owing to the previous application (which destroys novelty) or demonstration, the invention is not patentable.
  • The owner of the invention is the opponent, not the plaintiff; or
  • There are some reasons why the registrar may have denied registration.
  • A patent could also be invalidated if it was not prosecuted in good conscience (e.g., failure to inform the Israel Patent Office of an important citation abroad).

Who will challenge a patent that has been granted?

Any third party can bring a termination suit against a patent that has been granted. A patent revocation claim may be filed at any time after the patent has been granted.

What are the deadlines for filing a post-grant review petition or an opposition?

Within three months of the approval of the bid, a note of pre-grant opposition must be filed. This time frame cannot be extended.

When an opposition is filed, what are the potential outcomes?

The potential outcomes of opposition are as follows;

  • the opposition's dismissal
  • acceptance, in whole or in part, of the opposition; or
  • Ownership of the copyright is transferred to the opponent.

What legal principles will the tribunal use to settle the appeal or opposition, and who holds the presumption of proof?

The legal principles used by the Israel Patent Office are identical to those used in courts. In a patent opposition proceeding, the claimant bears the presumption of evidence. In a revocation case brought by a third party, though, the presumption of evidence is on the revocation claimant.

What factors contribute to a patent's inability to be enforced?

Patents cannot be executed until they are granted in most cases. A legal case for infringement can be brought after the patent has been granted, according to Section 179 of the Patents Law; however, if an action for infringement is brought, the court may award relief for infringement committed after the date of publication of the claim.

Furthermore, if a renewal charge is not charged and the patent is declared lost; as a result, the patent will become unenforceable. If a patent holder wants to impose an invalid patent, they must file a petition with the registrar to get his or her consent.

According to Section 53 of the Patents Law, whether the applicant used or planned to use the technology before the date of award, it would be immune from infringement. Even after the patent has been restored, if the defendant started to exploit the invention in Israel on the day the patent lapsed, or if the defendant made real provisions for its use after that date, the defendant shall be entitled to continue to exploit the invention only for the purposes of its industry.

 What matters infringes a Patent?

In light of the concept of such claims, Section 49(a) of the Patents Law distinguishes direct infringement as the unauthorised or unauthorized use of an invention for which a patent has been issued, either in the manner prescribed in the claims or in some manner that includes the substance of the invention.

Is it possible for a party to be held responsible if the copyright violation occurs outside of the jurisdiction?

The Patents Law, in general, refers to infringements that occur within Israeli territories. There are no equivalent clauses in Israeli law to those found in 35 US Code 271 (f). In at least one instance, an Israeli court ordered an injunction against an Israeli firm, requiring it to guarantee that its international subsidiary did not misuse the technology outside of Israel (MCA 814/05 (Jer Distr) CC 7076/05 Orbotech Ltd v Camtech Ltd [2005]). In contrast, a party would not be held responsible for patent violations committed solely outside of Israeli territories (LCA 8831/05 Harar v Dialit Ltd, [Sup Ct]).

Additionally, an operation carried out outside of Israel that causes violation in Israel can be prosecuted in Israel as per the case of Beecham Group Ltd v Bristol-Myers Co, 33 (3) PD 757 [1979]

In which courts will a patent infringement suit be filed? What are the legal specifications for each location?

According to Section 188(b) of the Patents Law, each of Israel's six district courts is potentially authorized to hear patent infringement cases, according to local jurisdiction laws.

According to Regulation 3 of the Civil Procedure Regulations of 1984, a plaintiff can bring an action in one of several separate venues, including;

  • the location of the wrongful act or omission that gave rise to the argument; and
  • the defendant's residence or place of business

Are there any damages available? What are the types of damages available?

Yes, the types of damages available are as follows;

  • Actual damages, such as a plaintiff's reduced earnings or the defendant's profits;
  • Compensation, which is given at the discretion of the judge. The court would weigh the earnings from the violation, the extent and length of the infringement, and other factors when determining the amount of compensation; and
  • Punitive damages can be awarded in the event of a wilful violation.

 

 

 

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Thu, 14 Apr 2022 12:25:00 GMT
<![CDATA[Doing Business in Israel]]> Doing Business in Israel - 2022

Introduction

Q1. What are the recent developments affecting doing business in Israel?

After Israeli high-tech companies on public markets, there was increased activity on the IPO scene in 2019, with 4 Israeli tech companies choosing to go public on NASDAQ. In 2019, eventual funding for Israeli start-ups also increased, Israel's largest private-to-private merger to date, and a record for total deal exits. 

This data may attract or indicate a greater interest from entrepreneurs in scaling and growing businesses rather than the previously known tendency to seek a quick or early exit. 

To combat money laundering, the Cash Reduction Law was passed in 2018, which came into effect in 2019. The law, as its name suggests, limits the number of cash transactions that companies can accept as payment. This new legislation, along with the general interest in fintech and the Bank of Israel's active steps to promote open banking, has resulted in increased opportunities for alternative electronic payment solutions and market competition.

Q2. What about the legal system in Israel?

The Israeli legal system is based on common law, but it also incorporates civil law elements.

There is no formal constitution in Israel. Those fundamental laws, on the other hand, are considered to be the bedrock of the country's legal system and jurisprudence. Since Israel is a small country, it lacks a federal system and a jury system.

Are there any limitations on foreign investment (such as central or local government authorizations)? Is doing business with those countries or jurisdictions subject to any restrictions?

Israel welcomes and actively seeks international investment. As a result, international ownership of Israeli companies and properties is typically unrestricted. The only exceptions to this general rule apply to:

  • Foreign companies with links to certain adversarial countries
  • Corporations that have such state-issued control licenses should be targeted.
  • The Organization for Economic Cooperation and Development (OECD) has Israel as a member (OECD). As a result, Israel is subject to extensive anti-money laundering and anti-terror funding regulations, as well as laws prohibiting trade with "terrorist organizations."

According to Israel's 1939 Trade with the Enemy Ordinance, it is illegal for an Israeli natural or legal individual to engage in any economic, financial, or other dealings with any of the following:

  • A country or ruler that is at war with Israel (currently Syria, Lebanon, Iran, and Iraq) (an enemy state).
  • An individual who lives in an enemy country.
  • A legal entity that operates under the supervision of a hostile power.
  • A company that was formed under the laws of a hostile country.
  • A natural or lawful person doing business in an enemy country.

Q3. What are the most popular types of business vehicles in Israel?

Private limited liability companies are the most popular business vehicles.

Accountants, accounting firms, and pension funds, mutual funds, and hedge funds are the most common types of partnerships. 

When a foreign company decides to do business in Israel, it has the option of forming a private limited liability company (typically a subsidiary) or establishing a foreign branch. Tax considerations are normally the driving force behind this decision. If a foreign company chooses to register a branch in Israel, the foreign company will be subject to Israeli control and will be directly liable for the branch's debts and liabilities.

In Israel, public companies are popular, and Israeli companies can choose to list on the Tel Aviv Stock Exchange (TASE) or on other international stock exchanges.

Q4. What are the key registration and reporting provisions for the most common type of corporate business vehicle used by foreign companies in Israel?

Registration and formation

The parent company must send the following details to the Companies Registrar in order to form a limited liability subsidiary company:

  • Three options for the subsidiary's proposed name (in English and Hebrew). The name must contain the word "Ltd." and must not be deceptive or misleading in nature.
    • Information about the parent company, such as its incorporation documents and approved signatory.
    • Information about the subsidiary, such as its registered address, authorized share capital, initial directors, and articles of incorporation (articles).
    • An application form, an Incorporating Shareholder Compatibility Statement form, and a director statement form. Each of these forms must be in the format provided by the Israeli Companies Registrar and must be in the Hebrew language.

    Within a week of submitting these documents and paying the registration fee (roughly NIS2,600), the subsidiary should be incorporated and given a company registration number.

    Reporting requirements

    Private corporations must file annual reports with the Companies Registrar, detailing the company's organizational structure, auditor, and confirmation that the company's financial reports were presented to its shareholders. A private corporation must also pay a tax of approximately NIS1,500 per year A business must also notify the Companies Registrar of such changes, such as changes to its name, articles of incorporation, issued or registered share capital, or board composition

    • There is no such thing as a minimum or maximum share capital.
    • Consideration other than money Non-cash value may be used to issue shares.

    Rights attaching to shares

    Restrictions on Restrictions on the privileges that come with shares. Both shareholders must behave in good faith and in accordance with established procedures, and they must not abuse their power or take advantage of other shareholders. Furthermore, the following shareholders are obligated to treat the company fairly:

    A shareholder with the power to name a director or general manager, or who owns at least 50% of the company's voting rights (a controlling shareholder).

    • A shareholder who understands that his or her vote will be decisive in a general meeting decision.
    • A shareholder with the authority to appoint or prohibit the appointment of a company officer, as well as some other authority over the company Additional restrictions may be included in the company's articles of association, or shareholders may agree between themselves. Rights of first refusal, co-sale, right of first bid, tag along, and various voting structures are all examples of this.

    Automatically attached rights to shares. Every shareholder has the following rights under the Companies Law of 1999:

    • Take part in shareholder meetings and vote.
    •  Get paid dividends.
    • Access to some records.
    •  The ability to act before others do (if the company has one class of shares).
    • Some drag-along rights
    • In the case of prejudice, rights.
    • Liquidation rights.
    • In certain cases, these privileges can be limited by the articles of incorporation.

    Q5. What are the most important laws that govern employee-employer relationships?

    Employees in Israel have some contractual privileges that cannot be waived under Israeli labour law, including those under the:

    • Minimum Wage Act of 1987
    • The Wage Protection Act of 1958.
    • Work Hours and Rest Periods Act of 1951.
    • The Annual Leave Law was enacted in 1977.
    • Sick Pay Act of 1976.
    • The Severance Pay Act of 1963.

    Dismissal and Resignation Advance Notice Law of 2001.

    Staff are often entitled to travel expenses to and from work, national holidays, convalescence pay, and a pension plan under widely used extension orders. International employees are subject to all mandatory labour rules, benefits, and rights. Under the Foreign Workers Law of 1991, foreign workers are now entitled to special benefits (such as a written contract of employment, medical insurance and accommodation). 

    In Israel, the international "choice of law" laws applies, and a foreign law may apply to an employment contract if the parties have expressly agreed to it. Where the choice of law is unclear, the labour courts can rule based on the facts, with the location of the agreement's performance being a significant factor. Furthermore, an explicit choice of law provision would not be upheld by Israeli labour courts if the employee's rights under that law are materially less than those provided under Israeli labour laws. Employees from Israel who work abroad may be subject to international laws.

    Q6. Is it essential for foreign workers to have work and/or residency permits?

    Employing foreign workers necessitates job and residency permits from the Ministry of Interior's Population and Immigration Authority.

    Work permits are requested in accordance with a specific job and employer.

    The process with the appropriate authorities will take anywhere from 60 to 90 days. It is important to submit the application as soon as possible, preferably before the employee arrives in Israel. These permits cost anywhere between a few hundred and a few thousand shekels.

    Q7. What are the conditions under which an employee is taxed in Israel, and what requirements are used?

    If the If the employee is an Israeli tax resident, he or she will be taxed on all of his or her wages, regardless of where it was earned, derived, or received.

    Non-resident workers are only taxed on wages earned in Israel.

    Individuals' tax residence is determined by the "centre of life" measure, which takes into account the individual's permanent residence, family, economic and social relations, place of permanent or usual work, and position of active and substantive economic interests.

     If a person is present in Israel for one of the following reasons, he or she is assumed to be an Israeli tax resident.

    • You worked for at least 183 days during the tax year.
    • At least 30 days in the relevant tax year, for a total of 425 days in the relevant tax year and the two preceding tax years.

    This assumption, however, can be debunked. Any taxes will be subject to any applicable tax treaty's limits.

     

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    Tue, 04 Jan 2022 05:51:00 GMT
    <![CDATA[Economic and Fraud Provisions in the Middle East]]> Economic and Fraud Provisions in the Middle East

    "There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

    - Milton Friedman

    Economic fraud is a term that has been repeated over the years, so much so that the consequences it bears do not have any precedence or impact on the ones that hear it. For many companies and capitalist machinery, this term essentially triggers them to explore options to hide their fraudulent tracks and continue operating in the same manner. To have governments help them cover the tracks in certain jurisdictions ultimately defeats the purpose of the assignment.

    Despite the incongruent activities of individuals, companies, and governments from the expected norm of justice in many jurisdictions, other countries are tenacious to implement a regulatory framework that will eradicate such fraudulent activities in the market. This article will discuss the economic and fraud provisions established in the Middle East, their effectiveness, and the scope of reach it possesses about financial crime.

    What are the Economic and Fraud provisions in the Middle East?

    If one area of the economy has seen a steady increase in the past years, it would be the economic fraud prevalent in society. Regardless of the number of provisions that jurisdictions and international organizations establish to combat financial fraud, none of them seems sufficient. The parties involved in economic fraud and other fraudulent practices are constantly evolving to cover their tracks efficiently.

    Infamous scandals like Bernie Madoff and the Ponzi scheme leave one in absolute awe as it remains unclear, what is the culprit: the crime or the criminal? Many innocent parties, including employees and clients, were adversely affected by the ill-doings of these financial schemes. After the outburst of many scandals and its impact on many innocent individuals, jurisdictions are trying to fasten their pace to stay a step ahead of wrongdoers and hopefully eliminate the potential threats in the market.

    The introduction of new anti-economic fraud regulations has paved the way for potential investors to feel a sense of security over their investments within the market, along with the ability of the regulations to enforce justice. Over time, people have understood that the formation and establishment of an anti-fraud legal framework are not sufficient to ensure peace and harmony in the market, an iron fist must be imposed on fraudulent parties and companies to deter them from doing such activities in the future and serving it as a lesson for other participants in the market who bear similar intentions.

    The types of economic fraud can be quite varied and are spread across different industries and the scope of nature. These could include housing benefit fraud, tenancy fraud, council tax fraud, blue badge fraud, social care fraud, business rates fraud, insurance fraud, bribery, and money laundering. These are just a top layer of economic crimes prevalent in an ocean of fraudulent activities in the market. The crimes that are more coherent to the wrongdoings in the market include not declaring the business location, stating that a property is not in use while it is, dishonestly requesting for an exemption to pay for charges that are owed, or any unauthorized movement of money to make ill-gains.

    Often, economic crime is caused not by companies but by customers towards companies. The highest reported crime boost in the Middle East is through customer fraud and procurement fraud, which have proved to be the most disruptive fraud within an economic crime. In a survey conducted on a global platform, the number of customer frauds was comparatively more in the Middle Eastern region.

    In an ongoing effort to combat fraud together, many companies in the Middle East began investing in more stringent controls and implementation of the rules to avoid economic crime, while many others conducted a thorough examination into reasons after the occurrence of a crime in the company. Another issue that stands alongside customer fraud about its prominence is procurement fraud. This fraud entails the practice of favoring associates with vendor and supplier contracts.

    All these efforts are measures taken to mitigate the risks involved and ensure that proper prevention is taken by instilling the right technology and talent to deviate from any fraudulent prone routes.

    However, it is not easy to ensure that accountability will be maintained and transparent feedback is provided. Another limitation of this procedure is that advanced technologies to combat financial crime can be costly, which would further deplete if the company possesses insufficient resources to acquire and install the platform and is not equipped with properly trained employees to manage the technology. The lack of proper expertise to handle the in-place technology could attract various cyber threats, which allows a wrongdoer from any part of the world to infiltrate the company's system.

    With this in mind, companies must equip themselves from the arsenal of defenses to protect themself and the financial and reputational facets of the company. The extent of damage that infiltration of the company's system can cause to the operations is quite unfathomable. It would be better for companies to leave their vault of secrets wide open than installing an IT platform that is managed poorly. The necessity of combating such insecurities is proliferating and must be countered at the earliest. One would like to believe that the efforts of the legal jurisdictions in the Middle East to battle economic crime are practical and promptly applied. However, many of the jurisdictions still fail to provide a proper implementation of the provisions established against economic crime.

    The readiness of companies in the Middle East to confront the indecisive nature of economic crime and report any issues as they arise is still moving at a stagnant rate. The stark increase in cyberattacks and its potential threats is not a mystery to the companies in these regions. Nevertheless, they decide against preparing themselves in defense of such risks and attacks. The firms in the region and the governmental organizations must understand the types of threats that could arise in the economy and the nature of such economic crimes. Although this would seem like an insignificant step, this particular action could help achieve a more profound revelation of the gaps and vulnerabilities of the economy and its protective framework.

    Many would argue that the relationship of the Middle East with economic crime and fraud dates back ages. All the glitz and glamour and the boom of economies are incongruent with the fraudulent activities occurring within the firms and regions. A region's legal systems cannot enforce the regulatory frameworks established to fight against economic crime if the country's government does not implement the rulings.

    To know more about Economic and Fraud Provisions in the Middle East in Singapore Click here 

     

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    Mon, 27 Dec 2021 03:22:00 GMT
    <![CDATA[FAQs – Arbitration in Israel]]> FAQs – Arbitration in Israel

    What is the state of law and Arbitration in Israel?

    Israel has a reputation for being a litigious nation. According to study, Israel has the highest number of lawsuits lodged per capita in the country. In 2004, Israel was ranked third among seventeen developing countries in terms of judicial burden. The mixture of a large number of lawsuits filed and an insufficient number of judges resulted in an overburdened court system plagued with delays in verdict service. A Committee on the Structure and Jurisdiction of the Judiciary (hereinafter the "Landau Committee") reported in 1980 that the caseload of the courts is so heavy that there is fear that the justice system may be unable to carry out its duties and represent the public unless a swift remedy is found. Academic scholars and judges have expressed similar fears, which have persisted to this day. Along with other approaches, such as expanding the number of judges, simplifying civil processes, and implementing modern fast-track procedures for some categories of litigation, ADR is one effort to address this obstacle. In 1992, an amendment to the Courts Law allowed judges to use three ADR methods: adjudicate a case with the parties' consent by way of compromise, that is, issue a summary judgment without conducting a full trial and explaining the reasons for the decision; refer a case to; and refer a case to arbitration (at the time using the terms "conciliation" or "pishur" in the legal system).

    In particular, under the Arbitration Act 1968, arbitration was still a constitutionally accepted way of settling conflicts at the time, causing one arbitration specialist to question the necessity for the change in that regard. Judges favor the judicial compromise procedure, but disputants and attorneys are wary of it because it is challenging to foresee if the judge would rule in a situation, there are no grounds for the ruling, and it is almost impossible to challenge the decision. Due to the difficulties of judicially reviewing arbitrators' rulings under Israeli arbitration rule, arbitration has not attracted many people. The state avoided utilizing arbitration in cases of which it was a defendant due to the restricted reviewability of arbitration awards, and a 2003 Attorney-General Directive stated that "as a practice, the state should not settle its conflicts in arbitration but through the courts." The statute was changed in 2008 to allow parties to settle on an appellate mechanism for arbitrators' rulings, and the Attorney-General updated its prior stance on arbitration in 2009, issuing a new directive that stated that "the state sees in arbitration, alongside other conflict settlement procedures, a valid and worthy option, in appropriate situations, for the resolution of state disputes." While new private Arbitration Institutions have sprung up, providing arbitration facilities by former judges and seasoned attorneys, the amount of disputes that have gone to arbitration has remained somewhat unchanged. A draft parliamentary bill in 2011 that would have made binding arbitration part of the judicial framework failed to pass. Mediation has gained greater assistance from the government and the courts than consensus and arbitration. "The Settlement of Labor Disputes Law of 1957 called for a form of obligatory resolution in all labor disputes by special labor relations officers at the Ministry of Labor," according to a report from the late 1950s. However, in terms of settling labour conflicts, this procedure was ineffective. In 1992, an update to the Courts Law allowed judges to refer disputants to mediation. The Courts Mediation Regulations, provided by the Minister of Justice in 1993, laid out the protocol to be practiced by the court in staying pending cases assigned to mediation, spelled out the responsibilities of mediators in conducting mediation in civil and labour courts, and suggested a model mediation arrangement. Since Israel has yet to pass a general legislation on mediation, mediation that is not appealed to a judge is essentially uncontrolled. In Israel, there is no need for mediators to possess a degree in order to conduct mediation. However, in 1998, the Minister of Justice named a Consulting Committee on Mediation in the Courts (hereinafter the "Gadot Committee") to make suggestions on the skills and experience required by court-connected mediators. The Gadot Committee released recommendations on the basic credentials of court-connected mediators, which have since become the accepted practice in Israel for mediator preparation.

