The island of Antigua may decide to disregard US copyright laws and become a haven for illegal downloads after a crack down by the US on internet gambling based in the Caribbean country.
The World Trade Organisation has ruled that America's ban on off-shore online gambling is illegal, but the US government refuses to back down.
Under WTO rules, if one country has failed to uphold its obligations to another country, as Antigua feels the US has in the face of the WTO ruling, that country can choose to ignore its own obligations in response.
"The American defence was predicated on its theory that internet gambling was worse than gambling in bricks and mortar shops," said Mark Mendel, chief legal counsel for Antigua.
"If they believed that, they would eliminate all remote gambling in America. They have not done that. It is just blatant trade protectionism."
However, the US responded to the March ruling at the beginning of May by claiming that it could exclude gambling and betting from the initial agreement, thereby settling the matter in its favour.
"Antigua argued that this was not a suitable tactic in dispute resolution," said a WTO statement. "Antigua encouraged other WTO members to press claims for compensation to make the process as difficult as possible for the US."
It is estimated that Antigua's gambling-based economy has been reduced by 85 per cent since the US took action.
