2014 Out-of?Cycle Review of
Notorious Markets

 

United States Trade Representative
March 5, 2015

Results of the 2014 Out-of-Cycle Review of Notorious Markets
Overview

Commercial scale trademark counterfeiting and copyright piracy cause significant financial
losses for rights holders and legitimate businesses, undermine critical U.S. comparative
advantages in innovation and creativity to the detriment of American workers, and can pose
significant risks to consumer health and safety. The Notorious Markets List (“List”) highlights
select online and physical marketplaces that reportedly engage in and facilitate substantial
copyright piracy and trademark counterfeiting.1
The Office of the United States Trade Representative (“USTR”) has developed the List under the
auspices of the annual Special 301 process.2 USTR solicited comments regarding which markets
to highlight in this year’s List through a Request for Public Comments published in the Federal
Register (www.regulations.gov, Docket Number USTR-2014-0017).

The List is based on publicly-available information. USTR selected markets not only because
they exemplify global concerns about counterfeiting and piracy, but also because the scale of
infringing activity in such markets can cause economic harm to U.S. IPR holders. Some of the
identified markets reportedly host a combination of legitimate and unauthorized activities.
Others reportedly exist solely to engage in or facilitate unauthorized activity. The List does not
purport to be an exhaustive list of all physical and online markets worldwide in which IPR
infringement takes place.

USTR has identified Notorious Markets in the Special 301 Report since 2006. In 2010, USTR
announced that it would begin publishing the List separately from the annual Special 301 Report,
pursuant to an Out-of-Cycle Review (“OCR”). USTR first separately published the List in
February 2011. The present List is the result of the 2014 OCR of Notorious Markets.
The terms “copyright piracy” and “trademark counterfeiting” appear below as “piracy” and “counterfeiting,”
respectively.
1

2

Please refer to the Public Information section below for links to information and resources related to Special 301.

2

 The List does not purport to reflect findings of legal violations, nor does it reflect the U.S.
Government’s analysis of the general IPR protection and enforcement climate in the country
concerned. A broader analysis of IPR protection and enforcement in particular countries or
economies is presented in the annual Special 301 Report, published on or about April 30thof
each year (please refer to the Public Information section at the end of this document).

The List repeats several previously-identified markets because our concerns with those particular
markets have not been addressed. However, we examined each market anew and updated each
listing. Other previously-identified markets may not appear in the present List for a variety of
reasons, including that: the market has closed or its popularity or significance has diminished;
enforcement or voluntary action has reduced or eliminated the prevalence of IPR-infringing
goods or services; market owners or operators are cooperating with rights holders or government
authorities to address infringement; the market is no longer the most noteworthy example of its
kind; or no commenter nominated the market for continued inclusion on the List.

Positive Developments Since the 2013 Out-of-Cycle Review of Notorious Markets

Since the release of the 2013 List, some market owners and operators have made notable efforts
to address the widespread availability of pirated or counterfeit goods in their markets. The
United States commends these efforts, and encourages governments, rights holders, and the
owners and operators of these and other markets, including those newly identified in the 2014
List, to engage in sustained and meaningful efforts to combat piracy and counterfeiting. For
example, the operators of previously-listed Seriesyonkis.com3 reportedly have taken voluntary
action to reduce the availability of pirated content on the site following the commencement of
criminal proceedings in Spain.4 The operators of Aiseesoft.com voluntary ceased offering DVD
and Blu-Ray “ripping” software after the site appeared in the 2013 List. Such welcome efforts
3

Previously- and presently-listed markets appear in bold type. When a paragraph includes multiple references to a
market only the first instance will appear in bold type.
On January 1, 2015, Spain’s new copyright law came into force. The law provides, among other things, significant
penalties for unauthorized distribution of copyright-protected content. Reportedly in anticipation of the effective
date of the law, several sites popular in Spain either reduced the availability of pirated content or ceased operations.
This welcome response will create more opportunities for legitimate content distribution in Spain.
4

3

 can foster the development of legitimate marketplaces and business models, enhance consumer
choice and security, and facilitate the next generation of creativity and innovation.

During the past year, some of the listed online markets undertook various measures that
demonstrated a willingness to cooperate in addressing infringement, such as: providing
streamlined notice and takedown procedures; expediting responses to complaints; completing
licensing arrangements with rights holders; and engaging with rights holders to develop
additional cooperative procedures. China’s Xunlei.com (“Xunlei”) has made several notable
improvements since first being listed as a Notorious Market. In addition to shutting down its
problematic affiliated service, GouGou, and transitioning KanKan to a legitimate format,
Xunlei created a mechanism for reporting unauthorized content, and has entered into agreements
with several rights holder organizations to distribute licensed content. However, USTR
continues to receive complaints about Xunlei because the expected positive impact of at least
some of those agreements with rights holder organizations is not yet apparent, and because
Xunlei’s broad efforts to date appear not to have effectively addressed the high level of
unauthorized content that remains available. In recognition of Xunlei’s efforts, and to encourage
further improvement by Xunlei and by other Notorious Markets, USTR has removed Xunlei
from the List for 2014. However, we will continue to monitor developments. USTR encourages
sites such as Xunlei and listed site Zing.vn to deepen engagement with rights holders and to
further ensure authorized use of content on their online markets.

