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Chronicles

The story behind the story

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Spain passes LPI law allowing publishers to charge aggregators that link to news stories; effective January 2015

Spain Passes Much-Debated Intellectual Property Law  —  Critics complain of an unenforceable Google tax and missed opportunity for clear anti-piracy law

Hollywood Reporter Pamela Rolfe

Context & Ripple Effects

Spain has been circling this fight for years: courts declared file-sharing and link sites legal back in 2010 (File-Sharing and Link Sites Declared Legal in Spain), and a 2013 crackdown raised anti-piracy penalties to six years (Spain passes new anti-piracy laws) without settling how aggregation itself should be paid for. The LPI law is the legislature's answer — an inalienable right for publishers to charge aggregators that link to their stories, effective January 2015.

The story travelled unusually wide — pickups at the New York Times, AFP, The Verge, Techdirt, Gizmodo and others — because 'Google tax' laws were becoming a template other countries might copy. Critics quoted at passage called the fee unenforceable and faulted lawmakers for missing a chance at a clear anti-piracy statute instead.

First-order effects

  • Spanish publishers gain a statutory right to invoice news aggregators for linking, with no need to negotiate individual licenses before January 2015.
  • Aggregators led by Google face a mandatory levy on a free referral product, and critics' 'unenforceable' complaint puts the burden of compliance design on the platforms themselves.

Second-order effects

  • Google's eventual response was to pull rather than pay: a later study found the shutdown of Google News in Spain cut traffic and ad revenue for Spanish news sites, hitting new and smaller publishers hardest — the opposite of the law's intent.
  • The traffic collapse hands rival aggregators and social platforms a relative advantage in Spanish referral traffic, since the fee applies to the structured news product, not to every channel that surfaces a story.

Third-order effects

  • The law becomes the cautionary case study for Europe's ancillary-copyright experiments: seven years on, Spain amended its rules to allow per-publisher deals, and Google News returned to Spain under negotiated fees rather than the blanket levy.
  • If the pattern holds, link-fee regimes get tested against exit dynamics — platforms can withdraw the product being taxed — pushing legislators toward negotiable licensing frameworks instead of flat aggregator taxes.

The trend: Ancillary copyright for news snippets is entering a corrective phase, as Spain's blanket 'Google tax' gives way to individually negotiated licensing across Europe.