US Gambling Stance Endangers Copyright

The New York Times has a great story about how US attempts to stop its citizens from using online gambling in Antigua could result in that country getting permission from the World Trade Organization to infringe on US copyright and sell copies of American products. Essentially, Antigua took the US to the WTO court, complaining that we were selectively allowing online gambling. So far, the US has lost the original case and an appeal, but has been ignoring the ruling.

But not complying with the decision presents big problems of its own for Washington. That’s because Mr. Mendel, who is claiming $3.4 billion in damages on behalf of Antigua, has asked the trade organization to grant a rare form of compensation if the American government refuses to accept the ruling: permission for Antiguans to violate intellectual property laws by allowing them to distribute copies of American music, movie and software products, among others.

Wow. The WTO is stuck because it must follow its own rules. The US doesn't want to allow offshore gambling, but by protesting and ignoring the ruling, it opens doors for other countries, like China, to do the same. And if Antigua gets permission to go ahead, what can the US actually do to stop sales and the losses that businesses would feel? This is the hidden problem of talking about completely open markets - eventually you get caught by the law of unintended consequences. Most countries that talk about open markets are all for them - for others.