The Office of the United States Trade Representative (USTR) has released its annual Special 301 Out-of-Cycle Review of Notorious Markets report. The 2016 review calls attention to online and physical marketplaces around the world that reportedly engage in or facilitate significant copyright infringement and trademark counterfeiting.
USTR Michael Froman emphasized the problem of piracy and counterfeiting in online markets, saying that governments need to address these issues throughout the supply chain to protect consumers from unsafe products.
The list is meant to highlight markets where these activities are reportedly occurring. However, it is not an official legal determination of violations or a general assessment of intellectual property rights protection within any particular country or economy.
This year’s list focuses on new forms of infringement, such as stream-ripping sites and piracy apps. Stream ripping involves unauthorized copying of content from licensed streaming platforms for distribution. The report cites research indicating almost 30% of internet users obtain music through stream ripping. This activity is significant as digital music revenue, driven heavily by streaming which saw over 45% growth, overtook physical sales for the first time in 2015. The report lists YouTube-MP3 as a prime example of a popular stream-ripping site. Furthermore, it notes that sites like Putlocker are replacing torrents as a major source of pirated movies and television programs.
Additionally, the report highlights the increasing use of small parcel shipments to distribute counterfeit products sold through e-commerce platforms.
The US encourages a strong response from authorities to combat these activities, suggesting the Notorious Markets List can guide legal actions.
Several digital marketplaces based in or popular within the Asia Pacific and Middle East regions are included in the list:
Beevideo.tv: A Chinese application allowing users to stream allegedly infringing movies and television shows on various devices. With over 12 million downloads, the application is accessible via their website portal, BeeVideo.tv.
ExtraTorrent: This Ukrainian website, known to distribute malware, ranks highly on Alexa in India, Pakistan, and China demonstrating its popularity in these countries.
Gongchang.com: This Chinese platform caters to industrial products and services for manufacturers and retailers. It is known for selling counterfeit goods, including security tags used by retailers to prevent shoplifting. The report notes that these counterfeit tags mislead consumers into believing the products are genuine or secure, while facilitating shoplifting. The sale of these counterfeit tags within the business-to-business context demonstrates how large quantities of fake products infiltrate the global supply chain.
MP3va.com: Based in Russia and Ukraine, this site has gained popularity in India. It mimics a legitimate music download service and claims to be legal while selling tracks at suspiciously low prices.
Muaban.net: This Vietnamese e-commerce site offers legitimate goods alongside counterfeit clothing and footwear. It attracts over 3 million monthly page views.
MyEgy.to: One of the largest platforms in the Middle East offering pirated video games and other copyrighted material. Stakeholders report that hundreds of new links to infringing video game files are added daily and takedown requests to the operator go unanswered. This Arabic-language platform, hosted in Russia and developed in Egypt, offers content in both Arabic and English.
Nanjing Imperiosus Technology Company: Based in China, this company is known to primarily serve illegal online pharmaceutical businesses.
Putlocker: This platform, believed to be operated from Vietnam, is one of the most popular streaming sites in the Asia-Pacific region, known for offering pirated movies and TV shows. The operator actively attempts to circumvent enforcement efforts.
Taobao: Owned by Alibaba Group, Taobao.com is a popular e-commerce platform, ranking among the top 15 websites globally and top 5 in China. Despite efforts to combat the issue, a significant quantity of counterfeit and pirated products remain available on the platform. Rights holders reportedly face challenges in removing and preventing the sale of such items. The report acknowledges Alibaba’s efforts to curb piracy through their Good Faith Program for IPR enforcement, but notes a significant discrepancy in the response time and effectiveness for complaints filed within and outside the program. While recent actions suggest positive changes, the current level of reported counterfeiting and piracy remains unacceptably high. Alibaba Group President Michael Evans expressed disappointment in the USTR’s decision, stating that Alibaba has made significant progress in IPR protection since being removed from the list four years ago. He highlighted the trust over 100,000 brands placed in Alibaba by operating on their platforms, questioning whether the USTR’s decision was fact-based or politically motivated.
The Pirate Bay: As one of the oldest and most well-known torrent sites, The Pirate Bay provides access to illegal downloads of various copyrighted content, including movies, TV shows, music, and more. Currently, it operates from Vietnam to evade enforcement.
Youtube-MP3.org: This stream-ripping platform boasts 4.8 billion visits in the past year and holds an Alexa ranking of 111 in Turkey. It reportedly accounts for approximately 40% of global stream-ripping activity and is facing legal action.
The report also identifies several physical marketplaces known for counterfeit goods:
China: The report lists several locations in China, including the Baiyun Leather Goods Market and shops within the Jin Long Pan Foreign Trade Garment Market, both located in Guangzhou. Chenghai District in Guangdong Province is identified as a counterfeiting hub, along with Wu Ai Market in Shenyang, Liaoning Province. In Beijing, the Cheng Huan Cheng International Auto Parts Market and Silk Market are listed as counterfeit hotspots.
Southeast Asia: The report identified Harco Glodok and Mangga Dua, two prominent markets in Jakarta, Indonesia, along with Ninh Hiep in Hanoi, Vietnam, as alleged marketplaces for counterfeit products. MBK Center in Bangkok, Thailand and Rong Kluea near the Cambodian border are highlighted as the largest wholesale and retail centers for counterfeit goods in Thailand.
India: Gandhi Nagar in Delhi is recognized for counterfeit apparel, while Burma Bazaar in Chennai is known for a variety of counterfeit goods and pirated media discs. Kashmere Gate, also in Delhi, is listed as a marketplace for counterfeit auto parts.
The full Special 301 Out-of-Cycle Review of Notorious Markets report for 2016 is available for further reading.
You can also read more about Michael Evans’ response to the report.