Israel Group News - October 2024

Welcome to the October 2024 issue of our global newsletter, Israel Group News, aiming to keep you informed about current developments, hot topics for your consideration, and DLA Piper activities that focus on bringing the dynamic Israeli ecosystem to your doorstep.

As we reach an extremely difficult milestone this month – one year since the massacre of October 7 and the beginning of an ongoing war – we are heartened by the continued support of our colleagues and clients around the world. Your friendship is invaluable to us, and to our clients and colleagues at law firms here in Israel.

Despite the challenges of the past year, we have continued to provide a wide range of legal services to Israeli companies, investors, and entrepreneurs, as well as to businesses across the world seeking opportunities within the country. We view ourselves as an extension of the businesses we serve, and we aim to work with them for the long term, whether their needs involve day-to-day inquiries, smaller projects, special situations, or large-scale transactions.

For more general information about the Israel Group, click here. To gain a perspective on our advisor practice, the types of day-to-day guidance we provide, and our representative client list, click here. To access our 2023 Year in Review, click here.

In addition, to view our New Year 2024 video with messages of support from colleagues and clients around the world, click here. To view a video about our charitable work in the community, click here.

Please do not hesitate to reach out if you have any questions or if we may be helpful in any manner. For new client requests, please send an email to israelclientrequest@us.dlapiper.com.

Rosh Hashana 2024 video

Ahead of Rosh Hashana, the Jewish New Year, which began on the evening of October 2, DLA Piper colleagues from around the world shared a message of support and hope to our clients and offered good wishes for the year ahead. Watch our 2024 Rosh Hashana video here.

Tech Index 2024: Riding the next big wave

Is the tech industry buoyant or sinking? Get the answers in our Tech Index 2024: Riding the Next Big Wave. This, our seventh edition, offers a truly global perspective on the tech sector, drawing insights from 1,200 industry leaders and policymakers across the world. While our previous editions focused primarily on Europe, we have expanded the scope of this year’s Index to include all major regions around the world, offering a more comprehensive view of the sector’s growth prospects, anticipated challenges, and emerging opportunities.

DLA Piper 2024 Mid-Year Real Estate Trends Report

With one of the largest real estate practices in the US, DLA Piper handles hundreds of transactions each year involving virtually every asset class. This gives us a window into what is happening in the US commercial real estate market on a real-time basis. For our latest report, we surveyed over 850 acquisition and disposition agreements and over 400 property management agreements that we have handled. Midway through 2024, the commercial real estate market finds itself in an interesting place. Take a look at the trends we identified for 2024.

Globalization of the class actions markets

As companies expand across international markets, they must also contend with an interconnected legal landscape where the risks of class action litigation increasingly transcend borders. DLA Piper’s Global Class Actions Summit 2024 in London brought together thought leaders from the UK, Europe, Canada, Australia, and the US to provide insights into the rapidly evolving global class actions and how businesses can adapt their strategies to manage this ever-present threat.

Learn more about recent trends in class action laws affecting financial services, life sciences, tech, and multinational businesses; emerging issues such as AI, ESG, and sustainability litigation; the rise in employment class actions, focusing on flexible labor models; and the increasing risk of consumer and product liability class actions, particularly in the life sciences sector.

Breaking legal insights from DLA Piper

• Prior to the Group of Seven (G7) summit in June 2024, the US government announced several new economic sanctions and export controls on Russia and Russia-related parties. Most notably, the US government is implementing new restrictions on the provision of certain software and IT services to Russia, which went into effect on September 12. Additional parties were sanctioned, and the new changes have expanded the US government’s ability to issue secondary sanctions on foreign financial institutions transacting with sanctioned parties. Companies are encouraged to review any dealings in Russia or with Russian parties to ensure that they are not affected by these new restrictions.


• In July 2024, two US federal district courts issued conflicting decisions in litigation seeking to block the Federal Trade Commission (FTC) rule banning noncompete agreements. We discuss recent developments and actions for employers to consider now in this alert.


• On September 23, 2024, the US Department of Justice (DOJ) announced much-anticipated revisions of its Evaluation of Corporate Compliance Programs (Revised ECCP). The DOJ’s latest amendments focus on three main categories: whether the company is assessing and managing risks associated with the use of disruptive technologies, including AI and blockchain; ensuring that the compliance function has appropriate access to relevant source of data and data analytics tools to monitor for noncompliance and evaluate the compliance function’s effectiveness; and whether the company has a robust “speak-up culture,” including strong whistleblower protection and anti-retaliation policies. In this alert, we discuss the most salient revisions to the ECCP and what companies are encouraged to do in response.


