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Adv. Noa Havdala
Insolvency proceedings are an integral part of business-commercial activities, in circumstances whereby a person or corporation might need to institute proceedings to rehabilitate its business activities or even to liquidate the company. Insolvency reflects a factual situation in which a debtor (person or corporation) encounters economic and cash flow difficulties to the extent that the debtor is incapable of paying its debts to creditors on time. Insolvency proceedings seek to implement a fair and proper distribution of the remaining resources of the debtor (person or corporation) among the various creditors; during insolvency proceedings, the court considers the creditors’ different interests, including maximizing the disposition of the debtor’s resources; ensuring proper employment of the business’  employees; minimizing the burden on the public taxpayers; taking care of the business’  customers; taking care of suppliers that are dependent upon the business (particularly in the instance of rehabilitation and recovery); and providing assistance to shareholders in small and medium-sized businesses. During insolvency proceedings, a differentiation is made between debtors who are private individuals and debtors that are corporations (including companies). When at issue is a private individual, the court considers critical issues, such as whether lawsuits have been filed against the debtor (including execution proceedings) and whether additional debts exist beyond the debts that are the subject of the legal proceedings. Thus for example: in the instance whereby a number of execution proceedings have been filed against a debtor, the debtor may arrive at an arrangement whereby the cases are consolidated and his debt repayments are scheduled in installments but, naturally, the debt scheduling does not take into account any debts not covered by the execution proceedings. Therefore, when at issue is a debtor who is a private individual desiring to arrange all of his debts, he must conduct negotiations with his creditors and, subsequently, he must file a motion with the court petitioning for approval of a compromise or settlement proposal with his creditors according to the provisions prescribed in the Bankruptcy Ordinance [New Version], 5740 – 1980. When at issue is a company that is facing insolvency due to economic and cash flow difficulties, it has two options:Stay of proceedings pending the filing disposition of a motion and rehabilitation proceedingsA company that faces insolvency may petition the court to enable it to institute rehabilitation and recovery proceedings by way of preparing a recovery plan and debt rescheduling (in the manner prescribed in section 350 of the Companies Law, 5759 – 1999). A motion for business rehabilitation also depends upon a motion for a stay of proceedings, the purpose of which is to prevent creditors from filing lawsuits against the company and to freeze any legal proceeding filed against the company until the motion filing date, which gives the company time to implement its rehabilitation plan. The court will issue a stay of proceedings order only if it is convinced that there is a reasonable chance that implementing the rehabilitation plan will lead to the financial recovery of the company; a stay of proceedings order is usually limited to a timeframe ranging between a few weeks and nine months. The court also has the power to appoint a trustee or special administrator to oversee the implementation of the company’s recovery plan during the period of the stay of proceedings. The trustee’s powers are defined by the court, depending upon the circumstances that led to the company’s insolvency .Such powers often include management of the company during the period of the stay of proceedings, the waiving of onerous contracts, if necessary, and the conducting of an investigation of the circumstances that led to the company’s insolvency. Liquidation of the companyThere are instances whereby a company is facing insolvency, but any rehabilitation or recovery plan would be fruitless, or, alternatively, if there is no longer any economic justification for continuing its operation. In instances whereby at issue is an insolvent company for which there is no justification or plausible way to lead to its recovery, interested parties, including creditors and shareholders, may file motions for liquidation proceedings against the company. A liquidation proceeding is a legal proceeding that basically dissolves the existence of the legal entity of the company, first, by emptying the company of all of its economic content, and later, dissolving its existence as a legal entity. The Companies Law recognizes three types of liquidation proceedings: voluntary liquidation, voluntary liquidation under court supervision and compulsory liquidation by the court. Any funds obtained as a result of the disposal of the company’s assets will first be used to repay the company’s debts to its creditors according to the disposition rules prescribed by law (e.g the rights of secured creditors), and according to lawsuits filed by creditors. Insofar as any money remains after all creditors have been repaid, the surplus is distributed among the shareholders and equity investors of the company. Source: barlaw.co.il
Adv. Danny Boguslavsky
