European Union Opposes New Israeli Patent Law

European Union (EU) officials have come out against Israel's new patent law amendment. New EU ambassador Ramiro Cibrian Uzal has informed local media sources that he would prefer to see Israel adopt EU-style eight-year data exclusivity period, with a further two years allowed for new indications. The ambassador notes that Israel's trade agreements with the EU commit the country to improving data protection.

Israel's latest proposed amendment to its 1967 Patents Law (further amended in 1998) permits five-year exclusivity, but this extension will only last until the expiry of the patent in an "important" member of the World Trade Organisation, including the US.

As it stands, the measure will allow Israeli drug firms to remain able to launch generic versions of patented drugs on the date of expiry in the US. Even so, leading Israeli generics producer Teva has warned that the measure could still force it to relocate production to other countries, in order to preserve the company's competitive position in the US.

The EU has now held out the threat that the new law will prevent the country from joining the Organisation for Economic Cooperation and Development, although whether this possibility is real is unclear. Nevertheless, a hardening EU position is likely to increase Israel's international isolation on intellectual property issues, given US hostility to the new patent amendment.