Antigua vs the US - WTO ruling on block of online gambling

James Kanter and Gary Rivlin report on the International Herald Tribune on the repercussions of the US's blocking Antigua's online gaming operators:

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

The award comes after a WTO decision that Washington had wrongly blocked online gaming operators on the island from the American market at the same time it permitted online wagering on horse racing....

...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 them to distribute copies of American music, movie and software products, among other items.

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

Though Antigua is best known for its pristine beaches and tourist attractions, the dozens of online casinos now based there are vital to the island's economy, serving as its second-largest employer.

By pressing its claim, trade lawyers said, Antigua could set a precedent for other countries to sue the United States for unfair trade practices, potentially opening the door to electronic piracy and other dubious practices around the world....

...A WTO panel first ruled against the United States in 2004, and its appellate body upheld that decision one year later. In April 2005, the trade body gave the United States one year to comply with its ruling, but that deadline passed with little more than a statement from Washington that it had reviewed its laws and decided it has been in compliance all along....