USTR Issues Special 301 Internet & Physical Markets “Notorious List”

(Inclusion in the Notorious Markets List does not reflect a finding of a violation of law or the U.S. Government’s analysis of the general IPR protection and enforcement climate in the country concerned (which is contained in the annual Special 301 Report), however, the U.S. urges the responsible authorities to intensify efforts to combat piracy and counterfeiting in these and similar markets, and to use the information contained in the Notorious Markets List to pursue legal actions where appropriate.)

Internet Markets Identified for Pirated Music, Selling Infringing Products, Etc.

The review identifies several markets in which pirated or counterfeit goods are reportedly available and highlights some of the most prominent examples reported to USTR of notorious markets in each of several categories, such as pay-per-download, linking, B2B, etc. The markets listed include (partial list):

• Allofmp3 clones: While the Russia-based allofmp3 (formerly the world’s largest server-based pirate music website) was shut down in 2007, sites that are nearly identical, many of which appear to be owned by the same parties, have taken its place. These websites appear to be designed to confuse consumers by operating much like popular, legitimate sites.

• Taobao: Several commenters reported that pirated and counterfeit goods continue to be widely available on China-based Taobao. While stakeholders report that Taobao continues to make significant efforts to address the problem, they recognize that much remains to be done. Taobao was recently listed as one of the top 16 most visited sites in the world, and one of the top three most visited sites in China, according to rankings published at Alexa.com.

• ThePirateBay: Despite the criminal conviction of its founders, the Sweden-based ThePirateBay continues to facilitate the download of unauthorized content. ThePirateBay recently ranked among the top 100 websites in both global and U.S. traffic, according to Alexa.com.

• vKontakte: This Russian site, which permits users to provide access to allegedly infringing materials, recently ranked among the four most visited sites in Russia and among the 40 most visited sites in the world, according to Alexa.com.

Physical Markets Found in China, India, Thailand, Colombia, Mexico, Etc.

The review identifies 15 key notorious physical markets in Ecuador, China, Paraguay, Indonesia, Argentina, India, Ukraine, Philippines, Thailand, Colombia, Mexico, and Pakistan. Examples of the 15 key notorious physical markets identified in the Review include (partial list):

China: The China Small Commodities Market in Yiwu reportedly sells mostly consumer goods. Rights holders have reported that the market is a center for the wholesaling of infringing goods, and that it is the market of origin of many counterfeit goods that are available internationally; on the border between Shenzhen and Guangzhou provinces, and Hong Kong, the Lo Wu Commercial Center is market is reportedly home to dozens of markets offering counterfeit or pirated goods; right holders report that the Buynow PC Mall, a very large personal computer mall chain in China, operating 22 stores across the country, is known for selling computers with illegal operating system software and other unlawfully pre-installed software.

India: Nehru Place is reportedly one of the many markets in major cities throughout India that are known for dealing in large volumes of pirated software, pirated optical media containing movies and music, and counterfeit goods.

Thailand: Thai authorities have designated the Panthip Plaza, Klong Thom, Saphan Lek and Baan Mor shopping areas, among others, as targets for enforcement against piracy and counterfeiting.

Colombia: The San Andresitos marketplaces of varying sizes scattered throughout Colombia, including in Bogota and Cali, are notorious for unauthorized reproduction of music, video games and movies, and for the unauthorized distribution of pirated and counterfeit goods.

Mexico: Tepito is reportedly the main warehousing and distribution center for pirated and counterfeit products sold at numerous informal markets throughout Mexico. Despite

enforcement actions that resulted in significant seizures, illicit activity allegedly persists

in Tepito.

Positive Developments Since Issuance of Previous List in February 2011

According to the USTR, the December 2011 list also highlights positive developments since the issuance of the previous Notorious Markets List in February of 2011. For example, USTR applauds Chinese site Baidu, one of the world’s most visited sites and previously identified as an example of a site linking to infringing content, for entering into a licensing agreement with U.S. and other rights holders in the recording industry. In addition, Hong Kong customs officials took action to remove allegedly infringing goods from the premises of the Ladies Market in Hong Kong. Also, management at the Savelovskiy Market in Russia implemented a plan to stop the distribution of infringing goods.

¹The Notorious Markets List was previously included in the annual Special 301 Report, however, USTR has concluded that it can further expose and expand the notorious markets list to increase public awareness and guide related trade enforcement actions by initiating a separate, dedicated request for comments and publishing the list independently from the annual Special 301 Report.

USTR press release available here

Out-of-Cycle Review of Notorious Markets is available here.