27 October 2025 • 20 minute read

Israel Group News - October 2025

Welcome to the October 2025 issue of our global newsletter, Israel Group News, dedicated to keeping you informed on the latest developments, emerging trends, hot topics, and DLA Piper activities that focus on bringing the dynamic and innovative Israeli ecosystem directly to your doorstep.

During the third quarter of 2025, we provided a wide range of legal services to Israeli companies, investors, and entrepreneurs, as well as to international businesses exploring opportunities within Israel. We view ourselves as an extension of the clients we serve; we aim to work with them for the long term, whether their needs involve guidance on day-to-day inquiries, focused projects, special situations, or large-scale transactions.

For more general information about the Israel Group, click here. To gain a perspective on our trusted advisor practice, the types of day-to-day guidance we provide, and our representative client list, click here. To view a recap of 2024, click here. In addition, to view a video about our charitable work in the community, click here. To watch our Rosh Hashana 2025 video, click here.

Please contact us if you have any questions or if we may be helpful in any manner. For new client requests, please send an email to dla-israel-attorneys@us.dlapiper.com.

DLA Piper’s AI Laws of the World web page

The increasing adoption of artificial intelligence (AI) in drug discovery and development will likely reduce the time required to commercialize new treatments. Within this process, AI is being used in areas including target identification, drug design, drug repurposing, and clinical trials. However, the implementation and use of AI in drug discovery and development – in addition to the life sciences industry more broadly – is not without risks and challenges. Issues including privacy and the ethical use of AI are likely to be key concerns for organizations involved in drug discovery and development, for regulators and consumers alike. Notwithstanding the considerable benefits that AI will bring to this field, as well as the risks, many regulators around the world have yet to enact specific laws relating to the implementation and use of AI in this area. DLA Piper’s AI Laws of the World provides an overview of AI laws and proposed regulations across more than 40 countries, including key legislative developments, regulations, proposed bills, and guidelines issued by governmental bodies.

Recent legal insights from DLA Piper

On October 1, 2025, regulations took effect that amend the California Fair Employment and Housing Act (FEHA)’s regulatory framework and regulate the use of AI in employment within the state. Originally published in June 2025, the regulations follow the September 2024 enactment of more than 30 bills governing AI in the California workplace. This alert summarizes the regulations and discusses compliance obligations for employers going forward.

The US Department of Justice (DOJ), in coordination with the Department of Homeland Security (DHS), launched a cross-agency Trade Fraud Task Force to bolster enforcement against tariff evasion, customs fraud, and smuggling schemes. This Task Force integrates prosecutors and trial attorneys from both DOJ’s Criminal and Civil Divisions with DHS elements – US Customs and Border Protection (CBP) and Homeland Security Investigations (HSI) – to pursue both criminal and civil enforcement under the Tariff Act, False Claims Act (FCA), and other criminal fraud statutes. This alert discusses significant developments, the enforcement environment, key takeaways, and practical implications for businesses.

Proposed amendments and a new regulation to California’s Sales and Use Tax Regulations for Software and Technology Transfer Agreements address the need to clarify and update California’s sales and use tax regulations as they apply to software transactions, particularly those involving Technology Transfer Agreements (TTAs). The proposed amendments and new regulation aim to define key terms, establish clear presumptions for when software is or is not covered by a TTA, and provide simplified methods for determining the taxable value of TPP in software transactions. According to the California taxing agency, the changes are intended to ensure that tax is applied consistently and fairly, reduce disputes, and align regulatory language with legal precedents. Learn more here.

On September 19, 2025, President Donald Trump signed a proclamation, “Restriction on Entry of Certain Nonimmigrant Workers,” requiring a $100,000 payment to accompany or supplement new applications for H-1B petitions “to curb abuses that displace US workers and undermine national security.” The proclamation also calls for limits on visa issuance and changes to the prevailing wage levels for the H-1B program. The proclamation’s stated goal is to make sponsoring H-1B workers more expensive for employers. Read more about the changes implemented by President Trump’s proclamation.

