For the first time, the US Trade Representative (USTR) had labeled several websites of Amazon from certain foreign countries, including for India as "notorious" markets for counterfeit products. Not just Amazon, the USTR also listed four markets from India as 'notorious markets' list for counterfeiting and piracy.
According
to a report from Politico, the inclusion does not carry any penalty, other than the embarrassment for Amazon of being listed alongside other websites and physical markets where counterfeit goods are sold.
"The action by the Office of the US Trade Representative was in response to a request last year from the American Apparel and Footwear Association, whose members include major brands and retailers like Ralph Lauren Corp., Kenneth Cole Productions, Perry Ellis International, Under Armour, Spanx, Lululemon Athletica and Hanesbrands," the news report says.
Not just Amazon, Snapdeal and four other Indian shopping areas have figured in the 'notorious markets' list for counterfeiting and piracy. The USTR office also listed Tank Road in Delhi, Heera Panna in Mumbai, Kidderpore in Kolkata and Millennium Centre in Aizawl in the ‘notorious markets' list.
In a statement, Robert Lighthizer from USTR says, "The Trump Administration is committed to holding intellectual property rights violators accountable and to ensuring that American innovators and creators have a full and fair opportunity to use and profit from their work".
“This year, the Review contains an ‘issue focus’ that explores the nexus between online piracy and malware. The Review also continues to discuss emerging piracy models, including illicit streaming devices, ‘stream-ripping’, and piracy portals and apps that cause major damage to the digital marketplace for legitimate music, movies, and television,” the USTR says.
The Trump administration has put five of Amazon's foreign websites – India, Canada, the UK, Germany, France – on the "Notorious Markets" annual report for being havens for counterfeit products.
In a statement, Amazon, however, accused the White House of advancing the President's "personal vendetta" against Amazon and its chief executive Jeff Bezos.
"The Administration wrongfully named Amazon's stores in Canada, France, Germany, India and the UK to the USTR annual notorious markets list, despite the fact that more than 99.9% of pages viewed worldwide by customers on Amazon have never had a report of counterfeit," said the ecommerce giant.
"We strongly disagree with the characterization of Amazon in this USTR report. This purely political act is another example of the Administration's notorious pattern of using the US government to advance a personal vendetta against Amazon," the company stressed.
This is the first time a US business has been put on the notorious markets list.
"The Review of notorious markets for counterfeiting and piracy highlights 38 online markets and 34 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting and copyright piracy," said the Office of the USTR.
"This activity harms the American economy by undermining the innovation and intellectual property rights of US IP owners in foreign markets. An estimated 2.5%, or nearly half a trillion dollars' worth, of imports worldwide are counterfeit and pirated products," it added.
Amazon said it invested over $500 million last year and have more than 8,000 employees protecting its store from fraud and abuse.
"We also stopped over 2.5 million suspected bad actors from opening Amazon selling accounts before they published a single listing for sale, and we blocked more than 6 billion suspected bad listings before they were published to our stores," it emphasized.
The company said it is an active, engaged stakeholder in the fight against counterfeit.
"However, in the last year for which data was published, only 0.1% of filed federal criminal cases in the US involved charges for trafficking in counterfeit goods, and 56% of counterfeiters sentenced that year received no jail time," said Amazon.
Earlier in January this year, in a landmark regulation on anti-counterfeiting, US president Donald Trump had shifted the liability for counterfeits from third parties to platforms like Amazon. Jeff Bezos, the chief of Amazon, had been able to sidestep any liability for counterfeit goods, but the Trump Administration's crackdown on counterfeit goods have backed the retail giant into a corner, says
a report from CCN.
The news report says, "The new customs and border protection framework shifts the burden of responsibility to Amazon. Now warehouses and fulfilment centres, most notably Amazon, will be legally and financially liable. Jeff Bezos’ company will have to bear more of the costs of policing for counterfeits on its platform."
Mr Bezos is facing a massive counterfeit goods problem on his platform and Amazon has defended itself from a number of lawsuits by brands who have found counterfeits for sale on the platform. But so far, Amazon has prevailed in court.
Mr Bezos has been able to sidestep any liability for counterfeit goods. His lawyers have successfully argued in court that Amazon is a platform, not a seller. But the Trump Administration’s crackdown on counterfeit goods have backed the retail giant into a corner, the report from CCN says.
The US department of homeland security (DHS)’s office of strategy, policy, and plans had prepared and submitted to Mr Trump, a report titled 'Combating Trafficking in Counterfeit and Pirated Goods'. The report is based on a memorandum from President Trump signed on April last year.
The DHS report says, "The rapid growth of e-commerce has revolutionised the way goods are bought and sold, allowing for counterfeit and pirated goods to flood our borders and penetrate our communities and homes. Illicit goods trafficked to American consumers by ecommerce platforms and online third-party marketplaces threaten public health and safety, as well as national security. This illicit activity impacts American innovation and erodes the competitiveness of US manufacturers and workers."
Counterfeiting is no longer confined to street-corners and flea markets. The problem has intensified to staggering levels, as shown by a recent Organisation for Economic Cooperation and Development (OECD) report, which details a 154% increase in counterfeits traded internationally — to $509 billion in 2016 from $200 billion in 2005. (
Read: Trump Shifts Liability for Counterfeits to Platforms Like Amazon: Report)
