2020 Review of Notorious Markets for Counterfeiting and Piracy

2020 Review of

Notorious Markets for

Counterfeiting and Piracy

 
  
 
 
Table of Contents 
 
Overview of the Results of the 2020 Review of Notorious Markets for Counterfeiting and Piracy ... 1 
Issue Focus:  e-Commerce and the Role of Internet Platforms in Facilitating the Importation of 
Counterfeit and Pirated Goods into the United States ...................................................................... 3 
Positive Developments Since the 2019 Out-of-Cycle Review of Notorious Markets ....................... 10 
Results of the 2020 Review of Notorious Markets ............................................................................. 14 
Online Markets ............................................................................................................................... 15 
1337x ......................................................................................................................................................................... 16 
1FICHIER ................................................................................................................................................................... 17 
AMAZON’S FOREIGN DOMAINS ................................................................................................................................. 17 
BAIDU WANGPAN ...................................................................................................................................................... 18 
BESTBUYIPTV ............................................................................................................................................................ 19 
BLUEANGELHOST ..................................................................................................................................................... 19 
BUKALAPAK............................................................................................................................................................... 19 
CHALOOS .................................................................................................................................................................. 20 
CHOMIKUJ ................................................................................................................................................................ 20 
DHGATE ..................................................................................................................................................................... 21 
DYTT8 ........................................................................................................................................................................ 21 
FLOKINET .................................................................................................................................................................. 21 
FLVTO ........................................................................................................................................................................ 22 
FMOVIES .................................................................................................................................................................... 22 
HARAJ ........................................................................................................................................................................ 22 
MERCADO LIBRE ....................................................................................................................................................... 23 
MP3JUICES ................................................................................................................................................................ 23 
MPGH ........................................................................................................................................................................ 23 
NEWALBUMRELEASES .............................................................................................................................................. 24 
PELISPLUS ................................................................................................................................................................ 24 
PHIMMOI ................................................................................................................................................................... 24 
PINDUODUO.............................................................................................................................................................. 25 
POPCORNTIME .......................................................................................................................................................... 26 
PRIVATE LAYER .......................................................................................................................................................... 26 
RAPIDGATOR ............................................................................................................................................................. 27 

 
  
 
RARBG ....................................................................................................................................................................... 27 
REVENUEHITS ........................................................................................................................................................... 28 
RUTRACKER .............................................................................................................................................................. 29 
SCI-HUB..................................................................................................................................................................... 29 
SEASONVAR............................................................................................................................................................... 30 
SHABAKATY ............................................................................................................................................................... 30 
SHOPEE ..................................................................................................................................................................... 30 
SNAPDEAL ................................................................................................................................................................. 31 
TAOBAO ..................................................................................................................................................................... 31 
THEPIRATEBAY .......................................................................................................................................................... 31 
TOKOPEDIA ............................................................................................................................................................... 32 
UPLOADED ................................................................................................................................................................ 32 
VK .............................................................................................................................................................................. 33 
WEIDIAN .................................................................................................................................................................... 33 
Physical Markets ............................................................................................................................ 35 
ARGENTINA ............................................................................................................................................................... 36 
BRAZIL ....................................................................................................................................................................... 36 
CAMBODIA ................................................................................................................................................................. 37 
CHINA ........................................................................................................................................................................ 37 
ECUADOR .................................................................................................................................................................. 41 
INDIA ......................................................................................................................................................................... 41 
INDONESIA ................................................................................................................................................................ 42 
MALAYSIA .................................................................................................................................................................. 42 
MEXICO ...................................................................................................................................................................... 42 
PARAGUAY ................................................................................................................................................................. 43 
PERU.......................................................................................................................................................................... 44 
PHILIPPINES.............................................................................................................................................................. 44 
RUSSIA ...................................................................................................................................................................... 45 
TURKEY ..................................................................................................................................................................... 46 
UKRAINE .................................................................................................................................................................... 46 
UNITED ARAB EMIRATES ........................................................................................................................................... 46 
VIETNAM .................................................................................................................................................................... 47 
Public Information ............................................................................................................................. 48 

Overview of the Results of the

2020 Review of Notorious Markets for Counterfeiting and Piracy

Commercial-scale copyright piracy and trademark counterfeiting

cause significant

financial losses for U.S. right holders and legitimate businesses, undermine critical U.S.

comparative advantages in innovation and creativity to the detriment of American workers, and

pose significant risks to consumer health and safety. The 2020 Review of Notorious Markets for

Counterfeiting and Piracy (Notorious Markets List, or NML) highlights prominent and illustrative

examples of online and physical markets that reportedly engage in or facilitate substantial piracy

or counterfeiting. A goal of the NML is to motivate appropriate action by the private sector and

governments to reduce piracy and counterfeiting.

The NML includes an Issue Focus section. For 2020, the Issue Focus examines the use of e-

commerce platforms and other third-party intermediaries to facilitate the importation of

counterfeit and pirated goods into the United States. The rapid growth of e-commerce platforms

has helped fuel the growth of counterfeit and pirated goods into a half trillion-dollar industry.

This illicit trade has an enormous impact on the American economy by eroding the

competitiveness of American workers, manufacturers, and innovators.

The NML also includes Positive Developments, Online Markets, and Physical Markets

sections. The Positive Developments section identifies actions that governments and private

entities have taken this past year to reduce piracy and counterfeiting, including commitments by

China, Canada, and Mexico in agreements with the United States. The Online Markets and

Physical Markets sections highlight markets that require further actions.

The Office of the United States Trade Representative (USTR) highlights certain online and

physical markets because they exemplify global counterfeiting and piracy concerns and because

the scale of infringing activity in these markets can cause significant harm to U.S. intellectual

property (IP) owners, consumers, and the economy. Some of the identified markets reportedly

The terms “copyright piracy” and “trademark counterfeiting” appear below as “piracy” and “counterfeiting,”

respectively.

host a combination of legitimate and unauthorized activities. Others openly or reportedly exist

solely to engage in or facilitate unauthorized activity.

This year’s NML includes several previously identified markets because owners,

operators, and governments failed to address the stated concerns. Other previously identified

markets may not appear in the NML for a variety of reasons, including that: the market has

closed or its popularity or significance has diminished; enforcement or voluntary action has

significantly reduced the prevalence of IP-infringing goods or services; market owners or

operators are cooperating with right holders or government authorities to address infringement;

or the market is no longer a noteworthy example of its kind. In some cases, online markets in the

2019 NML are not highlighted this year, but improvements are still needed, and the United States

may continue to raise concerns related to these markets on a bilateral basis with the relevant

countries.

The NML is not an exhaustive account of all physical and online markets worldwide in

which IP infringement may take place. The NML does not make findings of legal violations nor

does it reflect the U.S. Government’s analysis of the general IP protection and enforcement

climate in the countries connected with the listed markets. A broader analysis of IP protection

and enforcement in particular countries or economies is presented in the annual Special 301

Report published at the end of April each year.

USTR developed the NML under the auspices of the annual Special 301 process

and

solicited comments through a Request for Public Comments published in the Federal Register

(https://www.regulations.gov, Docket Number USTR-2020-0035). The NML is based

predominantly on publicly available information. USTR has identified notorious markets in the

Special 301 Report since 2006. In 2010, USTR announced that it would begin publishing the NML

separately from the annual Special 301 Report, pursuant to an out-of-cycle review. USTR first

separately published the NML in February 2011.

Please refer to the Public Information section below for links to information and resources related to Special 301.

Issue Focus: e-Commerce and the Role of

Internet Platforms in Facilitating the

Importation of Counterfeit and Pirated Goods

into the United States

Each year, the “issue focus” section of the NML highlights an issue related to the

facilitation of substantial counterfeiting or piracy. Past issue focus sections

highlighted malware and online piracy (2019), free trade zones (2018), illicit

streaming devices (2017), stream ripping (2016), emerging marketing and

distribution tactics in Internet-facilitated counterfeiting (2015), and domain

name registrars (2014).

This year’s issue focus examines how the substantial growth of e-commerce platforms in

recent years has facilitated similar substantial growth in the importation of counterfeit and

pirated goods into the United States. In the United States, e-commerce year-on-year retail sales

grew by 13.3 percent for the second quarter of 2019, while total retail sales increased by only

3.2 percent.

Amazon reports sales by third-party sellers, mostly small- and medium-sized

businesses, grew from $0.1 billion in 1999 to $160 billion by 2018.

Likewise, $95 billion worth of

goods were sold on eBay in 2018.

Though not separating out the percentage of third-party

vendor sales, Walmart experienced an e-commerce sales increase of 40 percent in 2018.

The prevalence of counterfeit and pirated goods has grown alongside e-commerce. The

Organisation for Economic Co-operation and Development (OECD) reports international trade in

counterfeit and pirated goods amounted to as much as $509 billion in 2016.

This represented

U.S. Census Bureau, Quarterly Retail E-Commerce Sales 2nd Quarter 2019, U.S. Census Bureau News (Aug. 2019),

https://www2.census.gov/retail/releases/historical/ecomm/19q2.pdf.

Amazon, 2018 Letter to Shareholders (Apr. 2019), https://blog.aboutamazon.com/company-news/2018-letter-to-

shareholders.

Press Release, eBay Inc. Reports Fourth Quarter and Full Year 2018 Results and Announces Capital Structure

Evolution (Jan. 2019), https://www.ebayinc.com/stories/news/ebay-q4-2018-results/.

Walmart, 2019 Annual Report, https://s2.q4cdn.com/056532643/files/doc_financials/2019/annual/Walmart-2019-

AR-Final.pdf.

OECD/EUIPO, Trends in Trade in Counterfeit and Pirated Goods (Mar. 2019), https://www.oecd-ilibrary.org/

docserver/g2g9f533-en.pdf.

3.3 percent of world trade, a 32 percent increase from 2013. From 2000 through 2019, seizures of

infringing goods by U.S. Customs and Border Protection (CBP) and U.S. Immigration and

Customs Enforcement (ICE) increased from 3,244 to 27,599, while the domestic MSRP value of

seized merchandise increased from $0.045 billion to $1.4 billion.

The Notorious Markets List has increasingly highlighted prominent and illustrative

examples of e-commerce platforms that facilitate substantial counterfeiting and piracy. Some of

these e-commerce platforms have invested significant time and resources to combat this

problem and have developed innovative tools and processes along the way. Traders who traffic

in counterfeit and pirated goods, on the other hand, have also evolved their tactics to evade and

overwhelm the roadblocks placed in their way. The significant and continued growth in the

importation of counterfeit and pirated goods into the United States shows that e-commerce

platforms, other intermediaries, right holders, and governments must significantly increase their

efforts and collaboration to protect consumers, businesses, governments, and economies from

the dangers of counterfeit and pirated goods.

e-Commerce has made it more difficult to detect counterfeit and pirated goods

Counterfeit and pirated goods have been sold for years on street corners, in alleys, from

trunks of cars, and from unscrupulous physical markets such as those identified in the Notorious

Markets List.