In 2014, several previously-listed online markets closed or experienced disruption as a result of
enforcement efforts. These include: Wawa-mania.ec, which was the focus of action by French
authorities; Kuaibo.com/QVOD in China; and Mp3skull.com and Share-rapid.cz,5 as a result
of actions by the United Kingdom (“U.K.”) and other governments as well as civil enforcement
by rights holders.

In 2014, other previously-listed or nominated sites were the subject of significant domestic and
international law enforcement efforts. Notable enforcement efforts occurred in Sweden, against
5

Because Share-rapid.cz may have resumed operations as MegaRapid.cz, USTR will continue to monitor the new
site for potential IPR infringement.

4

 ThePirateBay.se6 and in Germany, against the nominated but not listed site Boerse.bz (also
operating as Kinox.to).7 The Government of Spain also took significant enforcement action in
2014 against Seriespepito.com and A Pedra Market, a physical market in Vigo, Galicia. In
addition, United States and European enforcement authorities cooperated in several enforcement
actions against online markets, and the Italian Fiscal Police and Rome’s public prosecutor joined
forces against hundreds of sites delivering pirated content to Italian consumers. The United
States commends these efforts and encourages trading partners to continue their individual and
cooperative efforts to combat copyright piracy and trademark counterfeiting.

Putlocker.com was subject to various enforcement actions in 2012 and 2013. In 2014, the
owner rebranded the cyberlocker as Firedrive.com, and reportedly continued to offer both
streaming and downloading of unauthorized video files, including preserved Putlocker files. It is
unclear whether the owner has maintained any of the anti-piracy controls previously instituted at
Putlocker.com, or rather has returned to its past practices of improperly incentivizing and
compensating users for illegal uploads. In any event, Firedrive’s popularity has decreased
dramatically from that of the original Putlocker.com site. Firedrive’s Alexa.com8 global rank of
9,842, is significantly lower than Putlocker’s February 2014 global rank of 320. Due to this
significant reduction in popularity, Putlocker/Firedrive is not listed this year.
Respondents to USTR’s Federal Register Request describe Brazil’s Camelodromo Uruguaiana
(Rio de Janeiro) and Feira dos Importados (also known as Feira do Paraguai) (Brasilia) as being
at the center of the country’s trade in pirated video games and audiovisual products. Reportedly
the largest shopping market in Rio de Janeiro, the Camelodromo Uruguaiana hosts over 1,500
Vigilance by Swedish and other government authorities is needed to prevent The Pirate Bay (“TPB”) from
resuming full operations as it did after a 2006 enforcement action against it. Shortly after the December 2014
enforcement action, the site resumed operations as ThePirateBay.si and then again as ThePirateBay.se as well as
under several other domain names. TPB also has been cloned (i.e., substantially identical sites made available under
other domain names), including by the operators of Isohunt.to, who also cloned previously-listed Isohunt.com.
TPB and several clone sites are reportedly using CloudFlare.com’s services.
6

7

Boerse.bz, like TPB, appears to have resumed operations, as Boerse.to. The resurgence of sites after enforcement
actions reinforces the need for not only coordinated but also sustained responses.
8

Alexa.com utilizes a proprietary methodology to analyze global and country-specific user traffic and develop a
numerical rank that indicates a website’s popularity relative to other sites. Rankings can change dramatically and
quickly. The rankings that appear in this document are current as of March 3, 2015.

5

 kiosks, many of which sell pirated and counterfeit goods. Similarly, the Feira dos Importados
offers apparel, fashion accessories, and toys, in addition to audiovisual entertainment products.
Many of the counterfeit products sold there are reportedly produced in Asia. However, in
contrast with the current situation described below at listed market Galeria Page (Sao Paulo),
local authorities in both Brasilia and in Rio de Janeiro reportedly conduct regular enforcement
actions at their markets. Also of note is that the enforcement actions in Brasilia and Rio de
Janeiro receive press coverage, which promotes crucial public awareness. USTR applauds these
efforts, and encourages Sao Paulo’s authorities to resume previous levels of enforcement.

Additional positive developments in 2014 took the form of policy and commercial initiatives, as
governments and businesses worldwide look for ways to address copyright piracy and trademark
counterfeiting. For example, the Government of France continued its inclusive dialogue with
stakeholders, resulting in another installment in a series of reports prepared for the Minister of
Culture and Communications. Published in May 2014, Operational Tools to Prevent and
Combat Online Infringement9 included an informative review of the respective roles that
participants in the Internet ecosystem can play in addressing, and developing alternatives to,
online piracy. The report highlighted important voluntary initiatives that will be key to reducing
online piracy while respecting the rights of law-abiding users. In the United States, a voluntary
payment processor initiative,10 launched as an outgrowth of the U.S. Intellectual Property
Enforcement Coordinator’s 2010 Strategic Plan, aims to address websites that persist in
intentionally selling infringing products. Under the program, participating payment processors
have terminated the accounts of nearly 4,000 online merchants. In Italy, a memorandum of
understanding between online advertisers and the film and music industries is aimed at reducing