Israel has long been acknowledged and admired for its vibrant start-up culture, fostered through government investment and pro-business policies. Further, the national focus on business development provides a regulatory structure that protects business owners from creditors and ensures proper structure for the public – incorporation. To take advantage of the corporate structure, you need to ensure that you follow the proper registration process, and select the right corporate vehicle to fit your emerging business model. Why should start-ups incorporate?The most common corporate vehicle in Israel, and especially for start-ups, is a limited liability company. The main reasons for its popularity, and why entrepreneurs should incorporate at an early stage, are:The first and foremost reason for any individual to incorporate a company and become a shareholder thereof, is the fact that a company is a separate legal entity from its shareholders. This separation creates a “wall” between the company’s shareholders and its creditors, so that the shareholders and their private property are protected against the company’s creditors and they will not be personally liable for the company’s debts, to the extent allowed under the ‘piercing of the corporate veil’ provisions, according to law (whereby in extreme cases a shareholder can be held personally liable for the company’s debts). In addition, the shareholders cannot be obliged to pay the company's debts beyond the amount of their investment.Any early stage start-up is always seeking investors to invest in their product or idea. In exchange for their investment, the investors expect a form of guarantee in return. When operating under a company, the company can leverage its capital raising without actually giving a substantial consideration in return (such as personal guarantees) by offering the investors consideration in the form of company shares and/or share options.One of the main reasons for investors to invest in a start-up is its intellectual property. With incorporation, the IP is owned by the company and not by the founders, and the investors, who are also shareholders of a company, are the owners of the intellectual property too, in proportion to their shareholding percentages. Moreover, in the event one of the company’s founders terminates its engagement with company, the IP shall remain with the company and not with the departing founder.A start-up which wishes to expand will search for quality employees to join and can offer them benefits such as options.    For those start-ups who are or become profitable, the tax rate for companies in Israel is 24% (as of 2017), compared to the individual tax rate, which can be as high as 50%. How to incorporateBefore you can do business in Israel as a company, you must register your company with both the Registrar of Companies and the Tax Authorities, which fall within the control of the Ministry of Justice and the Ministry of Finance, respectively. When registering a company, the following steps must be taken:File an application for the company’s incorporation which includes, inter alia, the company’s suggested name, its share capital, its shareholders and their holdings, and its first directors.Draft the company’s articles of association, which governs the relationship between the company and its shareholders and between the shareholders and themselves.Pay a registration fee of NIS 2,606 (as of today). The process can feel onerous at times, but each step is important. Besides the importance of operating legally, the paperwork establishes the rules of conduct and governance both in respect of the present and going forward. This is why the incorporation procedure is critical. “Originally published on the IDC Legal Clinic website”
Adv. Michael Barnea
Distributors, agents, resellers and OEM partners all share the same commercial function of selling goods to end users. Thus, although there are significant differences between the legal statuses of each of these players, this article below treats all of them collectively as "distributors". Appointing a distributor involves significant inherent risks. The drafting of the distribution agreement may help in mitigating these risks and realizing the potential benefit of your relationship. While formulating distribution agreements you should pay special attention to the following key issues: Choose an Effective Distributor:Choosing the right entity as the distributor of your products or services is the most important point. You may appoint a distributor you happened to come across, or that appears impressive. However, you have to remember that you made the appointment so that your products will be distributed and sold. The concern is that the distributor will not act upon the appointment, and the agreement that you signed will remain “on the shelf". These situations get complicated when the distributor is granted with long term exclusivity over a territory. In such event, the concern is not only that the distributor will do nothing, but that you will not be able to appoint other, better, distributor for the same territory. Specify the Distributed Products: a distributor may be excellent for the distribution a certain product, but unsuitable to distribute other products. Therefore, it is advisable that you define the subject matter of the agreement carefully and provide an explicit reference to issues such as upgraded or updated products. For example, when you designate certain software as the products to be sold under the agreement, one could consider newer versions of the software as being