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Pretty much my reasoning too.

Any sales to US firms could be curtailed or punished.

Just like security itself - the goal is to provide enough barriers so predators go looking elsewhere for easier prey.

> Any sales to US firms could be curtailed or punished.

That doesn't really restrict the NSA, CIA, FBI or any other agency/PD from buying their services. After all, that's what "black budgets" are for.

Most of these firms use private contractors to do the dirty work. Unless contractors can bypass legal oversight, they'll be constrained as well.

Overseas contractor hired by a shell corporation gets the phone sent outside of the US. Boom.

All this assuming they even care about legal compliance, which I am sure that under the correct circumstances it won't matter one bit.

Israel has a trade agreement with the US so DMCA is at the least partially enforced, most trade agreements have a bilateral enforcement of trademark and copyright protection laws.

Israel is also a member of the WTO so there is that avenue also.