US Copyright Issues for Antiguan Company

July 22, 2009 | News Category: Gaming Law

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ZookZ, an Antiguan company, which offers their members movie downloads and music for a monthly membership fee, decided that they did not need to honor US copyrights, based on a decision made by the World Trade Organization (WTO).

When Antigua took their case concerning online gambling against the United States to the World Trade Organization, no-one thought that an online company that has nothing to do with online gambling would make use of the decision the WTO had made.

The WTO awarded Antigua damages from the US to the amount of $21 million annually, in order to make up for the island nation's loss of revenue when the US prevented Antiguan-based online gambling sites from operating in the United States. With the introduction of the UIGEA (Unlawful Internet Gambling Enforcement Act) in the United States, online gambling operators based in Antigua lost much revenue, which was a substantial hit to the small nation's economy.

When Antigua took the case to the WTO claiming that the US had violated their free trade rights, the WTO's ruling awarded Antigua the annual $21 million, which was to be paid in suspended obligations towards patents, copyrights and trademarks. Antigua and the United States are still involved in negotiations to come to a final settlement and agreement.

ZookZ, a company that employs ten Antiguan employees, and operates from St. John's in Antigua, decided to use the WTO decision without the backing of the Antiguan government.

Harold Lovell, an Antiguan minister explained that ZookZ has no connection to the Antiguan online gambling business, and that they have not in any way suffered in connection with the imposition of the UIGEA. He condemned their actions and said that any actions done in the implementation of the WTO's ruling should be done through the Antiguan government, and not by individual parties.

ZookZ disagree and claim that no government authorization is needed in this case. The WTO's decision was made on behalf of companies that are trading from Antigua, and did not mention that the company needs to be connected to online gambling.

Robert Blumenthal, Antigua's legal representative, told the L.A. Times that "ZookZ.com is not authorized by the government of Antigua and Barbuda, or by the World Trade Organization, to offer entertainment downloads in contravention of international law."

The Antiguan government, while reserving their rights to implement the sanctions against the United States that were awarded to them by the WTO, has simply decided to distance themselves from the decisions made by ZookZ.com.