The Saudi-backed takeover of Newcastle United has been placed in jeopardy by a report by the World Trade Organisation that found Saudi Arabia in breach of intellectual property rules by the broadcaster beoutQ, an Arabic language network. This followed a complaint by Qatar about piracy of Premier League matches.
Qatar argued that beoutQ was streaming content rightfully owned by its broadcaster beIN Sports that has paid billions of dollars for exclusive rights to major sporting events. In addition to piracy on social media, giant screens were used to allow viewing of 2018 World Cup matches.
The 125-page report is indigestible even for someone who knows something about international trade law, but the key passage is on p.90:
[The evidence] supports Qatar's assertions that: (a) beoutQ's piracy was promoted by prominent Saudi nationals, (b) beoutQ targets the Saudi market, (c) beoutQ's pirate broadcasts are transmitted via Arabsat satellite frequencies, and (d) beoutQ has received assistance from a Saudi content distributor in delivering its pirated broadcasts to Saudi consumers. Taking these conclusions together, and recalling the applicable standard of proof and evidentiary principles in WTO dispute settlement571, the Panel considers that Qatar has established a prima facie case that beoutQ is operated by individuals or entities subject to the criminal jurisdiction of Saudi Arabia.
Uefa commented, 'What is clear is that beoutQ's broadcasts constitute piracy of Uefa's matches and, as such, are illegal.' The Premier League declined to comment. However, it is open to question whether the Premier League can approve the takeover given that it has previously tried unsuccessfully to take legal action against the piracy in Saudi Arabia.
It is more than ten weeks since the Premier League instructed its lawyers to see if the takeover complies with its owners' and directors' test. This allows potential owners to be barred if they have committed an act in a foreign jurisdiction that would be considered a criminal offence in the UK, even if not illegal in their home territory.
Those involved in the takeover argue that the Saudi public investment fund people involved with it are not linked to the piracy, even if the fund is government-controlled. The Saudi Government insisted that it had been cleared of copyright piracy and the WTO had accepted its national security explanations.
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