9

Outils opérationnels de prévention et de lutte contre la contrefaçon en ligne is available at
www.culturecommunication.gouv.fr/Ressources/Rapports/Outils-operationnels-de-prevention-et-de-lutte-contre-lacontrefacon-en-ligne. (English language summary: http://merlin.obs.coe.int/iris/2014/6/article18.en.html). Please
also see the 2013 Report on the Prevention of Unlawful Streaming and Direct Downloading at
http://hadopi.fr/sites/default/files/page/pdf/Rapportstreaming_eng.pdf.
Known as “RogueBlock,” this payment processor initiative is a “a collaborative effort of the IACC and the
payment industry to create a streamlined, simplified procedure for members to report online sellers of counterfeit or
pirated goods directly to credit card and payment processing networks.” www.iacc.org/rogueblock.html.
10

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 or eliminating commercial advertising, the largest source of revenues for sites engaged in
copyright piracy.11

Other Developments Related to Previously-Listed Markets

USTR continues to monitor markets that have been removed from the List. Markets may be relisted if there is a change in circumstances, e.g., if a website that ceased to operate as a result of
enforcement or other action resumes its unauthorized activities or the corrective actions that
merited removal from the List prove inadequate or short-lived.

A goal of the List is to motivate appropriate action on the part of owners and operators in the
private sector as well as governments to reduce piracy and counterfeiting. In some cases, the
situation in a particular market or geographic area presents unique challenges not effectively
addressed in this OCR process.

While the situation in Ukraine has not improved in 2014, the political will to address specific
IPR issues appears to have strengthened. The new administration, elected in October 2014, is
undertaking efforts to reform the civil service and integrate competent civil society groups in the
monitoring of Ukraine’s ministries, courts, judiciary, and security services. However, a
demonstrated, positive impact has yet to be seen in the IPR sphere. The sale of counterfeit and
pirated products in previously-listed Seventh Kilometer Market (Odessa), and the newlynominated Barabashova Market (Kharkiv) continues unabated. Rights holders did, however,
comment positively on the enforcement efforts of Ukrainian officials at the previously-listed
Petrivka Market (Kyiv); in recognition of this effort, the market is not listed. USTR
encourages Ukrainian authorities to continue their efforts at Petrivka Market, including against
“on demand” copying of copyright-protected content. USTR recognizes the particular
challenges of enforcement at the Seventh Kilometer and Barabashova Markets, but caution
against inaction.
For a discussion of domestic initiatives in selected countries, please see the U.K. Intellectual Property Office’s
February 2015 publication International Comparison of Approaches to Online Copyright Infringement: Final
Report, available at
www.gov.uk/government/uploads/system/uploads/attachment_data/file/404429/International_Comparison_of_Appr
oaches_to_Online_Copyright_Infringement.pdf.
11

7

 The number of online markets reportedly operating in Ukraine and nominated for inclusion in the
2014 List increased relative to 2013. According to reports, the nominated sites are popular
sources of unauthorized copyright-protected content in Ukraine and in dozens of countries
worldwide. The proliferation of sites offering unauthorized content represents a complicated
cybercrime and cybersecurity challenge for Ukrainian officials, and serves as a barrier to entry
for legitimate providers that might otherwise consider offering products and services in
Ukraine.12 Ex.ua and Extratorrent.cc continue to appear in the List as illustrations of this
problem.

The Chinese website Taobao.com (Alibaba Group) appeared in previous Lists for the
widespread availability of counterfeit and pirated goods in its online market. USTR removed
Taobao from the List in 2012 in recognition of efforts to address rights holder and consumer
complaints. During the 2013 Notorious Markets review, Taobao provided assurances to various
stakeholders that it would continue to work with all relevant stakeholders to address remaining
issues. In particular, Taobao committed to address concerns raised by software, publishing, and
apparel and footwear companies, many of which are small and medium-sized enterprises with
limited enforcement resources. In response to the 2014 Federal Register Request, Alibaba
Group informed USTR that the company, which owns Taobao and T-Mall, continued its efforts
to address stakeholders’ complaints, including by reportedly removing millions of listings for
counterfeit and pirated products manufactured in China and offered for sale and export. In
January 2015, the Chinese Government echoed several of the long-standing complaints against
these markets in a report issued by the State Administration for Industry and Commerce
(SAIC).13 Press reports indicate that Alibaba and the Government of China will engage in a

12

Access to legitimate alternatives is critical in combatting online piracy. Many governments and rights holders
have focused on developing and helping consumers identify legitimate alternatives, for example:
www.wheretowatch.com; www.educause.edu/focus-areas-and-initiatives/policy-and-security/educausepolicy/issues-and-positions/intellectual-property/legal-sources-onli; www.Findanyfilm.com; www.Canistream.it;
www.mesientodecine.com; and www.culturaenpositivo.mecd.gob/es.
13

The SAIC report is no longer available on the SAIC website. According to unofficial translations of the report
(see, e.g., http://money.163.com/15/0129/13/AH4N7AAK00254TFQ.html), SAIC faulted Alibaba Group for failing
to take effective measures to address a range of problems, including against trademark infringement, for requiring
parties to waive claims to operator liability, and for imposing unreasonable burdens on consumers who wish to file
complaints.