     The Gadot Committee noted that mediation was seldom used in Israel, and that the procedure was largely unfamiliar to the general population and legal profession. The Ministry of Justice established a National Center for Mediation and Dispute Resolution in that year in order to focus resources on spreading mediation. A year later, the Attorney General released a directive urging the resolution of government-related conflicts by mediation. After the late 1990s, courts have been directing civil litigation through mediation, either by in-judicial mediators, who are court employees, or by private-sector mediators who have completed court-approved training courses. Furthermore, court proceedings have been submitted to judicial mediation meetings, which are held by judges who are not assigned to consider the prosecution at trial. The courts developed Case Routing Units in 2001, which were responsible for directing cases to mediation, and the Director of the Courts Administration released a national program for the implementation of the Case Routing Units in 2003, which acted as the country's primary source of mediation cases. However, in fact, the amount of disputants who chose to engage in mediation was limited. The implementation of a soft version of obligatory mediation as a pilot scheme in a variety of civil courts was proposed by the Commission to Explore Ways to Increase the Use of Mediation in the Courts (hereinafter the "Rubinstein Committee") in 2006. Disputants in civil cases were expected to undergo a free, obligatory pre-mediation session with a mediator, through which they collected mediation material and assessed the suitability of their argument for mediation, according to the scheme. The parties could opt for mediation or arbitration at the conclusion of this session. The protocol was dubbed "Information Exchange, Acquaintance, and Coordination," or MAHUT (the Hebrew acronym), and it was included in the Civil Procedure Regulations. After 2016, an expanded edition of MAHUT has included four sessions with a social worker from the Family Court Assistance Units to introduce divorcing parties to consensual approaches to resolving their family conflicts. ADR campaigns outside of the courtroom started in the early 2000s.

    The National Center for Mediation and Dispute Resolution aided and guided the creation of community mediation services. In 2001, two group mediation centres were operational, and ten more were in the planning stages. There are now over forty of them. Furthermore, under the auspices of the Ministry of Social Affairs and Social Welfare, Citizens' Advisory Services Units ("Shil" in Hebrew) are now providing free mediation services in thousands of communities around the world. Thousands of citizens have been drawn to the modern area and emerging career of ADR in the private sector. About the fact that negotiation has existed in the dark, more than a thousand persons have received basic mediation training in compliance with the Gadot Committee's mediator training guidelines, which were established in 2001. In addition, in 2001, approximately forty private mediation centers were also providing public mediator preparation and mediation facilities. However, the increase in the number of mediators, which now stands at over 30,000, has not resulted in a sustainable mediation practice. Since the amount of mediators who currently accept cases from the courts is limited, because the general population does not want to mediate before trial, the bulk of the current trainees have not matured into licensed mediators who perform mediations for a charge or even pro bono.

    What was the primary motive of introducing ADR in the Israeli Legal System? Explain?

    Justice as Efficiency:

    The urgent need to deal with the problems of an overburdened justice system was clearly a driving force behind the implementation of ADR into the Israeli legal system. "It is suggested to include settlement, consultation, and arbitration formal status of law, both to allow disputants to select additional forms to resolve their conflict and thereby accelerate resolution of the dispute and relieve the overload of litigation in the courts," according to the 1992 Proposal to Change the Courts Statute." "The key benefit of consensus on the conclusion of disagreement in this process is simplicity and speed," according to the settlement protocol, "with decision being delivered in most situations on the basis of the disputants' arguments alone, without bringing additional evidence." Justice Meir Shamgar, the former President of the Israeli Supreme Court, wrote about the object of arbitration: "is to help disputants to resolve conflicts more quickly, for example by simplifying processes, and to reduce the pressure of litigation in the courts. The legislature has introduced a realistic, solution-oriented concept of mediation that aligns with an efficiency view of justice. In reality, though, the revised law did not achieve the productivity objective by making a dramatic improvement in the usage of mediation in the courts until the late 1990s. The Committee on the Structure of Ordinary Courts in Israel (the Or Committee) reaffirmed the reliability logic of ADR in 1997, emphasizing the role of out-of-court ADR procedures, such as consultation, in reducing the courts' caseload and delays. The 1999 Attorney- General's Directive on the Resolution of Disputes of which the State is a Party by Way of Mediation (hereinafter the "Attorney-General's Directive on Mediation") stated that mediation is normally easier and more effective than court proceedings. Furthermore, the intent of the 2001 national initiative for the Case Routing Units in the court system was to provide "swift, reliable, and meaningful justice to the individual" by enhancing "support to all who come to court" and "quickly end dealing with filed cases." Furthermore, the Rubinstein Committee, which proposed the obligatory premeditation session (MAHUT) in civil procedures, acknowledged the effectiveness and expense benefits of using mediation more often, particularly for the legal system and for disputants. With these assumptions in mind, it's no surprise that legal dialogue dominates mediation processes in court-referred disputes in Israel, focusing on the disputants' legal rights and obligations, and normalizing the mediator's evaluative function. While ADR scholars have warned about the impact of such trends on parties' ability to exercise free choice, mediator impartiality, and the future of mediation as a true alternative to the adversary legal system, the expectation of fast settlements and the equating of success with mediated agreement maintain the dominance of the justice-as-efficiency perspective of ADR. D. Justice in Context of Efficiency Well before the Courts Law Amendment of 1992, which formally incorporated ADR into the legal system for efficiency purposes, some observers argued that ADR, especially mediation, could provide disputants with a better (rather than more efficient) way of resolving legal disputes. Mediation's versatility, mediation's commitment to effective coordination and productive bargaining, and mediation's capacity for reaching innovative compromises built by the parties are among the benefits of mediation on the adversarial legal environment, according to one of the earliest Israeli law review publications on mediation. The capacity of mediation to contribute to social progress, foster mutual respect and understanding among individuals, enhance consent-based, individual decision-making without resorting to the state's coercive forces, and boost individuals' well-being can be found in the writings of numerous Israeli academics who related, among other things, to the potential of mediation to contribute to social change, promote mutual respect and understanding among individuals, enhance consent-based, individual decision-making without resorting to the state's coercive powers, and improve individuals Inside the judicial framework, the justice-beyond-efficiency stance earned official endorsement. The Attorney- General's Directive on Mediation, for example, recognized that, in addition to cost and time savings, other potential benefits of using mediation in disputes in which the state is a party include high quality solutions tailored to the parties' needs, the maintenance of relationships and future cooperation between parties, and increased public confidence in the state and its institutions. More specifically, in 2001, Justice Aharon Barak, the Chief Justice of the Supreme Court, argued that the object of mediation is to reform the litigious atmosphere of Israeli society, make it a safer place to live in, and to have a way of resolving disputes by negotiation rather than through the use of the courts' force. He mentioned a "mediation revolution" in Israel, which he said might lead to a shift in public discourse. Several months later, the Minister of Justice referred to mediation as a positive social phenomenon that inspires hope, claiming that it signals a shift away from a culture of argument, harshness, and resistance to the possibility of compromise and change of opinions that pervades everywhere - on the roads, in shopping malls, and in government institutions - to one based on dialogue. Out-of-court ADR groups and advocates vigorously supported this thicker view of ADR justice, which was championed by top legal authorities (such as the Attorney General, the Chief Justice, and the Minister of Justice). The Israeli Mediators' Association was established with the aims of assimilating mediation's language into Israeli culture and schooling, as well as introducing mediation to the general public. The value of debate, requires conversation, and consensus-building regarding competitive negotiating practices, roles discourse, and intimidation has been emphasized in the curriculum of basic mediator training courses. Academic programmes have since been developed to investigate the complex field of alternative dispute resolution beyond its ability to relieve the pressure on the courts. More broadly, we see ADR philosophy, language, and goals being introduced to community issues (e.g., living together with neighbors, minorities, and immigrants), education (e.g., bringing ADR into nurseries and schools), and environmental issues outside of the legal system (e.g., dealing with environmental conflicts and giving individuals voice in public decision-making processes).

    Some examples of justice that goes beyond productivity the following is an ADR discussion.

  • Mediation in the Community
  • On the basis of expertise gained in group mediation services in the United States and England, the Israeli National Center for Mediation and Conflict Resolution created a community mediation and conflict resolution program for Israel in 2000. 80 The program imagined mediation as a cooperative forum led by group neutrals who aided representatives of the community in resolving conflicts and maintaining relationships. It was felt that such a mechanism would improve group communication, encourage community representatives by allowing them to settle their conflicts on their own, increase knowledge of the possibilities of settling disputes by dialogue, and avoid disputes. Hundreds of informal mediation and dialogue centres sprung up across Israel with the help of the National Center for Mediation and Conflict Resolution, mostly by collaboration between local officials and voluntary mediators from the neighborhood. Acting in collaboration with neighborhood police, municipal councils, schools, and youth groups, the centers will then seek to offer mediation resources to their neighborhoods in a variety of conflicts. Mediation is defined as an ability to accomplish justice beyond-efficiency objectives for Israeli society in ADR dialogue in the form of community problems, which can be found in legal work/discourse, social work, management, and mediation literature. It implies that group mediation has the potential to effect genuine societal progress and facilitate intercultural discourse. Scholars argue that mediation can help immigrants integrate into Israeli society and overcome integration barriers; that it can help handicapped employees in a special-needs factory have a voice and negotiate with non-handicapped management; and that mediation can help improve the relationship between the police and the public through including mediation in citizen complaints against cops.

  •  Formal education
  • Another example of a justice-beyond-efficiency debate of ADR priorities is ADR dialogue in the field of schooling. In light of the deep rafts and fundamental disagreements within Israeli society on political issues (e.g., between the left and right on settlement issues or between Israeli Jews and Israeli Arabs on issues of fidelity to the state and equality), on the place of religion in public and private life, and on the plight of Palestinians, mediation and collaborative dialogue in the educational system are seen as critical. Mediation and related services focused on the ideals of negotiation, collaboration, and consent are portrayed by Israeli academics as instruments for teaching a new generation of young people to be more accepting of different viewpoints and beliefs, more respectful of others, less litigious and violent, and more collaborative in resolving conflicts. In order to spread the vocabulary and values of partnership and mediation, as well as to adopt consensual communication and conflict resolution to replace verbal and physical abuse and bullying, a significant range of mediation services have been implemented in nurseries, primary schools, and higher education institutions. Many schools adopted mediation programs in order to facilitate conversations in the aftermath of the political murder of Prime Minister Itzhak Rabin by a right-wing extremist. Hundreds of schools used mediation in any way to accomplish justice-beyond-efficiency aims like reducing crime, strengthening leadership skills, and teaching young learners how to resolve disputes peacefully. Furthermore, researchers emphasize the importance of integrating collaborative communication and collaboration concepts into interactions between educators and parents.

  • The natural world ADR in general, and mediation in particular, is used in Israeli environmental discourse as a tool that can lead to a less cumbersome and informal settlement of environmental problems, as well as the pursuit of environmental justice. In this context, justice entails collective participation in policies that impact their lives, resource sharing across various sectors of the community, and environmental conservation for the greater good and future generations, all while addressing the current needs of the populace for accommodation, jobs, shopping, and leisure. For example, a quarry near a neighborhood was the focus of a multi-party environmental mediation that discussed both the business's and employees' economic concerns as well as the community's desires in clean air and quiet. Furthermore, environmental conflicts, especially in Israel, often have a political component, making them highly inflammatory and complicated. Several efforts are attempting to bring mediation and collaborative discourse into these highly sensitive regional, environmental, cultural, and political disputes for reasons other than effectiveness.
  • Complaints against Government Entities
  • The State Comptroller of Israel, who frequently serves as the Ombudsman, oversees lawsuits against government ministries, city governments, government corporations, and other public entities. Anyone may file a lawsuit with the Office of the Ombudsman whether she has been personally harmed by a government agency and the action was unconstitutional, contradictory to administrative laws, or grossly unfair or inflexible. The Office has the authority to prosecute the case in whatever manner it deems appropriate, and it may request documentation and records from any individual or entity that may be relevant to the investigation. The versatility of the review protocol allows the Ombudsman's office to incorporate consultation techniques and sessions into the process. Since 2008, the Ombudsman's office has carried out mediations in some complaints against public authorities. Mediation takes place at the Ombudsman's offices, where the mediators are Ombudsman's office staff who have been certified as mediators. In a diverse variety of grievances, the mediators use constructive (problem-solving), transformative, and storytelling mediation styles. Improvement of partnerships between the stakeholders (thereby minimizing the amount of potential complaints), representation of people, and improved coordination are several of the intended advantages of introducing mediation to the Ombudsman's toolbox, which go beyond productivity targets.

    What are the concerns about ADR and the development of mediation in Israel?

    Concerns about Justice and ADR the development of mediation in Israel has been accompanied by lively discourse over the dangers and risks associated with the use of ADR mechanisms and the implications of ADR use on justice issues. This section explores some of these concerns and their relation to justice.

  • The Qualifications of Mediators
  • Mediation was hardly known of in Israel before 1992 when the Israeli legislature officially introduced mediation into the law.  In 1993, the Minister of Justice authorized the courts through Regulations to refer pending cases to mediation, but left open the question of the qualifications required of persons serving as mediators. In 1996, new Regulations on Mediator Appointment authorized the Director of the Courts Administration to compile a list of mediators to which the courts may refer cases for mediation, and provided that the Director should appoint an Advisory Committee to the Minister of Justice to advise the Minister on the qualifications and skills to be required of court-connected mediators. The Committee, headed by Justice Gadot, published its report in 1998.The Gadot Committee treated the qualifications of mediators as a matter of justice beyond efficiency, though it did not use that term explicitly. The Committee felt that setting minimum qualifications for mediators was necessary in order to protect both consumers (i.e., mediation parties) and the process of mediation, which had been making its first steps in Israel. The Committee rejected the view, strongly advocated by the Israeli Bar, that lawyer-mediators need not undergo special mediation training. Instead, they determined that all mediators in court-connected mediation programs had to undertake training courses, approved by the Committee, whose content included both theoretical and practical aspects of mediation. Following the Gadot Committee report, the Mediator Appointment Regulations were amended to provide that a mediator on the courts' list must have an academic degree, working experience of at least five years in his professional field, and must take a forty-hour basic mediation training course or sixty-hour family mediation training course. In another report, the Gadot Committee delved into the content of these courses, and the Reports' recommendations became the field's standard for mediators' training in Israel, both for court-connected and out-of-court mediators. The list of mediators attracted much justice-beyond-efficiency-related criticism. On the one hand, a competence issue became apparent: the list included thousands of names of persons who were eligible to be included on the list simply because they completed forty to sixty-hour training courses but in fact had no actual mediation experience and did not see mediation as a vocation. On the other hand, the criticism raised a just distribution issue: many persons on the list who wished to pursue a career in mediation found that the courts largely disregarded the list because judges had no meaningful way of choosing between the names on the list and therefore referred cases to a small group of mediators known to them. The Rubinstein Committee (2006), which reviewed the ways to increase the use of mediation in the courts, noted that one of the reasons for the slow development of mediation in Israel was the dissatisfaction of disputants and lawyers over the professional competence of the mediators and negative experience of participants in mediation. The Rubinstein Committee sought to change that by the creation of a relatively small roster of professional and experienced mediators eligible to mediate court-referred cases. These mediators were to be selected through a public bid, were to participate in continuing education activities, and were to be subject to an evaluation program. The plan succeeded to some extent but raised new justice-related issues. The new legal regime irritated many mediators who felt that the state unduly restricted their freedom of occupation and their prospects to practice mediation for a living. Legal actions before the Israeli High Court of Justice put pressure on the government, and in 2008, the Regulations on the courts' list of mediators were cancelled. Since then, there have been no official criteria for minimum qualifications required of mediators; though in practice, the Gadot Committee standards for mediators' qualifications and training remained the standard of the field. This year, the new Courts Regulations (Mediators' List) 2017 entered into force, creating stringent criteria for court-connected mediators, including participation in a supervised practicum, demonstration of evidence of actual experience in mediation, and successful completion of a professional evaluation process. The debate in Israel over the qualifications of mediators and access to the emerging new profession is likely to continue.

  • Abuse of Process, Power Issues, and Ethics
  • The reception of mediation in the Israeli legal system was met with concerns that the process might harm some of its users. For example, Israeli commentators, writing on divorce mediation, recognized the current disparities of power between men and women and noted the dangers (referred to in ADR literature) that mediation could enhance men's power and produce inferior settlement terms for women. These concerns are particularly relevant and disturbing in Israel because divorce law in Israel is based on religious norms that treat women and men unequally and enhance men's power. Looking at discrimination cases at the workplace, other commentators pointed to the hegemony of evaluative mediation in Israel and argued that Israeli policy makers should be aware that evaluative mediation is not suitable to some cases, such as discrimination disputes, and that allowing these cases to be mediated exposes disempowered parties to an increased risk of abuse. Making a more general claim, another commentator pointed to the gap between the mediation myths; that mediation is a voluntary, consent based process, and the reality of documented mediator practices that undermine party self-determination, manipulate information, and fail to prevent process abuse. Yet another commentator, writing on the importance of informed consent in mediation (which is closely connected to fairness considerations) felt that Israeli mediation law was not clear enough with regard to mediators' obligations to obtain the parties' informed consent regarding the risks of mediation, the use of separate meetings, the identity of the mediator, the style of mediation, and the mediation outcome. Commentators have noted that Israeli mediators have little guidance on the ethics of mediation practice. Some guidance can be found in the Court (Mediation) Regulations that refer to fundamental duties of court connected mediators, but the language of the regulations is abstract and laconic, leaving much to the interpretation and discretion of the mediator. Moreover, the Regulations formally apply to court-connected mediations, leaving private mediations largely unregulated. Raising justice-beyond-efficiency concerns relating to the fairness of mediation procedures, commentators warned that the Regulations do not provide for a robust obligation of mediators to respect the parties' right to self-determination; leave too much discretion to the mediator in deciding whether she is in a conflict of interests; fail to explain the meaning of impartiality in the context of conducting a mediation, thereby weakening the duty of impartiality; and fail to adequately protect the confidentiality of mediation communications. The absence of clear ethical guidelines and the high level of mediator discretion led commentators to question the appreciation of mediators of their professional role and its limits, to criticize the lack of appropriate guidance to mediators on the ways to address inequalities of power between disputing parties, and to wonder about the accountability of mediators to mediation outcomes.

  • Mandatory Mediation and Access to the Court
  • The small number of mediations of legal cases in Israel led the court system to consider introducing mandatory mediation as a precondition to adjudicating civil cases. This initiative was criticized on various grounds. One justice-beyond-efficiency based objection was that mandating pre-trial mediation sessions undermines disputants' right to access the court.  It was argued that disputants have a right to have their case adjudicated by a judge rather than mediated by a mediator, and that mandatory mediation could increase the expenses of the disputants in cases in which the mediation failed to resolve the dispute and the disputants had to pay for the costs of litigation on top of the costs of mediation. The response of the Rubinstein Committee to these concerns was to recommend the adoption of a soft form of mandatory pre-mediation session (MAHUT) that provides parties with information about mediation rather than imposing on them a duty to mediate. Another justice-beyond-efficiency-based objection was that mandatory pre-mediation sessions in civil cases could adversely affect disempowered disputants in particular. First, it was argued that the requirement to go through an additional process before having the right to be heard by a court would intensify inequalities of power and drive weaker parties to make unjustified concessions and settle. Second, it was suggested that since mediation in Israel follows a rights-oriented evaluative model, disempowered disputants that are unrepresented and less familiar with their legal rights will not be able to fully participate in the process, voice their non-legal concerns and needs, nor take an active role in the design of a creative outcome. Moreover, as disempowered disputants may rely more on the mediator and are often not in a position to second guess the mediator's evaluations, which are not necessarily accurate, they will therefore be more inclined to accept inferior offers to settle.

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    Tue, 07 Dec 2021 01:01:00 GMT
    <![CDATA[FAQs - Succession Law in Israel Introduction]]>  FAQs - Succession Law in Israel

    Introduction

    Inheritance & evidence issues are not preferred to dwell on by most people, but life is fleeting. Life is temporary. After a person has passed away, the future of his property must, or by will, be determined in compliance with the laws of succession in Israel. Inheritance is the common policy of exchanging land and of transferring rights, responsibilities and even titles.

    The Succession Law of 1965 ('Succession Law') regulates the law of inheritance in Israel. The Israel courts are responsible for the estate of any person who was an Israel resident or who left Israel's land at the time of his death. In section 1 of the Succession Statute, which is that the estate of an individual goes on to his heirs following his death, there is a default assumption of Israel's inheritance law. This covers the individual's assets, land, copyrights and so on.

    Q1. ​What is succession?

    If the deceased leaves a will then per the succession law in Israel, the property is transferred to the successor.  The heirs are the individuals, bodies and legal persons that are included in the Will.