covered by the exclusive rights of the distributor and another may consider them as being beyond the scope of the exclusivity (and there is no doubt as to who is the one and who is the other). Consider the Territorial Coverage: the territorial scope of your distribution agreement is not just a question of geography. For example, if exclusive rights are given for distribution of a certain product in the East Coast of the USA, it should be made clear that such rights are not infringed if the same product may enter the territory through an OEM partner, embedded in another product. You should specify precisely all the possible channels through which the product may penetrate the market and thus protect yourself from future disputes with your distributor. Include the Distributor’s Commitments: suppose that you and your distributor have set sales targets or even established minimum purchase quantities, failing which you are entitled to terminate the exclusivity or the entire agreement. In the real world, you do not get to impose these sanctions so quickly. They are often subject to long grace periods, to further conditions or to both, so that basically, they give you no real guarantee. With that being said, it is very important that you perform a due diligence on your distributor and receive a detailed business plan. Such business plan should include, at least, commitments regarding marketing expenditure and details of the human resources to be assigned to the distribution. If you add to this a proper incentive for meeting sales targets, you will acquire some confidence that you have a suitable, capable and motivated distributor in place. Beware of Exclusivity: exclusivity can be unilateral, that is, the distributor is your sole distribution channel in the market, but he may sell competing products. Similarly, you may supply your product to others, but the distributor may not sell competitors’ products. In reality, these one-sided arrangements usually do not work so that it is more advisable to conclude bilateral arrangements. In this regard, it is important to note that in many countries, exclusivity arrangements are considered anti-competitive and thus, in some cases, unlawful. Thus, it is highly advisable that you consult with an anti-trust specialist lawyer to make sure that the arrangement that you are about to enter into is not illegal. Set the Term of the Agreement: flexibility regarding termination of the distribution agreement is crucial. Take for example a case where your company is facing an acquisition and the acquirer conditions the purchase on the termination of the distribution agreement. In such event your exit is dependent on your distributor's consent to release you from the agreement. This issue also arises where "change-of-control" provisions are included, whereby your distributor may terminate the agreement upon a change of control in your entity. Thus, if your buyer's proposal depends on the continuation of your relationship with the distributor, you are at his mercy. Therefore, set definitive and short initial periods that can be extended repeatedly by mutual consent. In this way, you may not be free to end the relationship whenever you want to, but you will always be able to do so within a specified period of time. Deal with the Post-Termination Period: questions of no less importance can arise in relation to the post-termination period. Among the things you must consider are return or buy-back of remaining products, non-competition and confidentiality undertakings, commissions for transactions that are close to being concluded, continued support for the supplied products and more. Opt for Home-court Governing Law: in some cases, well defined “choice of law” provisions may impact upon the probability of disputes between the parties leading to actual litigation. In many cases, when you have a local jurisdiction clause in your agreement with a foreign distributor, your distributor will be hesitant to initiate proceedings against you. Another way to avoid proceedings is to set an expensive arbitration arrangement as the sole and exclusive procedure for settlement of disputes. In this way, the party with the greater economic strength sometimes assures for himself a sound and peaceful relationship. Remember your Intellectual Property: when you appoint a distributor, you also grant a license to use your intellectual property for purposes of the distribution. You are basically giving him access to your most sensitive assets. He is authorized to use your domain name, your logo and your trademarks. If these issues are not specifically addressed in the agreement, this may lead to situations where your distributor takes possession of your intellectual property and actually blocks you from the territory. Limit Liability: in most jurisdictions, the liability for damages caused by the use of the products lies with the manufacturer. Some agreements attempt to shift this liability to the distributor, but when tested by the courts they will probably not hold. Therefore, the correct way to address the risk of liability is to formulate an effective indemnification mechanism that will limit the scope of your liability. Such mechanism should limit your liability both in terms of amount and time and be backed up by adequate insurance coverage. Originally published on the "ChannelSmart website”
Adv. Keisary Yahalomi Liat