Consumers who find themselves at these locations can discern the risk of

purchasing an illegitimate good by relying on “red flag” indicators, such as a suspicious location

of the seller, poor quality packaging, or substantially discounted pricing.

On e-commerce platforms, however, consumers are unknowingly exposed to counterfeit

and pirated goods in settings and under conditions that make the articles appear genuine.

Consumers are often shopping from the safety of their homes through mainstream online

Compare CBP, FY-2003 Seizure Statistics, https://www.cbp.gov/sites/default/files/documents/

FY2003%20IPR%20Seizure%20Statistics_0.pdf (comparing 2003 statistics with earlier years, including 2000) with

CBP, Intellectual Property Rights: Fiscal Year 2019 Seizure Statistics (Sept. 2020), https://www.cbp.gov/document/

report/fy-2019-ipr-seizure-statistics (noting that seizures in 2019 decreased from 33,810 in 2018 “due to challenges

at the Southern border and the one-month government shutdown”).

See, e.g., Results of the 2020 Review of Notorious Markets – Physical Markets, infra.

markets that provide an aura of authenticity and trust. These online markets do not contain the

same “red flag” indicators, as the true location of the seller is often unknown or obfuscated,

pictures of the item and packaging from the authentic product may be used, and the illegitimate

good may be comingled with the authentic good, either in the platform’s fulfillment center or on

the e-commerce platform itself through the use of the same product identifier for both the

authentic and counterfeit good.

Sellers of counterfeit and pirated goods have also recently taken advantage of social

media and messaging websites and mobile apps to subvert detection controls and trick

consumers.

One fast, easy, inexpensive, and common tactic is to set up accounts on social

media platforms and use posts or targeted ad campaigns to advertise counterfeit and pirated

goods. The posts and advertisements convey authenticity by often containing the same or

confusingly similar images, hashtags, and keywords used by the brand. The advertisements

direct consumers to e-commerce websites designed to evade detection, or ask consumers to

communicate via a messaging app for details on how to purchase the authentic-looking

counterfeit or pirated good. The advertisements and messages often conceal the unscrupulous

nature of the transaction by claiming to be an exclusive bulk or wholesale purchase. An online

payment service, typically connected to or affiliated with the social media or messaging

platform, enables immediate and secure completion of the transaction.

Another tactic gaining in popularity on social media and other platforms, such as image

hosting platforms, are so-called “hidden links.” With a hidden link scheme, a counterfeit seller

will advertise a seemingly counterfeit product but will direct a purchaser to buy a different

product on an e-commerce website. For example, a hidden link advertisement for the shoe of a

Although the majority of counterfeit goods seized by CBP and ICE originate in China and Hong Kong—92 percent by

value—the problem is global, with additional major points of origin, including India, Singapore, Thailand, Turkey,

and the United Arab Emirates.

See Andrea Stroppa et al, Instagram and Counterfeiting in 2019: New Features, Old Problems (Apr. 2019),

https://ghostdata.io/report/Instagram_Counterfeiting_GD.pdf; Transnational Alliance to Combat Illicit Trade

(TRACIT) and the American Apparel & Footwear Association (AAFA), Fraudulent Advertising Online: Emerging Risks

and Consumer Fraud (July 2020), https://www.tracit.org/uploads/1/0/2/2/102238034/

tracit_fraudulentadvertisingonline_july21_2020_final.pdf.

famous brand might link to a page on a well-known e-commerce platform offering generic socks

for sale. The hidden link advertisement might direct the purchaser to provide a code, color, or

other identifier to signal to the seller to send the counterfeit shoes instead of the socks. The

hidden link advertisement may also instruct the purchaser to not ask questions or leave reviews

on the e-commerce platform. This insidious process is designed to evade counterfeit detection

systems of e-commerce providers.

As evidenced by the advertising and hidden link examples, bad actors are increasingly

using social media platforms to facilitate the distribution and sales of counterfeit and pirated

goods. Right holders express concerns that many social media providers do not verify or vet the

identity of advertisers and posters in a way that would promote offline enforcement and prevent

repeat infringer accounts, do not have fully developed and enforceable repeat infringer policies,

do not have effective tools to detect and remove offers for counterfeit and pirated goods, do not

sufficiently detect or control outgoing links to sites where consumers are directed to purchase

counterfeit and pirated goods, do not have well-developed brand protection tools, and generally

lack transparency about internal proactive detection tools and processes, such as the use of

artificial intelligence. Right holders encourage social media providers to provide advanced anti-

counterfeiting tools, programs, and procedures to help combat these subversive counterfeiting

methods.

Some e-Commerce distribution methods evade existing counterfeit detection systems

Products sold at brick-and-mortar stores throughout the United States are often shipped

into the country in bulk cargo containers and then distributed domestically through traditional

train and truck networks. Methods for detecting counterfeits in these bulk containers at the port

of entry are well-established and effective.

In contrast to the use of bulk cargo for products sold in brick-and-mortar stores, products

sold on e-commerce platforms, including counterfeit products, are increasingly shipped directly

to the consumer using small packages. The International Chamber of Commerce found that

counterfeiters use international air packages because the high volume of these packages makes

enforcement more difficult.

A recent report by the OECD points out that distributing

counterfeits across a series of small packages spreads the risk of detection and lowers the loss

from having one or more shipments seized, suggesting that losses to the counterfeiter on an

ongoing basis would be within a tolerable range.

The OECD report also notes that it is harder

for authorities to detect counterfeits in small parcels than in shipping containers because cargo

containers provide customs officials with more information that can help identify counterfeit

shipments. Moreover, the effort required of CBP to seize a shipment does not vary by size of the

shipment, meaning that a package of a few infringing goods requires the same resources to seize

as a cargo container with hundreds of infringing goods.

Section 321 of the Tariff Act of 1930 has likewise encouraged counterfeiters to favor

smaller parcel delivery. Under Section 321, a foreign good valued at, or less than, $800 and

imported by one person on one day is not subject to the same formal customs entry procedures

and rigorous data requirements as higher-value packages entering the United States. This

reduced level of scrutiny presents an opportunity to exploit Section 321 rules to transport and

distribute counterfeits.

The U.S. Government is taking several operational steps to address the use of small

packages for delivery of counterfeit and pirated goods such as the “Section 321 Data Pilot” where

CBP accepts information directly from online markets to match with the information received

from traditional carriers. CBP is also running an “Entry Type 86 Test” where it will expedite

clearance of entries that provide additional information. Both programs provide CBP with

significantly more visibility into the sale, movement, and nature of goods sold through

e- commerce.

ICC/BASCAP, Roles and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the Supply Chain

(Mar. 2015), https://www.iccwbo.be/shop/roles-and-responsibilities-of-intermediaries/.

OECD/EUIPO, Misuse of Small Parcels for Trade in Counterfeit Goods: Facts and Trends (Dec. 2018),

https://doi.org/10.1787/9789264307858-en.

U.S. Government Accountability Office, Intellectual Property: Agencies Can Improve Efforts to Address Risks Posed

by Changing Counterfeits Market (Jan. 2018), https://www.gao.gov/assets/690/689713.pdf.

In conjunction with these operational efforts, the U.S. Department of Homeland Security

(DHS) developed a report in response to the President’s April 3, 2019, Memorandum on

Combating Trafficking in Counterfeit and Pirated Goods.

The DHS report of the same name was

issued on January 24, 2020, and outlined recommendations for both the U.S. Government and

the private sector to take to reduce the number of counterfeits.

The DHS report called for

e- commerce platforms operating third-party markets, as well as other third-party

intermediaries, to adopt the following ten high priority best practices:

1. Comprehensive “Terms of Service” Agreements

2. Significantly Enhanced Vetting of Third-Party Sellers

3. Limitations on High Risk Products

4. Efficient Notice and Takedown Procedures

5. Enhanced Post-Discovery Actions

6. Indemnity Requirements for Foreign Sellers

7. Clear Transactions Through Banks that Comply with U.S. Enforcement Requests

for Information

8. Pre-Sale Identification of Third-Party Sellers

9. Establish Marketplace Seller IDs

10. Clearly Identifiable Country of Origin Disclosures

Without such actions, U.S. right holders stand to be irreparably damaged by a flood of

imported counterfeit and pirated goods on e-commerce platforms, regardless of where such

platforms are based, and consumers remain susceptible to the health and safety dangers

commonly associated with such goods. Consistent with the Presidential Memorandum on

Combating Trafficking in Counterfeit and Pirated Goods, USTR will continue to address the issue

Memorandum on Combating Trafficking in Counterfeit and Pirated Goods (Apr. 2019),

https://www.whitehouse.gov/presidential-actions/memorandum-combating-trafficking-counterfeit-pirated-goods/.

See also Memorandum on Stopping Counterfeit Trafficking on e-Commerce Platforms Through Fines and Civil

Penalties (Oct. 2020), https://www.whitehouse.gov/presidential-actions/memorandum-stopping-counterfeit-

trafficking-e-commerce-platforms-fines-civil-penalties/.

Combating Trafficking in Counterfeit and Pirated Goods (Jan. 24, 2020), https://www.dhs.gov/publication/

combating-trafficking-counterfeit-and-pirated-goods.

of counterfeit and pirated goods with our trading partners and is considering seeking more

information regarding e-commerce platforms in future reviews of Notorious Markets.

After the release of the DHS report, the U.S. Government continued to take action on the

issue of counterfeits. On January 31, 2020, the President signed an executive order on Ensuring

Safe & Lawful E-Commerce for U.S. Consumers, Businesses, Government Supply Chains, and

Intellectual Property Rights.

The executive order called for the establishment of criteria for the

Importer of Record Program, clarification of the responsibilities of express consignment

operators, carriers, hub facilities, and licensed customs brokers, the establishment of a

mechanism to address non-compliant international posts, and sharing of information on seizures

with the public and industry.

In addition to these efforts, on July 28, 2020, CBP issued ruling HQ H290219, which

addresses the proper identification of the consignee and importer in e-commerce transactions

involving fulfillment warehouses. This ruling provides clarification on the identity of the “one

person on one day” under Section 321 and will provide CBP with significantly more information

about the sellers and facilitators of goods sold through e-commerce.

On October 13, 2020, the President issued the Memorandum on Stopping Counterfeit

Trafficking on E-Commerce Platforms Through Fines and Civil Penalties

to address critical

challenges in the current e-commerce environment. The Memorandum directs DHS, in

consultation with the Attorney General, to develop a legislative proposal to promote its stated

policy objectives. Example legislative amendments proposed by stakeholders and other

agencies include improving information sharing, allowing summary forfeiture of IP-infringing

goods, allowing the U.S. Government to seek injunctive relief against distributors of counterfeit

goods, and adapting fines to the e-commerce environment.

Executive Order 13904, Ensuring Safe & Lawful E-Commerce for U.S. Consumers, Businesses, Government Supply

Chains, and Intellectual Property Rights Holders, 85 Fed. Reg. 6725-6729 (Jan. 2020),

https://www.whitehouse.gov/presidential-actions/ensuring-safe-lawful-e-commerce-us-consumers-businesses-

government-supply-chains-intellectual-property-rights/.