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 dialogue to address concerns raised in the SAIC report. In addition to the SAIC report, Taobao
appeared in three of the top ten cases named by the National Copyright Administration of China
in its 2014 “Sword Net Action Campaign.” The three separate cases, involving pirated movies
and other audiovisual products as well as software, are under the jurisdiction of local Ministries
of Public Security in Jiangsu, Shandong, and Hubei provinces. USTR is concerned about these
developments but does not re-list Taobao at this time. USTR encourages the company to
continue working with all stakeholders to address ongoing complaints, will continue to monitor
the situation.

The two most notorious peer-to-peer sites associated with Bulgaria, Zamunda.net (also
operating as Zamunda.se and previously as Zelka.org) and Arenabg.com, remain operational,
offering pirated online movies, music, software, and video games, despite police and court action
against them. The sites reportedly log thousands of unique entries (upload and download) daily
by users from Bulgaria and the region. The appeal of a criminal conviction against Arenabg.com
ended in 2013 with the acquittal of all four defendants, who initially had each been fined less
than $700 by Sofia Regional Court. The latest trial involving Zamunda.net began in late 2014 in
Sofia Regional Court. Although Bulgarian police have made meaningful efforts to take
enforcement action against the operators of these markets, prosecutors and the courts have not
yet been able to produce deterrent penalties against these operators. However, in recognition of
Bulgarian law enforcement efforts14 and recent reports that the operators of these sites agreed
with rights holders to remove links to unauthorized movies upon notification, the sites are not
listed below. USTR will continue to monitor this situation.

14

According to Bulgarian officials, inspectors cut access to over 20,000 files of illegal content on zamunda.net,
zamunda.se, arenabg.com and another peer-to-peer site, VBox7, in 2014.

9

 New Issue Focus: Domain Name Registrars

This year, USTR is highlighting the issue of certain domain name registrars. Registrars are the
commercial entities or organizations that manage the registration of Internet domain names, and
some of them reportedly are playing a role in supporting counterfeiting and piracy online.

In general, it is critical for rights holders to be able to enforce their rights, including through civil
and administrative procedures, cooperation with law enforcement in criminal actions, and
through the Internet Corporation for Assigned Names and Numbers’ (“ICANN”) procedures and
policies.15 However, the IPR enforcement system can break down when the tools available to
rights holders become ineffective, due to, among other things, the failure of domain name
registrars or other similarly situated entities to follow rules intended to help combat illicit
activity.
The agreement between ICANN and domain name registrars16 requires that registrars take action
when notified of illicit activity occurring on a website whose domain name they have registered.
Some registrars, however, reportedly disobey court orders and other communications, including
from government enforcement authorities. Some registrars apparently even advertise to the
online community that they will not take action against illicit activity, presumably to incentivize
registrations by owners and operators of illicit sites. These entities reportedly refuse to abide by
the rules that are designed to foster legitimate activity on the Internet, and instead help to create
an atmosphere of lawlessness that adversely affects others, often profoundly.

Several respondents to the 2014 Federal Register Request identified registrars that purportedly
facilitate the distribution of unauthorized copyright-protected content. One respondent identified
several registrars that have apparently refused requests to lock or suspend domain names used to

For information on ICANN’s policies and procedures, please visit www.stopfakes.gov/news/protectingtrademarks-domain-names; and www.icann.org/resources/pages/complaints-2013-03-22-en.
15

ICANN’s Registrar Accreditation Agreements are available at www.icann.org/resources/pages/approved-withspecs-2013-09-17-en; and www.icann.org/resources/pages/ra-agreement-2009-05-21-en.
16

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 sell suspected counterfeit pharmaceuticals to consumers worldwide.17

This conduct also

presents a public health challenge, and requires a coordinated response by governments and a
variety of private sector stakeholders.

According to one report, an estimated 96 percent of online pharmacies targeting U.S. consumers
are operating in violation of applicable U.S. law and standards.18 An estimated 50 percent of
websites worldwide that hide their physical address are selling illicit pharmaceuticals,19
including those labeled with counterfeit trademarks. The website www.LegitScript.com has
reviewed over 40,000 online drug sellers, but found fewer than 400 to be legitimate. Studies
have found that counterfeit anti-cancer, anti-HIV/AIDS, and other medications are not only
ineffective, but in some cases may contain toxic or deadly adulterants, such as rat poison.20

With relatively few lawful sources amidst a sea of harmful ones, the public faces a substantial
risk when navigating these online pharmaceutical markets. In addition to the public health and
safety risks, there is also economic harm. Illegal online pharmaceutical sellers can generate