What do the United States, the UK, France, Germany, Italy, Spain, Switzerland and the Netherlands all have in common? In these countries (and many others), estate tax is collected on large inheritances. These taxes are imposed not only on the money of the deceased, but also on their real-estate properties, shares, pension funds, and other assets. In recent years, there has been a shift towards expanding the scope of these tax collections. An example of this can be found in the UK. On April 6, 2017, an amendment will take effect that expands the scope of the estate tax on trusts, or on individuals with residential properties in the UK. The major impact of the new amendment is that now it will also apply to individuals who live outside the UK, to trusts with beneficiaries outside the UK, and to directors of foreign companies that own residential property in the UK. In Israel, on the other hand, the estate tax was cancelled in 1981 and in recent years there has been a string of benefits granted to every new immigrant or returning resident that decides to leave it all and move to Israel. On January 1, 2007, income tax reforms creating tax cuts for new immigrants and returning residents, took effect retroactively. The reform creates a ten-year tax exemption and reporting exemption in Israel. Are you entitled to benefits?First of all, to clarify: a new immigrant/first-time Israeli resident is a person that becomes an Israeli resident that has never been an Israeli resident before. In contrast, a returning resident is a person that becomes an Israeli resident again, after residing outside of Israel for ten consecutive years. Do you belong to one of the categories above? If so, in addition to other benefits, you are entitled to the following:Capital gains derived from abroad- a tax exemption on capital gains from the sale of assets outside of Israel, as long as they are sold within ten years of the date you became an Israeli resident - regardless of the date of purchase.Passive income derived from abroad - a tax exemption, lasting ten years from the date you became an Israeli resident, on passive income, such as interest, dividends, pension, and royalties produced or generated outside of Israel.Active income derived from abroad - a tax exemption, lasting ten years from the date you became an Israeli resident, on active income - i.e., income from work or business - produced or generated outside of Israel. Beyond these benefits, new immigrants are also entitled to a discount on the purchase tax for property purchased in Israel during the period beginning one year prior to their immigration and continuing for seven years after their immigration. The immigrant purchase tax rate, starting on January 1, 2017 until January 15, 2018 is:0.5% on the portion of the property’s value that is up to approximately NIS 1,759,310;5% of the portion of the property's value above approximately NIS 1,734,225. Note that this benefit may be exercised once for a residential apartment, and once for a business oriented property. It is important to remember that after ten years, a reporting requirement for income from abroad goes into effect. Since the reform only went into effect in 2007, issues are only just starting to emerge for which answers haven’t been provided yet, such as the exposure for retroactive payments - with emphasis on national insurance payments - and exposure from the tax authority. Have you started packing? Source: barlaw.co.il
Adv. Michael Barnea
Funding your startup company is an inexact science. The first round of funding helps get your company established, but often leads to a realization that you need more. After the first round, new issues and growing capital requirements emerge and you need to adjust course moving forward. To help you build your company successfully, you should know what the challenges are in each stage you are in, and to be prepared for them. Challenges Following the First Round The first round of investment allows you to bring on employees. Following the completion of the first round, your company has shares issued to the founders, to employees through an ESOP, and to the initial investors. The board of directors begins working together with the founders. This is the point where you begin to discover your ongoing needs and start facing mounting challenges. Money is running out, the available stock option pool is spent, some investors may lose interest and even certain funders may be looking to move on to other ventures or cash out on this one. To allow the company to face these challenges and continue and grow, another round of fundraising quickly becomes necessary. Plan and Execute the Second RoundWhen starting down the road to the second financing round, you should have a better sense of what your company is, and should be. This is the opportunity to raise money based on what you have in place. You want to focus on raising the right amount rather than aiming for a specific valuation. When structuring the second round, you should focus on your current and future capitalization table. The allocation of the shares in your company may distinguish between active and departing founders, must ensure that current and future employees are sufficiently covered, should consider the cash waterfall upon an exit event so that the valuable team is incentivized, and secure the reasonable stake of current and incoming investors.   As part of the second round you should also prepare for a change in the control of your company. It is inevitable that the founders would lose the control of the board that would gravitate towards the investors. This means you should be very careful in selecting the right investors for the second round, as they will have the ability to impact the future of the company, and even have a major role in determining its future direction. The second round is where you grow from starting a company to building it. “Originally published on the IATI website”
