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WTO Awards Caribbean Country Right to Ignore US Copyright

Posted by Zonk on Thu Dec 27, 2007 02:25 PM
from the virtual-pirate-league-arrr dept.
The WTO's recent ruling on Antigua's complaint against the US over the banning of online gambling resulted in a payment to the island nation much less than they asked for. It appears, though, that this payment was just part of the WTO's compensation package for Antigua/Barbuda. Via Kotaku, the Hollywood Reporter notes that the Caribbean country can now freely ignore US copyright laws - legally. This dispensation is apparently limited to some $21 million a year. "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.'"
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[+] Politics: WTO Rules on Internet Gambling Case 171 comments
doggod writes "The Associated Press reports today that the WTO has finally ruled on Antigua's complaint against the US over online gambling. The complaints stems from what Antigua sees as unfair trade practices relating to the US passage last year of a law that forbids banks from handling money to and from online casinos. The amount they awarded is significantly less than Antigua asked for. If you download a copyrighted song from a server in Antigua, will that be an ironclad defense that will make you invulnerable to future attacks from the RIAA?"
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  • yea,, (Score:4, Insightful)

    by Heem (448667) on Thursday December 27 2007, @02:28PM (#21831500) Homepage Journal
    Under this administration, The WTO and Antiguan people are now terrorists. Prepare for us to spend 1 billion dollars a day in taxpayer funds to attack you now.
  • Hah. (Score:5, Insightful)

    by Anonymous Coward on Thursday December 27 2007, @02:30PM (#21831526)
    Attacking recognition of US copyright and patent monopolies is a good way to rein in the USA on an international level. A large chunk of the US economy is now "intangibles", basically fairy dust. To really tank the US economy (only a good thing for the rest of us, despite self-deluding crap in the US about how the rest of the world needs the US to "buy their stuff" - sure, just like black ants need a bunch of lazy-ass red ants lording it over them...), complete lack of recognition of US copyrights and patents would go a long way.

  • by pembo13 (770295) on Thursday December 27 2007, @02:31PM (#21831540) Homepage
    I would happily spend my USD with them.
  • by hyades1 (1149581) <hyades1@hotmail.com> on Thursday December 27 2007, @02:38PM (#21831608)

    As I sit looking out my window across a lovely but frigid blanket of white to the filthy, freezing slush on the street and notice a pedestrian being blown off the sidewalk by an icy, knife-edged wind, I think of setting up a nice little pirate factory to legally crank out stuff that will drive the RIAA to frothing, incoherent rage on one of the nicer Caribbean islands.

    And a drink. A drink with an umbrella in it. Could life be better?

  • by Ash Vince (602485) on Thursday December 27 2007, @02:54PM (#21831822) Journal
    The truth is that this has been expected for a while. You cannot expect to have one rule for trade flowing one way and then try and exempt certain businesses just because you don't like them. European Governments are not allowed to reject all Genetically modified soya so the US can not reject all gambling.

    Before Bush came into office the US had never lost a single case at the WTO. Now he has lost at least two. The last one I remember was against Europe with regard to an import tax on steel. Here is a link or two:

    http://news.bbc.co.uk/1/hi/business/3291537.stm [bbc.co.uk]
    http://themanufacturer.com/us/detail.html?contents_id=1726 [themanufacturer.com]
    http://news.independent.co.uk/world/politics/article77803.ece [independent.co.uk]

    In that case the US backed down fairly quickly as the tariffs Europe was going to impose were all designed to damage the economy in places Bush needed to get re-elected. One example given was taxing Florida oranges heavily and making them far more expensive than those from elsewhere. This is what every last tariff was designed to do. The European Union chose products where the same item could be obtained elsewhere for a competitive price (but not after a 30% tax hike was imposed on the US produce).

    In this case turning Antigua into a file sharing haven will be an annoyance, but probably not as dire as what Europe was aiming for. This is especially true when you look at the amounts involved. In this case 21 million dollars per year is fairly small compared to the 2.2 billion that the last dispute could have cost had the US not backed down.
  • by Danathar (267989) on Thursday December 27 2007, @02:57PM (#21831846) Journal
    I guess this means the GPL is also null and void there as well.

    Not that I'm trying to be a Troll, just a random thought that crossed my mind as interesting.
    • by ByOhTek (1181381) on Thursday December 27 2007, @02:38PM (#21831616) Journal
      not quite, as a downloader, you still answer to your local authorities. So if I decide to download a copy of Windows Vista from an Antiguian server, I could get in trouble (it's not legal for me to do), but the server's hosts would not.