The United Kingdom’s Digital Market Competition and Consumers Act came into force last year and is now being implemented. While wider “noise” about the Act may have been drowned out by the media’s focus on the Online Safety Act, the Act is expansive in scope and will have significant impacts for traders operating in the UK. The Act implements significant reforms to the UK digital markets regulatory framework, the powers of the UK consumer and competition law regulator, the Competition and Markets Authority (CMA), and to the consumer protection regime. This alert provides an overview of how the Act addresses so-called “drip pricing,” when a trader adds to an initial price during the course of the sales process – a consumer harm that the CMA has long identified as a concern, especially online.

DLA Piper’s Fund Finance team from London and Luxembourg share insights from the European Strategic Forum 2025 and the 9th Annual European Fund Finance Symposium in London. The Fund Finance Association's flagship European events brought together GPs, LPs, banks, non-bank lenders, and service providers for an opportunity to network and discuss trends in the fund finance market.

Global activity

In the third quarter of 2025, we commenced projects for 70 Israeli companies in the following 40 jurisdictions: Australia, Austria, Bahrain, Belgium, Brazil, Canada, China, Denmark, the European Union (EU), Finland, France, Germany, Hong Kong, Hungary, Iceland, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, Netherlands, Panama, Poland, Portugal, Romania, Saudi Arabia, Serbia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, the UAE, the UK, and the US.

Below are recent representative matters in which we assisted Israeli companies around the world:

Commercial issues in France, Germany, Hong Kong, Netherlands, Saudi Arabia, Spain, Sri Lanka, the UK, and the US

Corporate and securities issues in Brazil, Canada, Finland, France, Germany, Mexico, Romania, Singapore, the UAE, the UK, and the US

Employment, employee benefits, and immigration guidance in Australia, Bahrain, Belgium, Canada, China, the EU, France, Germany, Hungary, Ireland, Italy, Japan, Mexico, Netherlands, Poland, Singapore, South Africa, Spain, Switzerland, Thailand, Turkey, the UAE, the UK, and the US

Litigation and dispute resolution guidance in Australia, Canada, France, Poland, the UK, and the US

Mergers and acquisitions (M&A), finance, funds, and investment guidance in Belgium, Brazil, Finland, Hong Kong, Iceland, India, Luxembourg, Malaysia, Netherlands, Panama, Singapore, the UK, and the US

Privacy and other product regulatory guidance in Australia, Bahrain, China, the EU, Germany, Spain, the UK, and the US

Real estate guidance in the UK and the US

Regulatory issues in Australia, Austria, Bahrain, Belgium, Canada, China, Denmark, the EU, France, Germany, Hong Kong, Italy, Mexico, Netherlands, Poland, Saudi Arabia, Serbia, Singapore, South Africa, Spain, Sweden, Switzerland, the UK, and the US

Tax guidance in the US

Colleague in the spotlight

Dr Kai Bodenstedt LL.M.
Partner, Co-Managing Partner, Germany
Hamburg

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Please tell us about your area of practice.

I advise companies on German employment law issues with a focus on collective labor laws. Under German employment law, works councils (and trade unions) are quite powerful and there are many actions a company can only take once the works council has approved them. I spend a lot of my time negotiating with works councils on behalf of the company to come to a deal on any given topic.

What challenges do Israeli companies face as employers in Germany?

Germany is a highly regulated environment, in which employees enjoy significant protection. Also, there are formal aspects of the law which often come as a surprise for Israeli companies. For example, if a company intends to terminate an employee, it will be required to serve the employee with a hard copy of a wet ink signed dismissal notice. A scanned copy would not be enough and would render the termination invalid. The importance of such formal requirements often comes as a surprise to Israeli companies.

From an employment law perspective, what do Israeli companies need to keep in mind when doing business in Germany?

They need to avoid pitfalls coming from laws which are very specific to Germany. For example, many Israeli companies use an Employer of Record (EoR) model when they start doing business in Germany. Under German law, an EoR service provider requires a license and there is a maximum term of 18 months for employees who are provided through an EoR service provider. Failure to comply with these requirements may lead to fines and to unwanted tax consequences. Therefore, Israeli companies would be well advised to get a broad understanding of the legal landscape before entering the German market.

