The World Trade Organization in Geneva has told the European Union to lift its tariffs on flat-panel displays, multi-function scan-fax-copy printers and TV set-top boxes that deliver the Internet. They violate the WTO's 1996 Information Technology Agreement (ITA).

The EU continues to resist, claiming they're merely gussied-up consumer goods, not an innovation tax on truly high-tech goods. It has 60 days to appeal.

The EU imports upwards of $11 billion worth of the stuff and charges a 6%-14% tariff to the consternation of Taiwan, Japan and American companies like HP and Dell. The three countries filed a case against the EU two years ago.

The Wall Street Journal says if the EU doesn't lift the tariffs, the U.S., Taiwan and Japan can retaliate with tariffs on European-made goods like cheese up to the value of the tariffs that the WTO has declared illegal.