Client updates / High Tech

The document published by the Ministry of Innovation, Science and Technology, in conjunction with the Ministry of Justice, specifies the principles for developing and supervising AI technologies and their use by entities in Israel.

The IIA’s funding tracks for proof of concept (PoC) give breathing room to fledgling entrepreneurs and ventures during their efforts to transform an idea into a product, even before outside investors are considered.

The EU Data Act will supervise companies that manufacture and supply smart devices (IoT devices) and companies that handle data collected by these devices, as well as enact a series of regulations designed to protect consumer privacy.

Israel’s government has drafted new regulations in the wake of Operation Swords of Iron, due to the increase in the scope and quality of cyberattacks against civilian entities.

A man who entered Israel with drugs in his possession sought to expose the Israel Police’s use of AI tools that resulted in his inclusion in a list of suspected drug couriers. The court’s criticism of the police’s tactics clarifies that even if the AI system leads to correct identification or to accurate decisions, its mechanisms must be transparent, explainable and auditable. 

The United States is looking to institute rules for the safe development and use of artificial intelligence, to regulate government use of AI, and to establish its leadership in the AI field.

The new UK Online Safety Act is part of a wave of European legislation seeking to protect children from online age-inappropriate content, exploitation, and other online dangers.

The state of emergency in the Israeli economy and the massive call-up of reservists are expected to adversely impact the Israeli high-tech industry. The Israel Innovation Authority is establishing an express grant track and is offering a series of reliefs to existing startups to help them sustain business continuity.

The state of emergency the State of Israel has declared in recent days requires us all to contend with a unique and complex situation. As part of this struggle, many companies and organizations have instructed their employees to shift to working from home, thus requiring such employers to clarify their privacy and business data protection procedures.

A founders’ agreement should resolve problems that might arise in the event of the dissolution of a joint venture. However, even in the absence of such an agreement, the founders cannot evade their obligations pursuant to the Israeli Companies Law.

Who owns the copyright to an AI-generated image—the creator, the technology, or no one? A recent court ruling in the United States determines that the right to copyright protection depends on the degree of human involvement in the work.

Israel’s new “Angels Law” grants tax benefits to investors in Israeli startups, and in the Israeli high-tech industry in general, with the goal of spurring the growth of high-tech companies based in Israel or whose intellectual property is registered in Israel.

Who is responsible for protecting the privacy of the information AI technologies collect? A new class action in California joins a series of AI-related lawsuits that may clarify this question.

For the first time, the Israel Tax Authority has announced its position regarding investments via SAFEs. It determined that, under particular circumstances, the investment is to be considered an advance on a share investment account.

Employers that want to use technological surveillance measures to monitor and track employee performance remotely must be diligent about formulating a clear policy, informing employees, and using these means reasonably and proportionately.

New provisions set out the licensing framework for the provision of payment services, designed to encourage new players to enter the Israeli market and offer payment services while providing broad protection to consumers. The law will apply to companies providing payment services, credit service providers, acquirers, and more.

A few months after ChatGPT became a popular tool for millions of users, users began filing lawsuits alleging violations of users’ privacy and data security breaches. The conclusions from these lawsuits are relevant to all companies engaging in the development and assimilation of AI technologies.

The draft of Israel’s Arrangements Law – Economic Plan for 2023-2024 addresses digital assets extensively for the first time. The draft bill contains a section dedicated to the regulation of digital assets and addresses stablecoins, taxation issues, the banking system, DAOs (decentralized autonomous organizations) and more.

The more artificial intelligence permeates additional spheres of private and public life, the greater the need to regulate uses of this technology. Various artificial intelligence regulations are already in place around the world and additional regulatory initiatives are being promoted at a rapid pace.

The Israel Securities Authority recently published a proposal for a series of legislative amendments relating to digital (cryptographic) assets, whose implications go beyond the realm of digital assets and do not herald much good news for Israeli crypto ventures.