What place in Israel is at the top of your list to visit?

It will always be Jerusalem. I am lucky enough to have already visited Jerusalem a few times and I always return with a feeling of having experienced something unique. It is hard to describe but seeing so many magical things in a relatively small place lifts my spirits tremendously.

DLA Piper Israel Group updates

We took advantage of the summer months to invest in team-building activities that brought energy and connection to our office. In July, we welcomed Reed Farkas, our summer intern, with a celebratory ice cream break and hosted a coffee workshop run by Concept:Coffee. In August, we held a paint night and took a coffee break at the new Friends-inspired pop-up café in Tel Aviv near our office. Finally, ahead of Rosh Hashana, we gathered for a festive team lunch to celebrate collective achievements from the past year.

On July 22, 2025, while visiting New York, Jeremy Lustman met with New York City Commissioner for International Affairs, Edward Mermelstein. Their wide-ranging discussion touched upon many aspects of the relationship between Israel and New York City, including the city’s emerging role as the de facto hub for Israeli companies scaling in the US, where the default used to be Silicon Valley.

On August 3, 2025, we bid farewell to Reed Farkas, our summer intern. In a short amount of time, Reed made meaningful contributions to our marketing and business development initiatives. Please watch our International Interns Day video for more.

On September 9, 2025, we had the honor of co-sponsoring and attending the US Embassy’s Independence Day Celebration, which had been postponed due to the June conflict with Iran. Hosted at the new Museum of Tolerance Jerusalem, remarks were made by both US Ambassador Mike Huckabee and Prime Minister Benjamin Netanyahu.

From September 9 to 10, 2025, Jeremy Lustman attended day one and day two of Jeffries Tech Trek 2025 in Tel Aviv. This invitation-only event, which is Israel’s largest institutional investor technology conference, serves as a platform for global institutional investors, private capital investors, and leading Israeli venture capitalists to engage directly with the Israeli tech ecosystem.

On September 15, 2025, Naomi Maryles participated in DLA Piper’s Global Employer Conference 2025 in Oxford, England. The conference provided the opportunity for clients from around the world to meet peers from other businesses – as well as DLA Piper employment lawyers from numerous countries – to network, reflect, and explore current and future key HR legal issues. Keynote speakers and roundtable discussions explored workforce flexibility, gender pay transparency, AI, emerging trends, tips for navigating change, the future of employment law, and more, in many cases through the lens of geopolitics.

On September 17, 2025, we hosted Paul Israel and the board of the Israel-Australia, New Zealand & Oceania Chamber of Commerce (IACC) at our offices. This organization promotes joint trade and opportunity between Israel and the region.

On September 29, 2025, Jeremy Lustman, Dana Brody Glass, and Maya Biasi-Gelb attended a meeting of the Forum of Foreign Law Firms in Israel, led by Robus - Consulting International Law Firms in Israel, featuring Israeli intellectual, author, and former Knesset member Dr. Einat Wilf.

Professional and client events

On July 29, 2025, we co-hosted with the Association of Corporate Counsel (ACC) Israel a timely webinar for Israeli companies aiming to manage the complexities of US trade compliance. The session featured our esteemed DLA Piper colleagues Nicholas Klein (Partner, Co-Chair, National Security and Global Trade Practice and Global Co-Chair, CFIUS and Global FDI Practices, Washington, DC) and Brian Janovitz (Partner, Washington, DC), with introductions by DLA Piper Israel’s Yehudah Gordon (Director) and Ora David Margalit, Lead Counsel at Nokia Israel. The webinar included an investment security update focused on Committee on Foreign Investments in the United States (CFIUS) and Outbound Investment Security Program (OISP) risk and mitigation; an outline of recent changes to export controls; an overview of the current US tariff landscape and what Israeli companies could expect moving forward; and a discussion around tariff mitigation strategies and techniques.