    Q2. What inheritance laws apply?

    The authority of courts in Israel is overland succession. The most important law for inheritance in Israel is the Israeli Inheritance Law of 1965 which stipulates, in any one of the conditions: Israel was the residence of the dead at the time of his death or the inheritance included property or other assets in Israel.

    Q3. What happens to an estate if there are no heirs?

    If an individual has no legally entitled family who were to be allocated to their properties, his estate passes to the State. The proposal may be forwarded to the Registrar of the Succession Cases at the Ministry of Justice for a Succession Order or to the Rabbinical Courts, subject to local authority.

    Q4. What are the types of wills?

    Several forms of will are recognised by Israeli law.

    Handwritten Will: Written exclusively with the hand-written signature of the Testator. In compliance with Section 19 of the Succession Law, the date of its establishment shall also be indicated in the handwriting of the Testator.

    A will in the presence of witnesses: written and dated, signed in the presence of two witnesses by the testator. In the case of the witnesses under Section 20 of the law of succession, the Testator must make it his will and then the witnesses shall swear to the signatures that the Testator has made the declaration and signed the will. It shall be stated in the presence of the witnesses. The Will may be handwritten or typed, but the signatures must appear in the Testator's handwriting and must be signed on the day that the Will was made, not later.

    A Will made before an Authority: Under Article 22 of the Law of Succession the Will is a Will before the Authority, the terms of which are proclaimed verbally by the individual in authority, before they are read to the Testator and at its close a document is signed and confirmed by the person in authority on the day the Will is made and in respect to which the Testator has made the declaration.

    An Oral Will: also known as "Deathbed Will." This is only possible in situations where the testator is on his or her death bed or considers himself to be in a condition in accordance with Section 23 of the Succession Law. Two witnesses must be made to an oral testament that understands the language of the testator and must document in a memorandum the contents and instructions of the testator and the date and conditions in which the testament was made. The Will shall subsequently be deposited with the Registrar of Succession Cases.

    Q5. What happens in the absence of a will?

    An individual has the right to leave property in a will to any person he/she wants. The Inheritance Law determines that in the absence of a will, the property is to be divided among close relatives of the deceased, according to how closely their ties with the deceased are related.

    In the event of an inheritance, the distribution of this property to the heirs under the statute begins with a proposal for an order of succession, in the absence of a will in Israel. This appeal is either sent to a division of the Succession Registrar's Bureau or to one of the Israeli rabbinical courts. A legal judicial order in compliance with Israel law is the order of succession. It is not obsolescent like a court order, which will be enforceable years after it has been issued. The order does not define the particulars of the allocation of assets to heirs, but only the name and inheritance rights and tax in Israel.

    Several documents must accompany the proposal for a succession order. This is why the exact procedural conditions of the procedure of filing for a Succession Order should be addressed with a legal advisor. The exact procedural conditions of the procedure of filing for a Succession Order should be addressed with a legal advisor or attorney. The exact procedural conditions of the procedure of filing for a Succession Order should be addressed with a legal advisor. If the order request is submitted by a lawyer on behalf of an affected party, an original Power of Attorney or a copy of the original shall accompany the request.

    Q6. Are wills prepared by a foreigner enforceable in Israel?

    Yes. As per the Israeli Succession Law, the will is to be translated by a certified translator

    Q7. Who can inherit in Israel?

    In Israel, the line of succession is based on blood relationships. Between parents and children and which the deceased's heirs are the closest relatives to them.  The likely heirs of a deceased could also include unborn relatives if their birth date falls within 300 days from the day of the deceased's death.

    Q8. Are handwritten wills legally binding in Israel?

    The Israeli Inheritance Law promotes the assurance with which wills are implied and respects the legitimacy in certain circumstances of handwritten wills, before witnesses, before a notary or judge or even oral will.

    Q9. Are technical objections approved?

    As long as the desire and health of a citizen are confirmed, no technical objection to a will can be acknowledged, as articulated by the Israel Court.

     Furthermore, a testament is legal in Israel if the law of Israel, the local legislation in the place where it was prepared, a law on the deceased domicile, or a law on the citizenship of the deceased, by the time the testament is prepared or at the time of his death, is valid.

    Q10. How to inherit property according to Israeli Succession law?

    The interested party has to file a probate petition for the inheritance of property in Israel and then get an order for the Succession, Inheritance, Probate, court order.  Then proceed with registration of the property in the Israel government database for properties in Israel (TABU)

    Q11. What should I do to receive my relative's land, property in Israel?

    To inherit property, a probate petition must be submitted to the Inheritance Registrar or religious court to obtain a probate court order. In the case where this is no will you must submit a petition to the succession court order.   The Inheritance Registrar in Israel automatically passes the petition to Family Court and you can only claim the property and file it in the Tabu – Israel Land Registry Office after you have obtained the Succession or Probate Order at the Israeli Family court.

    Q12. Does the law distinguish between Israeli and foreign citizens?

    No. It does not differentiate between Israeli citizens and foreigners.

    If the person who has died was a resident in Israeli territory, Israeli courts are competent, even if property in Israel is not included in the inheritance. Furthermore, Israeli courts have jurisdiction if the inheritance petition contains Israeli land even if no party has any relationship with Israel.

    Q13. Do you need to travel to Israel to present the probate petition and seek the succession order?

    No. Your legal representative will, to obtain a probate court order in your name, submit a probate petition and all relevant information including your declarations of affidavit, your legal authorisation and such to the Israeli Probate Court.

    Q14. Do Foreign Inheritance Laws apply in Israel?

    Foreign laws apply only if they grant inheritance rights to individuals related by blood, marriage, or adoption, it does not grant inheritance entitlements to those not related. If foreign law of the deceased's resident country or national country refers to Israeli law, the Inheritance Law shall be applied in all matters governed by foreign law. But, in cases in which such law discriminates on grounds of ethnicity, sex, gender or nationality, the Inheritance Law prohibits the application of foreign law. Further, such international legislation does not apply to inheritors who are not related to the deceased by blood, marriage or adoption, provided it gives any legitimate rights of heritage (i.e.. except by a last will).

    Q15. Is an international probate court order or an international succession order valid in Israel?

    No. It must be granted in the same jurisdiction of a probate court in Israel

    Q16. Which government body in Israel is liable for petitions for secession, orders and probates?

    In Israel, succession and probate orders are carried out by the Registrar of Inheritance and the family courts. The Family Court shall deal with complex cases and cases where a contest has been filed.

    Q17. What is the law for property outside of Israel?

    The Inheritance law determines that if land is beyond the borders of the State of Israel, then at the time of its passing, the law relevant is the law of its residence. In matters related to inheritance, the legislation applicable is the local law of the country where the property is situated without distinction of the property kind.

    Q18. What are the types of inheritance tax?

    In Israel, there is no property tax/inheritance tax. Successors living overseas could be subject to their country's tax laws and capital gains on the Israeli land they have inherited.

    There is also no Estate Tax in Israel

    Q19. Which government body is responsible for issuing Inheritance orders and Probate verdicts?

    The Israeli Inheritance Registrar and the decision from there is the family court's responsibility to sign the court order. They have the power, according to Israeli law, to issue inheritance orders, probate wills or intestate succession to heirs.

    Q20. How long would it take to solve an inheritance, probate case?

    Depending on their complexity of the case and disputes between the inheritors. It could last from 4-5 months to one and a half years.

    Q21. What is the remaining spouse going to get in the absence of a will?

    The remaining 1/4 stays for deceased children, grandchildren and parents, while the living partner is entitled to receive the deceased vehicle and movable properties and 3/4 of all property of the deceased. The surviving spouse has the right to 2/3 of the property if the deceased has brothers and sisters but no offspring. The remainder is divided among the siblings of the deceased.

    Q22. What are the living spouse's property rights?

    The deceased's estates are governed by property rights. In the particular case of a married couple, the property left by the deceased is entitled to the privileges the spouse has gained previous to the death of the deceased. Usually, there is an assumption of shared property between partners in the absence of clear exclusions or any arrangement and so the spouse's privilege should first be confirmed before the determination of properties contained in the estate, particularly if the name of the spouse is not recorded as the proprietor of any kind.

    Only if the deceased does not have children, relatives or parents will the partner inherit the whole estate. Otherwise, if the deceased is survived by children or parents then the partner shall be entitled to half the property and if the deceased is survived by grandparents, sibling, or another relative, then the spouse is entitled to two-thirds of the property.

    The partner has had the right to inherit all of the moveable property of the deceased, including motor vehicles that belong in the family. The living spouse's properties are not part of the estate to be inherited, under the Israeli Inheritance Act. This can entail up to half the value of the couple's properties, because of the application of Law 5733 – 1973 on Spouses (Property Relations), rules of mutual property ownership or a property relations arrangement (for example, a pre-emptive or 'prenuptial' agreement).

    The (Property Relations) Law 5743 - 1973 applies to partners who were married on or after 1 January 1974.  This statute determines that each partner has a right to a half the value of his or her property except any property possessed by one spouse prior to marriage.

    The rules of shared possession of land resulting from rulings of the Israeli Supreme Court was extended in relation to couples marrying before 1 January 1974. These rules state that where the partner (including spouses publicly identified as spouses) exhibits a "working lifestyle" and "joint endeavor" thus leads to the inference that all spousal property is a collective property.

    Q23. What are the inheritance laws for minors?

    If the heir of a property has no legitimate inheritance capacity, a guardian may be assigned to benefit the heir. The guardian may be appointed in the will, but such an appointment must be approved by the court and the court may choose a more competent person to act as a guardian. Natural guardians are the parents of the child, but a court is responsible for the whole assignment process which seeks the best of the heir.

     

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    Sun, 07 Nov 2021 01:47:00 GMT
    <![CDATA[FAQs- Patent Registration in Israel]]> FAQs- Patent Registration in Israel

    An invention is protected by a patent, which is an exclusive privilege given to the inventor. In other words, a patent is an exclusive license to a device or a method that proposes a new technological approach to a problem or a new way of doing things. Technical information about the invention must be submitted to the public through a patent application in order to obtain a patent.

    Patent applications are submitted at the ILPO's Patents Department from all over the world. Each submission is addressed to a special examiner (an engineer or expert) in the area in which their invention is made. A patent will be awarded if the invention meets the conditions of the Patents Law and Regulations.

    Q1. What are the sources of Israeli patent law?

    The main source of patent law is the Patents Law, 5727-1967. The list of the most significant secondary legislations is mentioned below:

    • the Patent Regulations (Extension of Protection ‒ Procedures for Order Application, for opposition to the order and for Application for Revocation), 5758-1998
    • the Patent Regulations (Application of the Patent Cooperation Treaty), 5756-1996
    • the Patent Regulations (Office Practice, Rules of Procedure, Documents and Fees), 5728-1968

    Q2. Who has the authority to file a patent?

    The owner of the invention must file an application to register a patent under Section 2 of the Patents Law. According to Section 1, the inventor or individuals who derive title under the inventor and are entitled to the invention by operation of statute, sale, or arrangement are the owners of the invention. A claimant who is not the inventor is required by Section 11(b) of the Patents Law to explain how it came to own the invention.

    Q3. When a patent is licensed, what rights do you get?

    A successfully registered patent entitles the patent holder to enjoin third parties from using the invention on which the patent is issued without permission or unlawfully, according to Section 49 of the Patents Law. 'Exploitation' means using the invention in the manner specified in the claims or in some other manner that includes the invention's nature in light of the claims. The issuing a patent does not grant authorization to use an invention illegally or in a way that infringes on any legitimate privileges under any statute."

    Q4. How does a patent holder go about enforcing his or her rights?

    Patent holders and exclusive licensees may sue in court to protect their rights. A patent infringement suit may only be filed after the patent has been granted, according to Section 179 of the Patents Law.

    Q5. What is the period of a patent's validity?

    A patent is valid for 20 years from the date of registration of the patent application if extension fees are charged, according to Section 52 of the Patents Law. If the violation occurs within the duration of the patent, it can also be pursued by a petition for damages after the term has expired due to Israel's seven-year statute of limitations. Courts have discussed the prospect of a post-term injunction, but it is uncertain to what degree this remedy exists.

    Q6. Which regulatory authority is in charge of the registration process?

    The Israel Patent Office.

    Q7. What are the reasons for a patent claim being rejected?

    The reasons for a patent claim being rejected are as follows;

    • Failure to include a complete reference list and list of publications (Section 18). Courts also ruled that failure to do so constitutes a breach of contract (see, for example, CC 14/92 (Nazareth Distr) Plasson Maagan Michael Industries Ltd v Freddi Priant et al. [1993]).
    • Failure to meet the enablement, sufficiency, definition (Article 12), and argument support (Article 13) requirements;
    • Failure to follow the procedural provisions of Chapter 3(a) of the Patents Law (payment of relevant fees, the inclusion of proper specification and claims etc.)
    • Failure to meet Section 3 of the Patents Law's patentability criteria (novelty, usefulness, industrial use, and imaginative step); and
    • Lack of clarity of ownership

    Q8. Are there any forms of statements or claiming formats that are prohibited under your jurisdiction (for example, claims based on medical processes)?

    Method claims for human therapeutic treatments are not permitted under Section 7(1) of the Patents Law. Patent applications for new species of plants or animals are also prohibited under Section 7(2) of the Patents Law, with the exception of microbiological species not derived from nature. Furthermore, since they are not considered as process or substance claims, so-called "use claims" are not permitted. Furthermore, so-called "Swiss-type" format statements are not permitted. Additional exclusions, such as business methods, have been established by case law. 

    Q9. Are there any administrative or regulatory procedures for extending the length of a patent (for example, adjustments for patent office delays, chemical patent term extensions, or supplemental security certificates)?

    Yes, but only in the form of patent extension orders for patents on medicinal preparations and medical equipment. As punishment for legal delays that prohibit the patent holder from using the patent, extension orders of up to five years can be issued. The following are the requirements for their award, as specified in Section 64D of the Patents Law:

    • The SAID registry is the first to include the drug, allowing it to be used for medicinal purposes in Israel.
    • A drug registered in Israel's Pharmaceutical Registry is present in the pharmaceutical preparation.
    • If marketing permits have been issued in the United States or a recognized European country, a patent alleging said planning abroad has been granted an extension period that is valid in both the United States (if applicable) and the recognized EU country (if applicable).
    • There has never been another extension order for the patent or the substance; and
    • The drug, method for producing or using it, medical preparations containing the material or process for producing it, or medical devices claimed in the basic patent, as well as the basic patent, are still valid.

    The drug, method for producing or using it, medical preparations containing the material or process for producing it, or medical devices claimed in the basic patent, as well as the basic patent, are still valid.

    The extension period cannot be longer than the shortest of

    • 5 years
    • the underlying patents' expiration or termination, or their patent term extensions in a recognized country
    • 14 years after the first marketing authorization in Israel or another recognized country; or
    • in recognized patents, the shortest term of expansion of associated patents

    Q10. What types of subject matters are patentable?

    A "patentable innovation" is described as "an invention, be it a product or a method in any field of technology, that is new and useful, has industrial application, and requires an innovative phase," according to Section 3 of the Patents Law. 

    Q11. Is there a way to challenge the patent office's refusal to issue a patent, and if so, to whom?

    If there is a rejection of a patent application by the Israel Patent Office, the applicant can seek a hearing before the registrar. According to Section 174 of the Patents Law and Regulation 191 of the Patents Regulations, if a patent is not issued after the trial, the claimant has the right to appeal to the district. Additionally, the registrar can reconsider the rejection at the applicant's request if the request is made within 12 months of the refusal date.

    Q12. What are the reasons for invalidating a patent that has already been issued?

    The reasons for invalidating a patent that has been granted (as mentioned in Section 31 of the Patents Law) are the same as those for opposing the issuance of a patent, as follows:

    • Owing to the previous application (which destroys novelty) or demonstration, the invention is not patentable.
    • The owner of the invention is the opponent, not the plaintiff; or
    • There are some reasons why the registrar may have denied registration.
    • A patent could also be invalidated if it was not prosecuted in good conscience (e.g., failure to inform the Israel Patent Office of an important citation abroad).

    Q13. Who will challenge a patent that has been granted?

    Any third party can bring a termination suit against a patent that has been granted. A patent revocation claim may be filed at any time after the patent has been granted.

    Q14. What are the deadlines for filing a post-grant review petition or an opposition?

    Within three months of the approval of the bid, a note of pre-grant opposition must be filed. This time frame cannot be extended.

    Q15. When an opposition is filed, what are the potential outcomes?

    The potential outcomes of opposition are as follows;

    • the opposition's dismissal
    • acceptance, in whole or in part, of the opposition; or
    • Ownership of the copyright is transferred to the opponent.

    Q16. What legal principles will the tribunal use to settle the appeal or opposition, and who holds the presumption of proof?

    The legal principles used by the Israel Patent Office are identical to those used in courts. In a patent opposition proceeding, the claimant bears the presumption of evidence. In a revocation case brought by a third party, though, the presumption of evidence is on the revocation claimant.

    Q17. What factors contribute to a patent's inability to be enforced?

    Patents cannot be executed until they are granted in most cases. A legal case for infringement can be brought after the patent has been granted, according to Section 179 of the Patents Law; however, if an action for infringement is brought, the court may award relief for infringement committed after the date of publication of the claim.

    Furthermore, if a renewal charge is not charged and the patent is declared lost; as a result, the patent will become unenforceable. If a patent holder wants to impose an invalid patent, they must file a petition with the registrar to get his or her consent.

    According to Section 53 of the Patents Law, whether the applicant used or planned to use the technology before the date of award, it would be immune from infringement. Even after the patent has been restored, if the defendant started to exploit the invention in Israel on the day the patent lapsed, or if the defendant made real provisions for its use after that date, the defendant shall be entitled to continue to exploit the invention only for the purposes of its industry.

     Q18. What matters infringe a Patent?

    In light of the concept of such claims, Section 49(a) of the Patents Law distinguishes direct infringement as the unauthorised or unauthorized use of an invention for which a patent has been issued, either in the manner prescribed in the claims or in some manner that includes the substance of the invention.

    Q19. Is it possible for a party to be held responsible if the copyright violation occurs outside of the jurisdiction?

    The Patents Law, in general, refers to infringements that occur within Israeli territories. There are no equivalent clauses in Israeli law to those found in 35 US Code 271 (f). In at least one instance, an Israeli court ordered an injunction against an Israeli firm, requiring it to guarantee that its international subsidiary did not misuse the technology outside of Israel (MCA 814/05 (Jer Distr) CC 7076/05 Orbotech Ltd v Camtech Ltd [2005]). In contrast, a party would not be held responsible for patent violations committed solely outside of Israeli territories (LCA 8831/05 Harar v Dialit Ltd, [Sup Ct]).

    Additionally, an operation carried out outside of Israel that causes violation in Israel can be prosecuted in Israel as per the case of Beecham Group Ltd v Bristol-Myers Co, 33 (3) PD 757 [1979]

    Q20. In which courts will a patent infringement suit be filed? What are the legal specifications for each location?

    According to Section 188(b) of the Patents Law, each of Israel's six district courts is potentially authorized to hear patent infringement cases, according to local jurisdiction laws.

    According to Regulation 3 of the Civil Procedure Regulations of 1984, a plaintiff can bring an action in one of several separate venues, including;

    • the location of the wrongful act or omission that gave rise to the argument; and
    • the defendant's residence or place of business

    Q21. Are there any damages available? What are the types of damages available?

    Yes, the types of damages available are as follows;

    • Actual damages, such as a plaintiff's reduced earnings or the defendant's profits;
    • Compensation, which is given at the discretion of the judge. The court would weigh the earnings from the violation, the extent and length of the infringement, and other factors when determining the amount of compensation; and
    • Punitive damages can be awarded in the event of a wilful violation.

     

     

    ]]>
    Sun, 10 Oct 2021 12:24:00 GMT
    <![CDATA[FAQs - Medical Negligence in Israel]]> FAQs - Medical Negligence in Israel

    Introduction

    The medical profession has seen an increasing prevalence and frequency of legal proceedings on medical liability since the mid-20th century. Some people believe that increased litigation is beneficial because learning from mistakes saves the community's wellbeing, which helps keep doctors responsible. The opponents believe, however, that proceedings are harmful for maintenance of health standards, claiming there is nothing more harmful than the suggestion of patients suing their doctors.

    In contrast to any other occupation, medicine depends on human beings to make complex decisions that may have serious and long-lasting implications. Unfavourable results are usually an inherent threat to medical care and do not generally represent inadequate treatment.

    Q1. What is medical negligence?

