The latest “Notorious Markets List” from the office of the United States Trade Representative (USTR) has red-flagged three physical markets in India, besides the online marketplace Indiamart.

The list highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy, the USTR said. The NML’s “issue focus” in 2024 is on illicit online pharmacies and the risks of counterfeit medicines. “Counterfeit medicines pose a significant health and safety risk to consumers, and the growing market of illicit online pharmacies has increased the spread of these dangerous counterfeits,” it added.

The 2024 Review of Notorious Markets for Counterfeiting and Piracy identified 38 online markets and 33 physical markets “that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy,” the USTR said. Pointing to the evolving nature of counterfeit sales in China, it identified social commerce platform Douyin Mall, owned by ByteDance, for the first time, the note said.

Citing concerns from “rights holders”, the report flagged physical markets in India at Heera Panna, Mumbai (for alleged counterfeits of accessories, footwear, cosmetics); Sadar Patrappa Road Market, Bengaluru (electronic products); Tank Road, Delhi (footwear, apparel etc).

Online pharmacies

Acknowledging the convenience of e-commerce, the report said, it makes online pharmacies an appealing option for consumers, “but the ability of bad actors to avoid regulatory authorities makes the online environment fertile ground for illegal activity,” the report said. Citing statistics from the Alliance for Safe Online Pharmacies (ASOP), it said, “20 new illicit pharmacy websites are created every day. These websites may look legitimate, purportedly offering brand-name drugs at discounted prices, but they bypass regulations designed to protect consumers by operating without a license, selling medications without prescriptions, without safety warnings, and without proper oversight of the drugs being distributed.” Among the estimated 35,000 online pharmacies operating worldwide, “a staggering 96 percent operate in violation of the law,” it added.

On Indiamart, the USTR report said, the business-to-business online marketplace had been largely compliant with takedown requests, but there was “no dedicated IP portal, the process of submitting such takedown requests is extremely cumbersome and the response time to stakeholders has been inconsistent.”

Further, it added, the large volume of counterfeit goods still available on Indiamart “estimated to make up more than 50 per cent of all products sold, including pharmaceuticals, electronics, and apparel, indicates that additional actions to implement anti-counterfeiting best practices are needed.”

The report said, “Right holders remain concerned about the lack of proactive monitoring for infringing goods and an absence of clear certifications by 27 sellers, beyond acceptance of the terms of use.” Indiamart, however, “continues to disclaim all liability, claiming that it bears no responsibility for the products sold on its site,” the report said.

The NML also identified other China-based e-commerce and social commerce markets Taobao, DHGate, and Pinduoduo, as well as the cloud storage service Baidu Wangpan, the note said. Other listed markets include seven physical markets around China known for the manufacture, distribution, and sale of counterfeit goods, it added.