Adv.Itay Gura
Innovation occurs at different levels between one country and another. Innovation does not occur by accident. While some nations depend on individuals to drive the creative process, others provide an environment and infrastructure that foster and support technological development. When a country focuses its attention on providing the best opportunities to innovate, that country can rise above the pack. Global Innovative PowersThe United States and Japan have thrived for many years as countries that foster innovative development. Each nation has maintained an interest in educating its citizens in science and technology, encouraging the best and brightest to create ways to improve the world. The United States is responsible for almost 30 percent of the world's patents, and hosts 15 of the top 25 research universities in the world. Japan, meanwhile, has the world's third largest economy and has long established itself as a key global player in the auto making and electronics markets. In Europe, several countries have risen as leaders in the race to innovate. Denmark, Germany, and the United Kingdom in particular support technological growth through educational opportunities and governmental spending. The World Economic Forum ranks Germany fourth globally in company spending on research and development, and sixth for the quality of its research institutions. Meanwhile, the United Kingdom has pledged to increase its national R&D investment by two billion pounds by the year 2020. Denmark possesses particular strength in emerging and renewable energy innovation. Israel: The Perfect Innovative StormIsrael, nicknamed the “Startup Nation”, is known as a center of technological innovation, and appears on the radar of many leading international companies looking to invest in and acquire innovative technologies. Israel can be seen as an example of a country focusing on fostering innovation. The international interest in the local innovation economy is reflected in the scope of international investments and acquisitions of Israeli based tech companies and by the presence of more than 200 development centers of multinational top-tier corporations. Cyber security, Automotive technology, Fintech and the Internet of Things (IOT) are the current favored flavors. The innovation ecosystem is spreading across the entire country, branching out from Tel Aviv, Haifa and Herzliya, to Jerusalem, the Galilee and the Negev. The Israeli government endeavors to support the technology innovation ecosystem, which is also supported by numerous accelerators, incubators and early stage funds, some of which are supported by leading international companies and major financial institutions. Last year saw the introduction of an important amendment to the Encouragement of Research and Development Law, easing the rules governing technology transfer and establishing a new National Authority for Technological Innovation (NATI), replacing the Office of the Chief Scientist (OCS). New relevant tax rules are being considered and are expected to come into effect in 2017. Matters under consideration include treatment of intellectual property held by multinational companies, cross-border transfer pricing, taxation of online based businesses, and treatment of “reverse vesting” mechanisms. Source: barlaw.co.il
Adv. Shalev Asaf
Technological solutions are developing every day, world-wide. In Israel, the transportation sector provides impressive examples of innovation at work. Urban growth naturally reaches a saturation point, at which people either need to move or commute farther each day, creating higher costs and greater safety concerns. Smart mobility consists of the movement to make transportation easier, safer, more environmentally friendly, and more efficient. And Israel has taken a leadership position in developing companies and technologies that help make it possible. Autonomous DrivingOne key area of innovation in which Israeli companies are developing key technologies is autonomous driving. Human errors account for most auto accidents, driving up insurance rates and creating havoc in highly populated areas. Waze pushed navigation tech to new levels through data sharing. Otonomo is working to connect cars to the Internet of Things by increasing the data that vehicles can share among owners, automakers, and commercial service operators. These technologies represent a key component to helping automate not only drivers' daily commutes, but commercial delivery fleets as well. Meanwhile, Innoviz Technologies and Mobileye are improving 3D imaging and mapping around vehicles to improve their ability to sense and respond to what is around them. The more sensitive vehicles become to their environments, the greater their capability to advance beyond human perception, making this a critical development area in smart mobility. Connecting Technologies TogetherThese technologies serve as part of a broader ecosystem of smart mobility developing in Israel, in what could be a $9 trillion industry by 2030. Companies like Softwheel and Aquarius are working to help cars work