Antigua seeks different sort of payout in gambling dispute with United States

Miami Herald – If tiny Antigua and Barbuda gets its way, distributors of works by Beyoncé, Steven Spielberg and other American artists could get shortchanged in the eastern Caribbean islands.

Frustrated by the inability to collect billions on its World Trade Organization victory against the U.S. over Internet casinos, Antigua is seeking to cash in its winnings another way — by directing payments for American intellectual property, such as music and film, to the government. Antigua estimates the damage to its economy at $3.4 billion.

“We are tired of talking,” said Attorney General Justin Simon, who last month formed a committee to start working on a plan to collect the royalties.

Antigua, which took the U.S. to the WTO and won, first earned the right to retaliate six years ago. The latest WTO ruling came after the U.S. failed to honor its previous ruling that online gambling restrictions were illegal — and that Antigua could impose sanctions. The country then asked for the right to go after trademarks, copyrights and other intellectual property rights.

The government plans to collect up to $21 million annually in royalties retroactive to 2006, money that normally goes to American music and film distributors. It’s unclear whether the government would return any of the money it collects to distributors.

The request has ignited the ire of U.S. trade officials — who warn that Antigua’s proposal could damage its reputation — and film industry executives, who worry it could hurt future sales and open up a “Pandora’s box” to piracy in other countries.

“Antiguan officials understand that retaliation against U.S. intellectual property rights, such as copyrights, would not be constructive,” said Brian Quinn, a spokesman with the Office of the United States Trade Representative. “It would damage Antigua’s climate for investment and innovation, and would not promote settlement.”