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Following news reports that a music download company had claimed to be legally operating out of Antigua with the consent of that island nation, the Antiguan Government responded firmly that this is simply not the case.
The Government issued the following statement:
"It has come to the attention of the Government of Antigua and Barbuda that there is a web site named Zookz.com that offers unlimited entertainment downloads for a fixed monthly fee. The company claims it is operating from Antigua and therefore it is permitted to offer downloads under the auspices of a 2007 World Trade Organization ruling in the remote gaming case brought by Antigua against the US. The company's claims to be "authorized" by Antiguan government approval or under the WTO case are without merit.
"This press release is written to clarify the situation from the point of view of the
Government of Antigua and Barbuda. The Zookz.com web site is not operating
under the authority or with the knowledge of the Government of Antigua and
Barbuda. More specifically, 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.
"Minister of Finance Harold Lovell stated, "The operators of Zookz.com have not
played any role in the Antiguan gaming industry or in our country's case pending
before the WTO. Only the Government of Antigua and Barbuda has the right to
implement and oversee the intellectual property sanctions it was awarded by the
WTO. As of this time, the Government of Antigua and Barbuda has not
authorized any person or entity to implement sanctions. While we may in the
future consider exercising the right to impose sanctions, as of this moment, I am
instead looking forward to meeting with the United States Government in the
near future and focusing on a mutually beneficial resolution of the issues raised
by the remote gambling case."
"Under the US-Gambling case before the WTO, Antigua retains its right to
implement intellectual property sanctions against the US if the remote gambling
matter can not be brought to a negotiated solution. If and when the Government
of Antigua and Barbuda invokes sanctions it will follow WTO protocol.
"The Zookz.com matter has been referred to the Antiguan Ministry of Legal Affairs for a full investigation."
Antigua was one of the first nations to legalize, license and regulate online gaming. Some countries, most notably the United States, argue that because the gaming transaction is initiated in their jurisdictions that the act of online wagering is illegal. This argument has been repudiated by the World Trade Organization.
The WTO found that the Unlawful Internet Gaming Enforcement Act (UIGEA) passed in October of 2006 was a prima facie violation of the GATS treaty obligations enforced by the WTO, resulting in a series of rulings unfavourable to the US.
A rider to the arbitration ruling affirmed the right of Antigua to take retaliatory steps in view of the prior failure of the US to comply with GATS. These included the rare, but not unprecedented, right to disregard intellectual property obligations to the US.
Jagajeet Chiba, Gambling911.com
