(If it came to that, I doubt that Jack Valenti or Hilary Rosen would see the inside of a Victorian prison for very long. Diplomatic and economic pressure would probably get them out swiftly, and the Howard government would undoubtedly attempt to rush through laws legalising such activities, as long as it's for large, respectable corporations. And if Labor and what's left of the Democrats blocked the legislation and the courts stubbornly refused to drop such charges, US economic sanctions would probably persuade the uppity Australians to toe the line. Still, it's a nice idea.)
The comment that U.S economic sanctions would quickly change minds seems based on the premise that the U.S has the might, economic in this case but often suggested as being military, to compel the world. I do not believe it does.