Antigua's Win Demonstrates Impact of International Law and Trade On Internet

It seems its International Law day on the Internet - after posting Bringing Reality To SecondLife: Lots of Countries, Lots of Laws, I ran across the resolution to the dispute between the US and Antigua on gambling - in the New York Times article, In Trade Ruling, Antigua Wins a Right to Piracy:

PARIS — In an unusual ruling on Friday at the World Trade Organization, the Caribbean nation of Antigua won the right to violate copyright protections on goods like films and music from the United States — an award worth up to $21 million — as part of a dispute between the countries over online gambling.

The award follows a W.T.O. ruling 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.

Antigua and Barbuda had claimed damages of $3.44 billion a year. That makes the relatively small amount awarded Friday, $21 million, something of a setback for Antigua, which had been struggling to preserve its gambling industry.

The United States argued that its behavior had caused $500,000 damage.

Yet the ruling is significant in that it grants a rare form of compensation: the right of one country, in this case Antigua, to violate intellectual property laws of another — the United States — by allowing it to distribute copies of American music, movie and software products...

...In May, the United States said it was rewriting its trade rules to remove gambling from the jurisdiction of the W.T.O.

Washington has agreed on deals with the European Union, Canada and Japan to change the treaty but not with several other nations, including Antigua.

On Friday, the United States trade representative issued a stern warning to Antigua to avoid acts of piracy, counterfeiting or violations of intellectual property rights while talks continue.

The trade office said such behavior would “undermine Antigua’s claimed intentions of becoming a leader in legitimate electronic commerce, and would severely discourage foreign investment” in the country.

The ability to use unlicensed works is odd, peculiar, strange and... somewhat intellectually erotic. It also demonstrates how international trade and law are all involved with 'virtual worlds' (synthetic worlds) that cross geopolitical borders. This is something I alluded to in my comments here as Nobody Fugazi.

Oddly, though, the synthetic worlds do not cross socioeconomic borders - but it seems quite likely that socioeconomic borders will be doing some shifting because of virtual worlds. After all, the US is now removing gambing from the WTO's list of duties...

Everyone has been playing with the tails of national sovereignity. It seems Antigua found its teeth and is willing to use them. This begs the question: Which nation will next exercise its teeth?

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Small Market Virtual World

In relation to this, you proposed over on VB the idea that a real country could incorporate its currency into a virtual world. It had not occurred to me until you suggested it, but idea has a lot of appeal to me, and on reflection, I'd be very surprised if we do *not* see that happen in the next, say, five years.

Perhaps...

That will probably depend on the malleability of third world democracies... which are notoriously not so...

It's not over...

Antigua Sun 16/1/08

An international expert on intellectual property, Jorgen Blomqvist, has
warned that Antigua and Barbuda will be in contravention of a major
international treaty if it moves ahead with plans to use the suspension of
intellectual property rights as a means of imposing trade sanctions on the
US.

Blomqvist is the director of the Copyright Law Division of the
Geneva-based World Intellectual Property Organization (WIPO), a
specialised agency of the United Nations. In an interview with the Antigua
Sun, Blomqvist said that as a signatory to the Berne Convention for the
Protection of Literary and Artistic Works, Antigua and Barbuda would be
obligated to protect most intellectual property rights, even if the World
Trade Organisation (WTO) rules otherwise.

A WTO arbitration panel has ruled that Antigua and Barbuda could apply to
recoup US$21 million per year in compensation through means including the
suspension of US intellectual property trade protections in Antigua and
Barbuda. This is governed at the WTO by the Agreement on Trade-Related
Aspects of Intellectual Property Rights, also known as the TRIPS
Agreement.

Blomqvist questioned the presumption that the WTO ruling would legitimise
the suspension of US intellectual property protections.

He pointed out that there are several treaties dealing with intellectual
property and that while a suspension of intellectual property protections
might be permitted in the WTO, Antigua and Barbuda and the US are both
parties to the Bern Convention, which he described as a well established
international convention.

“The TRIPS Agreement says that contracting parties shall comply with the
Bern Convention, with one exception, but the bulk of the economic
protection under the Bern Convention is referred to in the TRIPS
Agreement,” Blomqvist explained. “Since both parties are parties to the
Bern Convention, if they, under some other convention, start to not grant
protections to each other, then they will infringe the Bern Convention.”

Antigua and Barbuda signed on to the Bern Convention on 17 March 2000,
while the USbecame a party to the Convention in March 1989.

“The fact that under one treaty you can make such sanctions does not
relieve a country from responsibilities under other treaties,” Blomqvist
told the SUN. He noted, however, that the Bern Convention does not have
the dispute resolution system that exists in the TRIPS Agreement.

This means that the mechanisms for a country to react and seek sanctions
that exist at the WTO do not exist for a violation of the Bern Convention.

“If a country under the Bern Convention is dissatisfied with the way that
it is being protected, the reaction possibility it has is basically that
its local ambassador knocks on the door of the minister in charge,”
Blomqvist explained.

He made it clear that the Convention is, nevertheless, considered a legal
obligation on signatories, even if the means of enforcement are limited.

The argument that Antigua and Barbuda would be in violation of its Bern
Convention obligations if the country fulfils its threat to use
intellectual property rights as a vehicle for the Internet gambling trade
sanctions against the US was put to Minister of Finance and the Economy
Dr. Errol Cort this week.

Dr. Cort said that he did not accept this argument and that he intends to
address this issue fully today.

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