    Medical negligence is characterized as negligent medical care, involving physicians, clinics, nurses, chiropractors, therapists, or other physicians. A medical practitioner that is not acting in a way that is deemed to be the agreed norm of diagnosis or treatment for an illness will be found liable for all resulting damages, including distress and injury, medical costs, income loss or unlawful death. The phrase "medical negligence" is also referred to as "medical malpractice."

    Q2. What are the main statutes and regulations relating to medical negligence?

    In Israel, there is no clear law on medical misconduct. Present legislation refers to neglect offences, surgical assaults, infringement of the statute and violations of the Patient's Rights Law.

    The tort of negligence, in Articles 35 and 36 of the Tort Ordinance [1] also applies. With Article 35 being Negligence and Article 36 being Duty Towards All.

    The case on negligence, as set out in the Torts Ordinance, is a structure that enables the legislature to assess criteria that are to be considered for damage and damaging factors when there is a duty of responsibility in the relationship between them. There are aspects of the responsibility for care, carelessness (violating the obligation to provide care) and injury in analyzing the reasons for neglect.

    Q3. What can you sue for?

    At any stage of medical treatment, medical negligence can occur;

    • In the first step, for example in laboratory diagnosis.
    • At the latter stages, for example, diagnostic presentation or establishment or implementation of a recovery facility and/or the operation.
    • At the patient care post-operative stages. Conflicts with medical negligence laws are popular in the fields of dentistry, oncology, maternity, prescriptions and it's side effects, surgical errors and other medicinal fields. Any health professional may be prone to making mistakes.

    A variety of situations in which a medical professional makes an error or incorrect judgment can cause medical malpractice. Common examples of incidents of medical negligence include:

    • Birth injuries
    • Gynaecological and obstetrical malpractice
    • Surgical errors
    • Emergency Room negligence
    • Anaesthesia errors
    • Misdiagnosis or delayed diagnosis
    • Failure to diagnose cancer
    • Medication errors
    • Brain injuries
    • Patient neglect
    • Failure to obtain necessary patient information

    Q4. How do you know if you have a medical negligence case?

    To decide whether negligence occurred in a specific situation, the Court determines if the features of negligence wrong have been complied with in the case under consideration:

    • The existence of a caring obligation - is the defendant's care obligation to the complainant.
    • Infringement of this obligation.
    • Harm attributable to the infringement - Has a claimable damage to a complainant been sustained in the light of the court.
    • A causal relationship exists between the actions of the defendant, neglect and injury.

    The plaintiff must assert that all four factors apply in all the claims based on medical malpractice.

    If all the aforementioned factors are complied with, the Court will decide that the affected plaintiff has been neglected and compensated. There is no exact test for the responsibility of patient abuse. The Court shall review the facts of the situation, the organization, the conditions, the disease and the cure, case by case.

    Before proceeding with the medical negligence claim, it is important to collect vital information.  To do this lawyers receive from the client power of attorney and ask the client to sign a waiver of confidentiality. If people resort to a lawyer for medical negligence payments, it must be concluded that they should not hide the details concerning their state of health and that they must give permission to the information being disclosed and paperwork concerning their state of health to the medical establishment concerned.

    Q5. What kinds of damages (money awards) are available to the plaintiff in a medical malpractice lawsuit?

    Two categories of monetary loss were distinguished by The Courts of Israel: general and special damage. The Israeli law does not specify how the victim's pain and suffering should be compensated and the judge must give his impression on medical opinions and measure the scope. The ruling established requirements that affect the compensation sum. The age of the injured after the injury shall impact the amount of damage and disability pay. The Court mainly investigates the impact and scale of the kind of injury on the quality of life of the survivor.

    In the case of medical malpractice and neglect, financial benefits will be provided sometimes, including the payout for medical costs in the past and the future, recovery, compensation for missed or job losses, trauma, or other mental injuries. In this context, we are talking about significant amounts of money.

    Compensation for loss of earning capacity - this compensation takes into account the loss of the injured person's income due to the wrongs perpetrated against him.  Therefore, if a person is hurt physically by a misdemeanour and is unable to persevere with his job, the court will offer him compensation for the lack of earnings ability.

    Expenses for treatment - the court will consider the claimant's bills for physical, nursing, psychological, therapy and hospitalisation, and travelling supplementary costs.

    Q6. In what cases of negligence and malpractice is there a good chance of receiving compensation for damage?

    Unfortunately, there are very frequent incidents of medical neglect. They are prevalent in pregnancy and delivery, dentistry, cardiology and other medical fields. In the following examples, compensation for medical care will normally be obtained:

  • Incorrect diagnosis of the malady;
  • Incorrect surgical procedure or failure to remove foreign bodies after the completion of a surgical procedure;
  • Removal of healthy organs together with the diseased ones;
  • Scalding of tissue and organs during a surgical procedure;
  • Mixing of blood groups in the course of a blood transfusion or an intravenous administration;
  • Administration of an incorrect treatment process.
  • Q7. What is the procedure in the initiation of a lawsuit according to Medical Malpractice law?

    The commencement of a suit involves the submission of an independent medical opinion in cases of suspected medical neglect. Without an expert's report, one cannot continue with a case. However, two or three medical records may be produced in such proceedings. The defendant may provide his own specialist's examination, in which case the court shall nominate an independent professional. It is therefore important to get a professional report from a qualified expert who knows how to produce an affidavit of those reports.

    Q8. What are the medical negligence rules for foreigners?

    Many foreigners come to Israel to get medical treatment. If neglect occur at an Israeli medical institute, a foreign resident is entitled, in compliance with the Israeli Patient's Rights Law of 1996, for equal compensation as any Israeli citizen.

    Q9. How to file a medical negligence claim?

    It is insufficient to simply claim that medical negligence has taken place to sue for damages in a case of medical negligence. It should therefore be shown that it has caused real harm and a link of cause and effect between the medical mistake performed and the harm caused. An accusation of medical incompetence does not necessarily offer enough basis for the prosecution of an irresponsible doctor.

    Q10. What are your rights as a patient?

    In compliance with Israel's Law on the Patient's Rights Law, all patients are entitled to full data on their health status and the procedures and expected outcome of their care received from their doctor. Besides, all patients need to give their approval to be fully aware of the care procedure they will be undergoing to the medication they get. When a medical officer does not supply the patient with vital details, no alternatives are offered for the latter.

    Such a case itself offers ample justification for an action because, under such situations, there is no need to provide proof of the degree of health damages alleged. Violation of human rights is a cause for compensatory damages

    Q11. What are the limitations to the claim?

    If the plaintiff's medical record failures or defects, this impairs the right of the injured patient to support the argument for abuse. The judge, however, may in situations such as those, opt to pass the duty of persuasion to the defendant-doctor.

    Q12. When Can a Claim Arise Over Lack of Express Consent?

    • The right of the patient not to be given unintentional medical treatment. He has the right, so that he can determine for himself what treatment procedure to use, to get clarification.
    • The fact that the patient is not given all the data he wants to decide about the different care alternatives in this case can be evident in medical malpractice. The responsibility of the physician to warn the patient about his condition and the potential outcomes stem from the general care duty that the physician and the hospital owe to the patient. If the risks of therapy, the options, are not disclosed, so the obligation of care is violated.

    Q13. What kind of disputes can be settled through mediation?

    Lawsuits involving medical negligence are often resolved outside trials. Both medical facilities have liability protection covering incidents of suspected medical negligence or malpractice; thus, all medical professionals are insured for occupational risk. Where the mistake affects a person, doctors and hospitals tend not to go to court and risk damaging their reputation; so they also prefer to resolve the matter using mediation. The settlement will take place on the scope of the losses reported and the insurance provider will then pay the damage. Of these cases, compensation will be granted to the victim in a very short time.

    ]]>
    Sun, 05 Sep 2021 12:00:00 GMT
    <![CDATA[Labour Law in Israel]]> FAQ - Labour Law in Israel

    Introduction

    Israeli labour law extends to all Israeli or foreign workers consisting of a series of cogent legislative legislation, regulations and jurisprudence. Foreign staff are non-Israeli employees in Israel who work under a legal visa for work. Furthermore, there are common and particular collective arrangements and extension directives for any or some segments of the labour market. The fact that an employee is not entitled to suspend any minimum rights under Israel's legislation should be recognized.

    There are a variety of sources governing employment relations in Israel: fundamental rights, as established in the aforementioned basic laws; statutory rights, as provided for within legislation and regulations; contractual arrangements and extension agreements; and individual labour contracts. labour relations are governed by many different sources. The National Labor Court (NLC), which is the primary judicial body creating labour and social security legislation, interprets these legal sources. The government and the courts are used as rules, even if not binding, international norms, especially ILO conventions accepted by Israel, but also EU standards.

    Q1. What are the main statutes and regulations relating to employment?

    Israeli labour legislation provides for minimum mandatory requirements, which cannot be waived by employees.

    These laws include:

    • Minimum Wage Law, setting down the minimum wage and is revised daily;
    • Wage Protection Law governs the timing and procedures of paying and allowing deduction of the wage/salary and the provision of fines for the infringement;
    • Hours of Work and Rest Law, regulating working hours, additional hours of night work and rest days of workers as well as wages per each working group.
    • Annual Leave Law  lays down the annual minimum leave quotas and usually governs vacations;
    • Sick Pay Law, which lays out minimum sick leave-pay provisions.
    • Severance Pay Law, which lays down the allowance and calculation of the severance pay;
    • Advance Notice for Dismissal and Resignation Law, which lays down the minimum notification requirements for employer or employee before termination.

    Generally applicable extension orders include four additional compulsory benefits which workers cannot waive:

    • Refund of charges for travel to and from the workplace;
    • National holidays;
    • Pay for recovery;
    • Pension plan.

    Q2. Does employee/contractor classification have clear rules?

    The main relevant rules cover the following considerations: whether the employee's function is an integral and regular part of the employer's business; the extent of control over the employee; whether the employee has his or her own business, takes economic risks, hires employees or maintains a list of clients; the extent of the employee's financial dependence on the employer; who supplies the means to work (ie, whether the employer or the employee supplies the equipment, vehicles, materials and tools); the place of work (ie, whether work takes place at the premises of the employee or the employer); the length of employment; the method of payment; the method of payment of taxes by the employee; and whether the parties believe that they are entering into an employer-employee relationship and how this is presented to third parties. 

    The most important laws address the following considerations: if the work of the employee is an integral part of the business of the employer;

    • The scope of employee management.
    • If the employee's have their own business.
    • Takes financial risks, recruits or keeps the customer list.
    • The level of the employee's reliance on the company for financial reasons.
    • Who provides the means for working such as the machinery, vehicles, material and resources supplied by the employer or the employee.
    • The example workplace, whether the job is done at the employee's or the employer's premises.
    • The duration of the work.
    • The payment process.
    • The process of paying the employee's taxes, and whether or not the partners feel they enter into an employer/employee agreement and how it is sent to third parties.

    Q3. Must there be a written employment contract?

    Israel's legislation generally does not contain a written labour contract and an oral arrangement is legally binding. However, the Notice to the Employee (Terms of Employment) Act forces the employer to notify each employee of the employee's principal terms and conditions of employment in a stipulated manner.

    The Foreign Employee Law also mandates that a contract of work of a foreign employee be in writing, in a language familiar to the employee, with precise terms and conditions.

    Q4. Are any conditions implicit in employment contracts?

    In all arrangements and contractual provisions, all legislative and obligatory incentives are implied. An employment contract may also include the terms of any other collective bargaining arrangement or extension order.

    Q5. Is it compulsory to implement settlements on arbitration/dispute resolution?

    In collective bargaining arrangements, arbitration and conflict resolution procedures are common.  However, in personal work arrangements, it is not normal and compulsory job rights and compensation cannot be covered by arbitration. Exclusively only contractual benefits can be covered by arbitration.

    Q6. How can workers amend current contracts of employment?

    Any changes to the working terms must be communicated to the employee by written notice. Any modification is subject to the consent of the employee.

    Q7. What are the rules for employing foreign workers?

    All rights and privileges granted to workers under Israeli labour law are entitled to foreign workers in the territory of Israel; moreover, they are entitled to specific benefits according to laws governing foreign workers, e.g. written jobs, medical care and lodging.

    In the context of background checks and investigations, what should employers do;

    Q8. About criminal records?

    Criminal background checks are prohibited, as expected by law-specified government enforcement agencies. Employers delivering care for children and persons with disabilities or psychological disabilities would ask all male applicants to affirm that they have not been accused of sexual crimes.

    Q9. About Credit checks?

    Credit checks in Israel are unusual and have only recently been adopted. There is no case law available.

    Q10. What is the minimum wage?

    Under the Minimum Wage Law, the statutory minimum wage in Israel is NIS 5,300. In 2015 it rose from NIS 4 300 to the current amount in several negotiations between the Histadrut (General Federation of Labor in Israel) and employers' organisations. This is accurate as of April 1 2018.

    Q11. What are the restrictions on working hours?

    An average Israel work week takes 43 hours from Sunday to Thursday. The employee who works on a 5-day work week (Sundays to Thursdays) thus works 8.6 hours on a normal working day. Six-day employees work eight hours a day between Sunday and Thursday, with an extra three hours of work on Friday. Any operating hours exceeding normal hours per day and/or exceeding regular week (i.e. more than eight or 8.6 hours per day) are called extra hours. Overtime is usually prohibited by the Hours of Work and Rest Law.

    However, with the following restrictions, a general permission granted by the Labor Ministry allows overtime: Six-day-working employees cannot work for four hours of overtime a day or 12 hours of overtime a week. Five-day employees can't work for over four hours a day or 15 hours a week of surplus work per day. According to the legislation, one workday from one hour shall be divided into a break of at least 8 hours. Otherwise, one working day shall be taken into account and an employee shall have a right for the following day of overtime pay.

    Each employee is entitled to a minimum of 36 hours of weekly rest. Saturday shall be included in the weekly rest for Jewish employees and employees from any other religion can choose between Friday, Saturday or Sunday to rest at weeklies intervals. The Labor Ministry is permitted to issue rules that deviate from general weekly rest requirements and reduce them to a minimum of 25 hours a week. Until allowed with a general or special authorisation from the Labor Ministry, jobs shall be prohibited at weekly rest.

    An employee shall have a right to a special weekly rest compensation, for working hours of weekly hours of rest, of not less than 150% of his daily salary.

    Q12. What are the meal and rest break requirements?

    Section 20 of the Hours of Work and Rest Law specifies that an employee shall have the right to rest and reset for a minimum of 45 minutes in every working day of six hours or longer, with an ongoing rest period not under 30 minutes.

    The Labor ministry's permission nevertheless permits workers to do non-manual labour for eight to nine hours without interruption. Another license makes a continuous break of 30 minutes while the job takes place in a 3-shift mode. The statute further specifies the right of an employee to pray according to his values during the working day. In line with the conditions of the workplace, pray time is defined and the employee's religion is considered.

    Q13. How is overtime calculated?

    Any operating hours exceeding normal hours per day and/or exceeding regular week (i.e. more than eight or 8.6 hours per day) are called extra hours. The measurement is performed regularly as well as monthly. For the first two hours of overtime plus a further one hour of overtime the employee has the right to an extra-time bonus of 125% of his or her daily pay.

    Q14. What are the overtime exemptions?

    The House of Work and Rest Law does not include those types of staff, including those in managing roles, employees with special fiduciary partnership obligations and employees with unattended working hours by the boss. Labour courts can identify an employee who is identified in his employment contract as being excluded as nonexempt; the case law allows for the exception of a very limited category of employees.

    Q15. Is there any legislation establishing the right to annual vacation and holidays?

    The Annual Leave Law specifies that an employee has the right to a compensated annual leave for 10 or 12 days on start-up, rising annually to a limit of 28 days depending on the seniority of the employee. Besides, all workers are entitled to nine paid public and national holidays under the broadly applicable extension order.

    Q16. What are the employee rights to medical leave?

    The Sick Pay Law allows workers to work at a rate of 18 sick days a year, or up to 90. Workers shall not be allowed to pay on a sick day on the first day; employees shall be entitled to 50% of their pay on the second and third days; employees shall be entitled to 100% of their salaries from the fourth day onwards. Sick leave pay is certified for medical purposes and sick days accrued, unused and unused are not redeemable, unlike holidays.

    Employees are allowed, all subject to such legal provisions, to use a proportion of their accumulated sickness days for a minor, parent or spouse's disease. Male workers can use maternity checks or the birth of a child up to seven sick days. Maternity and paternity leave shall be paid for by statute and are payable by national security (not the employer).

    Q17. Is there any law prohibiting harassment in employment?

    Prevention of Sexual Harassment Law requests employers to: print in the workplace a set of guidelines to deter sexual harassment; hire a prevention officer; enforce a program to prevent sexual harassment; and investigate complaints.

    Q18. Is there any legislation protecting employee privacy or personnel data?

    Employees have a fair right to privacy, and the right not to be tracked, at work. Employers can, however, track workers overtime, providing they have approval of employees and develop a policy outlining equipment, procedures, intent and data usage. The right of employees to privacy has evolved in recent years as a matter of law.

    Q19. Must notice of termination be given before dismissal?

    The Advance Notice for Dismissal and Resignation Law includes notification from all employers and workers. The notification period shall be fixed with a limit of 30 calendar days per the time of work. An employer can overlook the employee's presence during the time of notice, as long as it pays the employee in place of notice.

    Q20. What are the laws governing redundancies? And in what circumstances are employees protected from dismissal?

    In general, an employment contract and/or any collective bargaining arrangement applicable shall allow a company to terminate one of its workers subject to restrictions of law. The dismissal of pregnant women; maternity leave women or 60 days thereafter; women residing in the shelter of abused women; men required for military, sick leave staff; infertility treatment staff; households deprived of care and persons with disabilities is subject to legal restrictions.

    In certain cases, termination is prohibited and the contractor should request permission from the appropriate governmental agency in some other cases. It would be unlawful to terminate a pregnant worker without the employer being able to satisfy the Labor Ministry that there are other grounds for termination and unrelated to the pregnancy. Besides, staff are entitled to a hearing before termination. In brief, for an employer to state his or her argument against firing, before reaching a last determination the employer must schedule a hearing with the employee concerned. The laws of the hearing are determined by jurisdiction.

    Before making the definitive decision on termination and redundancies, a hearing must be held. Essentially, redundancy is subject to the same rules. However, since the contractor may be facing allegations that a form of improper prejudice or discrimination affects the layoff selection process, it is prudent for each decision to be completely reflected and expressed. In the event involving terminations of more than 10 jobs in the same month, the Employment Service Law requires the employer notifying the Employment Service Bureau. This rule, however, is never enforced or complied with. Certain collective bargaining arrangements may be subject to a mediation requirement.

    Q21. Which courts or tribunals are competent to hear complaints?

    There are two cases of the labour courts: the Regional Labor Court and the National Labor Court. The Labor Ministry has certain procedures – such as granting termination permits to pregnant mothers.

    Q22. What's the usual protocol and the timing for complaints?

    For civil non-collective workers, the basic protocol is as follows and may take 3 or 4 years.

    ]]>
    Sat, 14 Aug 2021 02:11:00 GMT
    <![CDATA[FAQs - Trademark Registration and Use in Israel]]> FAQs - Trademark Registration in Israel

    Q1. Who is eligible to apply for registration?

    A trademark registration application may be filed by any person or legal entity. There is no requirement for citizenship or residency.

    Q2. What can be protected and registered as a trademark, and what can't?

    Any logo that can differentiate the trademark owner's products and services from those of others can be registered. A 'mark' is described as 'letters, numerals, words, pictures, or other signs, in two or three dimensions, or variations thereof.' The following items are included in this expansive and versatile definition:

    • Logos and phrase marks;
    • Color marks (i.e., marks with just one or more colors and no wording or design);
    • Shapes of products and packaging, as well as 3D trademarks;
    • Points that make a sequence of movements are known as motion marks.
    • holographic inscriptions; and
    • Sound marks.

    As of now, no smell or taste marks have been detected. Registration is also possible for service, certification, and collective markings.

    Q3. Is it possible to secure trademark rights without registering them?

    Under the tort of passing off, trademark rights may be created without registering, relying on local goodwill. In most cases, long and significant use in Israel is needed to build some local goodwill, but in exceptional cases, use abroad can suffice.

    Q4. Is a well-known international trademark protected even though it isn't used domestically? If that's the case, does the international trademark have to be well-known domestically? What kind of evidence is needed? What kind of security is provided?

    And if not used domestically, an international trademark that is well-known there is covered. If a mark is not licensed in Israel, it is protected from the use and registration of a confusingly identical mark for the same or similar products or services. If a mark is licensed in Israel, it is protected from the usage and registration of a similar mark for products that are not of the same description, given that such use could lead the public to suspect that there is a link between the goods or services in question and the owner of the registered trademark, and that the owner could suffer harm as a result of such use.