On September 8, 2025, we once again co-sponsored a Global Employment Law Forum with Israeli law firm Herzog and ACC Israel. Titled, “The Future Is Here: Boundless Work,” the Global Employment Law Forum focused on the hot topics of mobility, flexibility, and innovation in the workplace. The event provided an opportunity for Israeli legal professionals to connect with industry leaders, network with peers, and discover practical strategies to empower their organizations in an ever-evolving global landscape. The following DLA Piper colleagues participated and shared their valuable insights: Vinita Arora (Partner, London); Dr. Kai Bodenstedt LL.M. (Germany Co-Managing Partner, Hamburg); Bijan Eghbal (Partner, Paris); Daniel Turinsky (Partner, New York); and Pilar Menor (Global Co-Chair Employment, Madrid).

On September 10, 2025, we co-sponsored the inaugural CFO Event hosted by English Speaking Networking, in collaboration with Edmond de Rothschild. The event brought together finance professionals to connect, exchange insights, drive change, and empower one another. Naomi Maryles and Dana Brody Glass attended the event, engaging with financial leaders from some of Israel’s most prominent companies. They attended an insightful panel discussion and participated in roundtables that explored the evolving responsibilities, growth opportunities, and challenges CFOs face today. One of the key topics discussed was how emerging technologies, particularly AI, are reshaping corporate strategy decision-making and redefining the role of the CFO in a rapidly changing business landscape.

On September 28, 2025, Jeremy Lustman and Dana Brody Glass participated in a follow-up dinner to the CFO Event in Tel Aviv, focused on discussing the role of Israeli companies in the global market with clients and CFOs at other Israeli high-tech companies.

Upcoming events

Rising Legal Stars Networking Dinner: November 16, 2025

American Thanksgiving Dinner: November 2025

Looking Back on 2025 and Looking Forward to 2026 – A Geopolitical Discussion: December 2025

Shifting Your Professional Career to Israel: January 6, 2026

General Counsel Retreat: January 18 to 19, 2026

AI Event: January 20, 2026

International Arbitration Event: Q1 2026

Giving back to the community

On July 23, 2025, we had the privilege of spending time at The Koby Mandell Foundation’s therapeutic camp for bereaved children, which we helped sponsor. Located in Petah Tikvah, the six-day sleepaway Camp Koby hosts children ages six to eight who have tragically lost a first-degree relative to terror, war, or illness. Alongside activities such as sports, swimming, and trips, the camp also provides counseling and other support services. Camp Koby offers a safe space for bereaved children to find their equilibrium after loss, in an environment where grief is accepted and understood by both peers and adults. Our team was profoundly moved by the courage and resilience of the children and inspired by the dedication and compassion of camp staff.

On July 28, 2025, our team volunteered at United Hatzalah of Israel’s new logistics center, where we assembled hundreds of lifesaving childbirth kits for use in the field and sponsored a pizza lunch for the permanent logistics center volunteers. United Hatzalah is Israel’s largest community-based, free, volunteer emergency medical services (EMS) organization. The United Hatzalah team of volunteers, drawn from every facet of Israeli society and serving all Israelis, represents co-existence and unity.

On September 16, 2025, we hosted the fourth annual DLA Piper Charity Basketball Tournament, once again raising funds for Shalva, the Israel Association for the Care and Inclusion of Persons with Disabilities. This world-renowned organization is dedicated to providing transformative care for individuals with disabilities, empowering their families, and promoting social inclusion. Nine of Israel’s top law firms participated in the tournament – which has become a marquee event in the Israeli legal ecosystem – raising NIS157,500 (approximately USD47,000) for Shalva’s Rising in Rank program, which enables young adults with disabilities to serve in the Israel Defense Forces (IDF).

In honor of Rosh Hashana, on September 21, 2025, our team made a meaningful donation to The Lone Soldier Center in memory of Michael Levin and spent the morning volunteering at one of its Jerusalem locations, preparing the simanim (symbols) food for the holiday.