USTR Notorious Markets List: IndiaMART says it is listing platform, no transaction happens

Hours after the United States Trade Representative (USTR) included IndiaMART InterMESH on its 'Notorious Markets List', the business-to-business e-commerce firm clarified that it is only a discovery platform for users and no actual transaction takes place at the marketplace.

Calling the website a listing platform, IndiaMART told Fortune India in an emailed statement that “there is no question of sales and purchase of any product but not limited to sale of counterfeit products”.

"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," said India’s largest online B2B marketplace, which connects buyers with suppliers.

The company further said that India’s information technology (IT) guidelines categorically provide for removal of content of any third party by intermediaries like IndiaMART upon receipt of a court order to the said effect. “Intermediaries are required to remain content neutral and not adjudicate upon the veracity and/or legality of the content uploaded by the third parties on its website.”

The company, however, said that it “voluntarily acts generally upon complaint without even insisting on court orders in case of violation of any intellectual property rights of the complainant”.

The terms of use of the website categorically prohibits the posting or transmission of content related to counterfeit products or items, it said.

Terming its inclusion in the USTR Notorious Markets List as “unilateral”, IndiaMART said it will get in touch with the US government’s trade body to seek details of instances which led them to believe its process is lax in this regard.

“IndiaMART website has been included in the said report as a ‘notorious marketplace’ unilaterally without any prior communication with our organization or without giving us an opportunity to respond to the allegations made in the report,” it said.

Meanwhile, the company acknowledged that its redressal system’s turnaround time may have been affected due to the Covid-19 pandemic. “We should note that with recent events of the unfortunate global pandemic of COVID-19, the redressal system turn around may have impacted slightly, which we understand might have led the USTR to believe responses to right holders were delayed, which we do not agree with. Therefore, we would be able to comment further on these only on getting the specific instances from USTR,” it said.

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.

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. Delhi's Palika Bazaar also made it to the notorious markets list.