Memorandum on Stopping Counterfeit Trafficking on E-Commerce Platforms Through Fines and Civil Penalties

(Oct. 13, 2020), https://www.whitehouse.gov/presidential-actions/memorandum-stopping-counterfeit-trafficking-e-

commerce-platforms-fines-civil-penalties/.

Positive Developments Since the

2019 Out-of-Cycle Review of Notorious Markets

Since the release of the 2019 Notorious Markets List, there have been notable efforts to

address the widespread availability of counterfeit and pirated goods in some online and physical

markets. The United States commends these efforts and encourages governments, right holders,

service providers, and the owners and operators of these and other markets, including those

newly identified in the 2020 NML, to engage in sustained and meaningful efforts to combat piracy

and counterfeiting.

This past year we saw the world adjust to the COVID-19 pandemic, which has significantly

affected trends in the trade of counterfeit and pirated goods, as well as the consumption of

digital piracy. For example, soon after countries began to go into lockdown, customs authorities

began to report significant increases in the seizures of counterfeit personal protective equipment

(PPE), medical supplies, and fake COVID-19 cures. Several months later, reports began to surface

that COVID-19 lockdowns were leading to a surge in digital piracy, particularly with pirated

movies and TV shows. Malware was reportedly added to some pirated content to take advantage

of unsuspecting consumers.

Despite the challenges of conducting raids against counterfeit and piracy organizations

during the COVID-19 pandemic, many notable successful enforcement efforts occurred this past

year. For example, authorities in Shanghai, China, cooperated with right holders to conduct two

significant raids against manufacturers and distributors of counterfeit goods. The first raid

resulted in the arrest of 26 individuals and the seizure of manufacturing equipment, raw material,

and counterfeit luxury handbags that reportedly cost approximately $15 to $30 to produce and

were sold outside China for approximately $60 to $100. The second raid resulted in the arrest of

15 people across 10 separate locations and the seizure of 120,000 counterfeit golf products. In

the United Kingdom, authorities raided three locations in Cheetham Hill, which was nominated

For more information on the nexus between online piracy and malware, see the 2019 NML.

as a notorious market this year, arrested 11 individuals, and seized counterfeit handbags,

clothing, watches and perfume with a street value of $10 million.

Actions against pirate streaming services, including the wholesale pirate stream suppliers

and the resellers of pirate-enabled IPTV apps and physical illicit streaming devices, significantly

increased this past year. In November 2020, Brazil’s Ministry of Justice and Public Security with

support from the U.S. Department of Justice, the U.S. Department of Homeland Security, and

other international agencies and organizations launched the second phase of “Operation 404,” a

nationwide takedown of digital piracy platforms presumably infringing on U.S.-based

copyrighted works. The authorities seized approximately 317 websites and mobile applications

that facilitated the illicit streaming and/or downloading of films, television series, and live

sporting events. The Operation 404 domain takedown was the largest of its kind yet in Brazil and

the first to include direct operational support in foreign jurisdictions. In Spain, the National

Police completed a 2-year investigation by arresting 12 individuals responsible for illegally

capturing and distributing broadcast TV signals, as well as reselling the broadcast streams to

others. In June 2020, the Spanish National Police, with support from Europol, the European

Union Agency for Criminal Justice Cooperation (Eurojust), and law enforcement authorities in

over 10 countries, dismantled a pirate IPTV network with more than 2 million subscribers that

offered more than 40,000 TV channels, movies, and other copyrighted digital content. In

November 2020, following a complaint by right holder organizations against KBoxServ, police in

Switzerland with support from Europol shut down a pirate IPTV service that provided access to

more than 77,000 TV episodes and 7,000 movies via pre-configured set-top boxes. In June 2020,

Eurojust coordinated raids by approximately 700 police officers in 11 countries, leading to the

seizure of over 5,500 servers of a pirate IPTV operation. Private companies and organizations

have also been successful in shutting down pirate operations using civil enforcement tools.

However, despite these efforts, pirate IPTV services and devices appear to be increasingly

widespread.

See Digital Citizens Alliance / NAGRA, Money for Nothing: The Billion-Dollar Pirate Subscription IPTV Business (Aug.

2020), https://www.digitalcitizensalliance.org/clientuploads/directory/Reports/DCA-Money-for-Nothing-Report.pdf;

Several studies this year addressed global trade in counterfeit and pirated goods. The

OECD issued a study on the illicit trade in counterfeit pharmaceuticals, which analyzed customs

seizures from 2014 to 2016.

This study found that the vast majority of the inspected

counterfeits were not likely to work as intended because they contained the incorrect amount of

the active ingredients present in the legitimate pharmaceuticals, and the undeclared substances

contained in those counterfeits posed serious health risks. The National Association of

Manufacturers released a report on the impact of counterfeit goods to U.S. manufacturers.

This

report discusses the challenges that manufacturers face when attempting to enforce their rights

online, and recommends legislative and other changes to better combat the illicit trade in

counterfeit goods.

On January 15, 2020, the United States and China signed a historic and enforceable

agreement on a Phase One trade deal that requires structural reforms and other changes to

China’s economic and trade regime in the areas of intellectual property, technology transfer,

agriculture, financial services, and currency and foreign exchange. The IP chapter addresses

numerous longstanding concerns, including in the area of enforcement against pirated and

counterfeit goods. For example, the IP chapter obligates China to significantly increase the

number of enforcement actions against pirated and counterfeit goods at physical markets in

China. In addition, it requires China to provide effective and expeditious action against

infringement in the online environment, including by requiring expeditious takedowns and by

ensuring the validity of notices and counter notices and also requires China to take effective

action against e-commerce platforms that fail to take necessary measures against IP

infringement.

D. Uberti, Coronavirus Lockdowns Lead to Surge in Digital Piracy, Wall Street Journal (Apr. 23, 2020),

https://www.wsj.com/articles/coronavirus-lockdowns-lead-to-surge-in-digital-piracy-11587634202.

OECD/EUIPO, Trade in Counterfeit Pharmaceutical Products (Mar. 23, 2020), http://www.oecd.org/gov/trade-in-

counterfeit-pharmaceutical-products-a7c7e054-en.htm.

National Association of Manufacturers, Countering Counterfeits: The Real Threat of Fake Products (July 2020),

https://www.nam.org/wp-content/uploads/2020/07/CounteringCounterfeits.vF_.pdf.

On July 1, 2020, the United States-Mexico-Canada Agreement (USMCA) entered into force.

Among other things, Canada and Mexico committed in the USMCA to provide ex officio authority

for border enforcement officials to stop suspected counterfeit or pirated goods at every phase of

entering, exiting, and transiting through the territory of any Party. The USMCA also includes

express recognition that IP enforcement procedures must be available for the digital

environment for trademark and copyright or related rights infringement.

The United States commends these efforts, appreciates studies being done in this area,

and encourages its trading partners to continue their individual and collective efforts to combat

counterfeiting and piracy.

Results of the

2020 Review of Notorious Markets

The Notorious Markets List identifies prominent and illustrative examples of online and

physical markets in which pirated or counterfeit goods and services reportedly are available or

that facilitate substantial piracy and counterfeiting. It does not constitute a legal finding of a

violation or an analysis of the general IP protection and enforcement environment in any country

or economy. The NML is not an exhaustive inventory of all notorious markets around the world.

Markets on the NML are drawn from the many nominations received as well as other input, such

as from U.S. embassies, in order to highlight prominent examples of both online and physical

markets where pirated or counterfeit goods and services reportedly are trafficked to the

detriment of legitimate trade in IP-intensive goods and services.

Owners and operators of notorious markets that are willing to address counterfeiting and

piracy have many options for doing so. Such owners and operators can, for example, adopt

business models that rely on the licensed distribution of legitimate content and can negotiate

appropriate licenses with right holders. If an otherwise legitimate business has become a

platform for piracy or counterfeiting, the owner or operator can work with right holders and law

enforcement officials to help discourage and curtail acts of infringement. Industry groups have

developed a variety of best practices that can help combat counterfeiting and piracy.

In the

absence of good faith efforts, responsible government authorities should investigate reports of

piracy and counterfeiting in these and similar markets and pursue appropriate action against

such markets and their owners and operators. Governments should also ensure that appropriate

enforcement tools are at the disposal of right holders and government authorities, which may

require closing loopholes that permit operators to evade enforcement actions.

E.g., International Trademark Association, Addressing the Sale of Counterfeits on the Internet (Feb. 2018),

https://www.inta.org/Advocacy/Documents/2018/Addressing_the_Sale_of_Counterfeits_on_the_Internet_

021518.pdf; ICC/BASCAP, Roles and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the

Supply Chain (Mar. 2015), https://iccwbo.org/publication/roles-responsibilities-intermediaries.

Online Markets

The 2020 Notorious Markets List identifies examples of various technologies,

obfuscation methods, revenue models, and consumer harms associated with infringing activity.

USTR based its selections not on specific types of technologies but on whether the owners,

operators, or users of a nominated market or affiliated network of markets reportedly engage in

or facilitate substantial piracy or counterfeiting to the detriment of U.S. creators and companies.

Many of those who submitted public comments this year highlighted the complex

ecosystem—including domain name registries and registrars, reverse proxy services, hosting

providers, caching services, advertisers and advertisement placement networks, payment

processors, social media platforms, and search engines—that is abused by providers of pirated

content. Each component in this ecosystem can play a role in facilitating or reducing piracy.

This year’s review process also identified a continued and growing concern about the

proliferation of counterfeits facilitated by social media platforms. The 2019 Notorious Markets

List mentioned increasing concerns right holders expressed with a growing trend of counterfeit

products being offered for sale on e-commerce features related to large platforms, such as

WeChat. During this year’s Notorious Markets List review, right holders continued to express

ongoing and increasing concerns with this trend. Right holders note that social media platforms

lack the anti-counterfeiting policies, processes, and tools that are becoming commonplace on

many e-commerce platforms such as effective notice-and-takedown procedures, proactive anti-

counterfeiting filters and tools, and strong policies against repeat infringers. Social media

platforms can begin to address these concerns by adopting strong and effective IP enforcement

policies, increasing transparency and collaboration with right holders to quickly address

complaints, and working more closely with law enforcement to identify IP infringement. USTR

will continue to monitor concerns with counterfeits being advertised and sold on social media

For simplicity, the NML uses terminology that links alleged copyright and trademark infringement to specific

technologies (e.g., websites). However, the focus of the NML is on the actions of owners, operators, or users that

engage in, facilitate, or deter infringement using the technologies, not on the underlying technologies themselves.

platforms, particularly as social media platforms continue to evolve and expand with

e- commerce features that can be used to facilitate substantial counterfeiting activity.

