A law to amend the Israeli Patents Law was passed on February 17, 1998 containing
two main provisions.

The first removes from the definition of patent infringement acts which are not on a commercial scale or of a commercial character, experimental acts to improve an invention or to develop another invention and experimental acts done "within the framework of dealing with the obtaining of a license for the marketing" of a product. The license in question may be for marketing in Israel or another country as long as that country is one that permits experimental use of this type before the expiration of a relevant patent (e.g., the United States).

The second provision provides for possible extension of the term of an Israeli patent to compensate for delays in securing marketing approval for medicinal products and certain types of medical equipment. An extension may be requested by the patentee, an exclusive licensee or in the case of joint owners by any one of them. No extension shall be for more than five years or have the effect that the extended patent remains in force for more than fourteen years from the date on which marketing approval was granted in Israel. The wording of the basic provision for the extension is, however, somewhat unusual since it ties the term to the extension granted in any Paris Convention country that provides that experimental acts for the purpose of obtaining marketing approval are excluded from patent infringement. Apparently this is intended to result in extensions being granted for the same period as in the United States. If a license for marketing approval is filed only in Israel, the extension is to be for the same period as that which elapsed between filing the application for marketing approval in Israel and the grant of such approval as long as the request was pursued "in good faith and with appropriate urgency". All requests for extension must be filed within sixty days of registration of the product in accordance with the Pharmacists Regulations. Maintenance fees will be payable during the extended period.