Luiza Jarovsky, PhD

Israel’s DABUS decision: Also in Israel AI can’t be an “inventor”. Interesting unique legal arguments made by court. On 31 December 2025, the Tel Aviv District Court affirmed the Israeli Registrar’s refusal to proceed with patent applications that named an AI system (“DABUS”) as the inventor and sought to link ownership of the invention to ownership of the machine. Although “inventor” is not defined in Israel’s Patents Law, the court read the term in its ordinary meaning and statutory context as referring to a human being. The law’s internal references to an inventor’s heirs, the inventor’s ability to demand attribution, and waiver all point to a rights-bearing legal subject—something a machine is not. Because a non-inventor applicant must explain how it became the “owner of the invention” (by law, assignment, or agreement), the filings ran into a structural barrier: a machine has no legal personality and cannot transfer rights by assignment or contract, and purposive interpretation did not justify stretching the framework to treat AI as an inventor. The court also emphasized that whether and how to protect fully autonomous AI-generated inventions is a policy question with broader implications (incentives, disclosure vs. trade secrets, and international harmonization). In the court’s view, that is a legislative choice, not something to be achieved through interpretation of existing patent terms. Comparatively, the outcome aligns Israel with the dominant approach in major jurisdictions such as the UK, US, and the EPO: AI may assist the inventive process, but inventorship remains tied to a natural person. For innovators and counsel, the practical lesson is clear: when AI plays a role, the focus should be on identifying and documenting the human contribution that meets inventorship standards, and framing prosecution strategies accordingly. #Patents #IntellectualProperty #AI #ArtificialIntelligence #PatentLaw #Innovation #IPStrategy #TechLaw #IsraelLaw #DABUS

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Some great tips here from my friends Nicole F. and Ignacio González at Meitar | Law Offices on how to avoid the massive nuisance that are #CIPA lawsuits. If you haven't already, please take the time to proactively address your business' #cookie and #tracking technologies, and ensure your privacy and cookie notices have been revised to address these complaints. In addition to CIPA, we're now seeing creative plaintiffs' lawyers expand these "wiretapping - but on the internet" claims under laws of additional U.S. states, and even U.S. federal laws like the Electronic Communications Privacy Act (#ECPA). This problem, unfortunately, is only expanding. Like Nicky says, it's much cheaper to fix this now than to defend a lawsuit later! #PrivacyLaw #TechLaw #Cookies

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DO ANDROIDS DREAM OF… INVENTIONS?  Well, we are not there yet, but regarding Artificial Intelligence, according to the Israeli district court, AI cannot be regarded as an inventor that can own or transfer rights, as stipulated by the Israeli patent law.  In the case of Thaler v. Patent Registrar, the Israeli District Court ruled that AI systems cannot be recognized as "inventors" under the Patents Law. The appellant (i.e., plaintiff) sought patents for inventions he claimed were created autonomously by his AI, arguing that as the machine's owner, he was entitled to the patent. The court upheld the Patent Registrar’s refusal, concluding that the term "inventor" naturally denotes a human being. The court found that statutory context—specifically references to an inventor's "heirs," "waivers," and "requirements"—clearly implies a natural person with legal capacity. Because AI lacks legal personality, it cannot possess or transfer rights to an "owner". The judge emphasized that extending patent protection to machine-generated inventions is a complex policy issue for the legislator, not the courts. This decision aligns Israel with international standards in the US, UK, and Europe, which similarly mandate human inventorship. Consequently, inventions generated solely by AI remain ineligible for patent protection, under the Israeli patent law.

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For Israeli startups: I will be posting about recurring US legal issues that come up in our work with Israeli and other startup companies doing business the US. Hope you find them interesting and relevant. Today’s topic: Commissions! If your employees are paid based on commissions, be aware that there are different state laws in the US regulating commission terms. In New York, for example, the commission terms must be in writing (signed by the employer and the employee) and should describe when a commission is "earned". Once a commission is earned, it is legally considered "wages" (like salary) and it becomes subject to laws regarding payment of wages. For example, this has important implications for payment upon termination of employment, deductions by the employer, and timing of payment.  Draws against future commissions come with their own set of legal requirements. Note that compensation may be considered a "commission" even if it has a different name (for example, if the payment is based on a percentage of sales). We often see commission plans that are not sufficiently clear or detailed, and/or do not comply with the relevant laws, for example when simply using the Israeli commission plan without appropriate adjustments. In such case the employee may have an advantage in case of a dispute. Non-US companies often start doing business in the US through salespersons, so this is typically one of the first legal issues to consider. *Not intended to provide legal advice for specific situations, and no legal or business decision should be based on this content.