The Alliance for Safe Online Pharmacies’ (“ASOP”) filing referenced LegitScript.com, a pharmacist-affiliated
online pharmacy verification authority, that also publishes lists of reportedly illicit online drug sellers and
unresponsive domain name registrars. ASOP nominated for inclusion in the 2014 List several of the same registrars
identified by LegitScript. For details on the selection process and the current registrar and pharmacy lists as well as
other important information regarding online pharmacies, please visit: http://www.legitscript.com/pharmacies/toprogues; and https://blog.legitscript.com/2014/10/top-10-rogue-registrars-october-2014. Additional consumer
information regarding online pharmacies can be found at the following websites: http://safeonlinerx.com;
www.safemedsonline.org; and www.nabp.net/programs/accreditation/vipps. While these sites focus primarily on
the U.S. audience, similar resources are available to consumers outside the United States, including at
http://asop.eu/home. Related U.S. Government resources and information, including on voluntary initiatives
spearheaded by the Executive Office of the President’s U.S. Intellectual Property Enforcement Coordinator, are
available at: www.whitehouse.gov/sites/default/files/omb/IPEC/2013-us-ipec-joint-strategic-plan.pdf (page 35); and
www.fda.gov/Drugs/ResourcesForYou/ucm080588.htm.
17

18

National Association of Boards of Pharmacy (NABP), http//safeonlinerx.com/wp-content/uploads/2012/07/nabpinternet-drug-outlet-identification-program-report_apr2010.pdf) (page 4). This report includes troubling statistics
regarding over 5,000 online drug outlets “Not Recommended” by the NABP as trustworthy sources of
pharmaceutical products. Please also see the U.S. Government Accountability Office Report on Internet
Pharmacies at www.gao.gov/assets/660/655751.pdf.
19

World Health Organization, www.who.int/mediacentre/factsheets/fs275/en.

20

Interpol, www.interpol.int/en/Crime-areas/Pharmaceutical-crime/The-dangers.

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 significant revenues each month, diverting income from legitimate innovative and generic
pharmaceutical manufacturers, and depriving governments of tax revenues from legitimate sales.

Registrars can play a critical public safety role in the Internet ecosystem. Ignoring that role, or
acting affirmatively to facilitate public harm, is of great concern. One of the registrars
nominated in response to USTR’s Federal Register Request, Tucows.com, appears in the List
below, as an example of this concern. USTR urges trading partner governments21 and ICANN to
investigate and address this very serious problem.

Results of the 2014 Out-of-Cycle Review of Notorious Markets

As noted, the List identifies particular online and physical markets in which pirated or
counterfeit goods are reportedly available, but it does not constitute a legal finding or a
conclusion as to IPR protection and enforcement in a host country or economy, nor is it intended
to be an exhaustive listing of all notorious markets around the world. Rather, the List highlights
some of the most prominent examples reported and examined during the OCR process.

Owners and operators of the Notorious Markets included in the 2014 List that are willing to
address piracy and counterfeiting have many options for doing so. Such owners and operators
can adopt business models that rely on the licensed distribution of legitimate content, and can
negotiate appropriate licenses with rights holders. If an otherwise legitimate business has
become a platform for piracy, the owner or operator can work with rights holders and
enforcement officials to help curtail acts of infringement. However, in the absence of such good
faith efforts, responsible government authorities should investigate reports of piracy and
counterfeiting in these and similar markets, and pursue appropriate action against such markets
and their owners and operators.

21

Increasingly, operators of online notorious markets are using Country Code Top Level Domains (“ccTLDs”),
which are subject to greater government influence, rather than generic or gTLDs. Governments are strongly
encouraged to take an active role in preventing the use of their ccTLDs to facilitate the sale and distribution of
counterfeit and pirated products and services.

12

 Online Markets22

The 2014 List of online markets again includes examples of various technologies and business
models. USTR based its selections not on specific technologies or business models but on
whether, based on available information, a nominated site or affiliated network of sites appears
to engage in or facilitate IPR infringement. Accordingly, the 2014 List reflects nominations of
sites that reportedly engage in copyright piracy and trademark counterfeiting as well as registrars
that reportedly facilitate the distribution of pirated and counterfeit products, including medicines.
In addition to facilitating IPR infringements, sites may lack safeguards for consumer privacy,
security and safety, and some reportedly actively and surreptitiously install malware on users’
computers.
4shared.com: With millions of unique visitors each day, this popular site, reportedly based in
the British Virgin Islands, facilitates streaming and downloads of pirated videos, music, books
and games. 4shared mobile apps further allow users to stream infringing content to their mobile
devices. While this site has implemented a feature that scans for unauthorized content, the music
industry reports that levels of infringement are substantial and continue to increase.

Baixeturbo.org: This long-running U.K.-hosted blog site has been operating since 2008, and is
very popular in Brazil. The site reportedly specializes in infringing music but also offers
unauthorized copies of films and television programs. The site is said to generate revenue from
advertisements and the sale of premium accounts that allow linking to multiple cyberlockers23
where users can download infringing files.

