IndiaMART, Palika Bazaar in USTR 'notorious markets' list

Business-to-business e-commerce platform IndiaMART and Delhi's Palika Bazaar have appeared on the 'Notorious Markets List' released by the United States Trade Representative (USTR).

The list, according to USTR, highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy.

AliExpress and WeChat, two major China-based e-commerce platforms, also appeared on the list for the first time for allegedly facilitating substantial trademark counterfeiting.

"Baidu Wangpan, DHGate, Pinduoduo, and Taobao continue to be listed, as well as nine physical markets located within China that are known for the manufacture, distribution, and sale of counterfeit goods," USTR said.

The 2021 Notorious Markets List has identified 42 ecommerce platforms and 35 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.

IndiaMART, which calls itself as the world's second largest online B2B marketplace connecting buyers with suppliers, was the only e-tailer from India on the list. "Counterfeit goods can allegedly be found in large volumes on IndiaMART, including counterfeit pharmaceuticals, electronics, and apparel," USTR said, adding that "right holders are concerned with IndiaMART's failure to adequately implement anti-counterfeiting best practices, including seller verification, penalties against known sellers of counterfeit goods, or proactive monitoring of infringing goods".

"IndiaMART apparently has a notice-and-takedown system, but right holders report that it is burdensome to use, the time-to-takedown is slow, and the status of notices is not transparently communicated to right holders," the US government's trade body said.

Responding to the allegations, IndiaMART said the website is only a discovery platform for users. "No actual transaction takes place at our marketplace. Therefore, there is no question of sales and purchase of any product but not limited to sale of counterfeit products. IndiaMART website is merely a listing platform."

"Our grievance redressal system is robust and efficient, which allows users to send complaints via the website and in lieu of such complaints the redressal is forwarded to the said advertiser for diligence," it said.

Delhi's Palika Bazaar also made it to the notorious markets list. "This underground market in Delhi is seemingly well-known for the trade of counterfeit products, such as mobile accessories, cosmetics, watches, and eyewear. Many shoppers are reportedly students and other young people who want trendy products at cheap prices," it said.

Tank Road, another market in the national capital, featured on the USTR list. "The market continues to sell counterfeit products, including apparel, footwear, watches, handbags, electronics, and beauty products. Wholesale counterfeit goods are also reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal Khan Road. Right holders note that conducting enforcement actions at this location is challenging, as the market is located in a residential area and sellers often appear to have advanced knowledge of raids, limiting their effectiveness," it said.

Mumbai's Heera Panna indoor market and Kolkata's Kidderpore have also figured on this year's list. USTR said severe skin problems, rashes, irritation, and eye diseases have reportedly been caused due to the poor quality of the counterfeits.

The annual list aims to increase public awareness and help market operators and governments prioritise intellectual property enforcement efforts that protect American businesses and their workers.

"The global trade in counterfeit and pirated goods undermines critical U.S. innovation and creativity and harms American workers," said US ambassador Katherine Tai. "This illicit trade also increases the vulnerability of workers involved in the manufacturing of counterfeit goods to exploitative labor practices, and the counterfeit goods can pose significant risks to the health and safety of consumers and workers around the world."