Morality or Protectionism? The U.S.-Antigua Internet Gambling Dispute in the WTO

When Jay Cohen started his online casino business in the twin-island Caribbean nation of Antigua and Barbuda (hereafter referred to as Antigua), he was excited by the prospects for his new entrepreneurial venture. At the time, Cohen, a U.S. citizen, did not plan to set in motion forces that would ultimately lead to a decades-long trade war between the U.S. and Antigua, resulting in the first e-commerce trade dispute ever to come before the World Trade Organization (WTO). And even seasoned observers were surprised by the scope of the WTO’s ruling against the U.S. in 2013. In this ruling, the WTO, seeking to compel the U.S. to comply with its previous rulings in favor of Antigua, authorized the Caribbean nation to revoke intellectual property rights (IPR) for U.S. firms in important sectors, including software, music, and Hollywood movies. If Antigua implemented such a retaliatory measure, this action would establish a precedent that, if followed widely by other nations, could jeopardize the entire U.S. economy.