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Antiguan Online Gambling Issue Affects US Copyrights

An Antiguan company selling downloadable entertainment refuses to recognize US copyrights, saying WTO rulings on the dispute over online gambling allows them to pay no royalties.

With the US damages to Antigua for trade violations concerning the blocking of online gambling sites still to be resolved, at least one Antiguan company has acted to redress the situation. Zookz, a company that offers music and movie downloads for a monthly membership fee, says it doesn't need to honor US copyrights due to a WTO decision.

The World Trade Organization did find that the US has infringed on the free trade rights of Antigua by not permitting Internet gambling sites from the island to operate in the US. The WTO awarded Antigua $21 million annually, to be paid in suspended obligations toward trademarks, patents, and copyrights.

However, it appears Zookz jumped the gun, and is declaring this policy without government backing. The Antiguan government has been involved in lengthy and slow-moving negotiations with US trade officials, and wants to find an amicable resolution to the dispute.

"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," Antigua legal representative Robert Blumenthal told the L.A. Times.

But attorneys for Zookz have responded that the WTO action is granted to companies trading from Antigua, of which it is one. They say Zookz will proceed, as no government authorization is necessary.

Zookz is registered and operated out of St. John's, Antigua, and employs ten workers, all Antiguan.

Published on July 19, 2009 by EdBradley

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