22

In most cases, the List identifies online markets by the domain name provided in the public responses to the
Federal Register Request. However, it is common for operators of online Notorious Markets to change a site’s
domain name or to use multiple domain names at once to direct users to the main site. The List reflects each
market’s most commonly referred to or well-known domain name or names as of March 3, 2015.
23

The cyberlockers identified in the List reportedly operate primarily to provide users with access to unauthorized
content. Such sites are distinguishable from legitimate cloud storage services that allow consumers to lawfully
store, share, backup, and access data. For more information on cyberlockers’ role in facilitating piracy, please see
www.netnames.com/sites/default/files/pdfs/dca-netnames-cyber-profibility.pdf.

13

 Bajui.com: While not popular on a global scale, for over five years Bajui, hosted in Canada, has
reportedly been the source of allegedly infringing music made available to Spanish-speaking
users through direct downloads. While rights holders have used Spain’s new copyright law to
take enforcement action against Bajui and an even more popular site, Elitetorrent.com, both
have been able to evade effective enforcement by removing specific links included in complaints
and replacing those links with new ones to the same allegedly infringing content. Bajui
exemplifies the harm to music creators of pre-release piracy, while Elitetorrent provides links to
unauthorized copies of movies and television programs.

Catshare.net: This Polish site reportedly offers unauthorized alternatives to multiplayer
platforms, the gaming industry’s latest business model. Sites such as this one, which reportedly
offers unauthorized access to 36,000 infringing games, threaten the development of legitimate
distribution models.
Cuevana.tv (Storm): In the last year, this Argentine site’s operators have developed a new
streaming application called “Cuevana Storm” that uses BitTorrent technology to allow users to
stream allegedly infringing video content. Rights holders in the movie industry report that an
attempt to take action against the site more than four years ago has stalled, leaving them without
effective recourse.

Darkwarez.pl: Despite being highlighted in past Lists, Darkwarez reportedly continues to make
available thousands of links to allegedly infringing video game content. The site targets Poland
and Polish-speaking audiences.

Ex.ua and Extratorrent.cc: These sites, both of which have appeared on the List several times,
continue to benefit from Ukraine’s reported status as a haven for online piracy. Extratorrent
allegedly has extremely high rates of piracy with over 1.4 million unauthorized files, tens of
millions of users, and almost ten billion unique visits in a single month. While Extratorrent has
been the subject of successful enforcement actions in the U.K., Italy, and Belgium, it maintains a
global Alexa ranking of 345 and, notably, an Alexa ranking in India of 70, illustrating the
commercial impact that sites which facilitate infringement can have on geographically diverse

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 markets. USTR encourages the Government of Ukraine to take lasting action against these and
other sites that are operating within Ukraine’s jurisdiction.

Free-TV-video-online.me (also operating as Free-TV-video.me): This site, reportedly hosted
in Canada, provides links to unauthorized copies of first-run movies and television programs.
This site has a worldwide Alexa rank of 759.

Gigabytesistemas.com, E-nuc.com and Hardstore.com: These sites, hosted in Spain
(Gigabytesistemas and E-nuc) and the Republic of San Marino (Hardstore), are reportedly
examples of those that facilitate the unauthorized use of copyright-protected games by selling
“mod chips” or game copier hardware that consumers reportedly use to circumvent technological
protection measures designed to promote authorized uses.

KickassTorrents (also operated as Kickass.to): This BitTorrent indexing site continues to be
one of the most popular, regardless of the name under which it currently operates. Its standing
rose in the wake of the December 2014 takedown of its rival, ThePirateBay.se. Reportedly
based in Canada, over the past several years the site operators have changed the domain name
numerous times, obscured or hidden their locations, and have used multiple servers in various
countries to evade or otherwise frustrate enforcement actions. The site originally operated as
Kat.ph, until Philippine authorities took enforcement action. The .so registry seized the domain
Kickass.so on February 9, 2015, also setting a positive example for other registries to follow.
The site’s illegal activities, however, resumed under Kickass.to shortly thereafter.

Molten-wow.com: This site reportedly provides over 20,000 users with unauthorized access to a
popular multiplayer online role-playing game in exchange for financial donations. In providing
such access, the site allegedly hacks versions of the publisher’s client software and anticircumvention controls, and employs infringing copies of the publisher’s server software. The
site reportedly has been operating since 2009, and has been unresponsive to the video game
industry’s enforcement efforts.

15

 Movshare Group/Private Layer (operating as Torrentz.eu, Torrentz.me, Torrentz.ch,
Torrentz.in, Putlocker.is, Nowvideo.sx, Movshare.net, Bitsnoop.com, Novamov.com, among
others): This group of affiliated and extremely popular sites, with ties to Switzerland,
Netherlands, Panama, Canada, and other countries, reportedly uses multiple technologies to
make available countless unauthorized copies of movies, games, music, audiobooks, software,
and sporting event broadcasts. The sites are said to generate revenues through advertising and
membership or subscription fees, and compensate users for uploading infringing content.
Switzerland has announced plans to close a loophole in its law that restricts enforcement against
pirate sites. However, at this time, rights holders report that Switzerland is an increasingly
popular host country for such sites.

