Esther Luzzatto: Israel is shooting itself in the foot

Luzzatto and Luzzatto partner Esther Luzzatto: “The Patents Law will lead to sanctions by the US.” Luzzatto and Luzzatto specializes in patents and intellectual property.

“The new amendment to the Patents Law on the Knesset agenda will lead to US sanctions against Israel, because the US is very aggressive on this issue,” Luzzatto and Luzzatto partner Esther Luzzatto said, after the US put Israel back on its priority watch list of countries violating intellectual property rights last Friday. Luzzatto and Luzzatto specializes in patents and intellectual property.

In justification of its action, the Office of the US Trade Representative also cited its concern of the new amendment to the Patents Law (1967) (amended 1998), in addition to its objections concerning the data exclusivity bill. If the amendment passes, it will be very difficult for international pharmaceutical manufacturers to extend their patents in Israel beyond the original period.

Following the 1998 amendment to the law, which international pharmaceutical firms call “the Teva amendment,” generic drug manufacturers can now conduct clinical drug trials in Israel during the original patent period of ethical drugs for purposes of putting generic drugs on the market. As compensation, it was decided to grant patent extensions of up to five years for ethical drugs. In practice, such extensions were granted for up to two and a half years.

If the new amendment is passed, Israeli generic drug companies, especially Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), will be able to manufacture and export generic drugs after the original patent period expires. This will enable them to export drugs, mostly generic, to the US market, at an earlier stage.

Esther Luzzatto claimed, “One of Israel’s most important assets is exports of intellectual property, mostly in high tech. Israel therefore has a strong interest in preserving intellectual property.

”We’re shooting ourselves in the foot by putting ourselves in the position of being considered violators of intellectual property rights. Always bear in mind that this is a two-way street. Just like we violate others’ rights, the rights of Israelis will be violated.”

Published by Globes [online] - www.globes.co.il - on May 2, 2005

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