Background
The high-tech industry in Israel (and worldwide) relies on
innovations and technological developments made by industrial
workers. While we are used to seeing start-ups developing certain
technologies, in many cases, many of such developments are being
initiated and invented by employees in an established and existing
company.
The ownership of the invention and the rights granted to the
employee and the employer in respect of the invention is regulated
by the Patents Law, 5727-1967 (hereafter: “the
Patents Law“).
In the event that the inventor of a patent is an employee of a
company, and in the absence of any other agreement between that
employee and the employer, the employee's inventions are
considered part of his work, and therefore ownership of the
invention, which was actually invented by the employee, belongs to
the employer, subject to the terms provided in the Patent Law,
inter alia, that it is an invention, that the parties have
