Copyright in software and digital content
The Israeli Copyright Act, 2007, protects literary, artistic, dramatic and musical works. Computer software is protected as a literary work, as is much digital content: text, designs, images and video. Protection arises when the work is created, without registration.
The work includes assessing the scope of protection, advising on permitted use, and dealing with infringements, including content removal demands.
Ownership: employees, freelancers and vendors
Under the Act, the first owner of copyright is the author. A work created by an employee for and during employment belongs, as a rule, to the employer, unless agreed otherwise (section 34). In a commissioned work, such as software developed by a freelancer or a development company, ownership stays with the author, unless agreed otherwise (section 35).
In practice, an organization commissioning development or content from an outside party should set out the transfer of rights in a written agreement. The firm reviews and drafts employment, development and vendor agreements with this in mind.
Trademarks
A registered trademark gives its owner an exclusive right to use it in connection with the goods and services for which it is registered, under the Israeli Trade Marks Ordinance [New Version], 1972. The work includes clearance before a mark is adopted, filing applications for registration, and trademark license agreements.
Licensing and assignment agreements
A license permits use of a right without transferring it; an assignment transfers ownership itself. The distinction affects the scope of use, exclusivity and what happens when the relationship ends. A transaction in copyright and the grant of an exclusive license require a written document (section 37 of the Act).
The firm drafts and reviews license agreements, assignment agreements and intellectual property provisions in development, service and SaaS agreements.
Intellectual property and artificial intelligence
AI raises intellectual property questions at two stages. On training, the Israeli Ministry of Justice published an opinion in December 2022 on the use of copyrighted works for machine learning. On outputs, whether an AI-generated output is protected by copyright, and who owns it, has not yet been settled under Israeli law.
Contractual terms are therefore especially important: who owns the outputs, what the vendor may do with the data and content provided, and what representations and undertakings are given regarding infringement. The firm reviews AI vendors' terms of use and drafts suitable provisions in agreements.