• Financial services organizations across the globe are facing unprecedented levels of change and uncertainty, including changes in government, challenging global macroeconomic conditions, implications of Big Data, the use of AI, and threats of greenwashing and environmental litigation. Amid this landscape, DLA Piper commissioned a global survey of roughly 800 major decision-makers in financial services organizations across EMEA, APAC, and North America to explore the impact such change is having on the sector. In particular, the survey looks to identify the key drivers for optimism and the challenges facing the global financial services sector.


• Video games have evolved into a global industry that influences culture, economy, and technology. As this medium has grown, so too have the complexities of its regulation. From content restrictions to intellectual property rights, and from data privacy concerns to esports regulations, the legal landscape governing video games is as diverse as the cultures that play them. Understanding the global market is of critical importance in the video games world. DLA Piper’s legal guide aims to provide a comprehensive overview of video games laws across different jurisdictions around the world.


• The Council of the European Union recently submitted its proposal in the ongoing legislative process for a new directive to combat corruption in the EU. The new directive will allow the EU to impose worldwide turnover-related fines and other penalties on companies that are liable for corruption offenses. The EU is toughening laws, and some see this as the start of EU-wide corporate sanctions. However, the EU legislature has outlined steps that companies can take today to prepare ahead of time. Our alert highlights key elements of the directive.

Recent matters

Below are some recent publicly announced Israel-related transactions in which we were involved:

• Advised on the sale of Israeli company, Own (previously OwnBackup), a leading provider of data protection and data management solutions, to Salesforce for USD1.9 billion in cash.


• Advised on the sale of Israeli company, Enercon Technologies, Ltd., a leading supplier of highly engineered power conversion and networking solutions for aerospace and defense markets globally, to New Jersey-based Bel Fuse Inc. for USD400 million.


• Advised client, Similarweb Ltd., a leading digital market intelligence company, on the closing of a secondary offering by a selling shareholder.

Global activity

We are proud to report that, in the third quarter of 2024, we commenced projects for 70 Israeli companies in the following 53 jurisdictions: Argentina, Australia, Austria, Bangladesh, Belgium, Brazil, Bulgaria, Canada, China, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, the EU, France, Germany, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Kazakhstan, Kenya, Kyrgyzstan, Luxembourg, Mexico, Montenegro, Morocco, Netherlands, Nigeria, Pakistan, Peru, Poland, Portugal, Romania, Singapore, South Africa, South Korea, Spain, Sri Lanka, Switzerland, Thailand, Turkey, Ukraine, the UAE, the UK, the US, and Vietnam.

Below are some new representative matters in which we assisted Israeli companies around the world:

• Commercial issues in Australia, Brazil, Canada, Croatia, Estonia, France, Germany, India, Ireland, Japan, Mexico, Netherlands, Poland, Singapore, South Korea, Spain, Sri Lanka, Thailand, Ukraine, the UAE, the UK, and the US


• Corporate and securities issues in Austria, Bulgaria, Hungary, Mexico, Portugal, Romania, Turkey, the UAE, the UK, and the US


• Employment and employee benefits guidance in Belgium, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Denmark, France, Germany, Hong Kong, Italy, Japan, Kyrgyzstan, Mexico, Montenegro, Netherlands, Poland, Portugal, Romania, Singapore, South Korea, Spain, Thailand, Turkey, the UAE, the UK, and the US


• IPT and privacy guidance in Canada, Croatia, the EU, Germany, Japan, the UK, and the US


• Litigation and dispute guidance in Nigeria, the UK, and the US


• M&A and investment guidance in Ireland, the UK, and the US


• Real estate guidance in Germany, Japan, the UK, and the US


• Regulatory issues in Argentina, Bangladesh, Belgium, Brazil, Canada, Colombia, Czech Republic, Egypt, Estonia, the EU, Germany, Indonesia, Ireland, Italy, Kazakhstan, Kenya, Luxembourg, Morocco, Nigeria, Pakistan, Peru, Poland, Singapore, South Africa, South Korea, Switzerland, Thailand, Ukraine, the UAE, the UK, the US, and Vietnam


• Tax guidance in Germany, Netherlands, Spain, and the US

Colleague in the spotlight

Paula Mena Barreto
Partner, Campos Mello Advogados (CMA) (in cooperation with DLA Piper)
Head of Data Protection/Intellectual Property
Brazil

Please tell us about your area of practice.

I am the head of the Intellectual Property and Data Protection practices at CMA in Brazil.

For data protection and privacy matters, I lead my team in advising companies on the implementation of data protection projects, drafting data protection agreements and privacy policies, and providing guidance on data breaches and other privacy compliance issues.

In terms of intellectual property issues, I work on IP transactions, including related agreements, technology transfers, and franchising. Additionally, I provide prosecution and consulting services related to trademarks, copyrights, technology, and software. I also advise clients on IP management strategies, which include legal due diligence for asset evaluation and analysis of data privacy compliance, policies, and litigation.

