Los Angeles - The government of Antigua is threatening to legalize piracy of U.S. music and movies -- with World Trade Organization approval -- should the U.S. fail to end a running dispute over the legality of Internet gambling, Variety reports.

Washington - The European Union has accepted a compensation package the U.S. has offered, in response to its withdrawal from World Trade Organization (WTO) agreements on gambling and betting services. "A bilateral agreement was signed in Geneva, which provides EU service suppliers with new trade opportunities in the U.S. postal and courier, research and development, storage and warehouse sectors," the Commission said. "The U.S. also made concessions in the testing and analysis services sector."

Washington - In a letter to the U.S. Trade Representative sent on Monday, six lawmakers -- including House Financial Services Committee Chairman Barney Frank, and House Judiciary Committee Chairman John Conyers -- said the U.S. should consider altering its ban on Internet gambling instead of paying compensation to countries who say the U.S. is violating trade agreements, Reuters reported.

Washington - A World Trade Organization (WTO) panel has dealt the U.S. a setback in a case that sets U.S. interests in prohibiting Internet gambling against the financial interests of the island nation of Antigua and Barbuda, where many Web gambling firms have operations, Reuters reported.