USTR Points to Physical Markets in China, Nigeria as Biggest Counterfeit Sellers
The Office of the U.S. Trade Representative unveiled its Special 301 Out-of-Cycle Review of Notorious Markets in 2014 (here) on March 5. USTR Michael Froman lauded the report as another example of the Obama administration's increasing efforts to crack down on counterfeiting and piracy globally (here). The review includes a list of online marketplaces and physical markets across the globe that peddle counterfeit and pirated goods.
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USTR pointed to physical markets in 11 total countries as hosts of significant counterfeiting and piracy. The agency singled out China as the country with the most physical markets of concern, including Jin Long Pan Foreign Trade Garment Market in Guangzhou and Silk Road in Beijing. USTR also noted a number of notorious physical markets in Nigeria. Listed websites include 4shared.com (British Virgin Islands), Baixeturbo.org (U.K.) and Bajui.com (Canada), among many others.
The review doesn’t analyze government action to protect intellectual property in the countries discussed. That assessment is reserved for the Special 301 Report, which will be released at the end of April, said USTR. But Froman still touted the benefits of exposing these commercial centers. “The theft we're shining a light on today is detrimental not only to creators and inventors, but also to consumers, who may be deceived and even endangered by Notorious Markets engaging in counterfeiting and piracy,” said Froman.
Mexico is the only country in Trans-Pacific Partnership negotiations to host a notorious physical market, according to the report, but USTR noted Canada and Vietnam as countries where notorious websites operate. Nonetheless, the U.S. is hoping to crack down on counterfeiting and piracy in those countries through a final TPP deal, said a USTR official on a March 5 conference call with reporters. “In the TPP we are seeing strong and balanced rules regarding copyright and trademarks, and particular with respect to enforcement,” said the official, who USTR insisted would remain on background. “The TPP will be a really important opportunity, given the prevalence of counterfeiting and piracy in Asia-Pacific region, to really set a new regional standard for the right rules to combat this really pervasive problem that the Notorious Markets highlights.”
USTR said the 2013 Out-of-Cycle review led marketplace owners to scale back the amount of fraudulent goods processed through those online or physical locations. But cracking down on some notorious markets often leads to growth in counterfeiting and piracy elsewhere on the globe, said the USTR official. The review isn't exhaustive, cautioned USTR.