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10 December 2018Copyright

EU publishes first counterfeit and piracy watch list

The EU has published its first “watch list” of websites and physical marketplaces that reportedly engage in the creation and distribution of counterfeit goods and pirated content.

Published by the European Commission on Friday, December 7, the new “Counterfeit and Piracy Watch List” encourages non-EU authorities and the operators of marketplaces to crack down on IP abuse. The report also aims to make citizens aware of the environmental and safety risks of purchasing counterfeit goods.

It focused on four different areas including websites providing copyright-protected content, e-commerce platforms, online pharmacies and physical marketplaces.

The Watch List named China as one of the biggest suppliers of counterfeit goods. The Huaqiangbei Electronics Markets in Shenzhen and the Asia Pacific Xingyang Fashion and Gifts Plaza and Asia Pacific Shenghui Leisure and Shopping Plaza in Shenghai were included in the report.

BitTorrent websites, which can provide peer-to-peer file distribution technology for users to share pirated content, are named as one of the most popular sources of IP infringement online. The report stated that between April 2017 and March 2018, ThePirateBay.org had 3.1 billion visits.

According to the music industry, stream-ripping websites, which allow users to illegally convert and download audio content from online streaming platforms, are the most prominent from of piracy globally.

Piracy apps such as “Popcorn Time” which, once downloaded, give users access to a library of films and television programmes, are also included in the report.

The Watch List highlighted e-commerce platforms as distributors of counterfeit goods. One alleged offender is Bukalapak, the most popular e-commerce platform in Indonesia, selling counterfeit electronics, clothing, accessories, books, mobile phones and even car parts.

It is reported that the majority of Bukalapak’s goods come from China. According to the Commission, in 2017, the luxury industry estimated that the website had 26,000 listings of counterfeit goods.

A chapter of the document is dedicated to illicit online pharmacies selling fake medicines. The EU said these are a health risk to citizens because there are “invariably scant quality controls or certification protocols in place during manufacture”. The report claimed that only 4% of online pharmacies operate lawfully.

China and India are alleged to be the worst countries for sales of counterfeit goods in physical marketplaces. The remaining countries in this section are Canada, Indonesia, Korea, Malaysia, Mexico, Russia, Thailand, Turkey, Ukraine, United Arab Emirates (UAE) and Vietnam.

According to stakeholders, counterfeiters use free trade zones in the UAE to manufacture and store counterfeit goods.

Commissioner for trade Cecilia Malmström said the counterfeits almost always represent some form of risk to consumer welfare and harm creative industries.

Malmström said: “Intellectual property infringements are a scourge on the European economy, decreasing investment and government revenues, and killing jobs in our creative and innovative industries.

“They also pose a significant risk to our citizens, who often simply do not know whether what they are buying is safe or not. Furthermore, the link between counterfeiting and organised crime poses a major threat to our society.”

According to the European Union Intellectual Property Office, trade in counterfeit and pirated products amounts annually to around €338 billion ($385.8 billion) worldwide.

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