Rutracker.org (formerly Torrents.ru) and Rapidgator.net: The operators of these sites that
reportedly facilitate piracy have allegedly based their operations in Russia to evade enforcement.
Rutracker.org, hosted in and operated from Russia, is the country’s 17th most popular site,
according to Alexa.com. Rapidgator, the popularity of which is declining, is hosted in Russia
but primarily serves users outside of the country. Both of these sites have appeared in the List
multiple times.
Tucows.com: Based in Canada,24 Tucows is reportedly an example of a registrar that fails to
take action when notified of its clients’ infringing activity.25 Consistent with the discussion
above, USTR encourages the operators of Tucows to work with relevant stakeholders to address
complaints.

Ulozto.cz: This cyberlocker allegedly hosts and distributes more than 50 million files, many of
which reportedly infringe copyrights in music and film. The site is most popular in the Czech
Republic where it is hosted and has an Alexa ranking of 29. The music industry reports that
24

USTR received information regarding Canadian online pharmacies in response to our Federal Register 2015
Special 301 Request for Public Comments. For more information, please refer to www.federalregister.gov, Docket
Number USTR-2014-0025.
25

Although Bizcn.com (also operating as Cndomainsite.com) was also nominated for inclusion in the List based on
concerns similar to those reported for Tucows, it appears that the operator of Bixcn.com has recently undertaken
efforts to address these serious problems. USTR welcomes this apparent positive development but urges Bizcn to
sustain and expand this important effort.

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 attempts to work with Ulozto.cz to legitimize its business and develop a licensed music platform
have failed.

Uploaded.net: This cyberlocker, with alleged connections to Switzerland and Netherlands,
provides access to a broad range of unauthorized copies of copyright-protected materials, and
reportedly generates over $6 million per year in advertising and subscription revenues. The site
operator allegedly employs multiple IP addresses, domain names, and server locations to evade
law enforcement.

vK.com (also known as vKontakte.com): Although its ownership has changed, vK.com has
continued to operate as an extremely popular social networking site in Russia and neighboring
countries. Social networking sites can serve as a uniquely valuable communication platform,
enabling beneficial commercial, cultural, and social exchanges. Most successful social
networking sites do so in ways that do not involve the active facilitation of copyright
infringement. However, some site operators continue to generate revenues by enabling the
unauthorized sharing of music and other content through their sites and associated software
applications. vK’s operators responded to the Federal Register Request with information about
their anti-piracy efforts, but the reported continuing scope and volume of infringing content
demonstrates that more needs to be done to yield positive change.

Yts.re (also known as YIFY): With millions of unique visitors each month and a rising global
Alexa ranking in the low 700s, Yts.re is a popular site for allegedly pirated movies. Yts.re
reportedly facilitates piracy through high quality movie downloads and evades enforcement
through multiple IP addresses, and by basing its operations in multiple countries. Yts.re’s
operators also created a desktop torrent streaming application called “Popcorn Time,” similar to
“Cuevana Storm” (listed above). The “Popcorn Time” application mimics popular legitimate
subscription-based streaming services but, instead of authorized films, users download reportedly
infringing movies using BitTorrent technology and can further distribute the infringing content to
others. While the original “Popcorn Time” application may no longer be available, spin-offs—or
“forks”—of the application continue to be developed under variations of the popular “Popcorn
Time” name.

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 Yyets.com (operating as Zimuzu.tv): Described by some commenters as the most popular
dedicated website for copyright infringing materials in China, Yyets.com has reportedly shut
down at key times, including on or about April 26th, World Intellectual Property Day, and after
being nominated for inclusion in this year’s List.26 Visitors to Yyets.com currently are redirected
to Zimuzu.tv, which appears to offer unauthorized streaming of copyright-protected television
programs and movies.

Zing.vn: Vietnam-based Zing.vn, primarily a social media site, reportedly continues to facilitate
access to unauthorized music files. Years of negotiations to legitimize its content distribution
have still not yielded significant results. Due to the lack of civil and criminal enforcement
options against websites in Vietnam, industry filed a copyright infringement case in the United
States against Zing.vn’s operator, VNG; however, in January 2014, the court dismissed the case
on jurisdictional grounds. This highlights the need for Vietnam to establish effective
enforcement mechanisms to address online copyright infringement.

Zippyshare.com: This site is well-known for downloads and distribution of allegedly infringing
music. The site offers features that make piracy more “infringer friendly,” including through
accelerated downloading. Zippyshare is reportedly operated from Poland and hosted in France.
Its revenues reportedly come from paid advertising, which targets the millions of users who
download files from the site.
Physical Markets
The Internet has brought about a global revolution in the authorized and unauthorized
distribution of films, music, software, video games, and books. In many markets, unauthorized
online distribution of, or access to, copyright-protected content largely has replaced unauthorized
distribution via physical media. In other markets, however, physical media (including CDs,
DVDs, video game cartridges, and pre-loaded computer hard drives and other storage devices)

26

Chinese administrative authorities have issued penalties against Yyets.com and other online markets.

