Antigua is seeking permission to run a website that sells music, movies and software - but ignores copyright law.
It sought permission to sell movies, music, games and software via a store that would be able to ignore global agreements on copyright and trademark controls. It wanted to be able to sell up to $3.4bn (£2.15bn) of those goods before having to make copyright payments.
The WTO rejected that figure, but said Antigua could sell $21m (£13.2m) annually via the store before it had to consider paying copyright fees. The US is believed to have offered to pay Antigua $500,000 annually as compensation for the lost revenue.