The Administration has been looking further at the role of e-commerce platforms and

online third-party marketplaces following the issuance in April 2019 of a Presidential

Memorandum addressing trafficking in counterfeit and pirated goods. In January 2020, in

response to the Presidential Memorandum, the Department of Homeland Security (DHS) issued a

report on “Combating Trafficking in Counterfeit and Pirated Goods.” The DHS report notes that,

although e-commerce platforms have supported the launch of thousands of legitimate

businesses, they and their supporting intermediaries have also created new opportunities for

trafficking of counterfeit and pirated goods. Selling counterfeit and pirated goods through

e- commerce platforms and related online third-party marketplaces can be a highly profitable

venture. For counterfeiters, millions of potential customers are available online, transactions are

convenient, and listing goods on well-known platforms provides an air of legitimacy. Moreover,

when sellers of illicit goods are in another country, they are exposed to relatively little risk of

criminal prosecution or civil liability under current law enforcement and regulatory practices.

USTR supports actions taken to protect American consumers and businesses against the harm

and losses inflicted by counterfeiters and those that facilitate the trade in counterfeit and pirated

goods.

1337x

Nominated as 1337x.to. Related sites include 1337x.se, 1337x.st, x1337x.eu, and x1337x.se. Reportedly hosted at

BlueAngelHost in Bulgaria, but utilizes reverse proxy services to mask the location of its hosting servers.

This popular website provides links to torrent files, which are small files that contain the

information necessary to download other files from the bittorrent distributed peer-to-peer

network,

for unlicensed movies, TV shows, music, and software. Variants of the site have been

Bittorrent is a peer-to-peer software that allows users to join “swarms” of other users who are distributing

particular files. As each user downloads pieces of the file, their computer can distribute the pieces to others in the

swarm. Bittorrent websites facilitate file sharing by organizing and indexing torrent files, and initiating and

managing the download process.

subject to blocking orders in Australia, Austria, Belgium, Denmark, India, Indonesia, Ireland, Italy,

Malaysia, Portugal, and the United Kingdom.

1FICHIER

Nominated as 1fichier.com. Related sites include alterupload.com, cjoint.net, cloudstorage.fr, desfichiers.com,

dl4free.com, megadl.fr, and tenvoi.com. Hosted in France.

This cyberlocker

is popular in France and reportedly makes premium pirated content,

such as unlicensed movies and video games, available to the public. Right holders regularly

complain about 1Fichier’s extremely low response rate to takedown requests. For example, one

right holder reported a response rate to notice and takedown requests of 0.39 percent in 2020.

The hosting provider for this site, Dstorage, has been taken to court by right holders in France for

refusing to take down infringing content, and a decision is expected in January 2021.

AMAZON’S FOREIGN DOMAINS

Nominated as amazon.co.uk, amazon.de, amazon.es, amazon.fr, and amazon.it.

Right holders highlighted examples of the challenges they face with high levels of

counterfeit goods on amazon.co.uk in the United Kingdom, amazon.de in Germany, amazon.es in

Spain, amazon.fr in France, and amazon.it in Italy. For example, right holders expressed concern

that the seller information displayed by Amazon is often misleading such that it is difficult for

consumers and right holders alike to determine who is selling the goods. Right holders also

expressed concern that Amazon does not sufficiently vet sellers on its platforms. They also

commented that Amazon’s counterfeit removal processes can be lengthy and burdensome, even

for right holders that enroll in Amazon’s brand protection programs.

In addition, as the scale and sophistication of the counterfeiters have continued to grow

and evolve over the years, these right holders indicate that Amazon should commit the resources

necessary to make the brand protection programs scalable, transparent, and most importantly,

effective. More specifically, they ask that Amazon take additional actions to address their

The cyberlockers identified in the NML reportedly operate primarily to provide users with access to unauthorized

concerns, including by collecting sufficient information from sellers to prevent repeat infringers

from creating multiple storefronts on the platforms, making detailed information about the real

seller of a product obvious to consumers and right holders, being more responsive to complaints

of counterfeits by right holders, and being more proactive in preventing counterfeit goods from

appearing on the platform.

On a positive note, during the past year, Amazon partnered with the U.S. Government’s

National Intellectual Property Rights Coordination Center (IPR Center) on a joint operation to

prevent counterfeit goods from entering the U.S. in an effort to protect American consumers.

BAIDU WANGPAN

Nominated as pan.baidu.com. Hosted in China.

This cloud storage service is operated by Baidu, the largest search-engine provider in

China. Users of this service are able to share links to files stored on their accounts to other users,

and according to right holders, infringers widely share links to pirated movies, TV shows, and

books stored on Baidu Wangpan. While right holders report some cooperation from Baidu in

recent years and Baidu provides some tools for taking down unauthorized motion picture and

television content, takedown times are reportedly lengthy, and right holders often have to

follow-up with Baidu to ensure that pirated content does not reappear on the platform. Right

holders also raise concerns that they are required to submit thousands of infringement notices to

remove multiple instances of a single piece of pirated content, as the platform has no proactive

procedures in place to detect pirated content. In 2019, a court in Beijing ruled in favor of a

Chinese right holder in its case against Baidu over pirated copies of a TV series being made

available to the public through Baidu Wangpan accounts. The court found that Baidu removed

only 60 percent of infringing links, which it deemed insufficient. This case is currently being

appealed.

BESTBUYIPTV

Nominated as bestbuyIPTV.store. Related sites include biptv.best. Reportedly hosted in Italy, but utilizes reverse

proxy services to mask the location of its hosting servers.

IPTV apps

that provide pirated audiovisual content through subscription services are an

increasingly popular form of online piracy. BestBuyIPTV offers illicit IPTV apps that are

compatible with most platforms and operating systems. BestBuyIPTV reportedly offers over

10,000 unauthorized high definition channels from 38 countries, as well as 19,000 pirated video-

on-demand titles in multiple languages. BestBuyIPTV also provides reseller and re-streamer

services with over 900,000 users, 12,000 resellers, and 2,000 re-streamers.

BLUEANGELHOST

BlueAngelHost, with servers reportedly located in Bulgaria, openly advertises itself as a

“DMCA Ignored” hosting provider—i.e., one that willfully ignores notice-and-takedown requests

from right holders to remove pirated content. The operators of BlueAngelHost also reportedly do

not respond to requests for cooperation from law enforcement authorities regarding the IP

infringing activities of its customers. According to right holders, BlueAngelHost is increasingly

becoming a major safe haven for the operators of pirate sites.

BUKALAPAK

Nominated as bukalapak.com. Also available as a mobile app. Hosted in Indonesia.

Bukalapak, founded in 2010, is one of the largest e-commerce markets in Indonesia. This

website provides a platform for third-party sellers to connect with buyers, and these sellers offer

a wide variety of products, including consumer electronics, books, automobile parts, and

apparel. Right holders report that the majority of branded products on this platform are not

genuine and that items are often openly labeled “replicas” of branded products. While

Bukalapak reported improving its counterfeit reporting mechanism this year, right holders report

that this mechanism remains ineffective and burdensome. Right holders also continue to report

Many legitimate services also provide IPTV apps that deliver authorized movies and TV shows to application-

enabled televisions, tablets, smartphones, and streaming devices. These are distinguishable from IPTV apps that are

used primarily to deliver pirated content.

excessive wait times between the submission of a takedown request and the actual take down of

the infringing listing. The platform also reportedly fails to deter repeat infringers. Bukalapak

claims to operate a blacklisted keyword system to prevent certain listings, but this appears to be

ineffective in addressing the scope of the problem on its platform.

CHALOOS

Chaloos is a company based in Erbil, Iraq, that owns and operates other companies

reportedly involved in the sourcing and distribution of pirated content online, including the

Mediastar and Forever IPTV companies. Mediastar allegedly supplies Mediastar-branded digital

satellite receivers pre-loaded with pirate IPTV apps. According to right holders, Mediastar is also

a source of pirate television streams used by other IPTV redistribution services throughout the

Middle East. One right holder reported that Mediastar is a source of more than a quarter of its

pirated channels that are illegally redistributed across the Middle East and North Africa region, as

evidenced by the Mediastar logo overlaid on the video stream. Forever IPTV is reportedly a

wholesaler of pirated content, including thousands of on-demand movies and TV shows, used by

other illicit IPTV apps.

CHOMIKUJ

Nominated as chomikuj.pl. Reportedly hosted in Belize, Cyprus, or the Netherlands, but utilizes reverse proxy

services to mask the location of its hosting servers.

Chomikuj is the most popular cyberlocker in Poland. Right holders report that a broad

range of unlicensed songs by U.S. artists are available on this platform, in addition to TV shows,

movies, and e-books. Chomikuj allegedly rewards users who upload popular content that is then

downloaded by other users. While the site responds to takedown requests from right holders, it

does not stop pirated content from being uploaded or re-uploaded. Right holders report that in

2017, the Krakow Court of Appeal ordered the site to pay damages to right holders on the basis

that it had directly infringed the “making available” right and was not able to claim safe harbor

protection because it was not a passive actor.

DHGATE

Nominated as dhgate.com. Also available as a mobile app. Hosted in China.

DHgate is the largest business-to-business cross-border e-commerce platform in China

with 31 million registered buyers and 32 million products for sale. Over 2 million Chinese

merchants, many of which are small- and medium-sized enterprises, sell their products on the

platform. During the past year, DHgate reported improving its image recognition system,

increasing the number of inspectors who manually review listings for suspected counterfeits, and

improving its seller vetting system to stop re-registration of banned sellers. However, right

holders continue to find high volumes of counterfeit goods on DHgate. While right holders

praised the responsiveness of DHgate to takedown requests, they also report encountering

repeat violations by the same sellers on numerous occasions. Right holders are particularly

concerned by DHgate’s reluctance to provide information on counterfeit sellers to enable follow-

up investigations. USTR urges DHgate to continue improving its seller vetting, listing policies,

transparency, and proactive monitoring to significantly decrease the availability of counterfeit

goods.

DYTT8

Nominated as dytt8.net. Related sites include dy2018.com, dygod.net, and ygdy8.com. Hosted in Taiwan.

DYTT8 is one of the most popular non-English torrent sites in the world, providing links to

unlicensed movies, TV shows, music, and software. With a user-friendly interface, DYTT8 remains

a particular threat to legitimate content providers both within and outside China. In 2019,

authorities in China launched an investigation of this site, which is ongoing.

FLOKINET

Like BlueAngelHost, FlokiNET is another example of the growing problem of so-called

“bulletproof” hosting providers that support known notorious websites by refusing to respond to

notices of infringement and by failing to cooperate with right holders and law enforcement.

FlokiNET’s website advertises anonymity: “We do not require any personal details or

identification, any valid e-mail address is enough information to be a client.” With servers

reportedly in Finland, Iceland, and Romania, FlokiNET hosts many websites associated with

infringing activity.

FLVTO

Nominated as flvto.biz. Related sites include 2conv.com. Reportedly hosted in the Netherlands and operated out of

Russia, but utilizes reverse proxy services to mask the location of its hosting servers.