Given Israel’s significance in the technology sector, I frequently collaborate with DLA Piper Israel in assisting Israeli companies interested in establishing their businesses in Brazil. My work includes helping them to protect their IP assets in Brazil and advising on local laws. My focus is also on risk prevention and legal compliance, offering tailored consulting services for the adoption of appropriate policies, contract drafting, negotiations, and managing the various elements inherent to building intellectual and data protection frameworks. I collaborate closely with our Tax, Corporate, and Regulatory teams, as well as other relevant advisors, to provide clients with a comprehensive overview of the Brazilian legal landscape, which is critical for informed decision-making and effective management.

What challenges do Israeli companies face when it comes to the Brazilian and/or general South American market?

I would say that the South American market is more complex and bureaucratic, which is why hiring local professionals is highly recommended. Additionally, political instability in the region should be considered alongside legal matters, as it can impact economic policy and foreign business regulations. Cultural differences can present further challenges, as there is no uniformity across South American countries. In Brazil, for instance, the market is vast and diverse, and cultural differences can be noticeable depending on the region.

What place in Israel is at the top of your list to visit?

Tel Aviv tops my list because of its vibrant energy, modernity, and cultural diversity. The city offers a seamless blend of historical charm and contemporary lifestyle. Known as a global tech hub, Tel Aviv’s thriving startup scene, alongside its rich arts, world-class restaurants, and cutting-edge architecture, makes it an especially enchanting destination.

Who is your hero and why?

My heroes are definitely my parents. They’ve taught me invaluable principles and instilled strong family values that have shaped who I am today. Their unwavering support and commitment to integrity show me the importance of hard work, kindness, and resilience. I really admire how they handle challenges with such grace and dedication to our family. Their influence has had a profound impact on my life, inspiring me to strive for excellence and to treat others with respect and compassion.

DLA Piper Israel Group updates

During the second half of the summer, our interns Jessica Shade and Ruthie Seidemann continued to be integral members of the DLA Piper team – and, specifically, the marketing team. We loved their energy and enthusiasm! Here are some of the highlights of the rest of our time together:

• On July 3, we let our creativity flow at a team building pottery painting activity in the heart of Tel Aviv.


• On July 7, the DLA Piper Israel team spent a fun and meaningful day in Jerusalem. We began the day with a tour of Shuk Machane Yehuda and then visited Shalva National Center, the site of the 2024 DLA Piper Charity Basketball Tournament (which took place in September 2024 – see below), to see firsthand the range of cutting-edge services it provides weekly for over 2,000 individuals with disabilities and their families.
  
  At Shalva, we had the opportunity to speak with its Founder and President, Kalman Samuels; hear from soldiers in Shalva’s “Rising in Rank” program – the beneficiary of our Tournament – which enables young adults with disabilities to serve in the Israel Defense Forces (IDF); and meet Yoav Engel, manager of Shalva's Sports and Wellness Center, whose son, Ofir, was kidnapped by Hamas on October 7 and returned after 54 days in captivity. Finally, we visited Yossi Samuels, son of Kalman and the inspiration behind the creation of Shalva.


• On July 11, our marketing team met with Matan Barnir, our Israel-based PR consultant, at the office of OH! Orenstein Hoshen PR and strategy firm. Matan conducted an interesting discussion about the different roles PR plays in Israeli versus American media. We also discussed how PR in Israel has evolved since the start of the war.


• On July 22, the marketing team attended a content marketing event at the office of monday.com, a DLA Piper client. The event provided practical information and an opportunity to hear from other marketers in the ecosystem, share ideas, and exchange strategies.


• In honor of National Interns Day on July 25, Jessica and Ruthie created a fun TikTok video about how well they worked together this summer!

Over the course of September, Jeremy Lustman (Partner, Head of Israel Group) traveled to Amsterdam, Dublin, and New York for various meetings, client events, and internal gatherings with colleagues, which provided opportunities to learn together, brainstorm on how to continue to serve our clients, and advance important relationships.

On September 29, we took some time to share laughter and appreciate each other at a special team lunch ahead of Rosh Hashana, the Jewish New Year. This has been a difficult and painful year for us all, and we continue to be grateful for our DLA Piper Israel team.

Professional events

On July 15, five members of our team attended the Robus Foreign Law Firms in Israel Forum, which focused on collaboration between outside counsel and in-house legal teams. We gained key insights and perspectives on establishing long-lasting partnerships from an impressive group of in-house counsel.

On July 18, we co-sponsored a TAMID Group event as part of their annual parents' week in Israel. Jeremy Lustman shared perspectives on doing business in Israel and how a country rooted so deeply in connectivity has become the best place for his personal and professional growth. Our TAMID summer intern, Jessica Shade, spoke about her positive experiences in Israel and how she plans to bring the lessons learned about the Israeli economy and the connections made back to her college campus this fall.

