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Knesset Bill Aims at Google to Pay Royalties on Israeli Content

Google will have to pay 7 percent on revenue from Israeli Internet content that is copyrighted if the Knesset approves a bill submitted by Labor Knesset Member Erel Margalit and now under discussion in the Knesset Finance Committee.

The proposed legislation calls for the royalties to be deposited in an account managed by the Finance Ministry, which then would transfer the money to those who produced the content.

Conditions for copyrighted material are that a website be active for more than one year and that at least 30 percent of the content is produced by the website itself.

MK Margalit explained that the bill is designed to protect content producers whose websites often are not used by Internet surfers, who can simply use results from the Google search site, Globes reported.

Margalit warned, “Israeli democracy is in danger…. Google has become a search engine technology tycoon in the State of Israel. Technology is an important means to bridge gaps and the Israeli economy needs new thinking about the connection between high-tech and technology and the country’s economy and growth.”

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