USTR Targets Baidu in Notorious Markets Report

19 September 2012

The Office of the United States Trade Representative (USTR) has spotlighted with concern more than 30 internet and physical markets that exemplify key challenges in the global struggle against piracy and counterfeiting. The USTR’s announcement marks the conclusion of the Special 301 Out-of-Cycle Review of Notorious Markets, launched on October 1, 2010. The results identify examples of both internet and physical marketplaces that have been the subject of enforcement action connected with counterfeiting and piracy, or that may merit further investigation for possible intellectual property rights infringements.

“Piracy and counterfeiting undermine the innovation and creativity that is vital to our global competitiveness,” said United States Trade Representative Ron Kirk. “These notorious markets not only hurt American workers and businesses, but are threats to entrepreneurs and industries around the world.”

The Notorious Markets review identifies markets that are particularly prominent examples of notorious markets in each category, and does not constitute an exhaustive list of all notorious markets around the world. Inclusion in the Notorious Markets List does not reflect a finding of a violation of law or the United States Government’s analysis of the general IPR protection and enforcement climate in the country concerned; such analysis is contained in the annual Special 301 Report issued at the end of April.

The markets listed include, for example, the website Baidu, which recently ranked as the number one most visited site in China, and among the top ten in the world. Baidu exemplifies the problem of online services engaged in “deep linking,” which provide links to online locations containing the allegedly infringing materials. The list also includes numerous examples of websites involved in BitTorrent tracking and indexing, which facilitate the high speed transfer of infringing materials between users, as well as internet markets involved in specific activities such as piracy of sports telecasts, Smartphone software and physical products. Key physical markets listed include, for example, Beijing’s notorious Silk Market, as well as numerous other markets from a wide range of countries and regions.

Electronics Inventions Win at Beijing Patent Awards

Inventors in the electronic communication industry ran away with the largest share of the recent Beijing Invention Patent Awards, according to China Daily. Fifty winners were announced from nearly 190 candidate patents. The chemical engineering and metallurgy industry ranked second in number of awards, followed by urban construction and environmental protection, which shared third place with computer automation.

The winning patents each brought an average increase of Rmb2.6 million (US$390,000) in annual sales to their companies over the past three years through commercialization, the newspaper reported. Five of the patents garnered first prize, 15 won second place and the remaining 30 placed third.

Beijing Daily reported that the Rmb1 million grand prize was not awarded, as no patent met its requirements. “The highest award winner is required to be a major breakthrough and make a huge contribution to the national economy,” Beijing Daily cited Gao Yongmai, director of the office’s secretariat, as saying. “And it must also be approved by more than 80 percent of the judges, much stricter than the other domestic awards, which have a one-half approval standard.”

The biennial award is the first of its kind by a provincial government nationwide, according to Beijing Intellectual Property Office Director Liu Zhengang. It aims to encourage the owners of advanced technologies to file patent applications and to improve patent protection awareness among Beijing citizens, said Liu.

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