Flvto is highlighted again this year as an example of the stream-ripping

phenomenon

that continues to threaten legitimate streaming audio and video services, music performers, and

composers. This site allows users to download converted YouTube videos as digital audio files,

but right holders claim it does not appear to have permission from YouTube or from right holders

for a wide variety of music represented by major U.S. labels.

FMOVIES

Nominated as fmovies.to. Reportedly hosted by BlueAngelHost in Bulgaria, but utilizes reverse proxy services to

mask the location of its hosting servers.

According to right holders, Fmovies allegedly streams unauthorized movies and TV shows

directly to computer desktops or through IPTV apps on illicit streaming devices. The continued

listing of Fmovies in the NML demonstrates the ongoing challenges combatting streaming piracy.

This site is reportedly blocked in Australia, Denmark, India, Malaysia, and Singapore.

HARAJ

Nominated as haraj.com.sa. Reportedly operated from Saudi Arabia.

Haraj is reportedly the leading e-commerce platform in Saudi Arabia. Right holders report

that the classified advertisements on Haraj have become a major source of pirate IPTV devices

and subscriptions in the Middle East and North Africa, as well as counterfeit and pirated goods.

Given the popularity of pirate IPTV devices and services in the region, the widespread availability

of this content on Haraj is a significant concern.

For a description of stream-ripping, see the 2016 NML.

MERCADO LIBRE

Nominated as mercadolibre.com. Related sites include mercadolibre.ar, mercadolibre.co, mercadolibre.mx, and

mercadolivre.br. Also available as a mobile app.

Mercado Libre is one of the leading e-commerce operators in Latin America. It operates

individual national sites across major Latin American countries, such as Argentina, Brazil,

Colombia, and Mexico. Right holders report the availability of high volumes of counterfeit

products across each of its national platforms. In December 2019, Mercado Libre launched one-

stop counterfeit reporting to members of its Brand Protection Program, which reportedly

consists of 3,100 right holders representing 12,700 brands and trademarks, and has recently

started proactively monitoring for counterfeit listings. Right holders are encouraged by the IP

enforcement team at Mercado Libre, and they encourage Mercado Libre to continue improving

its IP enforcement and collaboration efforts.

MP3JUICES

Nominated as mp3juices.cc. Reportedly hosted in Russia, but utilizes reverse proxy services to mask the location of

its hosting servers.

MP3juices is a popular stream-ripping website that extracts the audio from a YouTube

video and permits the user to download an mp3 file of the audio, which is often an unlicensed

digital copy of the audio. According to right holders, the site provides a search functionality to

locate desired YouTube videos and then utilizes a separate service as the back-end for delivering

the audio file to the user.

MPGH

Nominated as mpgh.net.

The video game industry continues to be concerned about the unauthorized sales of in-

game digital items, where cheat software enables the modification of a game to give the player

an advantage, as well as the ability for the player to collect and aggregate virtual goods that

would otherwise be purchased in-game. The rise of unauthorized digital goods and cheat

software negatively affects video game companies and consumers by unfairly altering game play

for legitimate consumers, while also diverting significant revenue away from video game

developers and publishers. It also increases the threat of consumer fraud, including through

account takeovers, via phishing, or attempts to steal users’ payment information connected to

in-app purchases. Mpgh is an example of a site that provides “cheats” and reportedly offers

several hundred thousand free cheats to over 4 million users. The site generates revenue

through advertisements and by offering premium accounts, and Internet browsers reportedly

detect and warn of malware on the site.

NEWALBUMRELEASES

Nominated as newalbumreleases.net. Reportedly hosted in the Czech Republic but utilizes reverse proxy services to

mask the location of its hosting servers.

NewAlbumReleases is an example of a website that reportedly provides unauthorized

downloading of pre-release and newly-released popular music. According to right holders, the

site links to infringing content on cyberlockers like Rapidgator, another notorious market. Right

holders allege that the infringing content on this site is directly uploaded by the operators of the

site, making the site a direct infringer. Takedown notices sent by right holders have been

ineffective.

PELISPLUS

Nominated as pelisplus.me. Related sites include pelisplus.co and pelisplus.to. Utilizes reverse proxy services to

mask the location of its hosting servers.

Pelisplus is a Spanish-language site that is popular in Latin America and Spain. According

to right holders, the site offers more than 7,000 links to unlicensed copies of more than 4,000

movies and television series. Traffic increased on the Pelisplus sites following the shutdown of

another notorious Latin American streaming site, Pelispedia, in 2019.

PHIMMOI

Nominated as phimmoizz.net. Related sites include phimmoi.net. Hosted in Vietnam.

Phimmoi is a Vietnamese-language streaming website that allegedly offers thousands of

unauthorized movies and TV series, including many titles owned by U.S. right holders. In August

2019, right holders filed a criminal complaint against the operators of the site with Vietnamese

authorities, which then launched an official investigation into the activities of this site. However,

in June 2020, Vietnamese authorities suspended their investigation for unknown reasons.

According to right holders, the domain phimmoi.net was subsequently blocked by the

Vietnamese government, with most of its traffic moving to phimmoizz.net, which is believed to

be operated by the same operators. The new domain remains one of the most popular websites

in Vietnam.

PINDUODUO

Nominated as pinduoduo.com. Also available as a mobile app. Hosted in China.

Pinduoduo, a “social commerce” app, is now China’s second largest e-commerce

platform as measured by the number of users. Over the past few years, Pinduoduo has

implemented industry-standard anti-counterfeiting tools, processes, and procedures, and has

launched some innovative anti-counterfeiting programs. However, the significant proliferation

of counterfeit goods reported on the platform, even for brands that participate in Pinduoduo’s

Brand Care Program, evinces the need to improve the effectiveness of the tools or close the gaps

in their implementation. Right holders continue to convey that, overall, Pinduoduo is a platform

that is moving in the right direction but stress that the high volume of counterfeit products must

be reduced.

Pinduoduo provides companies that participate in its Brand Care Program more anti-

counterfeiting tools and programs than companies that do not participate, including customized

anti-counterfeiting plans. In 2020, Pinduoduo expanded the membership in this program and

has continued to encourage small-and-medium companies to use the available IP enforcement

tools. However, even the companies enrolled in the Brand Care Program continue to see high

levels of counterfeits of their brands being sold on the platform. Merchants must deposit with

Pinduoduo an amount sufficient to reimburse purchasers of counterfeit goods. According to

Pinduoduo, the deposit is forfeited at 10 times the value of an entire batch of goods and the

merchant is banned from the platform if Pinduoduo confirms the sale of counterfeits through a

test buy. In 2020, Pinduoduo expanded the test buy program to certain Brand Care Program

members such that a merchant will be banned from selling products of a brand that test-buys a

confirmed counterfeit. Some right holders, however, view the test buy program as the only

practical way to quickly remove a counterfeit listing given the reported difficulties in getting

listings removed using Pinduoduo’s notice-and-takedown system. In general, right holders,

particularly those not a part of the Brand Care Program, found Pinduoduo’s takedown system to

be sometimes unresponsive and slow to remove the identified goods. Right holders also

question the effectiveness of Pinduoduo’s merchant validation process as they report having to

take repeated actions against listings for counterfeit goods that are purportedly sold by different

merchants even though it appears that the same individual or organization is re-listing the

merchandise under a different merchant account. Further, some right holders require

information from e-commerce platforms to file civil actions and to engage local authorities

regarding criminal complaints against counterfeiters, and they report greater difficulty in

obtaining this information from Pinduoduo compared to other platforms.

POPCORNTIME

Known as the “Netflix of piracy,” PopcornTime is an application for mobile phones,

tablets, and other streaming devices that aggregates bittorrent files for streaming pirated

movies. According to right holders, there are different versions of PopcornTime, including one

version that exclusively offers pirated children’s movies. An individual who operated a

PopcornTime app in Denmark was recently sentenced to probation and fined by the Danish

Supreme Court. PopcornTime apps are reportedly blocked in Belgium, Italy, Norway, Portugal,

and the United Kingdom.

PRIVATE LAYER

Private Layer, reportedly operated from Panama with data center and hosting operations

in Switzerland and elsewhere, is another example of a “bulletproof” hosting provider that

supports known notorious websites by refusing to respond to notices of infringement and by

knowingly refusing to cooperate with right holders and law enforcement. This is the seventh

consecutive year that the NML has stressed the significant international trade impact of Private

Layer’s hosting services and the pirate sites it hosts, such as Torrentz2. Other listed and

nominated sites may also be hosted by Private Layer but are using reverse proxy services to

obfuscate the true host from the public and from law enforcement. Right holders report that

Switzerland remains a popular host country for websites offering infringing content and the

services that support them. Switzerland’s new amendments to its copyright law, which went into

force in early 2020, contain provisions to facilitate civil and criminal enforcement against online

piracy. USTR will be monitoring how these amendments affect online infringement in

Switzerland.

RAPIDGATOR

Nominated as rapidgator.net. Related sites include rg.to. Reportedly hosted in Russia, but utilizes reverse proxy

services to mask the location of its hosting servers.

Commenters from the book publishing, television, and music industries all nominated

Rapidgator, one of the largest file sharing websites in the world, for inclusion on this year’s NML.

Right holders report that it hosts unlicensed high-quality, recent, and pre-release content.

Rapidgator collects revenue through its premium membership and subscription plans and

employs rewards and affiliate schemes to compensate users based on downloads and sales of

new accounts. While Rapidgator reportedly takes down some infringing content, there are no

proactive measures in place to prevent the same content from being reuploaded. German courts

in 2018 and 2019 reportedly issued preliminary decisions finding Rapidgator liable for copyright

infringement, and a Russian court in 2019 ordered ISPs to block access to the website.

RARBG

Nominated as rarbg.to. Hosted in Bosnia and Herzegovina.

Rarbg remains one of the most popular torrent sites in the world even though it is subject

to blocking orders in Australia, Belgium, Denmark, Finland, Indonesia, Ireland, Italy, Malaysia,

Portugal, and the United Kingdom. Right holders from the movie, television, and music

industries report that unlicensed high-quality and recent content can be found easily on this site.

Rarbg reportedly generates revenue through advertisements and pay-per-install of potential

malware.

REVENUEHITS

Nominated as revenuehits.com. Reportedly based in Israel.

Many of the notorious online piracy markets in this year’s NML are funded by advertising

revenue, and several of the major piracy ad networks are allegedly based in Israel. RevenueHits

is reportedly one such advertiser. According to right holders, RevenueHits is one of the most

popular advertising networks among pirate sites, in particular cyberlockers, with most of its

advertisements targeting a European audience. In 2019, RevenueHits was ordered by a Florida

court to hand over its revenue from several piracy sites to a Philippines media company.

In recent years, several governments and private sector stakeholders have developed

innovative approaches to disrupting ad-backed funding of pirate sites.