      Still this strikes me as an odd penalty. If I go and rob a bank, do you put my children in jail? Yes, I would be upset at that, and it would be a deterrent for me, but at the same time, the children did nothing wrong - you should be jailing me.

      They are punishing the US by allowing people to take the works of it's authors, actors, software developers, etc. without compensating them. Yes it punishes the government, but it punishes people completely unrelated to the action even further.
      • by Dolohov (114209) on Thursday December 27 2007, @02:46PM (#21831720)
        This is the case with any trade sanctions -- steel tariffs technically only hurt steel producers, not the US government. The point is that they are intended to cause problems for a group with strong lobbying powers, who will then in turn pressure the government to change its ways. If Antigua were to raise steel tariffs, however, they would suffer from higher steel prices, and could then be forced by the US to back down (particularly since they are a small country whose steel input is minimal). By allowing IP exemptions instead, Antigua does not risk being forced by the US to back down.
    • by bigdavex (155746) on Thursday December 27 2007, @02:39PM (#21831624)

      Since when did "free trade" translate into an abandonment of sovereignty in favor of having an unelected global organization dictate national policy? If the people of the United States (or any country) want to ban online gambling then what business of the WTO is it? At least when the WTO steps in over protective tariffs that makes SOME sense. If a product is completely outlawed though, how the hell is a free trade issue?

      You haven't been following this issue. Countries can prohibit trade on moral ground under the WTO. They just can't treat the domestic businesses differently than the foreign ones, which the US does explicitly.
      • by eebra82 (907996) on Thursday December 27 2007, @03:12PM (#21832010) Homepage

        Since when did "free trade" translate into an abandonment of sovereignty in favor of having an unelected global organization dictate national policy? If the people of the United States (or any country) want to ban online gambling then what business of the WTO is it? At least when the WTO steps in over protective tariffs that makes SOME sense. If a product is completely outlawed though, how the hell is a free trade issue?
        You haven't been following this issue. Countries can prohibit trade on moral ground under the WTO. They just can't treat the domestic businesses differently than the foreign ones, which the US does explicitly.
        Correct. And I must add that this bill was hardly a decision made by the citizens of the United States, as the first post claims. UIGEA was sneaked into the Safe Port Act. Now let's take a look at what the Safe Port Act mainly includes:

        * Additional requirements for maritime facitilties
        * Creation of the Transportation Worker Identification Credential
        * Establishment of interagency operational centers for port security
        * Port Security grants
        * Container Security Initiative
        * Foreign port assessments
        * Customs Trade Partnership Against Terrorism
        If it was a choice made by the citizens of the United States, how come this bill was put at the very end of this huge Safe Port Act bill? One that was definitive and would - with almost no doubt - pass through to the pen of George W. Bush? And it's funny that a great supporter of this bill happened to be a large casino corporation somewhere in the United States.. Oops..
        • by Sloppy (14984) on Thursday December 27 2007, @03:16PM (#21832064) Homepage Journal

          is there something that treats American horse-racing betting sites different then ones from overseas?

          Yes, if you use less specific terms. Change "horse-racing betting" to "gambling" and re-ask the question.

          Apparently, WTO sees the US government's uber-specific microlegislation, where it permits some kinds of gambling and not others, as an absurd joke that is obviously derived from special interests (i.e. private industry's desire to use government power to put money into their own pockets) rather than any sort of principles. In other words, they saw it the same way that we, the citizens of US, do.

            • by Best ID Ever! (712255) on Thursday December 27 2007, @03:54PM (#21832516)
              Several states offer their lotteries online, several states allow horse racing bets to be placed online, and there was even a carveout in the UIGEA for fantasy sports leagues. So yes, there is legal online gambling offered by US companies to US citizens.
    • by Pfhreakaz0id (82141) on Thursday December 27 2007, @02:50PM (#21831772)
      I'll quote from a summary I had lying around: "The trade body found that the U.S. had the right to prevent offshore betting as a means of protecting public order and public morals. But it said Washington was violating trade law by targeting online gambling without equal application of the rules to American operators offering remote betting on horse and dog racing."
        • by argiedot (1035754) on Thursday December 27 2007, @03:35PM (#21832272) Homepage

          Okay, it's like this. The only way you get to ban gambling is if you believe that gambling is morally a bad thing, or if you believe that gambling could damage public order. By allowing some types of gambling, you agree that gambling is not morally a bad thing, and that it is not a danger to order either. Hence, you can't ban gambling, in any form.

