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16 January 2018Trademarks

Streaming devices highlighted in USTR’s 2017 Notorious Markets list

Illicit streaming devices have been identified as a growing piracy concern in the US Trade Representative’s (USTR) 2017 Special 301 Out-of-Cycle Review of Notorious Markets.

The annual report highlighted 25 online markets and 18 physical markets which are reportedly facilitating copyright piracy and trademark counterfeiting.

In the report, the USTR called on e-commerce platforms to improve their takedown procedures and to co-operate with rights holders to decrease the prevalence of pirated content on the platforms.

Alibaba’s online marketplace, Taobao.com, remains on the notorious markets list. According to the report, the marketplace has continued to sell a high volume of infringing products.

The report noted that despite Alibaba’s efforts to address counterfeiting, in 2017 more small and medium-sized enterprises requested support from the US regarding the site than any other e-commerce platform.

In terms of physical markets, China was again identified as the primary source of counterfeit products.

Argentina was also listed, with the caveat that the country had conducted “significant enforcement actions” in 2017. Canada and India were also included on the list.

Paraguay has now been named in the report for over 15 years, while Turkey’s Grand Bazaar, one of the most famous markets in the world, is specified as a particular problem area despite police raids during 2017.

The report noted that following the inclusion of Sharebeast on the 2016 Notorious Markets list, the operator of the music piracy service was convicted of the illegal distribution of copyrighted music.

Other successes noted in the report include Co ceasing to operate, having , and content streaming site Putlocker being shut down.

After four years of being featured in the report, content sharing site Extratorrent was taken down by its operators.

Michael Evans, president of Alibaba Group, issued a statement in response to the list. He alleges that Alibaba has been "turned into a scapegoat by the USTR to win points in a highly-politicised environment". Evans claims that the list, which only targets non-US marketplaces, is not about IP protection but rather a means of achieving US geopolitical objectives.

Evans adds, "we will continue to strengthen our IP protection system with world leading technology and a collaborative approach with brands and other stakeholders.  Our efforts and results speak for themselves: over 100,000 brands, including 75% of the world’s most valuable consumer brands, do business on our platform".

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