In the United Kingdom,

the London Police Intellectual Property Crime Unit (PIPCU), with funding from the UK Intellectual

Property Office, seeks to cut off advertising revenue to copyright-infringing sites by maintaining

an Infringing Website List that advertisers, agencies, advertising technology platforms, and other

intermediaries can consult and decide voluntarily to cease ad placement on those sites. Since

2015, the French Ministry of Culture has facilitated a voluntary Code of Good Advertising

Practices for the Enforcement of Copyright and Neighboring Rights between right holders,

advertisers, and advertising professionals to contribute to the fight against piracy, promote

online creation, and develop confidence in the digital economy.

At least one web browser with

global popularity proactively filters ads that do not fall within the Coalition for Better Ads’ “Better

Ads Standards,” which could disrupt ad revenue flows to pirate sites.

Operation Creative and the Infringing Website List (May 25, 2016), https://www.cityoflondon.police.uk/advice-and-

support/fraud-and-economic-crime/pipcu/Pages/Operation-creative.aspx.

Report 2015–2016 of the Charter of Good Practices in Advertising for the Respect of Copyright and Neighboring

Rights (Mar. 2017), https://www.culture.gouv.fr/Espace-documentation/Rapports/Rapport-2015-2016-de-la-Charte-

de-bonnes-pratiques-dans-la-publicite-pour-le-respect-du-droit-d-auteur-et-des-droits-voisins.

Improving User Experience with the Better Ads Standards, https://admanager.google.com/home/resources/

feature-brief-better-ads-standards; see Coalition for Better Ads, https://www.betterads.org.

RUTRACKER

Nominated as rutracker.org. Hosted in Russia.

RuTracker remains one of the most popular torrent sites in the world with reportedly 12.3

million registered users and 1.9 million active torrents. The site links to torrent files for

unlicensed digital media and is reportedly subject to blocking orders in Australia, Denmark,

Greece, Indonesia, Italy, Portugal, Russia, and Singapore.

SCI-HUB

Nominated as sci-hub.io. Related sites include sci-hub.cc, sci-hub.ac, sci-hub.bz, gengen.lib.rus.ec, libgen.io,

lioben.lc, libgen.pw, z-library13, b-ok.cc, and bookfi.net. Hosted in Russia.

Right holders continue to report that Sci-Hub and its mirror sites

facilitate unauthorized

access to reportedly over 70 million journal articles and academic papers, which is 85 percent of

all articles published in toll-access journals, a proportion greater than what is available legally to

major institutional subscribers.

Right holders allege that at least some of the material available

on Sci-Hub was obtained by using the credentials of victims of phishing scams, and there are

documented instances where Sci-Hub paid for credentials of unknown provenance to access

university subscriptions. Right holders have taken legal action against Sci-Hub and have been

successful in having U.S. district courts grant them injunctions, damages, and control over Sci-

Hub’s U.S.-based domain names. Sci-Hub is reportedly subject to blocking orders in Denmark,

France, Germany, Italy, Portugal, Russia, and the United Kingdom.

LibGen, also known as the “Library Genesis Project,” is another nominated notorious

market that includes the libgen.is, libgen.lc, and libgen.me domains. LibGen is a known related

site to Sci-Hub that reportedly obtains most of its pirated scientific, technical, and medical

journal articles from Sci-Hub.

A “mirror site” is a website that is a proxy or clone of an original site and may offer the same, new, or cached

content as the original site. Some mirror sites are designed to spread malware, steal personal information through

spyware, or extort payments with ransomware. Mirror sites can complicate or delay sustained enforcement against

the original pirate site. In some jurisdictions, court-ordered injunctions can be designed to capture existing mirror

sites and adapt quickly to new mirror sites.

D. Himmelstein et al., Sci-Hub Provides Access to Nearly All Scholarly Literature, 7 eLife e32822 (Mar. 1, 2018),

https://www.ncbi.nlm.nih.gov/pmc/articls/PMC5832410.

SEASONVAR

Nominated as seasonvar.ru. Hosted in Russia.

Seasonvar is one of the world’s most popular websites for streaming pirated content.

According to right holders, Seasonvar has over 56 million monthly visits.

SHABAKATY

EarthLink Telecommunications, an Iraqi company and the largest Internet service

provider in Iraq, is reported to host a pirate IPTV service called Shabakaty and offers this service

to the subscribers of its Internet service for no additional charge. Shabakaty is purportedly

available to other Internet users in Iraq for the equivalent of $8 per month. Shabakaty has a

reported 500,000 subscribers, and the content that it provides includes unauthorized sports

broadcasts, TV series, and movies, much of which is owned by U.S. right holders.

SHOPEE

Nominated as shopee.sg. Related sites include shopee.com.my, shopee.ph, shopee.co.th, shopee.vn, shopee.co.id,

and shopee.com.br. Also available as a mobile app. Reportedly hosted in China.

Shopee is an online and mobile e-commerce market based in Singapore with individual

country-focused platforms serving the Southeast Asia region and Brazil. Right holders report

very high levels of counterfeits being sold on all of Shopee’s platforms. Right holders also report

that the notice-and-takedown procedures, anti-counterfeiting tools, and information required

from right holders to support a counterfeit complaint varies across each of Shopee’s platforms,

with some platforms having no procedures or tools available. Shopee reportedly has no

procedures for vetting third-party sellers and preventing repeat infringers from re-registering on

the platforms, and sellers of counterfeit goods seem to have their accounts frozen only after

multiple escalating actions.

SNAPDEAL

Nominated as snapdeal.com. Related sites include shopo.in and exclusively.com. Also available as a mobile app.

Hosted in India.

Snapdeal, one of India’s largest e-commerce platforms, remains a concern for right

holders who report that the volume of counterfeit products on this platform has increased over

the past year. According to a November 2018 survey, 37 percent of purchasers reported that they

had received a counterfeit product from Snapdeal. In July 2019, Snapdeal’s founders were

accused of criminal conduct in India for selling counterfeit products there. Right holders have

also sued Snapdeal for selling counterfeit goods.

TAOBAO

Nominated as taobao.com. Also available as a mobile app. Hosted in China.

Owned by Alibaba Group, Taobao is one of China’s largest e-commerce platforms.

Taobao has been identified as a notorious market since 2016 in response to significant right

holder concerns about counterfeit goods being openly sold on the platform. Since then, Taobao

has continued to improve its notice-and-takedown mechanisms, introduce new technologies to

automatically identify infringing images, and expand its outreach to small and medium-sized

enterprises. However, right holders again report that the number of counterfeit products

remains stubbornly high. Right holders recognize the improved takedown times, but they remain

concerned about repeat infringers on Taobao, the strict criteria for right holders’ takedown

requests when compared to other platforms, and the lack of transparency regarding filters and

other proactive anti-counterfeiting measures. USTR will continue to monitor whether Taobao’s

anti-counterfeiting efforts are demonstrably effective in addressing ongoing complaints about

the pervasiveness of counterfeit goods on Taobao.

THEPIRATEBAY

Nominated as thepiratebay.org. Related sites include thepiratebay.cx. Utilizes reverse proxy services to mask the

location of its hosting servers.

As one of the first bittorrent indexing websites and one of the most vocal in openly

promoting piracy, ThePirateBay reportedly remains the most frequently visited bittorrent index

site in the world. Authorities in Argentina, Australia, Austria, Belgium, Denmark, Finland, France,

Iceland, Indonesia, Ireland, Italy, Malaysia, the Netherlands, Norway, Portugal, Spain, and the

United Kingdom have issued orders blocking access to this site. Right holders have reportedly

requested the removal of over five million URLs linking to ThePirateBay over the past several

years on Google alone. Right holders report that this site does not respond to any notice-and-

takedown requests.

TOKOPEDIA

Nominated as tokopedia.com. Also available as a mobile app. Hosted in Indonesia.

Tokopedia is one of Indonesia’s largest e-commerce markets. It serves as a platform for

third-party vendors to post listings, and the site offers a vast range of goods, including clothes,

electronics, and textbooks. Right holders report finding high rates and volumes of counterfeit

clothing, counterfeit cosmetics and accessories, pirated textbooks, and other pirated English-

language materials on this platform. Right holders report little improvement compared to last

year. Difficulties allegedly remain with enforcement, as the reporting procedures provided by

this platform are difficult to navigate, the documentation requirements are onerous, and the

platform makes little effort to deter repeat infringers. Right holders also report that sellers on

this platform continue to use terms such as “copy” or “replica” to describe listings, which is

known nomenclature for advertising a counterfeit product. The reported proliferation of

counterfeit goods year after year on Tokopedia calls into question the overall effectiveness of

Tokopedia’s anti-counterfeiting measures.

UPLOADED

Nominated as uploaded.net. Related sites include ul.to and uploaded.to. Reportedly hosted in the Netherlands and

operated from Switzerland.

This popular cyberlocker, having received 26 million visits from nearly 6.5 million unique

visitors in September 2020, reportedly operates through multiple redundant domains and

provides access to a broad range of infringing content, such as unlicensed digital books, movies,

and television shows. Uploaded uses a combination of multi-tiered subscriptions, a referral

program, and a rewards scheme to generate revenue, incentivize unauthorized sharing of

popular copyright-protected content, and expand its user base. For example, the site pays

rewards to users based on large file sizes, such as those for copyright-protected movies and TV

shows. It also pays rewards based on the number of times a file is downloaded, paying more for

downloads originating from so-called “Top-Countries.” Courts in India and Italy have issued

blocking orders against the site. Right holders sued the operator of this site for infringing content

shared by users based on the previous Copyright Directive, and after conflicting decisions in the

trial and regional courts, in November 2018, the German Supreme Court referred questions on

this case to the Court of Justice of the European Union, where it is still pending.

Nominated as vk.com. Also available as a mobile app. Hosted in Russia.

Nominated again this year, VK is one of the most popular sites in the world and continues

to operate as an extremely popular social networking site in Russia and its neighboring countries.

VK reportedly facilitates the distribution of copyright-infringing files, with thousands of infringing

videos and e-books identified by the U.S. motion picture and publishing industries each month.

Reports that VK has taken steps to address piracy and is constructively engaging with the music

industry are encouraging. VK’s parent company, Mail.Ru Group, has signed an Anti-piracy

Memorandum aimed at establishing a legal procedure to reduce the availability of pirated

content based on voluntary takedown by the platforms when notified by local right holders.

Right holders also reported that VK is responsive to takedown requests and has provided a tool

to right holders to search for and remove infringing content. Right holders expressed an interest

in pursuing additional dialogue with VK to resolve outstanding infringement issues on this site.

WEIDIAN

Nominated as weidian.com. Also available as a mobile app and WeChat Mini Program.

Weidian is an e-commerce platform that allows individuals to open storefronts on its

mobile app and WeChat Mini Program. It claims that over 80 million stores have been registered

on its platform, and boasts over 100 million customers. According to right holders, both the

volume and proportion of counterfeits on this platform is so high that it can be difficult to find

non-counterfeit products. Product listings are allowed to use words such as “yuandan,” a

Chinese term indicating that the product is made using the same materials and manufactured at

the same facilities as genuine branded items, but without authorization from the brand owner.

Weidian is reportedly responsive to some takedown requests from right holders, but, unlike

many e-commerce platforms, performs little seller vetting and does not have proactive anti-

counterfeiting tools or programs.