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The Tel Aviv District Court has ruled: under current Israeli patent law, an “inventor” must be a natural person — not an AI system. This decision aligns with prevailing case law worldwide, but its significance goes beyond international consistency and lies in its practical implications for companies and startups operating in AI-driven R&D environments. AI-assisted inventions are not disqualified per se. However, applicants must demonstrate meaningful human contribution, supported by proper documentation, responsibility, and declarations. In an era where AI is embedded in nearly every stage of innovation, the ruling clarifies how patent development and filing processes should be managed — from the very outset. These points were also discussed in an interview published yesterday in Calcalist. #AI #Patents #IntellectualProperty #Innovation #LegalTech #Startups

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In 2026, if you are an Israeli company or group with a website accessible in the U.S., you are likely operating under a legal microscope. We are seeing a high number of claims targeting companies that use routine tools: cookies, pixels, and even AI chatbots 🤖. Plaintiffs’ firms are no longer just relying on the California Invasion of Privacy Act (CIPA)—a 1960s law originally designed to prevent phone wiretapping—they are now using the federal ECPA (Electronic Communications Privacy Act) to claim that standard analytics are actually "illegal interception." 🚩 Why this is a major problem: ⚡ Statutory Damages: CIPA allows for $5,000 per violation. These claims are often brought as class actions, making the potential exposure significant. ⚡ Legal Actions: Lawyers are filing class actions, individual litigation, and mass arbitration claims simultaneously to create massive legal pressure. ⚡ M&A and Investment: In 2026, in all M&A (rounds of investment or acquisitions), there is a specific question whether the target company has received any CIPA/ECPA claims. Unresolved claims could be a red flag. The Standard for 2️⃣0️⃣2️⃣ 6️⃣ and what my partner Ignacio González and I recommend -  ✅Audit your site, map your cookies and tracking technologies and be transparent about it  ❌ The era of "implied consent" (or having no message at all) is over. ✅The gold standard is now "Prior Affirmative Consent." Legally, this means your tracking scripts—for purposes like analytics, marketing pixels, or support tools—must remain dormant. They cannot drop or collect data until the user has made a clear, positive choice to opt-in. ✅Don't wait for a demand letter to react! If your business has U.S. ties and traffic, let’s make sure your cookie practices actually matches your legal requirements. It's much cheaper to fix your cookie logic now than to defend a lawsuit later! #PrivacyLaw #CIPA #ECPA #TechCompliance #Startups #Compliance2026 #Meitar

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AI and Privacy clash in Israel 💥 – our comments on the PPA draft guidance Recently, Dr. Avishay Klein and myself submitted our team's at Barnea Jaffa Lande comprehensive comments to Israel's הרשות להגנת הפרטיות Privacy Protection Authority (PPA) regarding their draft guidelines on applying the Privacy Protection Law to Artificial Intelligence systems. We commend the PPA's initiative to address the complex and critical issues at the intersection of AI technologies and privacy protection. Our key comments emphasize the need for a balanced, applicable regulation that fosters innovation while rigorously safeguarding fundamental rights: 👀 Flexible Disclosure & Consent Mechanisms: We advocate for broader reliance on implied consent for AI uses, reducing detailed disclosure requirements, provided that meaningful user rights are maintained. This approach aims to avoid "consent fatigue" and promote effective, user-friendly disclosure through layered notices and interactive tools, rather than overwhelming users with technical details. ⛏️Public Data Mining for AI Training: We believe the PPA's current stance on public data mining is overly restrictive. Creating conditions for lawfully scraping of public data scraping is crucial for training AI models and fostering the local information market. 🙅🏼‍♀️Data Subject Rights (Correction & Deletion): The draft guidelines propose significant limitations on company operation, including potential algorithmic changes following data subject requests. This deviates from international norms and current enforcement measures. We propose a more balanced, risk-based approach to data correction and deletion that considers the significant economic costs and feasibility, especially for companies using third-party AI models. 🔏Security Risks in AI Systems: We argue against a blanket imposition of increased security obligations solely based on AI technology use. Instead, security measures should be determined by the actual risks to data subjects, based on data sensitivity and volume, aligning with existing data security regulations. We believe that fostering a legal environment that encourages the development and deployment of AI technologies in Israel is paramount. An overly strict regulatory approach could lead to a "chilling effect" ❄️, potentially driving AI development and research centers to countries with more enabling regulations. We are confident that continued open dialogue among regulators, industry, academia, and civil society will lead to optimal policy formulation in this vital and dynamic field. Nadine Liv #AI #Privacy #DataProtection #ArtificialIntelligence

