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WTO Rules on Internet Gambling Case
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?"
From Eye On Gambling http://www.eog.com/
Antigua and Barbuda today expressed its mixed reaction to the ruling of the arbitrators issued today in its long running dispute with the United States over Internet gambling. The panel agreed with Antigua that it had no effective trade sanctions against the United States in the area of services and authorised Antigua to suspend its obligations to the United States in respect of copyrights, trademarks and other forms of intellectual property rights. However, it went on to set Antigua's level of annual trade loss at US $21.0 million, much less than the US $3.4 billion Antigua had requested, although considerably more than the US $500,000 the United States had proposed.
In an unprecedented approach that is sure to arouse controversy, the arbitrators assessed Antigua's level of damages based upon a hypothetical form of compliance proposed by the United States rather than through the withdrawal of the overall prohibition on the provision of remote gaming services. This decision resulted in a rare, perhaps unprecedented disagreement among the arbitrators, with one of the three panellists dissenting from the approach adopted by the other two members.
Mark Mendel, the lawyer who has been spearheading this case for the Antiguan government since it began back in 2003 observed "I am pleased that the panel approved our ability to cross-retaliate by suspension of intellectual property rights of United States business interests. That has only been done once before and is, I believe, a very potent weapon." Mr Mendel expressed less satisfaction with the amount of damages assessed. "I find it astonishing that two of the three panellists would in essence grant the United States the benefit of a hypothetical method of compliance most favourable to the American side in assessing Antigua's level of trade impairment. What appears to have been done here is assuming a form of compliance that has not happened and probably will not happen without giving Antigua the ability to contest the method under the WTO's normal procedures," he added. Unlike other WTO rulings, awards of arbitrators are not subject to review by the Appellate Body of the WTO.
While questioning the low number, Mr Mendel remains positive about the dispute going forward. "US $21 million a year in intellectual property rights suspension going forward indefinitely is not such a bad asset to have. I hope that the United States government will now see the wisdom in reaching some accommodation with Antigua over this dispute and look forward to seeing efforts in this regard."
Or maybe 'conspiracy to violate copyright laws'. The US government also has tax laws in its arsenal.
It just depends on how bad they want to get you. If they want you bad enough, expect them to pull rabbits out of their hats and aces from their sleeves.
Doesn't the bill only block transfers to foreign online casinos?
Justice is the sheep getting arrested while an impartial judge declares the vote void.
No. It blocks transfers that will be used for "illegal online gambling", but it defers to current federal and state laws as to what is illegal. For instance, offering sports betting across state lines is illegal under the Wire Act, except some interstate horse racing betting is legal under a later law. Then there's a hodgepodge of state laws to contend with.
The federal government is involved because it deals with interstate commerce. And it does so in a way that can circumvent the different state's existing laws. Currently, gambling is handled state by state. But when you make it available in a state that banns it, you are violating that states laws accept you haven't entered that state to be punished. The Feds put a thing in the wire something laws making it illegal to do something like this. Later, they banned the transfer of funds to illegal gambling so that residents of Ohio couldn't go on line and gamble in Nevada. Now, you actually have to go where the gambling is legal if you want to gamble.
It sounds silly, but if there ever was something that interstate commerce clause was supposed to be used for, it would be this. Even if you don't agree with what the Feds are doing, this is exactly what their power to get involved was created for.