From September 16 to 17 at University of Oxford’s Pembroke College, Jeremy Lustman attended DLA Piper‘s The Future of Work: A Global Employer Conference, an event tailored to international HR leads and in-house employment counsel. The conference allowed clients around the world to meet peers from other businesses, as well as DLA Piper Employment lawyers from over 25 countries, to network, reflect, and explore current and future HR legal issues. Sessions delved into topics such as managing a global employment law function; challenges and opportunities of return to office, remote work, and hybrid working options; noncompetes; gender pay inequality; impact of social media on employer relationships; and more. We look forward to applying best practices gleaned from the conference to help our Israeli clients meet their global employment needs. Stay tuned for our next Global Employment event in Tel Aviv planned for early 2025!

Upcoming events

Second annual client Thanksgiving dinner: November 2024

Chanukah charity event: December 2024

Third networking dinner with Israeli law firms: Q4 2024

AI event: Q1 2025

Global Employment event: Q1 2025

Global M&A event: Q1 2025

US litigation event: Q1 2025

Giving back to the community

Corporate social responsibility is one of the guiding principles of the DLA Piper Israel practice, and we have enjoyed engaging in the following sponsorships and community activities:

On July 17, we co-sponsored “An Evening of Meat, Wine, and Saving Lives” at Pitmaster restaurant in Jerusalem in support of United Hatzalah of Israel, Israel’s national community-based volunteer EMS organization that provides care to all, free of charge. Many of our team attended the event, and we enjoyed a meaningful and fun evening. We heard inspiring testimonials from Eli Beer, Founder and President of United Hatzalah, and other dedicated volunteers, who shared about their impactful work since October 7. Jeremy Lustman serves as the Chair of United Hatzalah’s newly created Israel Regional Board.

On August 5, our team continued our ongoing volunteering at Leket Israel, the National Food Bank and Israel’s leading food rescue organization. Leket collects nutritious surplus food from 600 farms and other places around Israel and delivers it to those in need. Leket has also sent produce and food to evacuees from the north and south of Israel since the start of the war. Over the course of three hours, our team sorted, crated, and packaged over 2,600 kilos of mixed produce, 780 kilos of pomelos, 900 kilos of potatoes, 700 kilos of carrots, and 430 kilos of mango. In total, our team sorted through and packaged 5,400 kilos (equivalent to 11,500 pounds).

On September 22, we hosted our third annual DLA Piper Charity Basketball Tournament, this year in support of Shalva, the award-winning Israel Association for the Care and Inclusion of Persons with Disabilities. Eight top Israeli law firms participated in what has become a flagship event in the industry, raising NIS120,000 (roughly USD32,000) specifically to support Shalva’s Rising in Rank Program, which enables young adults with disabilities to serve in the IDF. Shalva’s soldiers are recruited to various military units for a full service and are assigned tasks based on their individual strengths and passions. The eight participating firms were: Arnon, Tadmor-Levy; Epstein, Rosenblum Maoz (ERM); Furth, Wilensky, Mizrachi, Knaani (FWMK) Law Offices; Gornitzky GNY & Co.; Herzog, Fox & Neeman; Meitar Law Offices; Naschitz, Brandes Amir Co.; and S. Horowitz. It was a wonderful evening of healthy competition and lots of fun in support of a meaningful program. Congratulations to S. Horowitz for taking home the trophy. We look forward to sharing a highlight video of the tournament soon.

In honor of Rosh Hashana, the Jewish New Year, we donated to Dror for the Wounded Foundation. Dror helps severely wounded Israeli soldiers and provides these individuals with financial assistance for medical and psychological treatments, education and training, small construction projects, advocacy, and general financial aid.

Recent press

“Real estate experts around the world: ‘Data centers are the most attractive type of investment properties in the US these days,’" Nadlan Center, August 4, 2024

“Europe's AI law goes into effect, here's everything you need to know,” Walla, August 14, 2024

"Grapevine September 22, 2024," Jerusalem Post, September 22, 2024

“A Victory Shot on the Road to Equality: Basketball for Young Adults with Disabilities in the IDF,” Walla News, September 23, 2024

“A Victory Shot on the Road to Equality: Basketball for Young Adults with Disabilities in the IDF,” Sports 1 Maariv, September 23, 2024

"Leading Israeli law firms partner up to support Shalva’s ‘Rising in Rank’ program," Sports Rabbi, September 23, 2024

“The tournament that will enable the integration of young people with disabilities into the IDF,” One, September 25, 2024

"Israeli lawyers lace ’em up for Shalva," Jerusalem Post, September 26, 2024

"‘I wanted to give like the whole family’: With cognitive disabilities, Roy served in the Border Police,” Shavvim, September 29, 2024

“A Year of War: Law Firms in the Middle East Persevere,” Law.com, October 7, 2024