          Unless, of course, you'd like to argue that betting on horse races is moral while gambling in general is immoral, or that the latter would somehow cause order to break down. However, I don't think any sane person would accept that. I wouldn't.

        • by Jeremy Erwin (2054) on Thursday December 27 2007, @02:52PM (#21831800) Journal
          Yep. The existance of online horse gambling demonstrates that the US really doesn't have a morals problem with online gaming. So, if there's no moral objection, that leaves protectionism, which is a no-no under WTO rules.

            • by vux984 (928602) on Thursday December 27 2007, @03:19PM (#21832094)
              It's not our fault or problem that nobody has bothered to setup online horse racing in your country. As long as any horse racing business from these nations is treated the same as a domestic outfit I really fail to see what the problem is.

              Nobody made you join the WTO either. Nobody made you agree to the definition of categories of industry. If you'd had the foresight to separate horse racing from online gambling as separate categories this would not be a problem. But these are the rules you agreed to and know you have to play by them if you want to keep playing.

              And you DO want to keep playing because the WTO is the force that's preventing Canada from creating a nationalized daycare system. (would prevent american companies from competing in the daycare industry), is forcing Canada to sync copyprotection laws for America's RIAA/Hollywood interests, is preventing Canada from selling subsidized electricity to its own residents because FreeTrade/WTO rules force us to export electricy at the same rates we use it internally, despite that a lot of the energy infrastructure was built by the taxpayer.

              And that's just Canada... the US is wielding the WTA/FreeTrade agreements around the globe for its benefit. It benefits far more from them than it loses. For every Antigua there are 30 Canada's. Antigua is just interesting because they've scored a symbolic blow to the US, and in a very public high profile way.
          • by Maxo-Texas (864189) on Thursday December 27 2007, @03:59PM (#21832578)
            The camel's nose came through the interstate commerce clause.

            The ruling was that

            your wheat which you are going to use privately on your own farm impacts the state market.
            your state trades wheat with other states.

            So your all your private wheat are belong to us.

            Once that was ruled, if they could argue something would have even a secondary affect on interstate commerce, they could regulate it.
    • by betterunixthanunix (980855) on Thursday December 27 2007, @02:51PM (#21831786)
      Please, the WTO can't punish the US by letting a pipsqueak country like Antigua live without our copyright laws. I doubt that there is enough IT infrastructure in Antigua as a whole for anyone to serve more than 100000-500000 users at a time, which is barely a thorn in the industry's side (remember, Kazaa, at its height, had 60000000 users and the RIAA reported a record profit). If the WTO really wanted to hurt the US, they would have to grant the same freedom to a country that carries more weight, like China or Russia (countries that already have problems with black-market IP violations; just imagine an open market for US software, music and movies).

      What this really represents is a message to the US: the WTO is not afraid to use IP laws to penalize us if we try and bully other countries. The member states of the WTO are not happy that the US can basically run free, so they just wanted to remind us that there is a system in place that can overrule America's policies. I personally view that as a good thing, since the US keeps using its position as the single most powerful nation in the world to push various agendas on other nations.

    • Re:wha?! (Score:5, Funny)

      by sm62704 (957197) on Thursday December 27 2007, @02:58PM (#21831856) Journal
      If you wonder why a "first post" would be modded "redundant" instead of "offtopic", it's because "holy shit" is of course not offtopic. In the Carribean they have a religion where marijuana is used as a sacrement. So the shit there is indeed holy, making the statement "holy shit" itself redundant.

      Also, "holy shit" is redundant because right now in every office in Hollywood, overpaid cocaine soaked executives are making that very same exclamation.

      Well, not all of them will be saying "holy shit." Some will simply be saying "shit", referring to what they just did in their pants.

      -mcgrew

      PS- everyone should now go out and sell all their Sony stock. Not because this will make the price of Sony stock drop, just because Sony is evil and this is as good an excuse as any.
    • Re:wha?! (Score:5, Funny)

      by Ynot_82 (1023749) on Thursday December 27 2007, @03:04PM (#21831922)
      Pirates of the Caribbean.... ;)