Israel admits that its crypto policy was imposed by the US

[John Gilmore <gnu@toad.com>]

Forwarded-by: Ross Anderson <Ross.Anderson@cl.cam.ac.uk>
From: the Jerusalem Post, 7th July 1997 (from www.jpost.co.il)

ARCHIVE_DATE:Mon, Jul 07, 1997
ARCHIVE_NAME:Business
ARCHIVE_HEAD:Chief scientist: Legal system gave in to US patent pressure
ARCHIVE_AUTH:By JENNIFER FRIEDLIN

JERUSALEM (July 7) - The Israeli legal system bowed to US pressure when it
devised certain patent and encryption laws, which are now harming Israeli
exports, Industry and Trade Ministry Chief Scientist Orna Berry said yesterday.

Due to restrictive patent laws, which prohibit generic drug manufacturers from
conducting research on original products before the patent protection expires,
local companies are losing their competitive advantage to US companies that do
not face such restrictions.

Earlier this month, Teva Pharmaceutical Industries Ltd., one of Israel's
largest and most prestigious companies, said it is considering moving part of
its research and development operations overseas in order to bypass the law.

The encryption laws also hinder Israeli exports, because it insists that
products with special coding must be sold directly to the end-user rather than
off the shelf. While the law is meant to safeguard defense-related products,
consumer products - such as Internet software - are also affected.

One hundred and fifty companies employ encryption technology.

"The Israeli legal system has not done a good job in considering the impact of
these laws, and they have bent in front of pressure from the Americans," Berry
said.

Both Berry and Industry and Trade Minister Natan Sharansky have appealed to the
Justice Ministry to revise the law.

Berry said she hopes they will conclude the procedure by the end of the year. 
Teva has been trying to change the patent law since 1994, when it was passed.