The most recent “Notorious Markets List” released by the United States Trade Representative (USTR) has highlighted three physical markets in India and the online platform Indiamart due to concerns over substantial trademark counterfeiting and copyright infringement.
This list identifies both online and physical markets that facilitate or engage in significant levels of counterfeiting and piracy. For 2024, the USTR’s focus includes illicit online pharmacies and the associated dangers posed by counterfeit medications. The report emphasizes that counterfeit drugs represent a considerable health risk to the public, with the rise of these online illegal pharmacies contributing to the proliferation of such products.
The USTR’s 2024 Review of Notorious Markets indicates that there are 38 identified online markets along with 33 physical markets involved in substantial trademark infringement and copyright violations. Among notable mentions is Douyin Mall, a social commerce platform owned by ByteDance, which has been flagged for the first time due to emerging issues related to counterfeit sales in China.
The report specifically cites concerns raised by rights holders regarding physical markets in India: Heera Panna in Mumbai is highlighted for counterfeit accessories, footwear, and cosmetics; Sadar Patrappa Road Market in Bengaluru for electronic products; and Tank Road in Delhi for footwear and apparel.
While online pharmacies offer consumers convenience, the report warns that this environment is also conducive to illegal activities, with bad actors often evading regulatory oversight. According to the Alliance for Safe Online Pharmacies (ASOP), approximately 20 new illicit pharmacy websites emerge every day. Many of these sites appear legitimate, offering branded medications at discounted prices but operate without proper licensing, sell without prescriptions, and lack adequate safety warnings. Alarmingly, around 96% of the estimated 35,000 online pharmacies globally operate unlawfully.
Regarding Indiamart, while the platform has generally complied with takedown requests for counterfeit listings, the report criticizes its lack of a dedicated intellectual property portal and calls attention to the cumbersome submission process for these requests. Response times from the platform have been inconsistent, and an estimated 50% of products listed, including pharmaceuticals, electronics, and apparel, are believed to be counterfeit. The report also notes that rights holders are concerned about Indiamart’s inadequate proactive monitoring for infringing goods and the absence of clear certifications from sellers. Nevertheless, Indiamart maintains a disclaimer of liability, stating that it does not hold responsibility for the products sold.
In addition to the Indian markets, the list also mentions various e-commerce and social commerce platforms in China, including Taobao, DHGate, and Pinduoduo, as well as the cloud storage service Baidu Wangpan. It also lists seven physical markets in China known for the manufacturing, distribution, and sale of counterfeit goods.