    Q5. What are the advantages of registration?

    In Israel, trademark registration has a range of advantages, including:

    • a license to use the trademark solely in Israeli territory;
    • a legitimate assumption of possession and right;
    • a right to sue for trademark violation under the Trademark Ordinance (New Version) of 1972;
    • availability of a border control system that allows Customs to detain alleged infringing goods;
    • a prospect of filing a counterfeiting lawsuit with the police; and
    • Well-known trademarks have been given additional rights.

    Q6. What types of documents are needed to file a trademark application? What are the laws that control how the mark is represented in the application? Is it possible to file documents electronically? Is it possible to conduct a trademark check before filing a trademark application, or is it required? If so, what are the processes and costs?

    To file a trademark claim, the claimant must apply a power of attorney on behalf of the applicant and in favor of the attorney submitting the application to the Israel Patent Office. A qualified officer of the claimant organization must sign the form, and a scanned copy of the executed document must be forwarded. The original must be made available to the registrar upon request. The paperwork does not need to be notarized.

    When claiming traditional preference under the Paris Convention on the basis of a corresponding foreign application, the claimant must have an authorized copy of the corresponding foreign application as well as an English translation. Within three months of the application's filing date, all applications must be sent to the Israel Patent Office (a deadline which may be extended).

    A specimen in JPG format is required for device or stylized label registrations, whereas a specimen in MP3 format is required for sound mark registrations. There is an option to file electronically. It is required of companies and trademark attorneys who file on behalf of others (ie, lawyers or patent attorneys).

    Until filing, you should conduct an official trademark availability check.

    Just one foreign class is covered by an official trademark similarity quest. The official search fee is NIS647 (roughly $180 depending on the exchange rate).

    The Israel Patent Office automatically applies searches to additional related classes; but, based on the identified products or services offered with the search request, they are not all entirely protected. A system label quest is limited to one class. The price is the same as before.

    Q7. How long does it usually take to secure a trademark license, and how much does it cost? When does registration become formally effective? What factors will cause the time and expense of filing a trademark application and obtaining a registration to increase?

    Applications are normally reviewed 10 to 12 months after filing, according to current review rates at the Israel Patent Office.

    The official price for registering a trademark or service mark is NIS1,623 (approximately $450, depending on the exchange rate).

    The filing date is called the real date for the rights to a mark that has been registered for registration or used. Marks come into effect on the date of their registration (i.e., at the close of the opposition era, including resolving all opposition); therefore, the filing date is considered the relevant date for the rights to a mark that has been filed for registration or used.

    On receipt of a supporting affidavit detailing the reasons for the appeal, an accelerated investigation is possible under specific cases (e.g., an existing or imminent infringement). Within one month after receiving such a letter, an accelerated review is expected to take place. For rapid examinations, the official fee is about $265. (Depending on the exchange rate).

    Q8. Whose classification scheme is used, and how does it vary from the International Classification System in terms of claimable goods and services? Is it possible to use multi-class applications, and what are the estimated cost savings?

    The International Classification system's 11th edition (2019) is included.

    There are multi-class applications available. The below are the official fees for filing multi-class patent or service mark applications:

    • First class costs NIS1, 623 (approximately $450); and second class costs NIS1, 623 (approximately $450).
    • Every additional class filed concurrently for the same mark costs NIS1, 219 (approximately $340, depending on the exchange rate).

    Q9. When deciding whether or not to issue a trademark license, what protocol does the trademark office use? Are patent applications reviewed for future trademark conflicts? Is it possible to overcome an objection based on a third-party label with a letter of consent? Is it possible for applicants to respond to trademark office rejections?

    Trademark proposals are scrutinized from both a scientific and substantive standpoint. Both absolute and relative grounds are examined in a thorough investigation.

    When reviewing technical aspects, the examiner ensures that all technical conditions, such as filing a power of attorney and paying extra fees, have been met.

    The examiner then looks at the grammar of the product or service description (for clarification, non-ambiguity, and generalizations, for example) and the designation. The inspector may warrant a change in classification or the addition of classes to the application if the description of goods or services seems to include classes other than those originally requested.

    The Israel Patent Office then reviews the label on both relative and absolute grounds (for example, possible contradictions with previous registrations and applications).

    Although letters of consent may assist in overturning an initial rejection based on a cited mark, the examiner is not obligated to cancel a citation simply because a letter of consent is sent.

    Applicants or their affiliates (for example, trademark and patent attorneys) have three months to respond to trademark office rejections (extendable).

    Q10. Is it necessary to assert use of a trademark or service mark before registration is authorized or issued? Is it necessary to apply evidence of use? Are priority privileges given to international registrations? Is there a point at which registration must continue to be used in order to keep the registration or to overcome a third-party challenge based on non-use?

    There is no need for a licensed trademark owner to include evidence of use in Israel prior to or after registration. Furthermore, the registrar is not required to provide evidence of a trademark's use on its own initiative under Israeli trademark law.

    However, if a label is not used for three years after it is registered, it becomes vulnerable to cancellation on the basis of non-use at the behest of an involved party. In this case, evidence of use must be submitted to defend the registration.

    Q11. What words or phrases should be used to show that a trademark is in use or has been registered? Is it necessary to mark? What are the advantages of using certain terms or symbols, as well as the disadvantages of not doing so?

    To denote trademark use or registration, the symbols TM and ® may be used. It is not enough to label something. It is illegal to falsely claim that a product is protected by trademark registration (for example, by using the ® symbol or implying "Registered Trademark"). Section 3 of the Product Marking Ordinance provides that someone who assigns a misleading commercial definition to a product or sells or offers certain products faces sanctions (including fines and even imprisonment) unless they can demonstrate that they did so without intending to mislead. While no court trials have used this clause, in general, circumstances like this (i.e., wrongly indicating trademark registration) can be used in civil litigation to prove bad faith (eg, denying a party equitable relief).

    Q12. Is there a way to appeal if my submission is rejected?

    When your claim is rejected, you have the right to appeal:

    • An applicant has three months to appeal an examiner's original rejection (extendable up to 11 months, or longer under special circumstances).
    • A hearing before the registrar can be requested by the claimant.
    • Within 30 days, the registrar's ruling can be appealed to a district court.
    • Within 30 days, the claimant will file a motion to challenge a district court ruling to the Supreme Court.

    Q13. Is it possible to object to an application? Is it possible for a third party to object to a trademark or service mark application before it is registered, or to request cancellation of a trademark or service mark after it has been registered? What are the main causes of those problems, and what are the methods for dealing with them? Is it possible for a brand owner to fight a bad-faith application for its label in a jurisdiction where it is not protected? What is the standard cost spectrum for a third-party resistance or cancellation action?

    Trademark applications are released for a three-month opposition period within which a third party can file an absolute or relative opposition. Descriptiveness, marks that are detrimental to public policy, misleading marks, and marks that encourage unfair competition are all absolute grounds. Relative grounds include trademarks that infringe on third-party property rights and applications that are identical or equivalent to the company name of another party.

    Within five years of the date of trademark registration, third parties can revoke registered trademarks on the same absolute and relative grounds as oppositions. A cancellation suit against a trademark license on the basis that it was brought in poor faith has no time limit.

    A third reason for a trademark's exclusion from the register is that the logo has not been used in the three years prior to the petition for removal.

    The following items are used in both opposition and cancellation proceedings:

    • Detailed statements must be submitted;
    • Affidavits are used to provide evidence.
    • A hearing before the registrar for cross-examination; and
    • Summaries in writing

    The filing of challenge or cancellation proceedings is not contingent on the approval of a trademark. Brand owners will challenge trademark applications and registrations based on common law protection gained by trademark use as well as foreign goodwill.

    The costs of a third-party opposition or cancellation proceeding can vary depending on the facts of the situation.

    Q14. What are the requirements for maintaining a registration and how long does it last? Is it necessary to use the trademark in order to keep it up to date? If that's the case, what kind of evidence of use is required?

    A trademark registration will last an indefinite amount of time if it is renewed every ten years since it is first filed. Renewal is only possible if you order it and pay the following fees:

    • For single-class registrations, the renewal fee is $805; and
    • For multi-class registrations, the first class costs $805, and each additional class costs $680.

    There is a six-month grace period after the expiration date within which a registration can be extended, subject to payment of late renewal fees. If a mark is not replaced by the due date or during the six-month grace period (with the payment of late renewal fees), it is withdrawn from the register and cannot be renewed again. It is possible to order its reinstatement at any point by filing an appropriate affidavit, but this must be done within six months. In other words, if more than a year has expired after the renewal date, a lapsed registration cannot be renewed or reinstated.

    Furthermore, the canceled registration is considered valid for a further six months and, as a result, may be used to support a new application.

    Q15. What is the process for giving up a trademark registration?

    Through filing an appeal with the Israel Patent Office, the holders of a trademark register may voluntarily surrender it.

    It is not advisable to unilaterally forfeit a registered trademark during cancellation or other contentious litigation, since the trademark owner fears being forced to compensate the applicant's cancellation expenses. In such cases, the parties should file a joint note with the Israel Patent Office demanding the cancellation of the registration and the cessation of the litigation without a costs order.

    Q16. Will trademarks be covered by other intellectual property rights (e.g., copyright and designs)?

    Some IP privileges, such as copyrights and architectural designs, are not affected by trademark registration.

    Q17. What legal framework regulates the online enforcement of trademarks and domain names?

    Infringement occurs when a domain name or trademark is used digitally that is identical or confusingly similar to a registered trademark or an unregistered well-known trademark. Furthermore, the owners of unregistered trademarks (i.e., brand owners who acquired common law trademark rights and goodwill through the use of a trademark) have the right to enforce their rights against the unauthorized use of trademarks online or domain names that are identical or confusingly similar under unfair competition laws (e.g., passing off), as well as unfair interference with access to a trader's business under Sections 1 and 3 of the Commercial Civil Wrongs Law 1999, respectively.

    For conflicts involving the issuance of domain names under the '.IL' country code top-level domain filed or used in bad faith, including disputes including domain names that are identical or confusingly close to licensed or unregistered trademarks, the Israel Internet Association has an expedited mechanism for resolution.

     

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    Thu, 01 Jul 2021 01:54:00 GMT
    <![CDATA[FAQs - Project Finance in Israel]]> FAQs - Project Finance in Israel

    Introduction

    In Israel, project finance is a well-established financing method that has been commonly used in the last 15-20 years. It is used for debt financing in a variety of industries, particularly in public-private partnership projects. Project financing is used in a number of industries, including water desalination, power, and transpiration, residential projects as well as large-scale protection programs.

    Debt transactions in project financing are arranged according to international requirements, which include standard security packages and agreements (senior debt agreements, common terms agreement, equity subscription deeds, inter-creditor agreements, direct agreements with all major project parties etc.

    Q1. What are the key legislations and key regulatory bodies that govern the project financing in Israel?

    The project financing is not governed by any specific legal framework; it is regulated by the general legislation which is applicable to all of the financial sector in Israel.

    The banking sector is governed by the-

    •  Banking Ordinance of 1941,
    • The Banking Licensing Law of 1981 and
    • The Banking (Service to customer) Law of 1981.

    The Banking supervision law department of the Bank of Israel issues its proper code of Banking Business Directives which further regulates other aspects of banking in Israel.

    The key legislation which applies to other financial institutions is the-

    •  Control of Financial Services Law of 1981 and control of financial services law of 2005 and the other regulations promulgated thereunder.

    The key applicable regulatory bodies in the financial sector are-

    • The Commissioner of Capital Markets, Insurance and savings at the ministry of finance and the Banking Supervision Department of the Israel bank regulates the banking sector in Israel.

    Q2. What are the legal frameworks and authorities that govern the PPPs, and where have PPP frameworks been used most successfully?

    There are no clear frameworks or legislation that apply to PPP ventures, apart from general statutes such as the Mandatory Tender Law of 1993, the Contract Law (General Part) of 1973, and the Contract Law (Remedies for Breach) of 1970.The relevant authorities have amassed a wealth of experience in the implementation of projects, especially in the fields of infrastructure and transportation in a PPP scheme, over the years. In practice, a contractual structure has emerged, and the majority of PPP ventures are focused on the same general terms and risk sharing between the government and the private investor.

     Q3. In what sector is project finance commonly used?

    The project financing has been a very well established scheme in Israel and is now being widely implemented from the past 15-20 years now. It is a form of debt financing in many sectors but mainly when there is public private partnership (PPP). Electricity, transportation, water desalination are the sectors in which such financing is commonly used, moreover it is also commonly used in large scale security projects and residential projects.

    Q4. How are the debt transactions structured in project finance?

    The project finance debt transactions are structured as based on international norms, including standard protection packages and agreements (senior debt agreements, common term agreements, inter-creditor agreements)

    Q5. What is the composition of the market when it comes to the types of active lending institutions? And has the composition of the lending institutions changed in the past years?

    At present almost all the Israeli banks are involved in project financing, the main arrangers of the credit consortiums are the two largest banks Bank Hapoliam and Bank Leuim. The other banks such as HSBC, The European Investment Bank, and Deutsche Bank also play a vital role in the Israeli project market.

    In recent years it has become more and more common for the non-bank financing institutions to provide finance through the project finance scheme without any involvement of any banks as arrangers for example insurance companies and pension funds. This is being done in order to avoid additional cost and gain a better control of the project.

    Q6. Are there any major current projects or initiatives which may affect or influence the activity?

    In September of 2017 the government of Israel had for the first time published a multi-year plan with 147 infrastructural projects each of them costing at least ILS100million. The majority of such projects fall under the PPP sector. Moreover in the energy sector as well in December of 2017 principles for a major sector reform agreed between the government and the Israel Electric Corporation, this agreement included sale of six power plants to the private investors this once again comes under the scope of PPP and majority of the projects financed will be through project financing.

    Q7. What are the most notable transactions taking place in the Israel market?

    Many Project Finance Projects have been introduced by the government in the past two years. The first hospital in Israel implemented under the PPP scheme has started operating commercially, Along with this in the energy field the second pumped storage power plant has gotten finance through project finance scheme.

    Q8. How will these above mentioned projects impact the market and are there any other noteworthy developments in project finance transactions when it comes to energy projects and infrastructural developments?

    The above mentioned projects have been structured according to the common practices which are applicable to the project finance scheme. Differences can be seen in the interface with the relevant government agency. A custom collection of provisions was used in some projects to protect senior lenders' rights (in terms of security package and step-in rights) as well as the project's financial stability. Moreover the growing interest of the banks and other financial institutions in the PPP projects in various fields of infrastructure and energy from the past few years will moreover increase the need of project financing.

    Q9. Have there been any changes in the laws and regulations affecting financing structuring, such as guarantee and social regimes, local currency rules, and foreign investment restrictions?

    There are no limits on foreign investments, foreign currency trade, or inward or outward investment under Israeli law, with the exception of anti-terrorism and anti-money laundering legislation. A few years ago, no significant improvements in applicable law regarding finance structuring in terms of guarantee and protection regimes were made.

    Q10. How has the volume of credit impacted during such changes?

    The volume of credit provided by the financial institutions over the last decade have increased constantly because major governmental led reforms in the financial sector and one more reason is that these institutions have increased their involvement in credit arrangement and credit management.

    Q11. Are there any laws, regulations, or policy mechanisms under consideration that could have an effect on project finance in Israel?

    If adopted, the government plan outlined in section 1.3 may have a substantial effect on the size and magnitude of projects under construction in the PPP system, and there is no general legislative structure for the implementation of PPP projects and no clear regulation relevant to project finance. In terms of broader amendments, a revised insolvency proceedings statute has been released for public comment, with suggested changes to applicable insolvency law in different areas.

    Q12. What are the common misconceptions about project finance that exist in Israel?

    While Israel is a small country in terms of size and population, the scope of projects that are or could be funded through the project finance scheme is vast and disproportional to the country's size. Complete PPP investment was around ILS19 billion in the second quarter of 2016, with projects under construction accounting for another ILS10 billion. The cost of currently tendered projects is expected to be ILS4.5 billion. While some investors consider Israel to be a high-risk country for investments due to the current situation, the risk is mitigated to some extent by the state in many large-scale PPP projects by having restricted safety nets in the event of conflict, terror, or hostile action. Such safety nets ensure the repayment of senior debt if any of these events occur.

    Q13. Have any measures been taken to prepare for any form of market idiosyncrasies?

    Those interested in project financing should familiarize themselves with the contractual and legal structure that applies to the sector and project in which they wish to invest. Furthermore, many of the related sectors, such as energy and water, are highly regulated, and investors can expect to interact with government authorities frequently. In highly complex infrastructure projects in specific locations, assessing the risks associated with such projects necessitates a thorough understanding of the relevant authorities' activities. Such programs, in collaboration with local infrastructure organisations, are strongly recommended in this regard.

    Q14. What are the predictions for the development and financing sector in the coming months?

    The development of large-scale PPP projects is expected to continue in the coming years. It is estimated that the Road 16 project (ILS1.5 billion) and the IDF communication base project (ILS2 billion) will be awarded. The tenders for the Jerusalem LRT Green Line Project (ILS1.5 billion) and the Gush-Dan Fast Lanes project will be issued (ILS1.5billion). Tenders for large-scale PV power plants are also scheduled to be issued in the PV market. PV projects on a medium and small scale will continue to be developed in compliance with relevant regulations. In addition, at least one conventional power plant financial close is expected, while wind farm projects are expected to mature and secure construction financing.

     

     

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    Wed, 26 May 2021 01:22:00 GMT
    <![CDATA[FAQs - Israel Aviation Laws and Regulations 2021]]> FAQs - Israel Aviation Laws and Regulations 2021

    Introduction

    In Israel, the detailed law controls the security of all civil aviation. It regulates licensing of operators and service providers, including pilots, flight schools, airport inspectors, flight controllers, and manufacturers of aircraft and aviation equipment. Furthermore, the legislation specifies strict security clearance and medical eligibility criteria for employees in the aviation industry. The law has specific regulations for the operation and management of aviation colleges, commercial aircraft operation, aircraft maintenance and inspections, as well as airport facilities and airport and landing space operations.

    Q1. What are the principle Legislations that regulate the aviation sector in Israel?

    The bodies which regulate the principle legislation in Israel are as follows-

  • The Aviation Law 2011- This aviation law is relatively new and is modern and up to date, it provides the legal framework for aviation operation in Israel.
  • The Air Transport Law 1980- This law adopts the Montreal Convention into the Israeli law. This law states that the liability of the air carrier, it employees or its agents for any sort or damage including the death of a person shall be determined only based on this law. There will also be no claim for compensation according to any other cause of action.
  • The Aviation Service Law (Compensation and Assistance due to cancellation of flight) 2012- This law states the rights of the passengers to get compensation and assistance if the flight gets cancelled or delayed.
  • Q2. What are the regulatory bodies that regulate the field of aviation in Israel?

    The principle regulatory bodies which regulate the aviation sector are-

  • The ministry of transportation- This regulates the aviation sector as well as it has the authority to initiate new laws and enact new regulations
  • The Israel Civil Aviation Authority ( CAAI)- This performs the following functions
  • It establishes and maintains the procedures and regulations for international as well as domestic aviation
  • Implements international agreements and international treaties
  • It supervises the aviation operations regarding transport safety and efficiency
  • It grants licenses and permits (for aircraft, air personnel and aircraft manufacturers) according to the aviation law.
  • Q3. What permit does an Israel carrier need to operate its aircraft for commercial purposes?

    An Israeli carrier or a foreign carrier cannot operate any aircraft for the commercial purpose unless and until the permit has been granted to it by the general manager of the CAAI. This operational permit will be limited to a certain time for a permitted destination. 

    Moreover, the CAAI manager may also establish conditions for,

  • The aircraft which the carrier can operate
  • the maximum number of passengers or freight that a carrier can transport, seat space, and frequency of operations
  • The types of services which the aircraft might offer
  • Any other conditions that the CAAI manager thinks right.
  • Q4. Are there any regulatory provisions that a lessor or financier should be aware of when it comes to aircraft operation?

    As for now there are no specific regulatory requirements which a lessor or a financier should be aware when it comes to the aircraft operation in Israel.

    Q5. Are the air safety regulated separately for the cargo, private and commercial planes?

    No, the CAAI regulates every aspect of the aviation industry. Even though CAAI regulates the commercial, cargo and private aircrafts it still has to regulate them according to the individual rules and standards which is different for all of them.

    Q6. Are the airports in Israel state or privately owned? And Do Israel's airports place any conditions on airlines flying to and from the country's airports?

    The airports are state owned. The IAA is a governmental company which is in-charge of the operations taking place in the airport.

    Moreover, yes there are certain requirements which are put in place when it comes to hours of operation of the airport.

