[Infowarrior] - U.S. copyright waived in tiny nation

[Richard Forno]

http://www.hollywoodreporter.com/hr/content_display/news/e3i069cf19291fa5cce
90e1758ae1d39cca

U.S. copyright waived in tiny nation
By Leo Cendrowicz

Dec 25, 2007
BRUSSELS -- The Caribbean nation of Antigua and Barbuda has won the right to
waive U.S. copyrights in films, television and music under an unusual ruling
by the World Trade Organization. The landmark decision by the Geneva-based
trade watchdog means that the tiny islands are able to violate intellectual
property protection worth up to $21 million as part of a dispute between the
countries over online gambling.

The ruling ends a legal battle lasting nearly five years, which ended in the
WTO finding that Washington had wrongly blocked online gambling operators on
the island from the American market at the same time it allowed online
wagering on horse racing.

The award is significantly lower than the damages of $3.44 billion a year
Antigua and Barbuda had claimed, but higher than the $500,000 offered by the
U.S. The Office of the US Trade Representative nevertheless welcomed the
outcome, saying Antigua's claim, at three times the size of its economy, had
been "patently excessive."

The WTO often takes decisions awarding trade compensation in cases where one
nation's policies are found to break its rules. But this is only the second
time the compensation lets one country violate intellectual property laws.
In this case, Antigua will -- in theory -- be allowed to distribute copies
of American DVDs, CDs and games and software with impunity.

"That has only been done once before and is, I believe, a very potent
weapon," Antigua's lawyer Mark Mendel said. "I hope that the United States
government will now see the wisdom in reaching some accommodation with
Antigua over this dispute."

However, the ruling paves the way for further conflicts as the copyright
holders concerned are expected to argue with the Antigua government over the
actual value of the individual rights that are waived. The USTR has also
warned that that the award was strictly limited to Antigua, and that even
with respect to Antigua, "it would establish a harmful precedent for a WTO
Member to affirmatively authorize what would otherwise be considered acts of
piracy, counterfeiting, or other forms of IPR infringement."

The five-year WTO battle concerned the U.S. block on foreign online gambling
operators from the American market at the same time it allowed online
wagering on horse racing. Antigua, with a population of about 70,000, is a
center for offshore Internet gaming operations and attracts large numbers of
U.S. residents to its online casino-style games and betting services.

The European Union, India, Canada, Australia and other WTO signatories
aligned themselves alongside the Antiguan case. However, separate deals were
agreed with these economies, including U.S. trade concessions to the EU in
mail services and warehousing as compensation.

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