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CUSTOMS INSPECTIONS


Customs unity between Israel and the Palestinian Authority, and Israel’s responsibility for the authenticity of goods imported into the Palestinian territories, raise legal questions that involve issues of international law and create difficulties in serving legal documents and executing judgments, say Dor Cohen Zedek and Yossi Markovich.


Palestinian Authority. Generally, in order for the Israeli courts to have jurisdiction in a lawsuit, the plaintiff must serve the statement of claims to the defendant. A common way to do so is by delivering the legal documents directly to the defendant. Although there is specific legislation pertaining to service of legal documents on Palestinians, this course of action is almost impossible to pursue in the Palestinian territories in reality. An alternate method in cases where the defendant is not located in the court’s jurisdiction is to serve the documents on an ‘authorised representative’, who works for the defendant and is present in the court’s jurisdiction.


For many years, rights owners made use of this to serve importers from the Palestinian territories, by serving the statement of claims to the customs agent operating on behalf of the importer. Te courts regularly accepted this. Te underlying rationale was that because the proceedings involved goods seized by customs, there was a sufficient working relationship between the importer and the customs agent to adequately assure the fulfilment of the service process, and the customs agent could justifiably be viewed as authorised to act on behalf of the importer.


However, in a surprising decision in Spin Master, the district court in Petah Tikvah ruled that service of legal documents on a customs agent in such situations was not legally sound. Te court ruled that because the involvement of the relevant Israeli customs agent was required by law, it could not be used to indicate a level of voluntary co-operation sufficient to satisfy the requirements of the ‘intensity of the relationship’ test for privity. Te court therefore ruled that the statement of claims must be served to the


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Palestinian defendant in accordance with the regulating legislation. Nevertheless, despite the Spin Master decision, other judges (including in the same Petah Tikvah district) continue to hold that customs agents may be seen as an ‘authorised representative’ in this context.


Tese new court rulings, and the anticipated decision of the Supreme Court in the Christian Dior matter, raise issues at the core of enforcing IP rights. In practice, these rulings create a figurative triangle, whose vertices represent the state, the owner and the importer residing in the Palestinian territories. Te ruling in Christian Dior embodies the tension between the first two vertices (the state and the rights owner), while the ruling in Spin Master embodies the tension between the rights owner and the Palestinian importer.


Although these issues seem superficially procedural, they greatly affect the substantive ability of IP owners to enforce their rights. Moreover, they may also increase the required budget for enforcing IP rights. Te challenge now laid before the Supreme Court is to find the appropriate balance between the rights of IP owners and the state’s interest in preventing importation of counterfeit goods into its territory on the one hand, and the procedural rights of Palestinian importers and the need for protection from arbitrary acts on the other.


Dor Cohen Zedek is a partner with Pearl Cohen Zedek Latzer, one of the leading IP firms in Israel. Dor, a third generation IP lawyer, is admitted to practice in Israel and New York. She heads the firm’s trademark group, advises on trademark strategy worldwide, and handles trademark and design prosecution and litigation. Zedek is a member of INTA, AIPPI, PTMG and Marques, where she is also a team member.


Dor Cohen Zedek is a partner at Pearl Cohen Zedek Latzer. She can be contacted at: dorcz@pczlaw.com


Yossi Markovich is a senior associate at Pearl Cohen Zedek Latzer. He can be contacted at: yossim@pczlaw.com


Yossi Markovich is a senior associate at Pearl Cohen Zedek Latzer, where he specialises in intellectual property litigation. Yossi advises a number of major technology- based companies on a wide range of intellectual property issues involving patents, trademarks, designs, copyrights, trade secrets, counterfeiting and unfair competition.


World Intellectual Property Review September/October 2010


73


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