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Bill would protect Israeli authors' royalties

Associated Press Published: June 14, 2012

JERUSALEM (AP) — In the land of the People of the Book, the discounted book may soon be a thing of the past.

Israeli authors have launched a battle to stop the country's two leading bookstore chains from discounting their works, claiming the price slashing has cut into their royalties. With support from Prime Minister Benjamin Netanyahu, they persuaded an influential committee of government ministers to back their call for tough limits on discounts. The parliament is expected to approve a bill enshrining the limits.

A similar debate has played out around the world, as publishers, authors and book retailers all struggle to capture their piece of a hypercompetitive market. Several countries, including France, Germany and Mexico, have all passed laws that bar booksellers from cutting prices in a bid to protect their local publishing industries.

The issue has touched a sensitive nerve in Israel.

Jews are known as the "People of the Book" because their identity is rooted in the Bible. But literary books are also a big part of Israeli culture.

Last year, the country produced 6,302 new Israeli titles, according to the National Library of Israel. For a country of fewer than 8 million people, that is a strong number, roughly on par with the U.S., Germany and Britain in per capita terms, according to data compiled by the U.N. cultural agency UNESCO. Some of its authors enjoy worldwide reputations, with one Nobel literature laureate, S.Y. Agnon, to its credit and contemporary novelist Amos Oz a regular contender in recent years.

Price-slashing is a common feature of the competition between Israel's two largest booksellers, Steimatzky and Tzomet Sfarim.

The deep discounts — as low as $6 a book as opposed to catalogue prices ranging $15 or $20 — have been welcomed by consumers and benefited younger, unknown authors.

But the low prices are anathema to the established authors, publishers, editors and others in the book-making food chain who find themselves sharing a shrunken purse, an especially difficult situation given that the domestic market is relatively small and the market for Israeli literature in the original Hebrew is thereby limited.

Pricing is a contentious issue in the book business worldwide at a time of major changes in the industry, with big competition from e-books. Amazon's deep discounting of top-selling e-books in the U.S. led publishers to set the prices themselves instead of leaving that to booksellers, a move that prompted a government lawsuit accusing publishers of price-fixing.

E-books have also been a main driver in the decline of brick-and-mortar bookstores. Bookstores have been an essential part of the publishing ecosystem, where people often stumble upon new books as they browse and chat with other readers, and their precarious state is of concern to publishers, booksellers and writers, many of whom fear a future market dominated by e-books.

In Israel, the move to e-books hasn't affected the local market, said Amnon Ben-Shmuel, managing director of the Book Association of Israel. "All we care about is that people read more books. We don't care if they are e-books or traditional," he said.

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