The individual storefronts that sell through Weidian’s mobile app are also integrated into

WeChat through the Weidian Mini Program. Counterfeit listings on the Weidian Mini Program

reportedly appear prominently on its front page.

Physical Markets

While the sale and distribution of counterfeit and pirated goods online is a growing

concern, physical markets continue to enable substantial trade in counterfeit and pirated goods.

In a global environment, basic enforcement measures against unscrupulous retailers and

wholesalers will not be sufficient to reduce the flow of counterfeit and pirated products. To

address current challenges, governments need targeted, modernized enforcement tools,

including:

• effective border enforcement measures to prevent the exportation of counterfeit

and pirated goods manufactured in their countries, the importation of such goods

into their countries, and the transiting or transshipment of such goods through

their countries on the way to destination countries;

• the ability for customs and criminal authorities to detain, seize, and destroy

counterfeit and pirated goods entering into and exiting from free trade zones;

• robust border enforcement authority to interdict small consignment shipments,

such as those sent through postal or express-courier services;

• asset forfeiture, which is a tool that can be used to reach owners of the markets or

facilities where infringing products are manufactured, assembled, processed, sold,

and stored;

• criminal procedures and penalties for trafficking in counterfeit labels and

packaging; and

• enhanced criminal penalties for particularly serious cases, such as trafficking in

counterfeit products that threaten security, health, and safety.

Another key to reducing piracy and counterfeiting lies in the ability to influence demand

and redirect consumers to legitimate alternatives.

This year, stakeholders reported reduced activities at many physical markets due to the

lack of tourism and other special circumstances arising from the ongoing COVID-19 pandemic. At

some markets that were listed last year, such as Luohu Commercial City and Patpong Market,

almost all activities have reportedly ceased. However, stakeholders also noted that such

reductions or cessations in activity are not necessarily the result of improved policies or

enforcement practices at these markets. In some cases, the counterfeiting activities that once

occurred at these locations have moved online or have reduced in scope as the result of the lack

of demand. USTR will continue to monitor these markets and re-evaluate them accordingly

should infringing activities re-emerge.

ARGENTINA

La Salada, Buenos Aires

La Salada, an area covering about 50 acres that incorporates three markets, remains on

the NML in 2020. The raids conducted in 2017 that arrested the market’s owner and some of the

associated organized crime members remain the last significant enforcement action to date, and

the authorities decided not to pursue most charges from this raid in 2020. Right holders report

that the same criminal organization remains in control of this market. In addition to the

availability of counterfeit goods, La Salada is also a distribution hub for counterfeit goods

throughout the region and is home to small factories that reportedly assemble and finish

counterfeit goods. La Salada reportedly closed during the height of the pandemic, but it is once

again open for business.

BRAZIL

Rua 25 de Março, Sao Paulo

The region surrounding Rua 25 de Março in Sao Paulo, including Galeria Pagé, Shopping

25 de Março, and Santa Ifigenia, remains notorious for hosting shopping malls that sell

counterfeit and pirated goods. The Rua 25 de Março region is also reportedly a distribution

center for counterfeit and pirated goods throughout Sao Paulo. Enforcement actions in this

region continue with success, including actions in 2019 that shuttered some stores, and another

action in June 2020 that targeted a local mall being used as a warehouse for counterfeit and

pirated goods. Authorities have used these enforcement actions as a basis to take civil measures

against some of the stores, including measures to close the stores. Some other malls in this area

were reportedly shuttered during the height of the pandemic, but have since reopened.

CAMBODIA

Central Market, Phnom Penh

Central Market, a sprawling market and historic landmark in Phnom Penh, remains on the

NML in 2020. Stores throughout the market reportedly sell many kinds of counterfeit goods,

including apparel, shoes, handbags, and pirated media. The Cambodian Counterfeit

Committee’s enforcement actions have reportedly been focused on products that impact human

health and safety, such as counterfeit medicines, while the sale of other counterfeit goods

remain unchecked.

CHINA

As in past years, stakeholders continue to identify China as the primary source of

counterfeit products. Together with Hong Kong, through which merchandise from mainland

China often transships, China accounted for 92 percent of the value (measured by manufacturer’s

suggested retail price) and 83 percent of the volume of counterfeit and pirated goods seized by

U.S. Customs and Border Protection (CBP) in 2019. When compared to 2018, the value of

counterfeit goods seized by CBP that originated in China not only increased in an absolute sense,

but also increased as a share of the total.

Some Chinese markets, particularly in larger cities,

have ostensibly adopted policies and procedures intended to limit the availability of counterfeit

merchandise. However, these policies are not widely adopted, and enforcement remains

inconsistent. Consequently, major notorious markets remain highly visible even in China’s

biggest cities. While right holders acknowledged that raids and seizures continued at some of

these markets, enforcement actions in other markets were virtually non-existent. Many of the

markets included on this year’s NML were included previously, underscoring the ineffectiveness

of enforcement efforts to date.

CBP, Intellectual Property Rights: Fiscal Year 2019 Seizure Statistics (Sept. 2020),

https://www.cbp.gov/document/report/fy-2019-ipr-seizure-statistics.

USTR encourages China to adopt and expand the scope of robust enforcement actions to

more effectively combat the scale of the reported problem in China, with a special focus on the

following key markets:

Anfu Market, Putian, Fujian Province

Right holders report that Anfu Market is a hub for the wholesale distribution of counterfeit

footwear produced by hundreds of factories and workshops surrounding the city of Putian, which

is reportedly known nationally as the epicenter of the Chinese counterfeit footwear industry.

Anfu Market reportedly hosts at least one hundred street level shops, the vast majority of which

offer counterfeits of well-known brands. While right holders report that authorities actively

conduct enforcement operations against vendors, enforcement against manufacturers in this

area is reportedly difficult due to reported close personal connections, including familial ties,

that manufacturers of counterfeit products may have with some local officials.

Asia-Pacific Xinyang Clothing & Gifts Plaza, Shanghai

Described by online tourist directories as “one of the last great fake markets in Shanghai,”

this market hosts numerous stalls openly offering counterfeit apparel and fashion accessories.

Authorities have reportedly stepped up enforcement at this market around the time of the

annual China International Import Expo, and right holders reported some cooperation from the

landlord of the market. However, counterfeit products remain readily identifiable, and right

holders have reported that all, or nearly all, of the goods are counterfeit.

Huaqiangbei Electronics Malls, including the Yuan Wang, Long Sheng, and Man Har Digital Plaza

Malls, Shenzhen, Guangdong Province

The malls in this area each contain several hundred vendors of electronic devices and

components. Right holders report that vendors offer counterfeit computer chips, wiring,

capacitors, and LEDs used by manufacturers of counterfeit consumer electronic devices in China

and around the world. Vendors at these malls also offer counterfeit smartphones, SD cards, and

video game consoles. While some of the smartphones on sale at this market are priced similarly

to genuine articles, vendors here reportedly disassemble genuine smartphones and replace their

parts with cheaper alternatives, but pass off such products as genuine. Enforcement actions in

these malls are reportedly rare, with the mall operators taking repeated steps to thwart right

holders’ efforts.

Kindo and Zhanxi Garment Wholesale Markets and Southern Watch Trade Center near Zhanxi Road,

Guangzhou, Guangdong Province

These large, mall-sized markets near Zhanxi Road in Guangzhou are located within a mile

of each other and offer mainly counterfeit apparel, shoes, and watches. These markets are

popular with foreign wholesale buyers who reportedly purchase counterfeit goods to ship

around the world. Right holders report some cooperation from the operators of the markets and

law enforcement to curb the sale of counterfeits. However, as recently as October 2020, up to 80

percent of products at these markets are reportedly counterfeit. Lower quality counterfeits are

displayed openly, with higher quality copies kept out of view in drawers or upper floors.

Ritan Office Building, Beijing

Although this market looks like an office building, it houses over 50 stores that reportedly

offer high quality counterfeit apparel, footwear, and accessories. Many stores at the market

display official-looking plaques containing company names and purport to offer branded

products. However, much of their offerings appear counterfeit. Stores are designed to mimic

small high‐end boutiques, each rumored to attract a small group of repeat customers.

Silk Market, Beijing

Listed in the NML since 2011, Silk Market remains a market of concern in 2020 due to the

lack of fundamental changes in its IP enforcement. Right holders report that most of the

merchandise in this market continues to be counterfeit and visible in the basement floor and

ground floor most of the year. Some vendors, rather than displaying their counterfeit wares in

the open, now hide them behind curtains. The market openly advertises the availability of

“affordable luxury quality goods,” with vendors claiming their products are made using the exact

same materials as legitimate products and at the same factories used by luxury brands. Right

holders reported that some raids have been conducted, but these raids were too irregular to

make lasting changes to the market. Some right holders initiated new civil litigation against the

operators of the market in 2018, but report little progress since then.

Wu’ai Market, Shenyang, Liaoning Province

This is the largest market in Northeastern China, and it is a hub for the distribution of

counterfeit shoes, handbags, luggage, and apparel throughout the region. Most of the

counterfeit footwear sold at this market is reportedly from Putian, Fujian Province, while the

counterfeit apparel is reportedly from Guangzhou, Guangdong Province. Right holders report

that a local court held the market jointly liable for IP infringement with the shops, but the

settlement agreement into which the right holders subsequently entered with the market did not

prove effective. While enforcement actions were reported in 2018 and 2019, there have been no

known enforcement actions in 2020. Right holders report that counterfeits remain visible in the

market. The market also has a significant online presence and provides livestreaming platforms

for vendors to advertise their goods. Some vendors claim that most of their profits come from

online sales, including through the social media sales tactics described in the Issue Focus.

Yiwu International Merchandise City, Yiwu, Zhejiang Province

This is the biggest small commodities market in the world, and its 50,000 vendors sell

almost every conceivable consumer product, mostly in bulk, to a global clientele. Many of the

goods sold in this market are unbranded and non-differentiable, but right holders report that

some vendors, perhaps eyeing higher profit margins, openly display and sell infringing handbags,

shoes, and apparel. Right holders also report that local authorities have conducted regular raids

and seizures against shops and related warehouses associated with infringing products and have

levied administrative and criminal penalties against infringers. The operator of the market has

also cooperated with right holders by posting warnings against counterfeiters, creating a list of

protected brands, and distributing IP protection brochures. Nevertheless, right holders report

that these efforts have been inadequate at reducing the visibility of infringing products at this

market.

ECUADOR

La Bahia Market, Guayaquil

La Bahia Market is a large market where various counterfeit products—mainly apparel,

footwear, DVDs, and CDs—may be found, and it remains on the NML in 2020. Vendors reportedly

sell counterfeit products in open view of the public and largely with impunity. No enforcement

operations, raids, or seizures were reportedly taken in the past year. Reports of rising sales of

counterfeit personal protective equipment at this market during the COVID-19 pandemic are

concerning.