    Q7. What are the legislations which apply to air accidents?

    The legislations which apply to air accidents are as follows-

  • Aviation regulations ( aircraft accidents and incident investigation)- 1984
  • The Aviation Law- 2011
  • Chicago Convention- 1944
  • The Air Transport law- 1980 ( Montreal Convention- 1999)
  • Aviation Regulations ( types of severe accidents)- 2014
  • Civil Aviation Authority Law- 2005
  • Q8. Who will be investigating the accident?

    According to the aviation law the minister of transportation will be appointing the chief investigation in the ministry of transportation to investigate the said accident.  The said investigator is responsible for the following-

  • Collection analysis and documentation of all the relevant information regarding the safety standards and the accident
  • The reason and cause of the accident
  • The preparation of the final document added with his recommendations
  • Follow up on the fulfillment of recommendations and then drawing the conclusions
  • The Aviation Laws, The Aviation Regulations and the Aviation Regulations (Types of severe accidents) set out the following main subjects

  • The procedure in case of an accident
  • Types of accidents which will be considered as severe incidents for the purpose of law
  • The authority of the chief investigator includes the right to visit the relevant place and act in a manner which preserves the site of the accident for the completion of the investigation
  • Q9. What are the legislations which cover the safety aspect in the aviation sector and who administers this air safety?

    The principle legislation which takes care of air safety is the Aviation Law- 2011

    Israel has adopted the Chicago Convention to ensure that the air navigation equipment comply with the standards mentioned in the International Civil Aviation Organization (ICAO). The air carrier is required to prove its maintenance and its technical ability as well as provide an operational and technical manual to the CAAI for its approval. The carrier is also required to get its safety management system approved by the CAAI. The CAAI is the one who issues and renews the airworthiness certificates and air operator certificates, approves the maintenance programs and carries out inspection of the aircraft operated within Israel.

    Q10. Are there any limitations that the international carriers face in comparison to the local carriers?

    At present the international carriers have no such limitations, because Israel has adopted many international aviation agreements such as the EU- Israel open skies agreement, US- Israel Open Skies Agreement. However there is one requirement which the international carrier needs to fulfill, Aviation Services Licensing law- 1963 states that for the purpose of obtaining the operating permit, the foreign operator has to first appoint a representative in Israel who is authorized to act on his behalf during the proceedings under the aviation law. The CAAI has published the details of the representative of the foreign operators on its website.

    Q11. Does registration of the ownership in the register of aircraft constitute as proof of ownership?

    The registrations of the aircrafts maintained by the CAAI is not a registration of legal ownership hence the registration of the aircraft does not constitute as a proof of ownership.

    Q12. What are the rules for registering aircraft mortgages and charges?

    The procedure for registering of aircraft charge or mortgage is given under the Aviation Regulation (Aircraft Registration and Marking) 1973 and the same shall be administered by the CAAI. However, if the registry is declarative then these mortgages or pledges will be registered with the relevant general registry that is either the companies registrar or pledge registrar.

    Q13. Is Israel a part of the main international conventions such as Montreal, Geneva and Cape Town? And how are these conventions applied in the country?

    Israel has signed the main international conventions being the Montreal convention as well as the Geneva Convention, the Montreal Convention however was ratified in March 2011. As for now Israel is not a part of the Cape Town Convention. In general, the local laws ratify these conventions and apply them to the local legislations. For Example the Air Transport law has adopted the Montreal Convention into the local legislation.

    Q14. In Future what are the predicted changes to the legislation?

    In the future all the changes will be related to the lessons learned by the aviation industry following the Covid Pandemic.

    The Insolvency and Financial Rehabilitation law- 2019, which has come into force in 2019 in September provides new conditions for the insolvency of companies and includes liabilities of others in case of insolvency. The recent impact of Covid-19 has caused financial distress to many airlines all around the world and has effected Israel Aviation sector as well. This law will provide attention to the industry in case of rehabilitation of the airlines or in case of insolvency.

    In addition to this there will also be developments in data protection for matters relating to passengers personal data. The growing number of cyber-crimes has forced additional regulatory attention to make sure the passengers' personal data is not being leaked.

     

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    Wed, 05 May 2021 12:00:00 GMT
    <![CDATA[FAQs- Enforcement of contracts in Israel]]> FAQs- Enforcement of contracts in Israel

    A healthy economy needs a legal system that can effectively resolve commercial disputes. Without one, businesses risk living in an atmosphere where contractual commitments are not strictly adhered to. Although there are advantages of using alternative conflict resolution mechanisms, doing Business depends on how government agencies work in the event of a contractual dispute. This article explores in detail the enforcement of contract in Israel.

    Q1. Which domestic laws and regulations govern the recognition and enforcement of contracts in Israel?

    The Standard Contracts Law,5743-1982, governs standard contracts in Israel (hereinafter: Standard Contracts Law).

    Contract Law is governed by a number of laws in Israel, including the Contracts (General Provisions) Law (5734-1973), the Contracts (Remedies for Breach of Contract) Law (5732-1971), and the Standard Contracts Law (5734-1973).

    Other regulations, such as the Insurance Contract Law (5742-1981), the Contract for Supplies and Services Law (5735-1974), the Sale Contract Law (5729-1968), the Guarantee Law (5728-1967), and the Lease Law (5732-1971), govern specific contracts.

    Q2. What is the purpose of the law of contract in Israel?

    The aim of this legislation is to shield consumers from unfairly disadvantageous regular contract terms.

    Q3. Can the Court or Tribunal annul or amend any standard contract?

    Yes, Under the rules of this statute, a court or the Tribunal can annul or amend any standard contract requirement that, in light of the entirety of the contract's terms and other circumstances, results in an unreasonable disadvantage to customers or an unfair benefit for the provider, and is likely to result in the customers' deprivation (any other circumstance hereinafter referred to as "unduly disadvantageous condition").

    Q4. What are the conditions will be presumed to be unduly disadvantage?

    The following circumstances would be considered unduly disadvantageous.

  • a condition that relieves or limits the liability that the supplier would have to bear by virtue of the contract if not for that condition, or that relieves or limits the responsibility that the supplier would have to bear by virtue of the contract if not for that condition;
  • a condition that gives the supplier an arbitrary right to cancel, postpone, or delay the contract's results, or to change any material requirement put on him by the contract;
  • a condition that gives the retailer the ability to delegate liability to a third party;
  • a condition that gives the supplier the exclusive right to change a price or any other commodity requirement levied on the consumer after the deal has been made, unless the change is due to conditions about which the supplier has no influence.
  • a condition that forces the customer to rely unreasonably on the supplier or another party, or otherwise restricts the customer's ability to enter or not enter into a contract with another person.
  • a condition that denies or reduces a legal right or remedy open to the consumer, or that unreasonably restricts a contractual right or remedy, or that requires any other right or remedy conditional on providing notice in an unreasonable manner, within an unreasonable period, or on any other unreasonable provision.
  • a condition that places the burden of evidence on those who would not have to bear it if the condition didn't exist.
  • a condition that, with the exception of being part of a standard settlement arrangement, refuses or restricts the customer's ability to bring such pleas before judicial authority or to pursue certain legal action;
  • a condition that specifies the law governing place of jurisdiction which gives the provider the unilateral right to select the place of jurisdiction or arbitration for the resolution of a dispute.
  • a condition that requires a case to be referred to arbitration where the supplier has more control than the client on the selection of arbitrators or the location of the arbitration.
  • The Tribunal decision in the Ituran case12 is a clear example in this regard, according to which the fact that the corporation has been proclaimed a monopoly in the area of car position systems imposes a heavier burden of equity and reasonability on it. The Tribunal also took into account the fact that some of the company's clients do not do business with it voluntarily, but rather that their insurance providers need it as a condition of offering car-theft insurance plans. The Tribunal determined that as long as Ituran has a monopoly, it cannot fail to provide its services for unfair reasons; as a result, the clause of its regular contract that allows the corporation to terminate the contract at its own discretion is an unduly disadvantageous situation.

    Q5. Can a limitation of right to apply to judicial authorities be placed?

    No, A clause in a regular contract that denies or restricts the customer's ability to seek judicial relief is invalid.

    Q6. What does the Standard Contract law cover?

    The Standard Contracts Law applies to a wide and diverse range of situations. It is not the typical consumer law, and its scope of application is far wider. The word "customer" is described as "the person to whom a provider offers a standard contract for an engagement between them, regardless of whether he is the receiver or the giver of something." As a result, the Standard Contracts Law also extends to a deal between two suppliers where one of them suggests that their engagement should be based on a standard contract. The Basic Contracts Law covers anyone who enters into a standard contract, regardless of the type of business transaction or intent.

    The law extends similarly to the Administration, according to Article 22 of the Standard Contracts Law. As a result, the statute requires the State to file applications for approval of standard contracts that it has drafted7, as well as applications for annulment of standard contracts that have unduly disadvantageous provisions.

    Q7. Can an Unduly Disadvantageous Condition be annulled?  

    Yes

    Q8. How can the proceedings go about if the unduly disadvantageous conditions need to be annulled?

    The Tribunal has the authority under Art. 17 of the Standard Contracts Law to cancel or change an unduly disadvantageous clause to the degree possible to remove the undue disadvantage. In practice, this is not a discretionary power, and if the Tribunal determines that the requirement is unduly burdensome, it must revoke or change it. Those named in the statute – the Attorney General and the Head of the Authority for Consumer Protection – are entitled to petition the tribunal in annulment proceedings.

    Customers' associations or governmental authorities, as specified by the law's legislation, are also eligible to petition the Tribunal. Israel's Consumers' Committee, the Consumers' Protection Authority, and the Bank of Israel are therefore empowered under Regulation 4 of the Standard Contracts Regulations, 5743-1983.

    Furthermore, the legislation gives the Minister of Justice the authority to authorize a consumer entity that has not been designated by the regulations to apply for annulment in a particular matter.

    The supplier whose contract is being annulled is the respondent to the annulment petition; moreover, the Tribunal may order a representative body of suppliers, or any party interested in the matter, to enter the case as a respondent. The cancellation and obliteration of a clause from the contract occurs as it is annulled.

    An annulment, unlike a normal contract acceptance, has no time limit and remains in effect as long as the Tribunal has not rescinded or reversed its ruling. The Tribunal has the authority to extend its ruling to contracts that were concluded prior to the decision but have not yet been fully implemented. Under the legislation or the rules, any individual or body who appeared before the Tribunal as a complainant or respondent will appeal the Tribunal's judgments to the Supreme Court within 45 days.

    Q9. What are the courts' authority in regards to Standard Contracts?

    The Basic Contracts Law also gives the courts the power to look at standard contract terms that are unduly disadvantageous. The Court is required by Art. 3 to annul or change a clause in a regular contract that the Court deems to be unduly disadvantageous. When exercising its jurisdiction, the Court must consider the whole contract's terms as well as all other relevant factors. When exercising its jurisdiction, the Court must consider both the entirety of the contract's terms, as well as all other applicable conditions, as well as the case's particular facts. Another way to assert an undue advantage claim is to file a lawsuit for a verdict declaring the situation to be unduly disadvantageous.

    Q10. How are the enforcement of the Tribunal's decisions handled in regards to the amendment of an unduly disadvantageous condition?

    A supplier who disregards a Tribunal order on the cancellation or amendment to an unduly disadvantageous provision is not subject to a fine under the Standard Contracts Law. This is being handled as a general contempt of court lawsuit. The Prosecutor General's Office has the authority to sue a supplier for failing to comply with the Tribunal's orders, but this type of action is rarely used. It's necessary to differentiate between a supplier who petitioned the Tribunal to approve a standard contract against a supplier who was a respondent in an annulment proceeding in this sense.

    It does not seem to be often reasonable to impose such a harsh penalty on suppliers who have petitioned the Tribunal for approval of their standard contracts and then opted not to comply with the proceedings, or to use the standard contract as authorized by the Tribunal, for any reasons, most of which are economic in nature.

    Q11. Is there any restriction on the applicability?

    Yes

    Q12. What are the restrictions or the limitations on applicability of the provisions?

    The provisions of this law will not be applicable to the following;

  • a condition that specifies the amount of money the consumer must pay;
  • a condition that complies with the requirements of a statute or is authorized by an enactment;
  • a provision that Israel must meet in accordance with the terms of an international agreement of which it is a member state;
  • a contractual arrangement made in writing and prescribing pay limits under the Collective Agreements Law 1957, whether or not it has been applied for registration under that Law.
  • Q13. How does the Minister of Justice carry out the law's implementation?

    The Minister of Justice is in charge of enforcing this law, and he has the authority to issue regulations to do so, including regulations on:

  • The Tribunal's process, the extension of time for filing appeals, and the hearings' continuity;
  • persons or entities that can appear before the Tribunal to plead in favour of a group or as respondents;
  • When the State wants approval of a standard contract, there are many options for appointing an attorney.
  • the reimbursement of witnesses' fees and lost working hours allowances in Tribunal proceedings
  • on the face of a contract, the type of the indication listed in section 15;
  • requiring a seller to include a copy of a standard contract that he has concluded or plans to conclude to the Attorney General or the Commissioner of Consumer Protection and Fair Trade, upon request.
  • ]]>
    Tue, 27 Apr 2021 12:00:00 GMT
    <![CDATA[Income Tax Law in Israel]]> Income Tax Law in Israel

    Residents in Israel are taxed on their worldwide earnings. Non-residents are entitled to income tax on income earned in Israel and capital gains tax on capital gains on properties located in Israel (subject to special non-resident exemptions). Income tax, capital gains tax, value-added tax, and property appreciation tax are all levied in Israel. The Income Tax Ordinance is Israel's prime source of income tax legislation. To promote aliyah, there are also special tax benefits for new immigrants.

    What is the applicable domestic legislative framework for the enforcement of Income-tax regulations in Israel?

    The Israel Tax Authority (ITA) was created on September 15, 2003, as a result of a government decision to combine the Department of Income Tax and Land Taxation, the Department of Customs and VAT, and the Automated Processing Service in order to "consolidate the administration of tax collection under one key administrator, to be invested with legal authority to enforce the applicable tax laws."

    The Income Tax Ordinance is Israel's prime source of income tax legislation. For each tax year, income tax is imposed in accordance with the terms of the Income Tax Ordinance, at the rates prescribed in the ordinance, on income obtained or accrued (income from capital or property) by an Israeli resident in Israel or abroad, and non-residents' income obtained or accrued in Israel from the sources specified in the ordinance, which include industry, occupation, earnings, interest, dividends, securities, patents, and copyright.

    In general, which categories are subject to income tax?

    Subject to certain exceptions, all forms of remuneration and compensation, whether in cash or in-kind, resulting from/attributable to work services performed in Israel are taxable. Below are some examples of components of an expatriate remuneration plan that will be taxed as income:

    • contributions to profit-sharing schemes and some retirement plans.
    • the value of low- or no-interest loans issued by the employer, either directly or indirectly.
    • domestic assistance provided by the employer.
    • stipends for time spent at home.
    • the use of a business vehicle.
    • In a non-arm's length basis, the employer provides accommodation.
    • Allowances for living expenses.
    • Capital buying plans for employees and stock option plans for employees.
    • contributions of retirement accounts.
    • contributions to health-care, dental-care, sickness-care, and disability insurance schemes.
    • educational fee for the children.
    • reimbursement with unsupported moving costs.
    • compensation for taxation.
    • allowances for housing.

    Are there any places of revenue in Israel that are tax-exempt? If that's the case, please provide a broad description of these terms.

    In Israel, there are only a few options for receiving tax-free wages. According to the Israel Tax Ordinance (New version) of 1961 as well as subsequent amendments; Income Tax Regulations (Deductions for specific expenses) 1972; Income Tax Regulation (salary from work rendered outside of Israel) 1982; Income Tax Regulations (Deductions for staying expenses of non-residents) 1979;  prospective entrants and returning nationals are eligible for a number of tax deductions.

    Are there any special considerations for ex-pats in Israel?

    Non-resident expatriates may be eligible for major benefits not applicable to Israeli nationals, according to certain requirements.

    Visiting lecturer: According to the Council of Higher Education Law – 1958, a visiting lecturer is a foreign permanent professor or teacher who is paying to instruct or do study at a higher education institution in Israel.

    Foreign expert: A foreign expert is a foreign citizen who meets any of the following criteria as of March 2005:

    • They were paid more than $13,400 (in 2020) for their work, compounded by the number of months they spent in Israel, and tax was withheld as required by statute.
    • They were welcomed from abroad by an Israeli resident who is not employed by a manpower firm or a temporary organization to perform duties for the inviting Israeli resident in the international resident's area of expertise.
    • They were working or offer service in their field of expertise during their stay in Israel or the area.
    • They have been officially residing in Israel.

    If they spent less than a month in Israel, the figure would be determined linearly by dividing it by 30 and multiplying it by the number of days they spent there.

    What are the general income tax deductions permitted in Israel? 

    Personal tax deductions, also known as credit points, are generally issued to Israeli residents and withheld from their income tax liabilities. The amount of credit points a taxpayer is entitled to depend on his or her personal and family conditions, as well as whether the spouse's earnings are measured separately. There are also some credits and exemptions for contributions to recognized pension funds. Certain credit points are available to international residents (only if the foreign resident is a foreign expert). 

    What are the different types of tax credits available in Israel? 

    The below are only a few examples of general credits:

    • credit for insurance costs and donations to gain funds
    • credit for a soldier who has been discharged
    • women's credit
    • a resident of Israel receives credit
    • contribution to a government agency
    • a foreign worker's credit (subject to conditions).
    • credit point for the juvenile
    • a spouse's allowance (in certain cases)
    • credit for new immigrants (oleh)
    • Children's credit, which varies depending on the child's age

    When do you have to file your tax returns? Or when is the deadline for filing your tax return?

    In most cases, the deadline is 31.04. YY, but if double-entry bookkeeping is needed, the deadline is 31.05.YY.

    When does the fiscal year-end?

    31st December

    What are the conditions that have to be adhered to for filing the tax returns in Israel?

    Residents-

    Individual taxpayers who are expected to file a report must do so by the 30th of April after the conclusion of the fiscal year, or by the 31st of May if an online filing is required or submitted based on double-entry bookkeeping, or if an individual is allowed to file the tax return electronically.

    For each spouse's work and other income did not meet such thresholds and tax was withheld at source, a resident taxpayer whose primary source of income is employment income is not obliged to file an annual personal income tax return. Employers defer tax on work wages in compliance with tables provided by the Commissioner of Taxes and revised on a regular basis. Foreign employers are not excluded from the need to open and maintain an Israeli payroll withholding tax register for employees working in Israel on a monthly basis. Appointing a state official (or an employee) to help with payroll management and monitoring will fulfil this responsibility.

    Non-resident-

    Unless tax was withheld at the root, a non-resident with income earned or derived in Israel is required to file an annual personal Israeli tax return. Even if an expatriate is not required to file a return, they will need to do so in the years of their arrival and/or departure from Israel to take advantage of the annual (rather than monthly) tax brackets that apply to income received in Israel during those years.

    What definition is given to the 'resident' of Israel for tax purposes?

    The centre of life measure, which takes into account total relations with Israel, is used to determine if a person is an Israeli citizen for tax purposes (including social connection, economic, and family). Furthermore, if a person was present in Israel for at least 183 days in a tax year, or for at least 30 days in a calendar year, and their cumulative presence in Israel during the tax year and the two corresponding years was 425 days or more, it was assumed that their centre of life was located in Israel.

    Foreign nationals who come to live in Israel on a B-1 visa for a set amount of time are not considered as residents for tax purposes by the Israeli tax authorities, but they are also subject to taxation as non-residents.  

    When it comes to the start and end dates of the residency, is there a de minimus number of days rule? For e.g., once their task is completed and they repatriate, a taxpayer cannot return to the host country/jurisdiction for longer than 10 days.

    No, there is no de minimus number of days rule.

    What if the assignee arrives in the country/jurisdiction before the start of their assignment?

    If these days in Israel were working days for a foreign resident, their salary for those days would be added to their gross taxable income.

    Are there any compliance conditions that have to be complied with before leaving Israel?

    A person is deemed to have violated residency in Israel if they are no longer registered as an Israeli citizen (as described earlier) and has lived outside of Israel for at least 183 days a year for two consecutive tax years, and their centre of life was outside of Israel for the following two years, according to domestic law. If this is the case, the individual is known to have broken residency from the time they first left Israel.

    The exit tax for Israeli citizens is a critical problem that needs to be discussed. The exit tax is imposed on the last day of a resident's stay in Israel. The exit tax is imposed on the last day of a resident's stay in Israel. However, the tax bill will be deferred to the day of the asset's final selling, and the tax will be measured based on the asset's valuation on the sale day, as well as the linear growth of assets and stock options while living in Israel.

