HFN's Hi-Tech and Licensing departments issued a client update on recent developments in the Law for the Encouragement of Research and Development in the industry 5744-1984.
In This Update:
The Knesset has passed regulations which provide for a cap on the amount to be paid to the Office of the Chief Scientist in the Ministry of Industry, Trade and Labor (the "OCS") in the event of the transfer of OCS-funded know-how outside of Israel. This is a long anticipated and significant development which may, at least, serve to lift some of the uncertainties surrounding M&A transactions with respect to the know-how of the purchased entity, as well as allow start-up companies and their investors to better hedge the risk associated with the eventual payment to the OCS in connection with a potential M&A transaction..
To read the full update, please click here (Hebrew).