INDIA

Heera Panna, Mumbai

A major indoor market located at the heart of Mumbai, Heera Panna reportedly offers high

quality counterfeit watches, footwear, apparel, accessories, and cosmetics. Right holders warn

that counterfeit cosmetics sold at this market have health and safety risks.

Kidderpore, Kolkata

Locally known as “Fancy Market,” Kidderpore reportedly sells counterfeit consumer

electronics, apparel, cosmetics, and pirated software and media, often at wholesale quantities.

Palika Bazaar, New Delhi

This underground market in Delhi is reportedly well-known for the trade of counterfeit

products. Many shoppers are reportedly students and other young people who want trendy

products at cheap prices. The market is also a popular destination for tourists.

Tank Road, Delhi

Tank Road remains on the NML in 2020. Right holders report that this market continues to

sell counterfeit products, including apparel and footwear. Wholesale counterfeit goods are also

reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal

Khan Road. Right holders report that conducting enforcement actions at this location is

expensive and challenging, and sellers often appear to have advanced knowledge of raids,

limiting their effectiveness.

INDONESIA

Mangga Dua Market, Jakarta

Mangga Dua is a popular market in Jakarta selling a variety of counterfeit goods, including

handbags, wallets, children’s items, clothing, and fashion accessories, with reportedly minimal

government enforcement against those who sell counterfeit goods. Merchants at this market are

reportedly using social media platforms to advertise their counterfeit products.

MALAYSIA

Petaling Street Market, Kuala Lumpur

Petaling Street Market is a well-known market in Kuala Lumpur that sells large volumes of

counterfeit items, including watches, shoes, handbags, wallets, sunglasses, and other consumer

goods. Right holders report difficulties in initiating enforcement activities due to local

protectionism and the involvement of organized crime at this market.

MEXICO

Tepito, Mexico City

Tepito, an open-air 80 square block market in the middle of Mexico City, reportedly

remains a major distribution hub for counterfeit and pirated goods in local markets across

Mexico and Central America. Right holders report that Tepito remains dangerous, making it

nearly impossible for right holders to enforce their rights. Infringing items sold at Tepito include

video games, modified game consoles and devices that enable the circumvention of

technological protection measures, and counterfeit apparel.

La Pulga Rio, Monterrey

A major market with approximately 300 stalls located in the heart of the city of Monterrey,

La Pulga Rio reportedly offers counterfeit apparel and accessories, and pirated video games.

This market reportedly has a large online presence with its own website and a Facebook page,

both of which offer delivery of counterfeit and pirated goods.

Mercado San Juan de Dios, Guadalajara

Mercado San Juan de Dios, also known as Mercado Libertad, is the largest indoor market

in Latin America. Right holders report that around half of the stalls in this market sell counterfeit

or pirated apparel, footwear, and video games. While the pandemic reportedly resulted in the

temporary closure of 300 out of the approximately 3,000 stalls, the market is recovering and

vendors estimate that foot traffic is now 70 percent of pre-pandemic levels.

PARAGUAY

Ciudad del Este

Ciudad del Este has been named in the NML or the Special 301 Report for over 18 years.

The border crossing at Ciudad del Este and the city itself have long been known as a regional hub

for the manufacture, assembly, and distribution of counterfeit and pirated products in the Brazil-

Argentina-Paraguay tri-border area and beyond. Ciudad del Este thrives on a mainly Brazilian

customer base attracted by the low prices of counterfeit goods. While the border crossings were

reportedly closed for several weeks in March due to the COVID-19 pandemic, illicit border cargo

shipments resumed soon after, and Paraguayan authorities reported more IP-related

investigations and seizures this year compared to the same period last year. However, as in

previous years, the increase in investigations did not appear to lead to an appreciable increase in

counterfeit-related convictions, with only one reported successful prosecution.

PERU

Polvos Azules, Lima

Polvos Azules is a longstanding market in the La Victoria district of Lima. Vendors

reportedly sell a broad range of illicit goods, including counterfeit clothing, shoes, appliances,

toys, and electronics. Authorities reportedly seized approximately $2 million in illicit

merchandise in January 2020, but the market quickly reopened, restocked with pirated and

counterfeit goods. While the COVID-19 pandemic temporarily affected the operations of this

market, around 80 percent of the stalls had reopened by August 2020, and sellers of counterfeit

goods reportedly began to rely on social media to reach beyond traditional customers.

Gamarra, Lima

Gamarra is Peru’s primary textile market and includes large, multistory complexes with

hundreds of stalls where vendors sell counterfeit apparel. It has favorable reviews on travel

websites for its wide selection of counterfeit products. Authorities raided Gamarra twice in 2020,

once in February and once in October. However, the stalls selling counterfeit apparel appear to

have quickly re-opened.

PHILIPPINES

Greenhills Shopping Center, San Juan, Manila

Greenhills Shopping Center is a large mall located in San Juan, Metro Manila. In 2020, the

Philippines government enhanced its efforts to curb the sale of pirated and counterfeit goods at

the Greenhills Shopping Center, including by establishing an enforcement and monitoring

agreement with the city of San Juan and by creating a working group composed of various

agencies from the National Committee on Intellectual Property Rights and the Department of

Information and Communications Technology. However, sellers have reportedly been able to

evade enforcement by moving to new stalls or by discreetly selling illicit goods behind counters

and underneath tables. Large volumes of counterfeit handbags and shoes reportedly remain

displayed, and counterfeit clothing, toys, games, computer and phone accessories, household

goods, jewelry, watches, and electronics also remain available.

RUSSIA

Dubrovka Market, Moscow

This market, in the southeast of Moscow, hosts an estimated 700 vendors, and its location

next to a taxi terminus provides easy access for buyers from Moscow and surrounding areas. The

market reportedly offers counterfeit footwear, apparel, and luxury watches, and a market

spokesperson reportedly admitted that the “replica brands” being sold at the market are of high

quality. A company whose website advertises counterfeit watches reportedly hosts a showroom

in this market. There is no reported enforcement presence at this market.

Gorbushkin Dvor Mall, Moscow

Gorbushkin Dvor Mall is reportedly known primarily for its high volume of counterfeit

electronics and high-end home appliances, such as refrigerators, washing machines, and flat

screen televisions. Counterfeit luxury watches and pirated movies and software are also

reported to be available at a fraction of normal retail prices. There are reportedly more than

1,000 vendors in this market. The local authorities reportedly do not have a presence at this

market.

Sadovod Market, Moscow

Sadovod Market is the largest trading center for consumer goods in Russia, spanning

nearly 100 acres with over 8,000 stores frequented by approximately 36 million people a year.

Businesses from across Russia and Central Asia allegedly use the market to make wholesale

purchases of counterfeit apparel, accessories, and toys, which are widely available. The market

saw a reduction in foot traffic due to the COVID-19 pandemic, although the number of vendors at

the market remained roughly the same. Vendors of counterfeit goods are reportedly moving to

Sadovod Market due to enforcement action by authorities against other counterfeit markets.

Right holders report that local authorities rarely operate in the market, and vendors openly

display counterfeit products. The open trade in counterfeit goods suggests a lax attitude toward

IP enforcement.

TURKEY

Grand Bazaar, Istanbul

The Grand Bazaar in Istanbul is among the largest and oldest markets in the world and a

top tourist attraction in Turkey. The market’s 61 covered streets include over 4,000 shops, some

of which reportedly sell counterfeit footwear, jewelry, watches, perfumes, cosmetics, wallets,

handbags, and leather goods. Although the number of vendors selling counterfeit goods has

continued to decrease over the past few years, the scale of the problem remains significant.

UKRAINE

7th Kilometer Market, Odessa

The 7th Kilometer Market is one of the largest wholesale and retail markets in Europe and

is an important contributor to the local economy. However, vendors in this market are believed

to sell large volumes of counterfeit goods, reportedly sourced from China and other Asian

countries, including counterfeit clothing, jewelry, luxury goods, and perfume. There has been no

reported enforcement activity from Ukrainian authorities this year. As a result, it is understood

that sellers continue to engage in counterfeit sales with impunity.

UNITED ARAB EMIRATES

Ajman China Mall, Ajman

Ajman China Mall reportedly continues to serve as a significant market for China-sourced

counterfeit goods. Right holders report that a substantial portion of the goods sold at this

market and adjacent buildings is distributed to foreign markets, particularly in the Middle East,

North Africa, and Europe. Despite their significant effort, right holders reported few successes of

convincing Ajman Police and the Ajman Department of Economic Development to raid this

market. This market is linked to the Ajman government-owned Ajman Free Zone and reportedly

receives strong support from the Chinese government.

Markets in Deira District, Dubai

The Deira District is home to a number of markets including the Dubai Souk, Deira Old

Souk, Dubai Gold Souk, Dubai Spice Souk, and Perfume Souk. Right holders report that these

markets are well-known among tourists and locals alike for selling IP-infringing goods. Right

holders report that Dubai Police and the Dubai Department of Economic Development conduct

frequent raids against sellers of infringing products at these markets. However, while authorities

will fine sellers for IP violations, the sellers are typically not assessed deterrent-level fines or

forced to close their shops, even if repeat violators.

VIETNAM

Ben Thanh Market, Ho Chi Minh City

Ben Thanh Market in Ho Chi Minh City is a local landmark, typically attracting many

tourists and visitors. It offers a large variety of goods, ranging from foodstuffs and locally-

produced souvenirs to apparel, footwear, accessories, and cosmetics, much of which is

reportedly counterfeit. The market reportedly experienced fewer raids in 2020 compared to

previous years. Local media reported only one raid this year, during which 1,276 items were

seized with a total value of about $5,000. These efforts appear inadequate as the remaining

vendors selling infringing goods are reportedly undeterred.

Dong Xuan Market, Hanoi

Dong Xuan is a market located in the old quarter of Hanoi, and its vendors sell a variety of

goods, including reportedly counterfeit apparel, footwear, accessories, and cosmetics. Fewer

locals are reportedly shopping for infringing goods at this market due to generally rising living

standards and changing tastes among local consumers. However, the overall IP problem here

remains significant, in part because of the size of the market.

Public Information

The 2020 Notorious Markets List is the result of the eleventh out-of-cycle review of

notorious markets, which USTR initiated on October 1, 2020, through a Federal Register Request

for Public Comments. The 49 requests and responses submitted this year are available at

https://www.regulations.gov, Docket Number USTR-2020-0035. USTR developed the 2020 NML

in coordination with the federal agencies represented on the Special 301 Subcommittee of the

Trade Policy Staff Committee (TPSC). Information about Special 301 and other intellectual

property-related processes and issues is available at https://ustr.gov/issue-areas/intellectual-

property.

To assist U.S. right holders and consumers who confront IP infringement online, the U.S.

Government continues to expand the tools available on https://www.stopfakes.gov, including by

providing links to infringement reporting mechanisms at a number of popular online retailers

and markets. Victims and interested parties may report IP theft and import violations to U.S. law

enforcement agencies through https://www.stopfakes.gov, https://eallegations.cbp.gov, or

https://www.iprcenter.gov/referral.