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We are proud to share that the Shamgar Center for Digital Law and Innovation at Tel Aviv University has joined the Global Network of Internet and Society Centers (NoC) — a global consortium of academic institutions working at the intersection of technology, law, and society.   This is a meaningful step for the Shamgar Center, especially as an Israeli institution during these days, joining a diverse group of centers from around the world — including the Oxford Internet Institute, Berkman Klein Center at Harvard, Alexander von Humboldt Institute for Internet and Society, and many more. At a time when questions of AI governance, data rights, and digital regulation are more pressing than ever, we see this as an opportunity to bring our voice into the global conversation and deepen international collaboration. To learn more about the NoC: https://lnkd.in/dbmqNYha Global Network of Centers

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#GT_TelAviv was excited to collaborate with Dr. Philip Radlanski, Local Partner in the Intellectual Property & Technology Practice Group at Greenberg Traurig Germany, LLP, on his recent interview with CTech by Calcalist, one of Israel’s leading business publications. In the interview, Philip offers timely guidance on how the EU’s new AI regulation will impact Israeli startups and tech companies operating in or with clients in Europe. He explains how even the use of general-purpose AI tools like ChatGPT or macOS systems can fall under the regulation’s broad definition of “AI,” and outlines concrete steps companies should take to assess compliance, mitigate legal risk, and remain competitive in the European market. His insights are essential for Israeli founders and tech leaders navigating the evolving legal landscape around artificial intelligence. 📖 Read the full interview (Hebrew): https://lnkd.in/eKVtg89b #GreenbergTraurig #AIRegulation #ArtificialIntelligence #TechLaw #IPLaw #IsraeliStartups #CrossBorderCompliance #InnovationLaw #LegalInsights #EULaw #AICompliance

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"Superintelligence and Law" by Noam Kolt from the Hebrew University of Jerusalem explores the profound implications of artificial superintelligence (ASI) for the legal system. The paper examines how autonomous AI agents capable of outperforming humans in cognitive and economic tasks will reshape legal institutions. ASI will not only be subject to law but will also serve as consumers, producers, interpreters, and enforcers of legal norms. These developments challenge foundational legal principles rooted in human origins and raise questions about legitimacy, authority, and the future of legal governance. The author emphasizes that law must adapt to a joint human-AI legal order one that recognizes AI’s role as a primary legal actor while safeguarding human values and oversight. This work offers a visionary perspective on the future of legal theory and the necessity of preparing legal institutions for the era of superintelligence. Read: http://spkl.io/6048Axndj #AI #Superintelligence #LegalTheory #LawAndTechnology #FutureOfLaw #AIRegulation

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Congress to Itamar Sher, Lev Pachmanov, and Alon Navon of Seal Security for announcing $13M round to automate open-source vulnerability fixes! https://lnkd.in/dPAQXBhz Meitar | Law Offices Shirel Cohen Sapir Malkiel

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The AI Contract Trap: Why Scale Doesn’t Mean Security in Today’s Real Estate Market We have officially entered the era of the "Monster Contract." In 2025, AI is drafting real estate agreements at an unprecedented scale. While technology has streamlined the process, it has also created a dangerous illusion of protection. Automated legal jargon can easily bury fundamental flaws, planning gaps, and long-term liabilities that no algorithm is yet designed to catch. The "Elephant in the Room Closing Pressure Beyond the technology, there is a structural challenge we must address: the inherent conflict of interest in success-based legal fees. When a professional’s compensation is tied solely to the signature, "Closing Pressure becomes an invisible force. It makes it difficult to stop, pivot, or flag the risks that might "kill" the deal, even when those risks are critical. The New Standard: Objective Oversight. This is why I established the Legal Diagnostic Clinic. We don't replace your legal team, and we don't manage the negotiation. We act as the MRI of the transaction. By providing an entirely independent, human-academic Second Opinion, we offer a diagnostic layer that is immune to closing pressure and automated oversights. In a shifting market, a neutral, objective audit isn't just a precaution-it is the only way to ensure your interests are truly secure. Read the full analysis on the new model of legal security here: 👉 https://katzr.net/14cf8d

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In times of war, investors don’t stop investing. They simply look closer. In conversations with foreign investors evaluating Israeli companies, one thing becomes clear: Technology matters. But IP infrastructure often determines confidence. During uncertainty, intellectual property is not just a legal asset. It is a signal. A signal of: • Managerial stability • Clear ownership of inventions • Legal transparency • International readiness Brilliant technology without structured IP can be perceived as risk. Well managed IP signals resilience, even in complex environments. The strength of Israeli entrepreneurship is not measured only by innovation. It is measured by the ability to protect it strategically. At Ehrlich Group, we see this dynamic firsthand in due diligence processes and cross-border investment discussions. In volatile times, IP is not defensive. It is foundational.