better and more efficiently to improve the world around the vehicle in which it drives and to help reduce the number of vehicles. Companies like Moovit connect users to public transportation. Combining these with the data capabilities and the technologies emerging from Israeli companies helps build a thriving system of innovation in the area. Businesses succeed by developing ideas that build on each other. Smart mobility depends on creating new applications that lift the transportation sector. And Israel's national focus on innovation and startup development serves as an ideal breeding ground for this kind of whole-sector development. To work through the legal and regulatory structure and help create growth in smart mobility, you need experienced guidance from people who understand how to do business in Israel. Contact Barnea & Co. to take the next step toward a better world. Source: barlaw.co.il
Adv. Lorber Daniel
One of the common remuneration mechanisms in startups and technology companies is the granting of options to employees in addition to or, sometimes, in lieu of, the traditional remuneration component – the cash salary. The practical meaning of granting options is that employees are granted a right to purchase shares of the company at a fixed price at some time in the future. Options enable startups to compensate for their inability to offer attractive salaries and recruit a top-tier workforce (due to the lack of available funds in the initial stages of a start-up’s lifecycle) and, at the same time, the grant of options serves as an effective tool to align the interests of the employees with those of the company. Recently, we have been seeing an increasing number of cases in which successful startups that succeeded in securing investments from more than one investor in at least two investment rounds, find themselves in a complicated situation, whereby the company’s capitalization table following the above investment rounds does not enable the company to effectively incentivize its employees. How does this situation occur?When a company raises capital from strategic investors (for the most part, venture capital funds), it grants preferred stock to those investors against their investment. One of the key rights attached to preferred stock is the right to receive a certain portion of any future proceeds distributed upon the sale of the company, prior to the remaining shareholders (liquidation preference rights). Since every strategic investor seeks to ensure a pre-determined return on investment, a company with several strategic investors may find itself in a  situation whereby, upon the occurrence of a sale event, the distribution waterfall of the proceeds dries up before it reaches the company’s ordinary shareholders, which, ordinarily, are comprised of the company’s founders and employees. This situation poses a major challenge to the company to retain and recruit the “best and brightest” employees, especially since in this era employees in the field of high-tech are well informed regarding equity incentive mechanisms and they are looking to join a company that offers a substantive equity incentive – and not just one on paper. This situation is also disturbing for the company’s current and potential investors, as every investor appreciates that the best way to guarantee that its investment will eventually reap profits is to ensure that the company’s employees are fully committed to the company’s success. In order to create that incentive for the company’s employees, companies facing the above predicament may amend their equity incentive plan and adopt what is known as a carve-out plan. A carve-out plan essentially “carves out” a fixed percentage of any future sale event and designates such percentage of the founders or employees of the company. The adoption of a carve-out plan requires full coordination with the company’s current investors, since they are the ones who will be relinquishing a certain portion of the proceeds to which they are entitled, to the benefit of the founders or employees. The adoption of a carve-out plan also raises significant legal considerations, such as the need to amend the company’s existing articles of association in order to create a new class of shares which is specifically designed to provide the grantees under the carve-out plan with the exact rights which are required to implement the plan, without disturbing the existing relationships between the company’s shareholders. Additionally, the adoption and implementation of a carve-out plan raises issues in the field of taxation, due to the need to seek the Israeli Tax Authority’s prior approval to the carve-out plan before it can be implemented. How can companies avoid this situation?Founders of startups need to devote considerable thought and planning prior to raising investments regarding exactly how much funds they require for the purpose of carrying out their business plan, and at what company valuation. Often, accepting a lower investment amount than the amount that the company could raise in a particular investment round, or holding off on raising capital until the company reaches a more mature stage, thus enabling the company to raise capital at a higher valuation, will minimize the dilution of the ordinary shareholders of the company. Of course, it is far easier to write about refusing available funds than actually turning such funds down in reality. However, adopting this kind of long-term thinking on the part of the founders of startups, and taking the issue of incentivizing employees as a dominant consideration from the company’s inception, may assist in avoiding having to face a problematic ownership structure which ultimately requires adopting a carve-out plan. Source: barlaw.co.il
