Washington, D.C. – The Council for Citizens Against Government Waste (CCAGW) today responded to a World Trade Organization (WTO) panel ruling on a dispute between the United States and the European Union (EU) involving Section 211, a provision of U.S. trademark law, by arguing that it demonstrates the need to repeal that provision.<\p>

“This ruling confirms the EU’s claim that Section 211 of the Omnibus Appropriations Act of 1998 is in violation of the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights because it denies trademark holders access to the U.S. court system,<\p>

” CCAGW President Thomas A. Schatz said. In late 1998, Congress passed Section 211, choosing sides in a trademark dispute between two companies ¾ neither of them American ¾ and masked this special interest law in the guise of punishing the regime of Fidel Castro.  The law prohibits U.S. courts from enforcing rights to certain Cuban-origin trademarks, namely the U.S. trademark for “Havana Club” rum.   

“Section 211 threw away two centuries of constitutional respect for intellectual property.  It’s outrageous for Congress to allow the law to exist any longer,” Schatz said.  “Timely action on repeal would not only help to avoid the inevitable imposition of trade penalties that will be costly to U.S. businesses, American taxpayers, and consumers, but also would help restore U.S. credibility in the trade negotiating arena.

Results from a recent public opinion survey conducted by Ipsos-Reid indicate that 57 percent of Americans oppose Section 211; 79 percent believe it is important that U.S. policies on intellectual property abide by WTO rules.  Moreover, 2 in 3 Americans (68 percent) have at least some concern that, by enacting Section 211, the U.S. is blocking protection of the “Havana Club” rum trademark in the U.S. while at the same time demanding trademark protection for U.S. companies worldwide.

“In the face of the WTO’s ruling and the trade sanctions that must follow, the longer Section 211 remains on the books, the more it will cost American taxpayers, who were never asked if they wanted to start a trade war in order to make a foreign company happy.  It is time for lawmakers in Washington to stop this tax increase by any other name in its tracks, and repeal Section 211,” concluded Schatz.

CCAGW is the lobbying arm of Citizens Against Government Waste, the nation’s largest taxpayer advocacy group with over one million members and supporters nationwide.  It is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.