Author: Nir Mor

We had the privilege of joining Israel’s leading law firms in a fundraising event organised by the Israeli branch of DLA Piper in support of the Rising Up project by the Shalva organisation. Together, we managed to raise 120,000 shekels, which will go towards the Rising Up project dedicated to integrating young people with disabilities into the IDF and supporting them throughout their service. This includes accommodation, studies at the Jerusalem College of Technology, recreational activities, and professional guidance.

Thank you for the opportunity to take part in this worthy initiative, and congratulations to all the ERM players!

For the full article, click here: https://bit.ly/3U8vx4L

In honour of the new Hebrew year, Adv. Gilad Maoz, Partner and Head of the Real Estate and Hospitality Department at Epstein Rosenblum Maoz (ERM), gave an interview to the Real Estate Centre magazine, reviewing the notable legal rulings in the real estate sector for the year.


‘This is a groundbreaking and highly significant judgement that finally ends the hardships and ordeals faced by many property rights holders.’

For the full interview on this year’s key rulings in planning, construction, and urban renewal, click here: https://bit.ly/4f0LxOm

Ongoing conflict, new regulations, and advanced technologies have created a reality in which our data is more exposed than ever, and the protections surrounding it are weakening. Is there a way to regain control?
Rotem Perelman-Farhi, Partner and Head of the Technology and Privacy Department at Epstein, Rosenblum, Maoz (ERM), comments on the matter, stating, “Under the pretext of war, we are witnessing a concerning trend of expanding surveillance and monitoring powers of security and enforcement authorities in Israel, with potentially serious repercussions for the right to privacy.”

She adds, “The expansion of these powers, whether through emergency orders or other means, may stem from a genuine need during times of war. However, the long-term implications on democracy and fundamental civil rights, particularly the right to privacy, must be carefully examined to ensure a balance between national security needs and the preservation of individual rights and democratic values. Such an examination should focus on aspects of transparency, rigorous parliamentary oversight, control mechanisms, and limitations on the scope and duration of surveillance, especially when dealing with powerful technological tools.”

For the full interview in Hebrew for Walla magazine, click here: https://bit.ly/3YgIXOF

Partner, Rotem Perelman-Farhi, and Adv. Dr. Laura Jelinek in a piece on the new AI Transparency Law in CA – from a legal perspective.

On September 28, 2024, the California governor signed into law bill AB 2013, the so-called “AI transparency act”. This new law requires generative AI developers to post certain documentation on their website regarding the data used to train their AI systems. The law applies to generative AI released on or after January 1, 2022, and developers must comply with its provisions by January 1, 2026.

Who is subject to the law? The law applies to AI “developers”, i.e. any person or entity that either develops a generative AI technology or service or that “substantially modifies it,” and that make the AI system available for use in California. The scope is therefore rather broad and means that service providers that engage in material retraining or fine-tuning of existing generative AI models also need to comply with the law.

Scope of the Law: The law regulates “generative artificial intelligence,” which is defined as AI “that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence’s training data.”

What do developers need to do in order to comply? If a developer makes a generative AI system publicly available to Californians, it has to disclose certain documentation regarding the data used to train the system or service, among others:

  • The sources or owners of the datasets, and whether the developer purchased or licensed the datasets;
  • an explanation how the data is used in the AI system or service;
  • whether the datasets include any copyrighted or trademark-protected data;
  • the time period during which the data was collected; and
  • whether the datasets include “personal information” or “aggregate consumer information” as those terms are defined under the California Consumer Privacy Act.

Exemptions: AB 2013 does not apply to generative AI systems or services that are (1) solely designed to ensure security and integrity, (2) solely intended for the operation of aircraft within the national airspace, or (3) developed for national security, military, or defense purposes, and are made available only to a federal entity.

Other AI laws in California

Together with AB 2013, several other AI-related bills have been signed into law in California. Several of these focus on the use of AI in healthcare and in education; another bill requires watermarking of AI-generated content under certain circumstances.

The governor vetoed, however, SB 1047, known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act. This bill, supported by Elon Musk and Anthropic, and opposed by OpenAI, Meta and Google, had proposed the introduction of new safety requirements for large-scale AI models. Developers of large AI models, among others, would need to establish full shutdown capabilities, outline safety and security protocols to prevent significant harm to public infrastructure, and adhere to specific audit requirements.

Partner, Rotem Perelman-Farhi, Head of ERM’s Technology & Data Protection department, and Adv. Dr. Laura Jelinek, in a new article on the First International Treaty on Artificial Intelligence signed by EU, UK, US, and Israel.

Read the full piece below:

Illegal construction additions, such as the enclosure of balconies or expansions at the expense of shared spaces without proper permits, are common in many older neighbourhoods. Some of these alterations were made years ago, and the residents have even paid property taxes on them. “A resident who has become accustomed to living in a 100 square metre flat, which is recorded in the Land Registry as 70 square metres, will end up with a smaller flat – and may oppose the project.” The industry suggests taking such situations into account, but the planning authorities clarify: “We will not reach a situation where the wicked prosper.”

Partner Aharon Shimon, from the law firm Epstein Rosenblum Maoz (ERM), which specialises in urban renewal, explains that “building offences are a stumbling block in almost every urban regeneration project. Therefore, it is necessary to examine the root causes of these offences from a social perspective and expand the authorities’ view on this issue. Many building offences stem from economic constraints and severe housing shortages.”

For the full article in Hebrew: https://bit.ly/3MCxSAN

We are proud to announce that our firm has been ranked once again as a national leader in the Urban Renewal practice area. The department is co-led by Partner Yoav Zahavi and Partner, Aharon Shimon and hugely supported by Partner Golan Laihtman and Adv. Or Tzur.

Congrats to the whole department and let’s keep it going!

Despite the security situation, the Israeli market produces several interesting private equity transactions – even without connection to high-tech. The private investment funds purchase a company, corporation or factory, invest in them and improve them – and then sell them again.

Adv. Nimrod Rosenblum, Partner and Head of the Corporate and M&A department at Epstein Rosenblum Maoz (ERM). “There are of course the usual business dilemmas that need to be dealt with, but mainly what to do after the purchase. When an Israeli company is purchased by an international company, the question should be asked where will the company stay? This happened with Keter Plastics, which was purchased about seven years ago by a private equity fund […]. One of the things that buyers must understand is that sometimes part of the charm of the company is the “Israeliness”. We have seen it many times when an international company starts to change the entire staff and the nature of the management, sometimes it can hurt the business a lot.”

For the full article click here: https://bit.ly/3MsYHY3

We congratulate our customer, Azorim Company, on the “Pinui-Binui” project in the Arnona neighborhood in Jerusalem, which reached the evacuation and demolition stage at a good time and for which sales have begun.
As part of the project, two 22-story towers will be built, and 1,000 square meters for commerce. The expected gross profit for the regions from the company’s first evacuation-construction project in the U.S. that is starting – is expected to amount to approximately NIS 66 million.
The transaction was accompanied by partners Yoav Zahavi – joint head of the real estate, urban renewal and hotels department, Aharon Shimon – head of the Jerusalem branch, attorney Nofar Driks, and intern Shay Fox Sharga.

For the full article in Hebrew: https://bit.ly/4dS90k3