    Is there a reporting provision in the host country/jurisdiction after an assignee leaves the country/jurisdiction and repatriates?

    No. The reporting conditions in Israel, on the other hand, are on a yearly basis. As a result, if the assignee returns to their home country/jurisdiction within the tax year, the assignee will be required to file a record with the Israeli tax authorities about income earned while residing in Israel.

    Is a wage paid while living in another country taxable in Israel? If so, how can you go about doing it?

    Non-resident workers who accept compensation for jobs performed outside of Israel are normally not taxed on their wages. Residents in Israel are taxed on an individual basis. Salary paid by an Israeli citizen working overseas with an Israeli company for more than four months is subject to special tax rates. In this situation, the employee could be eligible for such deductions and exemptions.

    Profits earned or derived abroad is excluded for new entrants and returned veterans for ten years.

     

     

    ]]>
    Tue, 20 Apr 2021 12:00:00 GMT
    <![CDATA[FAQs - Income Tax Regulations in Israel]]> FAQs - Income Tax Laws and Regulations in the State of Israel

    Residents in Israel are taxed on their worldwide earnings. Non-residents are entitled to income tax on income earned in Israel and capital gains tax on capital gains on properties located in Israel (subject to special non-resident exemptions). Income tax, capital gains tax, value-added tax, and property appreciation tax are all levied in Israel. The Income Tax Ordinance is Israel's prime source of income tax legislation. To promote aliyah, there are also special tax benefits for new immigrants.

    Q1. What is the applicable domestic legislative framework for the enforcement of Income-tax regulations in Israel?

    The Israel Tax Authority (ITA) was created on September 15, 2003, as a result of a government decision to combine the Department of Income Tax and Land Taxation, the Department of Customs and VAT, and the Automated Processing Service in order to "consolidate the administration of tax collection under one key administrator, to be invested with legal authority to enforce the applicable tax laws."

    The Income Tax Ordinance is Israel's prime source of income tax legislation. For each tax year, income tax is imposed in accordance with the terms of the Income Tax Ordinance, at the rates prescribed in the ordinance, on income obtained or accrued (income from capital or property) by an Israeli resident in Israel or abroad, and non-residents' income obtained or accrued in Israel from the sources specified in the ordinance, which include industry, occupation, earnings, interest, dividends, securities, patents, and copyright.

    Q2. In general, which categories are subject to income tax?

    Subject to certain exceptions, all forms of remuneration and compensation, whether in cash or in-kind, resulting from/attributable to work services performed in Israel are taxable. Below are some examples of components of an expatriate remuneration plan that will be taxed as income:

    • contributions to profit-sharing schemes and some retirement plans.
    • the value of low- or no-interest loans issued by the employer, either directly or indirectly.
    • domestic assistance provided by the employer.
    • stipends for time spent at home.
    • the use of a business vehicle.
    • In a non-arm's length basis, the employer provides accommodation.
    • Allowances for living expenses.
    • Capital buying plans for employees and stock option plans for employees.
    • contributions of retirement accounts.
    • contributions to health-care, dental-care, sickness-care, and disability insurance schemes.
    • educational fee for the children.
    • reimbursement with unsupported moving costs.
    • compensation for taxation.
    • allowances for housing.

    Q3. Are there any places of revenue in Israel that are tax-exempt? If that's the case, please provide a broad description of these terms.

    In Israel, there are only a few options for receiving tax-free wages. According to the Israel Tax Ordinance and Regulations, prospective entrants and returning nationals are eligible for a number of tax deductions.

    Q4. Are there any special considerations for ex-pats in Israel?

    Non-resident expatriates may be eligible for major benefits not applicable to Israeli nationals, according to certain requirements.

    Visiting lecturer: According to the Council of Higher Education Law – 1958, a visiting lecturer is a foreign permanent professor or teacher who is paying to instruct or do study at a higher education institution in Israel.

    Foreign expert: A foreign expert is a foreign citizen who meets any of the following criteria as of March 2005:

    • They were paid more than $13,400 (in 2020) for their work, compounded by the number of months they spent in Israel, and tax was withheld as required by statute.
    • They were welcomed from abroad by an Israeli resident who is not employed by a manpower firm or a temporary organization to perform duties for the inviting Israeli resident in the international resident's area of expertise.
    • They were working or offer service in their field of expertise during their stay in Israel or the area.
    • They have been officially residing in Israel.

    If they spent less than a month in Israel, the figure would be determined linearly by dividing it by 30 and multiplying it by the number of days they spent there.

    Q5. What are the general income tax deductions permitted in Israel? 

    Personal tax deductions, also known as credit points, are generally issued to Israeli residents and withheld from their income tax liabilities. The amount of credit points a taxpayer is entitled to depend on his or her personal and family conditions, as well as whether the spouse's earnings are measured separately. There are also some credits and exemptions for contributions to recognized pension funds. Certain credit points are available to international residents (only if the foreign resident is a foreign expert). 

    Q6. What are the different types of tax credits available in Israel? 

    The below are only a few examples of general credits:

    • credit for insurance costs and donations to gain funds
    • credit for a soldier who has been discharged
    • women's credit
    • a resident of Israel receives credit
    • contribution to a government agency
    • a foreign worker's credit (subject to conditions).
    • credit point for the juvenile
    • a spouse's allowance (in certain cases)
    • credit for new immigrants (oleh)
    • Children's credit, which varies depending on the child's age

    Q7. When do you have to file your tax returns? Or when is the deadline for filing your tax return?

    In most cases, the deadline is 31.04. YY, but if double-entry bookkeeping is needed, the deadline is 31.05.YY.

    Q8. When does the fiscal year-end?

    31st December

    Q9. What are the conditions that have to be adhered to for filing the tax returns in Israel?

    Residents:

    Individual taxpayers who are expected to file a report must do so by the 30th of April after the conclusion of the fiscal year, or by the 31st of May if an online filing is required or submitted based on double-entry bookkeeping, or if an individual is allowed to file the tax return electronically.

    For each spouse's work and other income did not meet such thresholds and tax was withheld at source, a resident taxpayer whose primary source of income is employment income is not obliged to file an annual personal income tax return. Employers defer tax on work wages in compliance with tables provided by the Commissioner of Taxes and revised on a regular basis. Foreign employers are not excluded from the need to open and maintain an Israeli payroll withholding tax register for employees working in Israel on a monthly basis. Appointing a state official (or an employee) to help with payroll management and monitoring will fulfil this responsibility.

    Non-resident:

    Unless tax was withheld at the root, a non-resident with income earned or derived in Israel is required to file an annual personal Israeli tax return. Even if an expatriate is not required to file a return, they will need to do so in the years of their arrival and/or departure from Israel to take advantage of the annual (rather than monthly) tax brackets that apply to income received in Israel during those years.

    Q10. What definition is given to the 'resident' of Israel for tax purposes?

    The centre of life measure, which takes into account total relations with Israel, is used to determine if a person is an Israeli citizen for tax purposes (including social connection, economic, and family). Furthermore, if a person was present in Israel for at least 183 days in a tax year, or for at least 30 days in a calendar year, and their cumulative presence in Israel during the tax year and the two corresponding years was 425 days or more, it was assumed that their centre of life was located in Israel.

    Foreign nationals who come to live in Israel on a B-1 visa for a set amount of time are not considered as residents for tax purposes by the Israeli tax authorities, but they are also subject to taxation as non-residents.

    Q11. When it comes to the start and end dates of the residency, is there a de minimus number of days rule? For e.g., once their task is completed and they repatriate, a taxpayer cannot return to the host country/jurisdiction for longer than 10 days.

    No, there is no de minimus number of days rule.

    Q12. What if the assignee arrives in the country/jurisdiction before the start of their assignment?

    If these days in Israel were working days for a foreign resident, their salary for those days would be added to their gross taxable income.

    Q13. Are there any compliance conditions that have to be complied with before leaving Israel?

    A person is deemed to have violated residency in Israel if they are no longer registered as an Israeli citizen (as described earlier) and has lived outside of Israel for at least 183 days a year for two consecutive tax years, and their centre of life was outside of Israel for the following two years, according to domestic law. If this is the case, the individual is known to have broken residency from the time they first left Israel.

    The exit tax for Israeli citizens is a critical problem that needs to be discussed. The exit tax is imposed on the last day of a resident's stay in Israel. The exit tax is imposed on the last day of a resident's stay in Israel. However, the tax bill will be deferred to the day of the asset's final selling, and the tax will be measured based on the asset's valuation on the sale day, as well as the linear growth of assets and stock options while living in Israel.

    Q14. Is there a reporting provision in the host country/jurisdiction after an assignee leaves the country/jurisdiction and repatriates?

    No. The reporting conditions in Israel, on the other hand, are on a yearly basis. As a result, if the assignee returns to their home country/jurisdiction within the tax year, the assignee will be required to file a record with the Israeli tax authorities about income earned while residing in Israel.

    Q15. Is a wage paid while living in another country taxable in Israel? If so, how can you go about doing it?

    Non-resident workers who accept compensation for jobs performed outside of Israel are normally not taxed on their wages. Residents in Israel are taxed on an individual basis. Salary paid by an Israeli citizen working overseas with an Israeli company for more than four months is subject to special tax rates. In this situation, the employee could be eligible for such deductions and exemptions. Profits earned or derived abroad is excluded for new entrants and returned veterans for ten years.

    ]]>
    Thu, 01 Apr 2021 12:00:00 GMT
    <![CDATA[FAQs – Pharmaceutical Industry Laws in Israel]]> FAQs – Pharmaceutical Industry Laws in Israel

     

    Introduction

    What are the major pharmaceutical laws and regulatory bodies in ISRAEL?

    Legislation

    The main legislation relating to pharmaceuticals in Israel is: 

    • The Pharmacists Ordinance (New Version) 1981, which governs the manufacture, selling, prescribing, importation, and registration of medicinal products, as well as data exclusivity provisions.
    • The Pharmacist Regulations (Medical Preparations) 1986, which govern the selling, prescribing, importation, and registration of medicinal items, as well as pharmacovigilance and recall provisions.
    • The Pharmacist Regulations (Good Manufacturing Practice) 2008, which governs the manufacturing, importation, and recall of pharmaceuticals.
    • The Goods and Services Price Surveillance Act of 5756-1996.
    • 5761-2001, Order for the Supervision of Goods and Services Prices (Maximum Prices for Prescription Preparations).
    • 5761-2001 Order for the Supervision of Goods and Services Prices (Application of the Act to Preparations).

    Regulatory agencies

    • The Ministry of Health (MOH) Pharmaceutical Administration is the governing body in charge of pharmaceuticals in Israel. It is made up of the following bodies:
    •  The Institute for Standardization and Control of Pharmaceuticals (ISCP), which is in charge of ensuring the quality of pharmaceuticals.
    • The Department of Preparations Registration, which is in charge of registering pharmaceutical products.
    • The Import of Pharmaceuticals and Drugs Department, which is in charge of medicinal product importation.
    • The Pharmaceutical Monitoring Section, which is in charge of approving medicinal product labelling and packaging.

    The Department of Pharmacovigilance and Drug Information, which is in charge of ensuring the safety of drug treatment

    • Pharmaceutical facilities in Israel, among other items, are under the purview of the Pharmaceutical Administration.
    • Obtaining and inspecting pharmaceutical and medical device licenses.
    • Observing human clinical trials
    •  Defending against prescription fraud.
    • The key aim of the Pharmaceutical Administration is to ensure that all medical preparations sold in Israel meet the required safety, consistency, and efficacy requirements. The Pharmaceutical Administration is also in charge of implementing the rules that govern its operations.
    • Section 1 of the Pharmacists Ordinance defines the terms preparation and therapeutic medication as any type of a substance or combination of substances that is one of the following (except blood or blood portion obtained from a human being that is intended to be used in its natural physiological form and has not undergone significant processing):
    • It has properties for curing, preventing, or treating a disease in a person or animal, or it is advertised as having such properties.
    • By exerting a pharmacological, immunological, or metabolic operation, it induces (or is administered to a human being or animal for the purpose of causing) regeneration, substitution, reparation, or a change of a physiological action throughout the body.
    • It is given to or may be given to a person or an animal for the purpose of medical diagnosis.

    What is the national health-care system's framework, and how is it funded? Explain how drugs are inserted into the system or how they are supplied in the market ?

    The following are the major features of Israel's national healthcare system:

    • Membership in one of the four Israeli Sick Funds is required.
    • Israeli citizens must pay National Health Insurance to the National Health Institute, which then distributes the funds to the Sick Funds (however, non-payment by an individual would not affect the Sick Fund's obligation to provide that person with all medical care to which he or she is entitled).
    • A national "Health Basket" that is revised every year to reflect emerging medical products and technology and outlines the programs that Sick Funds must offer to their members.

    The funding for the National "Health Basket" derives from three sources:

    The National "Health Basket" is funded by three sources: national health insurance payments, Sick Funds' "participation" payments (derived, for example, from direct payments to the Sick Funds from members for complementary health insurance programs), and MOH budget payments.

    A proposal to add a new medication or medical technology to the National Health Basket may be made by any public or private agency (for example, patients, patient organizations, doctors, or pharmaceutical companies).

    Drugs that have been licensed or that have been submitted for approval and are expected to be accepted within the year will be included in applications.

    Drugs that have been licensed or that have been submitted for approval and are expected to be accepted within the year will be included in applications. If a medication is included in the new health basket, it will receive priority review. As a result, the regulatory mechanism could be improved.

    On the recommendation of the Public Committee for the Expansion of the Health Services Basket, new medicines and medical innovations are applied to the National Health Basket. This committee advises the Ministry of Health on which medicines and innovations should be included in the basket (considering budgetary constraints).

    Following the approval of the Health Council and the Minister of Finance's agreement, those recommendations must be approved by the government.

    Pharmaceutical companies typically discuss costs with the Ministry of Health as part of the decision to add a new drug or medical technology to the Basket.

    The Sick Funds are also used by the majority of Israelis to pay for additional health facilities, such as medications, that are not covered by the National Health Basket. A growing number of Israelis have private health insurance schemes, which cover a variety of medications and medical facilities (some of which are not covered by the National Health Basket or the SHS's complementary services).

    Patients that need medications or medicines that are not covered by the National Health Basket may petition their sick fund's exceptions committee, and the decision can be appealed to a state labour court.

    Is there a set of mandatory standards for the protection of pharmaceutical products?

    • Under the Good Manufacturing Practice Regulations 2008, the following mandatory conditions for medicinal product protection apply:
    • Any allegation about a defect in the nature of a medicinal product must be investigated and registered by the quality assurance (QA) department of the MIA holder. Any defect that could result in the medicinal product's production and availability being limited or its recall from the market must be reported to the MOH by the MIA holder.
    • When a registration holder, MIA holder, or the Director General of the MOH is informed that a medicinal product could endanger public health, the registration holder, MIA holder, or the Director General of the MOH must take some action that allows it to monitor batches of medicinal products and marketed products for the purpose of recalling a defective medicinal product at the direction of the MOH Director General, or in the event that a medicinal product could endanger public health.
    • The owner of a company that manufactures or imports APIs, as well as a pharmaceutical establishment that stores or transports APIs, must take steps to allow it to track batches of marketed APIs for the purpose of recalling defective batches from the market if the substances threaten public health, or at the direction of the MOH's Director General. When the Director General or the owner of a company that manufactures or imports APIs orders the marketing of an API to be halted, it must be done right away.

    If a marketer of a pharmaceutical product or API, the owner of a pharmaceutical establishment, or the owner of a business manufacturing or importing pharmaceutical products or APIs receives notice that marketing must cease, the product/API must be returned to the entity from which it was received, unless the Director General of the MOH orders otherwise.

    A defect in a medicinal product must be reported to the MOH GMP department immediately, and an investigation and risk assessment report must be sent to the GMP department within 48 hours, according to MOH Procedure No. PUB-003/08 (June, 2019). (if the investigation and risk assessment cannot be completed promptly, intermediate reports must be filed within this timeframe). Furthermore, before the MOH makes a decision, the suspicious product's inventory must be quarantined.

    What rules govern the advertising and promotion of medicinal products, as well as the distribution of samples, and how are advertisements and promotional activities regulated?

    Legislation and regulatory authority 

    • Pharmacist Regulations (Preparations) 1986 is a piece of legislation that governs the advertisement of pharmaceutical products.
    • Pharmacists Regulations (Sale of a product not in a pharmacy or by a pharmacist) (Sale of a product not in a pharmacy or by a pharmacist) (Sale of a product not in a pharmacy or by a pharmacist)
    • Procedures of the Ministry of Health.
    • Television and Radio (Ethics in TV Commercials) Rules of the Second Authority, 1994.
    • Ethics in Radio Commercials, Rules of the Second Authority for Television and Radio, 1999.

    The MOH is the primary regulatory body in charge of implementing the restrictions and laws governing medicinal product ads. In addition, advertisements on television and radio are controlled by the Second Authority for Television and Radio.

    The Pharmacists Regulations (Medical Preparations) 1986 describe advertising as the dissemination of information in writing, through the media, or through some other means. Given this broad definition, the regulations and procedures governing medical preparation ads cover a wide range of advertising practices in all media and platforms.

    Restrictions

    The MOH must authorize any advertisement of medicinal products in advance. It is illegal to advertise prescription-only drugs (POMs) to the general public. Advertising of prescription and non-prescription drugs to health care practitioners is allowed if it emphasizes the approved indications. Advertising non-prescription drugs to the general public is permitted under strict conditions, including that the details in the advertising be right, reliable, concise, and consistent with the product's accepted indication. Comparative ads are only permitted between goods with similar APIs and where a sufficient and consistent basis for comparison exists.

    Internet advertising 

    The MOH treats advertising to the general public on the internet, including social media platforms, in the same way it treats advertising on any other platform. A registration holder may view a list of pharmaceutical products registered in its name on its website under MOH Procedure No. 137 (2015).

    Does Israel state's privacy and data security laws have an effect on pharmaceutical regulation?

    In Israeli law, there is a strong emphasis on maintaining a person's privacy. In terms of a patient's privacy, the Patient Rights Act of 1996 imposes a general obligation on medical professionals (and other therapists) and employees of health facilities to keep confidential any information about a patient that they obtain in the course of their duties or jobs. The Act also states that a medical practitioner/therapist or the director of a health system must take reasonable steps to ensure that staff working under their supervision keep patient details confidential.

    Furthermore, the Privacy Protection Act of 1981 imposes a general obligation (that extends to commercial companies) not to publish health-related information.

    Databases containing personal medical information or genetic information must follow strict security protocols under the Privacy Protection Regulations (Information Security) 2017.

    The Privacy Protection Regulations (Transfer of Data to Databases Outside the State Borders) 2001 provide for the transfer of personal data from an Israeli database to a database outside Israel under strict conditions.

    The duty to protect a patient's privacy is also outlined in various MOH Procedures, such as:

    • MOH Procedure (No. 14 (2016)), which states that the Helsinki Committee will not approve a clinical trial in human subjects unless the trial program includes provisions to protect the privacy of trial participants and the confidentiality of data collected in the trial.
    • MOH Procedure (No. 6 (2013)), which states that adverse reaction reports need not contain identifiable information about the patient, and that information in follow-up reports does not compromise the patient's privacy.
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    Mon, 15 Mar 2021 10:19:00 GMT
    <![CDATA[FAQs - Mining Laws in Israel]]> FAQs - Mining Laws in Israel

    Introduction

    In Israel, there are 85 active quarries and approximately 2000 non-active or abandoned quarries. All are open pit mines, extracting raw materials for the construction and road-building industries, as well as phosphates for the chemical and agricultural industries. Aspects of resource management and sustainability have been adopted in the mining sector over the last few decades, especially since the establishment of the Ministry of Environmental Protection and the formulation of the National Master Plan for Mining and Quarrying, approved in stages between 1998 and 2001The National Master Plan for Mining and Quarrying is currently undergoing a thorough revision to implement new techniques for mining sector sustainability. Furthermore, many of the non-operational quarries are in various stages of recovery preparation or are being rehabilitated by the Quarry Rehabilitation Fund (QRF).

    Q1. What are the laws that regulate the mining in Israel?

    The main rules and regulations that deal with mining codes are

  • The Mining Ordinance of 1925 and ensuring 1973 and 1978 regulations
  • The Spatial planning
  • The Mining Ordinance of 1925 and ensuring 1973 and 1978 regulations-this statute lays down the conditions and parameters for getting a mining permit. In 1978 the establishment of the Quarry Rehabilitation Fund that oversees the restoration of non-active quarries.

