BUSINESSES BASED in Israeli settlements in the West Bank are preparing to launch lawsuits against individuals and organisations calling for boycotts of their products following the passing of a controversial law that backs them, according to reports in the Israeli press.

Yaakov Berg, the manager of a small vineyard near Jerusalem, told Yedioth Ahranothnewspaper that he was collecting material to be used in a case as soon as the law takes effect.

Any compensation he received would be ploughed into settlements, he said.

"We promise to invest it all in building new settlements and in strengthening the settlement of our beloved country. We will cause them to be partners to this important mitzvah [ commandment]. If they don't want to pay for wine and olive oil, they will pay for houses and vineyards."

The Law for Prevention of Damage to the State of Israel, passed on Monday, is set to be challenged in the courts by civil rights groups who say it is anti-democratic and denies freedom of speech and protest. Three dozen eminent law professors have declared it unconstitutional.

Under the law, an individual or organisation proposing a boycott may be sued for compensation by any individual or institution who faces possible damage as a result. Evidence of actual damage will not be required.

The law bans consumer boycotts of goods and services produced in West Bank settlements and the blacklisting of cultural and academic institutions in settlements.

It also bars the government from doing business with companies that comply with boycotts. - ( Guardianservice)