SECTION III. NOTORIOUS MARKETS
Global piracy and counterfeiting continue to thrive due in part to marketplaces that deal in infringing goods. The 2010 Special 301 Report notes the following markets, including those on the Internet, as examples of marketplaces that have been the subject of enforcement action or that may merit further investigation for possible IPR infringements, or both. The list represents a selective summary of information reviewed during the Special 301 process; it is not a finding of violations of law. The United States encourages the responsible authorities to step up efforts to combat piracy and counterfeiting in these and similar markets.
Internet Markets
- Baidu (China). The U.S. music industry reports that the vast majority of all illegal downloads of music in China are associated with Baidu. Baidu is the target of ongoing infringement actions by both domestic and foreign rights holders. Baidu executives continue to deny responsibility for content hosted by other websites. Several rights holders are pursuing legal action in Chinese courts.
- Business-to-business (B2B) and business-to-consumer (B2C) websites (China). A large number of Chinese websites, such as TaoBao and Alibaba, the top two online marketplaces selling game copiers, have been cited by industry as offering infringing products to consumers and businesses.
- TV Ants (China). Industry reports that this website is a notorious hub of online piracy with respect to sporting event telecasts.
- Allofmp3.com clones (Russia). Although allofmp3 (formerly the world's largest server-based pirate music website) was shut down in 2007, a nearly identical site has taken its place and continues illegally distribute copyrighted materials. Several other sites provide similar services. In addition, Russia is host to several major BitTorrent indexing sites that are popular channels for illegal peer-to-peer downloading.
- Webhards (Korea). Webhards are web-based storage services that offer high-volume storage space, some up to a terabyte, for sharing of pirated material. While two well-known webhards now provide legal content and the Korean government has prosecuted some webhard operators, there remain numerous webhards operating in Korean webspace that provide illegal content.
Physical Markets
- Bahia Market (Guayaquil, Ecuador). This expansive market of at least 1,000 vendors sells high quantities of illicit goods, many of which are either counterfeit products or goods stolen from the Guayaquil port.
- China Small Commodities Market (Yiwu, China). The China Small Commodities Market in Yiwu reportedly sells over 410,000 different items, mostly small consumer goods. Industry has cited the market as a center for wholesaling of infringing goods. Officials in Yiwu have met repeatedly with U.S. Government officials and stressed their work to improve IPR enforcement. Industry confirms that the enforcement in Yiwu has improved. Continued improvement is needed, particularly in the area of criminal enforcement.
- Greenhills, Quiapo, Binondo, Makati Cinema Square, and 168 Mall (Manila, Philippines). Street stalls in these areas are a haven for counterfeit clothing, shoes, watches, and handbags. Due to the unwillingness of local investigation agencies and government authorities to confront stall owners, trademark owners have had a difficult time obtaining meaningful enforcement action. Also, although a 2006 Executive Order establishes landlord liability, reportedly no landlords have yet been prosecuted for IPR violations.
- Gorbushka and Rubin Trade Center and Savelovskiy Market (Moscow, Russia). Industry representatives report that piracy problems persist in these markets, though the situation has improved at the Gorbushka and Rubin Trade Center. In Moscow, illegal optical discs are still available at the upscale Gorbushka consumer electronics market, but less overtly displayed than in previous years. Pirated goods are more widely and openly available at the Savelovskiy electronics market in Moscow.
- Harco Glodok (Jakarta, Indonesia). This is reported to be one of the largest markets in Indonesia for counterfeit and pirated goods, particularly well-known for pirated optical discs. Enforcement officials are reportedly reluctant to conduct regular enforcement actions because of the presence of organized criminal gangs. Indonesian law enforcement authorities have successfully utilized some U.S. assistance.
- La Salada (Buenos Aires, Argentina). La Salada is the largest of more than 40 well-established markets in Buenos Aires that have been cited as being heavily involved in the sale of counterfeit goods. Fewer raids were conducted at La Salada in 2009 due to high-profile efforts by the Buenos Aires provincial authorities in May 2009 to bring order to La Salada by verifying business licenses of vendors and by efforts to stop trucks headed towards the market to verify their contents. However, the results of such efforts have not yet been announced.
- Lowu Market (Shenzhen, China). The display of signs prohibiting the sale of counterfeit or pirated goods has not deterred their sale in Lowu market and other markets in Shenzhen and Guangzhou. Despite relative success in Beijing and other jurisdictions, efforts to use landlord liability have largely failed as well.
- Nehru Place and Palika Bazaar in New Delhi, Richie Street and Burma Bazaar in Chennai, Manish Market, Heera Panna, Lamington Road, and the Fort District in Mumbai, and Chandni Chowk in Kolkata (India). These markets are known for the high volume of pirated software, optical media, and counterfeit goods.
- Panthip Plaza, the Klong Thom, Saphan Lek and Baan Mor shopping areas, the Patpong and Silom shopping areas, the Mah Boon Krong (MBK) Center, and the Sukhumvit Road area (Bangkok, Thailand). These locations are notorious for openly selling pirated and counterfeit goods. These are all designated as "red zones" by Thai authorities, which are markets targeted for increased raids due to their high piracy and counterfeiting rates.
- Petrivka Market (Kyiv, Ukraine). This open air market houses as many as 300 stands that sell pirated goods, including music, films, games, and software.
- San Andresitos (Colombia). These large marketplaces scattered throughout Columbia are notorious for unauthorized reproduction of music, video games, and movies. Raids and seizures are difficult due to the presence of organized crime and narco-traffickers.
- Silk Market (Beijing, China). Industry has cited Beijing's Silk Street Market as an egregious example of the counterfeiting of consumer and industrial products that is endemic in many retail and wholesale markets throughout China. Only limited progress has been made in addressing the severe IPR violations at this market since 2005. The United States encourages the appropriate authorities to ensure adequate enforcement of the trademark authorization measures mandated by the Beijing municipal courts.
- Tepito, Plaza Meave, Eje Central, Lomas Verdes, and Pericoapa Bazaar (Mexico City, Mexico); San Juan de Dios (Guadalajara, Mexico); Simitrio-La Cuchilla (Puebla, Mexico); and Pulgas (Monterrey, Mexico). With Tepito as the main warehousing and distribution center for infringing products, these informal markets sell pirated and counterfeit goods connected to or purchased from organized crime syndicates.
- Tri-Border Region (Paraguay, Argentina, and Brazil). The Tri-Border Region of Paraguay, Argentina, and Brazil has a longstanding reputation as a hotbed of piracy and counterfeiting of many products.