By Andrew Thornebrooke
January 31, 2023 Updated: February 1, 2023
Communist China leads the world in the creation
of counterfeit and pirated goods, according
to a new report by the Office of the United States Trade Representative (USTR).
Some 75 percent of the
value of all counterfeit and pirated goods seized by U.S. customs in 2021
originated in China, according to the USTR’s “2022 Review of Notorious Markets
for Counterfeiting and Piracy,” (pdf) which was released
on Jan. 31.
“The widespread trade in
counterfeit and pirated goods harms the economic security of American workers
and undermines our work to craft equitable and inclusive trade policy,” U.S.
Trade Representative Katherine Tai said in an
associated statement.
“The Notorious Markets
List is an important tool that urges the private sector and our trading
partners to take action against these harmful practices.”
The report identified 39
online markets and 33 physical markets that reportedly engage in or facilitate
substantial trademark counterfeiting or copyright piracy.
Notably, the report found
that WeChat, China’s most popular social media app, provided an e-commerce ecosystem
that facilitated the distribution and sale of counterfeit products to users
throughout the world.
“WeChat, together with
its China-facing ‘sister app’ Weixin, continues to be regarded by right holders
as one of the largest platforms for counterfeit goods in China,” the report
said.
Likewise, the report
said, WeChat parent company Tencent had failed to implement corrective measures
to prevent the illicit trade.
“Tencent’s efforts to
combat counterfeiting with respect to the WeChat e-commerce ecosystem have been
inadequate,” the report said.
“Many counterfeit sellers
face only brief suspensions, and sellers with terminated accounts can
re-register for new accounts with ease.”
The report also asserts
that WeChat has failed to meaningfully cooperate with trademark and copyright
holders on litigation, and that the company has given “less cooperation” than
other companies who adhere to the same privacy and data laws.
The United States is not
alone in its struggle with the flood of illicit goods from communist China.
A report published in
March 2022 found that China
was the largest source of counterfeit and pirated goods to the European Union
(EU) as well.
That report described
China, Russia, and Turkey as highly active in the provision of counterfeit
tobacco and car parts to the EU. In one case, the report noted, Belgian customs
officials confiscated a record 126 million counterfeit cigarettes in and around
Antwerp, all of which originated from Asia.
USTR first identified
notorious markets in 2006 and has published the annual Notorious Markets List
since 2011 to increase public awareness and help market operators and
governments prioritize intellectual property enforcement efforts that protect
American businesses and their workers.
Reuters contributed to this report.
Correction: A previous version of this article gave an incorrect
year for when 75 percent of the value of all counterfeit and pirated goods
seized by U.S. Customs and Border Protection originated in China. The Epoch
Times regrets the error.
USTR Releases 2022
Review of Notorious Markets for Counterfeiting and Piracy
January 31, 2023
WASHINGTON - The
Office of the United States Trade Representative (USTR) today released the
findings of its 2022 Review of Notorious Markets for Counterfeiting and Piracy
(the Notorious Markets List). The Notorious Markets List highlights
online and physical markets that reportedly engage in or facilitate substantial
trademark counterfeiting or copyright piracy.
“The widespread trade in counterfeit and pirated goods harms the economic
security of American workers and undermines our work to craft equitable and
inclusive trade policy,” said Ambassador Katherine Tai.
“The Notorious Markets List is an important tool that urges the private sector
and our trading partners to take action against these harmful practices.”
Reflecting the Biden-Harris Administration’s worker-centered trade policy, the
2022 Notorious Markets List’s issue focus section examines the impact of online
piracy on U.S. workers. The section describes how online piracy can
impact the wages, residuals, pensions, and health care benefits that workers in
the creative industries depend on and how combatting online piracy requires
coordination between relevant actors in order to effectively address the
rapidly shifting delivery methods of infringing content.
The 2022 Notorious Markets List also identifies 39 online markets and 33
physical markets that are reported to engage in or facilitate substantial
trademark counterfeiting or copyright piracy. This includes continuing to
identify the WeChat e-commerce ecosystem as one of the largest platforms for
counterfeit goods in China. Other listed markets in China include online
markets Aliexpress, Baidu Wangpan, DHGate, Pinduoduo, and Taobao, as well as seven
physical markets located within China that increasingly use brick-and-mortar
storefronts to support online sales of counterfeits.
Background
USTR first identified notorious markets in the Special 301 Report in
2006. Since February 2011, USTR has published annually the Notorious
Markets List separately from the Special 301 Report, to increase public
awareness and help market operators and governments prioritize intellectual
property enforcement efforts that protect American businesses and their workers.
The Notorious Markets List does not constitute an exhaustive list of all
markets reported to deal in or facilitate commercial-scale copyright piracy or
trademark counterfeiting, nor does it reflect findings of legal violations or
the U.S. Government’s analysis of the general intellectual property protection
and enforcement climate in the country concerned. Such analysis is
contained in the annual Special 301 Report issued at the end of April each
year.
USTR initiated the 2022 Notorious Markets List Review on August 26, 2022,
through publication in the Federal Register of a request for
public comments. The request for comments and the public’s responses are
online at www.regulations.gov, Docket number
USTR-2022-0010.
The complete 2022 Notorious Markets List can be found here.
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2023/january/ustr-releases-2022-review-notorious-markets-counterfeiting-and-piracy
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