Plan solves – shores up WTO and Intellectual Property credibility

Heather A. Bloom, JD, the George Washington University Law School, S.C. J. Int’l L. & Bus., 2008-2009, 5, 75, “Upping the Ante: The Unlawful Internet Gambling Enforcement Act's Noncompliance with World Trade Organization Law”, Hein Online

The U.S. should comply with GATS and the Appellate Body's decision in the Antigua case for three reasons. First, compliance would help avoid future complaints from larger WTO member countries or the European Union."' For example, the European Union has already considered raising a prospective WTO claim regarding the new law. 72 Future complaints will most likely focus on whether the new UIGEA excludes pari-mutuel betting on horseracing and meets both prongs of the public morals exception.

Second, complying with GATS is important to avoid patent retaliation from member countries. Under WTO law, if the U.S. ignores a WTO finding or decision, member countries will have the option to disregard treaties requiring them to comply with U.S. patent laws. 73 For example, because the U.S. refused to follow the Compliance Panel's findings in the Antigua case, WTO arbitration panel gave Antigua the right to disregard U.S. copyrights on (e.g.,) videos, music, electronics, or software. 174 This type of retaliation will pose serious ramifications for the U.S. if larger WTO member countries bring internet gambling complaints. Moreover, member countries might also retaliate by refusing to allow U.S. companies to use certain geographical indications. 175

Third, the U.S. has "interests in supporting the legitimacy of the WTO."'176 Continuing to ignore its commitments under the WTO with respect to the new law will cost the U.S. "significant trade capital" and lead to trade sanctions or concessions. 177 If the U.S. ignores its WTO obligations, then other countries might ignore their WTO obligations toward the U.S. 178