    The Spatial Planning- Approved mining and quarrying sites are included in the National Master Plan for Mining and Quarrying (Plan 14). Plan 14 governs the extraction of natural resources with the aim of maintaining reserves until 2020.Plan 14 also includes instructions for site reconstruction, noise nuisances, and air quality. Pollution, water degradation, and environmental impact criteria evaluation.

    Q2. Who is responsible for monitoring the mining industry?

    The monitoring of the mines are regulated by five tiers

  • Local Authority- For mining sites within its jurisdiction, the local government issues an annual business license. The mining conduct and environmental standards are specified in the business license. Mines and quarries that do not follow the terms of their license are forced to close.
  • Regional Planning Commission- The regional planning commission oversees the implementation of the approved mining plan's conditions. Mining operations are halted when mines fail to comply with their land use planning requirements
  • The Israel Land Administration- this enforces the payment of royalties to the government
  • The Ministry of Environmental Protection- The Ministry of Environmental Protection ensures that legal environmental requirements are followed, including air pollution, noise nuisances, vibrations, and so on. The Green Police and the Israel Police Environmental Unit are the Ministry's two primary inspection bodies.
  • The Ministry for national infrastructure- Mining operation is controlled by the Commission, which is part of the Ministry of National Infrastructure. The Israel Land Administration and the Ministry of Environmental Protection collaborate with the Mining Commission. The Mining Commission compares aerial photographs of mining sites with the approved mining plan twice a year. Misconduct on the part of the mining company may result in the mine being shut down.
  • Q3. What are the updates in the National Master Plan for Mining and Quarrying?

    In July of 2005 the planning board and building board decided to update the National Master Plan for Mining and Quarrying (Plan 14b) based on anticipated needs in 2040. This update incorporates a detailed new approach to environmental issues and long-term sustainability. The draft Plan 14 revision aims to "ensure the mining supplies of raw materials for the building and road construction industries up to the year 2040, thus adhering to sustainable development principles."

    Q4. What are the recommendations made in Plan 14b?

    Plan 14b has made six recommendations in total which are,

  • Ensuring the needs of the future generations for raw materials
  • Minimizing the environmental as well as the health effects of mining activities
  • Balancing between development and the need to save and preserve our resources
  • Land reserves are wisely used to ensure the supply of raw materials for the construction and road-building industries.
  • Raw material consumption that is wise and effective, as well as demand and supply management
  • Balancing national economic gains with local negative consequences, such as environmental consequences for local communities
  • Q5. Are the Israel guidelines different for small, medium and artisanal mining?

    No, the guidelines are uniform no matter the mining size.

    Q6. What is the role of EIA in mining in Israel?

    Environmental impact assessment (EIA) regulations have been incorporated into Israel's planning system, requiring reviews for any projects that are likely to have environmental consequences. The regulations provide guidelines for the preparation of EIAs and enable the Ministry of Environmental Protection to review them. The original regulations were broadened in 2003 to include sustainable development standards such as soil, water, and energy conservation and to require EIAs in environmentally sensitive areas such as coasts and riverbanks.

    Q7. Is there any public participation in the decision making when it comes to mining?

    The approval of local and regional planning committees is needed for new mining operations within existing mines. All proposed proposals must be announced and open to public scrutiny and opposition, according to Israel's Planning and Building Law. Each planning committee also involves an elected official who is not affiliated with the local or national government. In addition, stakeholder consultation and public engagement were used in the creation of the updated National Master Plan for Mining and Quarrying (Plan 14b).The plan is being developed in collaboration with all related ministries, organisations, and civic associations, and it is planned that specifics of the proposed plan will be presented to the public before it is advanced to the stage of legislative approval. At the point of evaluating alternatives to the legislative plan, a public hearing is required.

    Q8. What is the level of transparency in the mining sector?

    The Freedom of Information Act of 1998 mandates that all levels of mining governance offer requested information to any citizen. The Ministry of the Environment, as well as the Ministry of National Infrastructure, are in charge of environmental protection. The Israel Land Administration and the National Planning and Building Board also have extensive websites with a wealth of knowledge on mining operations, spatial planning, mine location, legislation, and annual site restoration reports.

    Q9. How are the risk assessments of the mining activities conducted?

    Mine risk assessments are carried out within the context of environmental impact assessments. Permanent vibration sensors are mounted and tracked in areas where the impact of explosions on nearby populations are unknown.

    Q10. What regulatory body takes care of the safety and health of the people working in mines?

     The Ministry of Industry, Trade, and Labor is in charge of all aspects of mining worker protection and health. The Work Safety Ordinance (Stone Mining) 1965, the Safety at Work Ordinance 1970, and the Use of Explosives Regulations 1994 govern mining activities. These regulatory bodies lay down the conditions for-

  • Site mapping
  • Use of explosives
  • Use of safety equipment
  • Periodic health inspection of the workers
  • Q11. What steps are taken to minimize the health effects of these mining activities? 

    Some of the steps that have been initiated to protect the health of the people are--

  • Prohibiting new mines in highly populated areas and in proximity to localities
  • Incorporating transportation issues into modern mining operations. It is proposed that raw material transportation by rail be increased in order to minimize air pollution, traffic congestion, and greenhouse gas emissions. Mining operations are thought to account for about 30% of all road cargo transport in Israel.
  • Setting up a more strict enforcement and inspection regime to ensure quarries adhere to environmental and mining regulations.
  • Q12. What steps have been taken to minimize the environmental effects of mining?

  • To address the problem of long-term licensing during which environmental standards can change, mines should be required to comply with updated standards by using Best Available Technology (BAT).
  • Setting up a more strict enforcement and inspection regime to ensure quarries conform to environmental and mining regulations.
  • Relocating raw material processing equipment from mine outskirts to the center of the quarry, in a topographically low area, to minimize air pollution and other hazards associated with mineral processing activities.
  • Incorporating transportation issues into modern mining operations. It is proposed that raw material transportation by rail be increased in order to minimize air pollution, traffic congestion, and greenhouse gas emissions. Mining operations are thought to account for about 30% of all road cargo transport in Israel.
  • Q13. Is there an Emergency Response Plan set in place?

    There are no underground mines in Israel, and all mining operations are carried out in open areas with a low risk factor. Every mine's business license specifies the conditions for site safety and emergency response.

    Q14. What is the role of QRF in the mining sector?

    The Quarry Rehabilitation Fund was established in 1978 as a result of the Mining Ordinance (1925) regulations. It is in charge of managing the rehabilitation of quarries that are no longer in use. In Israel, there are approximately 2000 abandoned quarries. The QRF is governed by an eight-member board that includes representatives from the Ministry of the Environment, Israel Land Administration, Nature and Parks Authority, and Ministry of National Infrastructure.

    The QRF is responsible for the following-

  • To claim back a fee from the mining firm. The fee is calculated as a percentage of the overall selling price of the resource which can be as low as 0.1 percent for cement or lime and as high as 6% for natural soil.
  • To promote the site rehabilitation plan.
  • To fund and supervise all the phases of site rehabilitation.
  • The QRF maintains a NIS 300 million ($75 million) endowment, with an estimated annual investment of over NIS 16-17 million (roughly $4 million). The QRF has already completed or partially completed 230 projects and manages 50 ongoing restoration plans each year. Quarry restoration plans include a range of programs, including turning old quarries into regional parks and playgrounds reservoirs, open-air theaters, industrial areas, multi-level cemeteries, and other facilities.

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    Wed, 10 Mar 2021 12:00:00 GMT
    <![CDATA[FAQ s- Competition Law in Israel]]> FAQs - Competition Law in Israel

    Q1. What is the outline of Israel's Competition Law?

    The Economic Competition Statute, 5748-1988 (the Law) is Israel's primary antitrust law, with the aim of preventing damage to competition and the general public. The law lays down the substantive principles that apply to a variety of trade restrictions (restrictive arrangements, mergers, monopolies, concerted groups and official importers).

    The Law also contains regulations governing the structure and powers of the Israeli Competition Authority (ICA), its inspector general (the Director General), and the Competition Tribunal (the Tribunal), as well as procedural rules that relate to cases brought before each of them.

    Trends in recent years have included:

    • strengthening the ICA's position;
    • increasing regulatory and criminal compliance, as well as the ICA's emphasis on its advisory capacity within the government; and
    • increasing civil "follow-on" class actions against foreign cartels.

    The Israeli parliament adopted a major change to the Law on January 1, 2019. The amendment made significant and substantive changes to the Law's terminology, including key provisions relating to the Israeli monopoly control regime, the Israeli merger control regime, the Law's compliance mechanisms, and more, as outlined below. The amended Law also includes a terminological change: the word "restrictive trade practices" has been replaced with "competition." As a result, instead of being known as the Restrictive Trade Practices Law, the Law became known as the Economic Competition Law.

    Q2. What changes have been made to Israel's competition law recently?

    On 1 January 2019, Parliament passed a bipartisan amendment to the Economic Competition Law as a government-sponsored bill advocated by the Israel Antitrust Authority (now called the Israel Competition Authority (ICA)).

    The amendment affects almost all of the major chapters of the Economic Competition Law, including:

    • the regulation of restrictive agreements;
    • the merger control regime;
    • monopoly regulation; and
    • Criminal and regulatory compliance steps.

    Q3. What are the most significant improvements in Israel's monopoly regulation?

    Prior to the amendment, the only way to determine whether a company had a dominant position (monopoly) was to look at its market share. Any company that owned more than half of a specific product market was considered a monopoly, and was therefore subject to anticompetitive unilateral behaviour prohibitions (similar to Article 102 of the Treaty on the Functioning of the European Union). Any company with a market share of less than 50% was excluded from the monopoly chapter's application and from the special duties placed on monopolies.

    The amendment keeps the market share-based concept of a monopoly, which means that any company with a market share of more than 50% is considered a monopoly. It has, however, broadened the concept by including a market power test. According to the amendment, a company will be classified as a monopoly even though its market share is less than 50% if it has "major market control" in a specific product market.

    The ICA published draft guidelines on the definition of' significant market power' on 3 February 2019, outlining a number of factors to consider, including:

    • an undertaking's actual market share the number of competitors active in the same market;
    • the importance of a specific product or brand for retailers' inventory; and
    • the presence of entry and expansion barriers in the market.

    The ICA also stated that before the final version of the guidelines is released, it would not take compliance actions based on unilateral behaviour by undertakings that may be subject to the provisions of the monopoly chapter following the amendment.

    Many businesses, particularly those with a significant market position, will have to rethink their business strategies and conduct (especially pricing behaviour) as a result of the market power test.

    Furthermore, the ICA's guidelines address "collective domination" conditions, making it easier to apply monopoly limits to market players in oligopolistic markets.

    Q4. What are the most significant amendments to Israel's merger control laws?

    • The Israeli merger control system prohibits the acquisition of more than a quarter of:
    •  a company's outstanding shares;
    •  a company's voting rights;
    •  rights to name company directors; or o rights to a company's earnings.
    • The obligation to inform and obtain consent for a merger agreement is subject to certain notification thresholds, and the amendment has made significant adjustments to both this and the merger control review procedure.
    • since 1999, the turnover threshold has been increased to account for the increase in the gross domestic product (the last time the turnover threshold was revised). If the combined turnover of the merging parties (on a group basis) is NIS360 million (approximately $100 million), the merger filing condition is now triggered. This is a major improvement from the previous threshold of NIS150 million (roughly $41 million). The additional requirement that at least two of the merging parties have separate turnover of at least NIS10 million (approximately $2.7 million) has been retained; however, the ICA has stated that this amount could be increased in the future.
    •  The merger control regime has been extended to registered non-profit organizations.
    • The ICA commissioner now has the power to extend the existing 30-day legislative timeline for merger control analysis to 150 calendar days at his or her discretion. A rational administrative decision by the commissioner is required for such an extension, obviating the need for the ICA to obtain the consent of the merging parties or approval from the Competition Tribunal (previously, the Antitrust Tribunal).  Although this move is unlikely to have a significant impact on complex merger transactions, which were previously subject to lengthy approval periods and extensions, it is unclear how it would affect less complicated transactions, which were typically reviewed in a comparatively expedited manner.

    Q5. What are the most significant amendments to Israel's competition law enforcement of restrictive agreements?

    Restrictive agreements are made between businesses that can harm competition (as well as certain types of horizontal agreements). Entering into a restrictive agreement is forbidden unless it:

    • falls under a statutory exemption;
    • falls under a block exemption; or
    • is approved by the Competition Tribunal or exempted from the approval provision by the ICA commissioner.

    Exemptions for restrictive arrangements have traditionally been written broadly, resulting in a large number of unique exemption requests from the ICA commissioner.

    The amendment, when combined with the recent amendments to two basic block exemptions laws (the Block Exemption for Restraints Ancillary to Mergers and the Block Exemption for Joint Ventures), has incorporated far-reaching reforms in this regard, with a transition to a substantive self-assessment system for most types of restrictive arrangements.

    The implementation of new block exemption rules in November 2018 marked the start of the transition to a self-assessment system. For otherwise legal agreements that did not meet the formal standards and technicalities previously needed for the use of most block exemptions, merging parties and joint venture partners were given a more versatile self-assessment process. The amendment aims to strengthen the ICA's ability to deter and sanction parties to anticompetitive agreements, in addition to removing an undue administrative burden on legitimate business practices.

    To that end, the amendment gives the ICA more authority to levy administrative penalties (see below). Furthermore, regardless of the circumstances, the maximum prison term for entering into an illegal restrictive agreement has been extended from three to five years. Previously, the five-year punishment only extended to offenses committed in the presence of aggravating circumstances.

    Q6. What major reforms have been made to Israel's competition law in terms of compliance measures?

    Any violation of the Economic Competition Law is punishable by law. The ICA, on the other hand, usually performs criminal investigations and seeks indictments only when there are substantial or obvious breaches of the law (especially serious violations such as cartel arrangements and bid-rigging schemes). Other infractions of the legislation are generally dealt with administratively (primarily administrative fines since 2012).

    The maximum financial administrative penalty limit for companies has been increased from NIS24.5 million (approximately $6.7 million) to NIS100 million (approximately $27.5 million), although the turnover-based cap of 8% of a group's turnover has remained unchanged. In the past, the ICA commissioner has gone beyond the formal financial penalty limit by combining several offenses stemming from the same factual basis. As a result, potential regulatory compliance proceedings could result in financial penalties of hundreds of millions of New Israeli shekels.

     Q7. What is the Israel Competition Law's Mandatory Enforcement Program?

    Corporate officers (including active managers, general partners, and corporate officials in charge of the sector in which an infringement occurred) now face a new form of criminal responsibility under the amendment, which requires them to supervise and avoid breaches of the Economic Competition Law by the corporation.

    Failure to comply with this obligation carries a maximum sentence of one year in prison. Furthermore, even though no breach of the law has occurred, corporate officers may now be held criminally liable, which is why this one-of-a-kind provision has been dubbed "a mandatory enforcement programme clause" by local practitioners.

     

     

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    Fri, 05 Mar 2021 12:00:00 GMT
    <![CDATA[FAQs- Banking and Finance in Israel]]> FAQs- Banking and Finance in Israel

    What is the Israel Banking System?

    Israel's financial system is sophisticated. It consists of 16 banks, four international banks with Israeli licenses, and three big and three small card firms.

    Bank Leumi, Bank Hapoalim, Israel Discount Bank, Bank Mizrahi-Tefahot, and First International Bank are the main Israeli banks (FIBI). The Tel Aviv Stock Exchange is where these banks' shares are traded. The combined market share of Bank Leumi and Bank Hapoalim is roughly 60%, indicating that the Israeli financial sector is relatively centralized.

    International banks that have acquired banking licenses to work in Israel include Barclays Bank, Citibank, HSBC Bank, and State Bank of India. Under different regulatory agreements, Bank of America, Deutsche Bank, UBS, BNP Paribas, and other international banks maintain a presence in Israel.

    Central bank of Israel

    The Bank of Israel is the government's central bank, in charge of issuing money, establishing and enforcing Israel's monetary policy, and monitoring and supervising bank operations through the Bank of Israel's Banking Supervision Department.

    The Supervision Department is working to accomplish a range of public and economic goals, including preserving and sustaining bank stability, protecting banking consumers, and fostering competitiveness, among others. In order to achieve these goals, the Supervision Department has been working on two secondary goals in recent years: technical advancement in banks and improving the performance of the banking system.

    How is the Banking Market of Israel?

    In recent years, Israel's financial system has undergone significant changes. Following various supervisory criteria, it has increased its flexibility, reduced its vulnerability to high financial risks, and made substantial improvements to its business-operational models (which have been adjusted to be more competitive and technology-oriented). The banks have learnt and incorporated lessons from previous incidents by significantly lowering exposure to major creditors while diversifying the banking credit base and reducing regulatory exposure related to non-resident customers.

    These interventions were reflected in the banks' financial performance as well as an increase in capital market sentiment, as shown by the continued upward rise in bank share prices above the general stock index. Controlling owners have increasingly sold stock of banks to the general public in recent years, and the public now owns the bulk of shares in Israeli banks, with no single controlling shareholder in the three main banks, Leumi, Hapoalim, and Discount. As a result, the general public benefits from increased bank dividends as well as higher stock prices. Keeping ownership of an Israeli bank necessitates a control permit from the Bank of Israel, which must be issued after a thinking process that includes an extensive review of the applicant's financial health, as well as proper inspections. A holding permit is also necessary if you own more than 5% of a bank's stock.

    What are the recent developments in the Israeli Banking System?

    The Non-bank Credit Market

    Non-bank lenders' lending volume has risen significantly in recent years, and numerous private and public firms, as well as hedge banks, mutual funds, and insurance companies, have begun to provide credit to both retail and corporate customers.

    A new legislation, the Supervision of Financial Services Law (Regulated Financial Services), 5776-2016, was adopted in 2016 to govern this growing phenomenon (the "Financial Services Law"). The Financial Services Law is part of a major regulatory overhaul aimed at improving non-institutional entity oversight of financial services, developing and growing innovation in the financial services market, securing investor interests, and maintaining compliance with the anti-money laundering regime. Extending credit (including check discounting, offering credit lines, and asset-backed lending) includes a credit license under the Financial Services Law (the "Licence to Provide Credit"). When services are given in Israel, as well as when clients are aggressively solicited in Israel in conjunction with services provided from abroad, the licensing obligation is activated.

    Certain exemptions to the licensing provision were established by regulations passed under the Financial Services Law.  The main exemptions apply to foreign corporations who meet the following criteria: (i) they are incorporated in an OECD member country; (ii) they hold a banking license from a regulatory authority in such a country; (iii) they are subject to an anti-money laundering regime in such a country; and (iv) they are not required to obtain a license under the Banking Law (Licensing), 5741-1981. Another significant exception is for lenders who lend exclusively to business creditors for sums greater than ILS3 million. The Exemption Regulations remain in effect until June 16, 2020, and are likely to be extended after that.

    Brokerage Activities in Israel

    Section 49A of the Israeli Securities Law went into force in 2019, making it illegal to provide financial facilities in Israel for securities listed on exchanges and trading systems (other than the Tel Aviv Stock Exchange) unless the Israeli Securities Authority grants a permit ("ISA").

    In view of Section 49A, international companies seeking to offer brokerage services to Israeli customers have basically two options:

  • To only offer services to "Qualified Investors" as customers. According to the Israeli Securities Law, qualified investors include institutional investors, major corporations, and high-net-worth individuals. This option does not necessitate submitting an application to the ISA.
  • Entities covered by some jurisdictions are eligible to apply to the ISA for a permit to represent Israeli customers, including non-Qualified Investors. This route is currently available to non-Israeli entities that are subject to regulation (a) in the USA as a 'broker-dealer;' (b) in an EU country under MiFID II as a 'investment firm' or 'credit institution' or (c) Swiss-licensed banks approved as 'security dealers' under applicable Swiss law, provided that, pursuant to the applicable regulation to which that entity is subject, the fact that they are authorized as 'security dealers'. Entities accredited in other jurisdictions (i.e. not in the USA or the EU) may also apply for a special permit from the ISA. In the application, they must define the regulatory regime applicable to them, the regulation of their brokerage activities and their obligations under foreign law vis-à-vis clients located in Israel.
  • The ISDA Agreement

    Over-the-counter derivative transactions have also become popular in recent years, and many Israeli banks and institutional investors, as well as companies that need to hedge currency and commodity exposure, are entering into derivative transactions under the ISDA Master Agreement with foreign counterparties.

    The Digital Bank

    On 2019, the Bank of Israel decided to issue a license to a new bank, which had not been given a new banking license for several years. The new bank plans to act as a digital bank, i.e. without branches or physical establishments.

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    Wed, 03 Mar 2021 12:00:00 GMT