Dr. Eyal Bressler & Co.
Please contact us for the original publication of the below article with supporting data tables and graphs.
Strong IP representation in medical devices
Israel today is a technological powerhouse in the field of biotechnology and medical devices. Around 65% of the roughly 7,000 patent applications filed every year in Israel are in the combined fields of chemistry, medical devices and biotech. Out of the total, roughly 1,700 are patents originating from Israel. Israel is also an exporter of patents, filing roughly 1,000 patent applications every year in the field of medical devices around the world.
Technological developments post-bubble
Technological developments in the field of medical devices in Israel are rapidly expanding. In the last decade, Israel experienced exponential growth in the number of patent applications in the field of medical devices, growing from about 20 in 1992 to over 300 this year. The sharpest gain in patent applications can be seen during the years of the high tech bubble 1999-2001, followed by higher volatility from year to year resulting from the crisis in confidence in the market. This period was marked by an increasing demand for feasibility by investors before new funding could be secured; prior to this phase, companies could make do with assembling a good team, with a target market in mind and degree of IP protection behind them.
Graph 1. Patents registered in Israel in medical devices, 1990 - 2006
Despite the volatility in patent registrations for medical devices over the last several years, overall registrations have recovered since the bubble years, reaching 91% of 2001 peak levels in 2005. Also, sub-classifications of patent registrations have become increasingly populated, driven by diagnostic and surgical equipment (A61B, 29% of 2005 total) and medical/dental/toiletry preparations (A61K, 23% of 2005 total) . We can see the growth in sub-classifications in the medical devices field in Table 1 below and in Graph 2, representing the same data in percentage terms.
Table 1. Patents application by medical device sub-classification
Key to Tables 1 and Graph 2:
A61 = medical or vetinary science; hygiene A61B = diagnosis; surgery; identification A61C = dentistry; oral or dental hygiene A61F = filters; prosthesis; treatment or protection of eyes, ears; bandages; first aid kits A61K = preparations for medical, dental or toiletry purposes
Graph 2. Breakdown of patent applications by medical device sub-classifications
Trademark activity
Israel has a vibrant market for the registration of trademarks in medical devices. Since 2000 alone, over 5,000 trademarks have been registered in the fields of medical devices and pharmaceuticals. Here as well we can see the effects of the high-tech bubble, with an even sharper drop in registrations compared to patents registered from 2001-2003. The collapse in the market brought a drop in 50% in trademark registration in 2000-2003, a trend which strongly reversed itself in recent years with 2005 registrations reaching 75% of 2000 peak levels (870 in 2005 versus 1,156 in 2000).
Graph 3. Trademark registrations for medical devices in Israel, 1999-2006
Female participation in IP on the rise
We can take note of another interesting trend in Israeli patent registrations in terms of the number of female participants and significant increase in patent writers over the last three decades. While female patent writers were a rarity in the 1960s and 1970s, that number has increased in 2006 to 42% of all Israeli patent writers, reflecting the general increased participation of women in the sectors as full partners in management, R&D and in the building of Israel’s portfolio of intellectual property.
Graph 4. Rise in percentage of female patent writers in Israel, 1955-2007
A clear competitive advantage
In summary, the data points above indicate clear competitive advantages that Israel offers relative to other markets around the world. These include development of alpha or beta types at upwards of 50% total cost compared to US levels, shorter delivery schedules and world-class research, important factors given the higher critical investment levels required in biotech as compared to the high-tech world. Shorter delivery schedules also offer another key benefit to investors: if Israel’s biotechs can reach breakeven point within the initial 2.5 year term for global IP protection, investors have much less risk in taking the decision to advance IP protection to the next level of investment, a much higher consideration over the full 25 year period.
If you have any questions about this client advisory, you may contact your representative at Dr. Eyal Bressler & Co., Tel: +972-3-5765555 or contact smadar@bressler.co.il.
Disclaimer
The above does not constiute legal advice in any way. While we believe that the information presented in our site is correct at the time of updating, we are not responsible for any consequences whatsoever arising from use of the information by others.
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