Apparel, Software Associations Want Alibaba Included on 2012 Notorious Markets List
Trade associations and companies asked that Chinese business-to-business e-retail platform Alibaba be added to the U.S. Trade Representative’s Notorious Markets List, in comments on the USTR’s out of cycle special 301 review. “Entrepreneurial U.S. manufacturers, such as Harmony, are heavily affected by the distribution of counterfeit products via Alibaba and Aliexpress,” said Hand & Nail Harmony, a U.S. manufacturer of nail polish. Harmony, the American Apparel & Footwear Association (AAFA), and the Business Software Association (BSA) all included Alibaba on their lists.
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(On Aug. 14, USTR asked for submissions that identify potential notorious markets for inclusion on the list, which includes prominent examples of markets in which pirated or counterfeit goods were reportedly available. According to USTR, the Notorious Markets List does not reflect findings of violation of law, nor does it reflect a U.S. analysis of the general climate of protection and enforcement of intellectual property rights in the countries where the markets were located.)
“Young U.S. manufacturing firms like Harmony are forced to devote significant resources to fighting … world-wide counterfeiting operations; however, without market access through Alibaba and Aliexpress, counterfeiters would be less competitive and have fewer incentives to engage in infringing, and possibly illegal and dangerous, behavior,” said Harmony.
AAFA and the BSA also argued for the inclusion of Taobao, a Chinese consumer-to-consumer e-retailer owned by Alibaba that was identified on the 2011 Notorious Markets List. Both organizations said they have been in talks with Taobao, but counterfeit sales continue on the website. “The takedown process currently available to rights holders is not efficient or consistently applied, and therefore lacks any meaningful deterrence value,” said the BSA. “Moreover, Taobao and AliGroup should establish appropriate procedures for dealing with repeat offenders, assist right holders in initiating investigations and enforcement actions against sellers of counterfeit products, and direct its associated payment service Alipay to suspend or discontinue payment services whenever sellers are discovered offering counterfeit products on AliGroup websites.”
An Alibaba submission denied the allegations against Taobao, and requested that the site not be included in the 2012 Notorious Markets List. “Far from being a notorious market, Taobao has put in place broad-based measures and severe penalties designed to prevent the sale of infringing goods over its platforms,” Alibaba said. “Taobao has taken strong action to cleanse its site of such transactions, and is commit ed to a sustained, long-term, effective program for dealing with the problem.”
Comments on the USTR's out of cycle special 301 review are available here.