Greenhills Shopping Center and Shopee have been cited by the US Trade Representative (USTR) for efforts to counter the sale of fake products in their specific operations but the US authority still retained the two in its Notorious Markets List (NML) as right holders still need to see the results of these efforts and demand for faster response.
In its latest 2023 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List) released on Tuesday, Jan. 30, the USTR identified 39 online markets and 33 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy. This includes China-based e-commerce and social commerce markets Taobao, WeChat, DHGate, and Pinduoduo, as well as the cloud storage service Baidu Wangpan. Other listed markets include seven physical markets in China known for the manufacture, distribution, and sale of counterfeit goods.
On Greenhills, the USTR review said that right holders acknowledged the strong partnership between various government agencies and the Greenhills mall management, but also noted that they “need to wait and see the results.”
Greenhills, a large mall with many storefronts selling counterfeit goods, including electronics, perfumes, watches, shoes, accessories, and fashion items in San Juan in Metro Manila, is among several physical markets globally identified by the USTR where sale of counterfeit items is alleged to be prevalent.
The USTR said the government, through the National Committee on Intellectual Property Rights, has worked with right holders and the management at Greenhills Shopping Center on enforcement against counterfeit sellers, including product seizures and legal charges against counterfeit vendors. Coordinated efforts between right holders and mall management have included warning letters and suspension of business for repeat violators.
The USTR noted that the mall management, with the support of city authorities, is reportedly in the process of converting Greenhills Shopping Center into a high-end 50 mall with legitimate sellers.
In addition, the USTR NML also retained Shopee, a popular mobile shopping app in Southeast Asia based in Singapore with individual country-focused platforms serving Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan, and Vietnam, as well as Brazil, Chile, Colombia, and Mexico.
Despite the continued listing in the NML, USTR noted that Shopee has reported significant investment in its brand protection and anti-counterfeiting capacity over the past year, including the expansion of its one-stop brand IP portal from an initial pilot to all right holders and a new brand protection partnership program to bolster proactive screening measures.
The online marketplace also highlighted the increase in proactive screening efforts by its dedicated teams operating in local languages and deepening partnerships with stakeholders.
In addition, right holders acknowledged the platform’s industry engagement efforts, observing faster takedowns and decreased visibility of counterfeit listings.
According to USTR, one industry group highlighted its successful partnership with Shopee to apply a data science model to remove listings for counterfeit pharmaceuticals and provide training initiatives for law enforcement authorities and other stakeholders. Despite positive progress in reporting procedures and takedown turn-around time, right holders noted that these improvements have not materialized consistently across all Shopee platforms.
In its review, the NML highlighted online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy.
“The trade in counterfeit and pirated goods harms workers, consumers, and small businesses, and ultimately hurts the U.S. economy,” said USTR Ambassador Katherine Tai. “This year’s Notorious Markets List is significant because it underscores the potential dangers of counterfeit goods and why robust enforcement to combat trade in these goods is important to growing our economy from the middle out and the bottom up.”