Adv. Dotan Baruch
In many ways, electronic communications dominate the world as we know it. We "talk" through email, text, and social media, to the point that the written letter is almost an anachronism. Still, some areas still thrive on paper. Real estate, for example, depends on paper deeds and documentation to confirm authenticity. Similarly, many corporations depend on paper records to demonstrate regulatory compliance. But blockchain is helping to change all of that. The technology that made Bitcoin work is expanding, in Israel and beyond, to help secure online processes and chains of custody in ways that can help shift paper-dominated fields into the 21st century. Smart ContractsWhen contracts determine payments or other actions, they operate inefficiently. Before you move funds, you have to confirm conditions have been met, organize your information, and perform accordingly. Smart contracts use blockchain technology to change this. Once information is entered, you move through the conditions required and the contract auto-updates. You can even update a smart will without creating a new will for every change. You complete everything more efficiently, using a cryptography-secured function that prevents problems the paper processes cannot. Paper BureaucraciesSimilarly, bureaucracies exist to create layers that protect information and ensure fairness and accuracy through process. Blockchain saves time and money by building this in electronically. Imagine a system that once required 12 forms, signed in triplicate to allow a decision to become implemented.  Blockchain technology creates a mechanism by which this process plays out online, all through secured processes. You need not worry about tracking down every person in the chain when something has to be done quickly. Rather, you move forward quickly and efficiently without losing any of the fail-safes in place. Real EstateIn Israel, you must move through the Land Registry Department, or Tabu, to purchase and register real estate. The property world remains a bastion of paper processes in an electronic world. But the legal functions that have long necessitated paper documentation can adapt to blockchain technology. It creates the security that paper has always done, but with a process that is efficient, transparent, and public. To sell or purchase property, this option can vastly improve on the time currently required. Blockchain technology is exploding in Israel, with new startups and applications emerging constantly. To learn the ways in which you can navigate the legal landscape in the face of all this change, contact Barnea & Co. Source: barlaw.co.il
Adv. Jaffa Simon
For many years now, Israel's emergence and growth on the world's economic stage has captured the attention of national and private investors all over the globe. It is only in recent years, though, that this has come to include Japan. In the past few years, more and more Japanese corporations have opened R&D and sales centers in Israel, while business delegations are continually streaming into Israel. One of those companies which recently entered Israel is Fujitsu, the largest IT company in Japan and the fifth largest in the world. Technological RelationshipsBusiness relations between the countries received a substantial boost, after Prime Minister Netanyahu's visit to Japan in 2014. The visit led to an historic R&D agreement that included a Memorandum of Cooperation and a Memorandum of Understanding, both designed to foster relationships between the two countries and create cooperative endeavors in technology. In July 2015, this lead to three distinct joint industrial R&D projects and on February 2017 both countries signed a bilateral investment treaty. One of the attractive areas for Japanese companies is Cybersecurity; Japan has long recognized Israel's position in this area, and stands to benefit from Israel's knowledge base and growth. The agreement between Israel's Radiflow and Japan's NEC focuses on integrating cybersecurity with physical security. Another agreement, between VocalZoom Systems and Fuetrek, focuses on audio technology that hones in on a speaker's voice while eliminating background noise. These agreements just scratch the surface of the potential this relationship creates. Japan has long been a world leader in technology engineering, and Israel's prowess in these areas has led to a sustained boom period in startups and technology investment. Together, the countries should be ready to build new technological opportunities in finance, technology, agricultural technology, the Internet of Things, Automotive, Cybersecurity, and much more. Where Next?The interest factor is not a one way street. Israeli companies are also showing interest in investing in the Japanese market in various sectors. Both countries enjoy innovative entrepreneurs who are driven to constantly push the boundaries of technological development and advancement. This era of cooperation between Israel and Japan will most likely help to cement relations between the countries on various levels, such as mutual tourism and support in international forums. Source: barlaw.co.il
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