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It is crazy and scary where and what we have reached by now with AI, and we have only scratched the surface. Where will this end????? Lawyers are being left in the dust by AI when it comes to reviewing contracts and suggesting changes, and now according to a new study by Tel Aviv University, AI is better than doctors in suggesting appropriate treatment for common medical conditions. https://lnkd.in/evYQJe8A

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Last week I spoke about #LegalAI in two different settings. First, at the Law and Technology Workshop at the Faculty of Law | Bar-Ilan University, taught by Dr. Ayelet Sela, and later at the Israel Bar Association conference, as part of a panel discussing the challenges of #AIAdoption in law firms. What stayed with me afterwards was how differently AI looks depending on where you sit along the legal career path. With the students, the conversation was mostly about opportunity. I do think this is a particularly good time to be starting a legal career. Students today still receive the traditional foundations of legal training, but they are also best positioned to grow alongside the technology rather than adapt to it later. We spoke about how AI is already part of daily legal work in Meitar | Law Offices, embedded in workflows and systems, and treated as part of the ordinary course of work rather than as an experiment. That experience also framed our discussion around responsibility and ethics, and the need to adopt tools deliberately rather than opportunistically. I was glad to share the discussion with Amit Weiss from Darrow AI, who added an important legal-tech perspective, particularly around new legal and adjacent roles that are only now starting to emerge and may also find a place inside law firms. A recurring question was how lawyers learn in a world where generative AI compresses much of the work through which experience was traditionally gained. That raises real questions about how legal judgment, experience, and professional mindset are developed going forward. Law schools understandably hesitate to become professional training programs, but some adaptation feels unavoidable. At the Bar Association conference, the focus shifted from promise to execution. The challenges discussed were largely organizational rather than technical: preparation, leadership, use-case selection, and managing confidentiality and privilege risks. In my experience, when AI is treated as infrastructure and approached deliberately, many of these challenges can be mitigated. Across both conversations, one theme connected everything. As legal work changes, the way we educate, qualify, and train lawyers will need to evolve as well. That responsibility sits with law schools, the Israeli Bar Association, and practitioners in law firms and legal departments alike. AI will not replace lawyers. But it does require more intention in how we create experience, develop judgment, and prepare for what legal practice is becoming. What I’m still thinking about is how we deliberately create the kind of experience that used to emerge naturally. #LegalInnovation #LawAndTechnology #LegalProfession

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Israeli Startup Investing in 2025: AI at 49% and gaining! Meitar | Law Offices and S Cube of IBI Capital Group annual conference (presented by David Fruchtman and Gidi Shalom Bendor): 2025 — and the message was unambiguous: AI is the center of gravity. Key takeaways: AI and cybersecurity account for ~49% of all early-stage investments in Israel Investors increasingly expect AI to drive scale instead of headcount Valuations are rising across stages, with a record median Series B valuation in Israel It's clear that is Israel has been doing remarkable well despite the war and has maintained or even enhanced it's position as a global AI and Cyber powerhouse. https://lnkd.in/dn8xv-Tu

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Boom. Xtend to go public in Nasdaq, with a $1.5B valuation. This is the second time we are working with the amazing Aviv Shapira Matteo Shapira (after we had the privilege to assist them in the sale of their former successful startup Replay to Intel), and our very own Mor Swiel. Proud of the BAS team that spent days and nights working on this amazing transaction. Michal bachrach Naor Traitel Shahar Farkash Tomer Stern Yael Magriso Gaby Shickler

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Israeli startups raised $1.1 billion in January 2026 alone, according to IVC–LeumiTech. Coming off a year in which $10.7 billion was raised across 2025, this isn’t an anomaly. It’s a continuation of a clear and accelerating trend. What matters now isn’t just how much capital is entering the ecosystem, but how it’s being deployed. Investors are more selective. Deals are more structured. Expectations around maturity, governance, and execution are higher than ever. This reinforces something I’ve been saying for a long time:capital hasn’t disappeared it’s become intentional. Money is flowing to companies that demonstrate clear growth logic, real scalability, and strong legal and operational foundations. For founders, that’s encouraging. And it’s also a reminder: today’s market isn’t about ideas anymore it’s about preparedness.

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