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 continue to be prevalent, with widespread distribution, at times involving local manufacture,
through markets such as those identified below.

The Internet also makes available innumerable sites that facilitate the distribution of counterfeit
products to consumers worldwide. The volume of individually consigned shipments of
counterfeit merchandise from the country of origin to the global community of consumers is
growing.27 However, Internet connectivity and broadband limitations, costs and other obstacles
related to shipping and postal delivery, as well as customs and other regulatory controls, often
serve as barriers to e-commerce, regardless of whether the merchandise is authorized or
counterfeit. Consequently, physical markets, such as the ones listed below, remain the primary
distribution channels for pirated and counterfeit goods and services in much of the world.

In response to the 2014 Federal Register Request, USTR received fewer nominations for
physical markets than in the past. However, several of the nominations identified China as the
primary source of counterfeit products. Worldwide, from the Americas, to Africa, to Eastern
Europe, and in Southeast Asia, Chinese-origin counterfeit goods find their way into markets,
businesses, and homes. In some cases, parties with ties to China manage the wholesale and retail
distribution channels that facilitate the flow of counterfeit merchandise, including to markets
such as Prado, Italy; Lagos, Nigeria; Ciudad del Este, Paraguay; and Bangkok, Thailand.

In a global environment, enforcement against unscrupulous retailers, although important, will not
be sufficient to reduce the flow of counterfeit products. The importance of effective border
controls to prevent exportation of counterfeit goods from their countries of manufacture, to
prevent importation into the destination country, and to prevent such goods from transiting third
countries on their way to destination countries cannot be overstated. Another key to reducing
piracy and counterfeiting, however, lies in the ability to influence demand and redirect the
consumers who knowingly participate in illicit trade to legitimate alternatives.

Argentina
27

For example, the European Union recently enhanced its border enforcement authority to address the increase in
trafficking of counterfeit goods via small, postal or express courier consignments. Please see http://eurlex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52005DC0479.

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 La Salada (Buenos Aires) continues to operate as South America’s largest black market.
Sellers of counterfeit and pirated products deal openly because enforcement reportedly has been
small-scale and intermittent, at best. Despite appeals by both the United States government and
the European Commission to address counterfeiting and piracy in La Salada, the Government of
Argentina reportedly tolerates the sale of contraband at the market.28 Press reports indicate that
the market’s owners now operate a companion online market, LaSalada.com.

Brazil
Galeria Page (Sao Paulo) and the surrounding 25 de Marco Area, Sao Paulo’s largest market
for counterfeit goods, has reportedly seen an increase in illicit commerce. Sao Paulo’s “City
Free of Piracy” project was heralded for the positive impact it had locally and throughout Brazil,
but a 2013 change in city leadership brought about a shift in focus away from IPR enforcement.
The authorities reportedly have conducted some raids against street vendors in the area; however,
counterfeiting and piracy appear to be thriving inside and around the buildings at Galeria Page.
While USTR acknowledges the efforts of law enforcement agencies and the fiscal environment
that may have precipitated the shift in focus, we urge political support for resuming enforcement
in and around this flagship market.

China
Physical markets in China continue to facilitate the distribution of significant quantities of
counterfeit merchandise for consumption in China and abroad. Some of these markets are wellknown, and according to reports, offer an extensive catalogue of products, and will arrange for
on-demand manufacture and worldwide shipping of counterfeit products. Some markets have
adopted policies and procedures intended to address the availability of counterfeit merchandise,
but these are not vigorously enforced by the markets. At the same time, a number of online
markets in China have been the subject of deterrent enforcement actions in China’s courts, and in
many cases Chinese authorities do engage in routine enforcement actions in physical markets as

28

Representatives of La Salada reportedly accompanied the President of Argentina on trade missions abroad. Past
administrations have also appeared to tolerate the counterfeiting and piracy at La Salada. Please see
www.economist.com/news/americas/21594998-inside-south-americas-largest-informal-market-stall-stories.

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 well. The United States welcomes these efforts and recommends their expansion to combat more
effectively the scale of the reported problem both in China and worldwide.

The following Chinese markets are key contributors to counterfeiting:

According to reports, Jin Long Pan Foreign Trade Garment Market (Guangzhou),
wholesales low-quality, relatively inexpensive counterfeit versions of American and other
branded apparel and footwear for export to Africa and the Middle East, in particular.

Counterfeit products, predominantly apparel, footwear, and fashion accessories, including
sunglasses, perfumes, and handbags, reportedly continue to dominate the offerings at Jinshun
Garment Market (Guangzhou). Recent reports indicate that nearly every shop sells
exclusively counterfeit goods.

The Qi Pu Market (Shanghai) is a wholesale clothing market, housed in five seven-story
buildings, offering a wide array of apparel and accessories. Many sellers reportedly conceal their
counterfeit products from plain sight. Upon request, customers are reportedly escorted to
locations within the market where finished counterfeit products are available for examination and
purchase, including in commercial quantities for export.

Many retail vendors at the Silk Market (Beijing) reportedly distribute counterfeit consumer and
industrial products to Chinese and foreign buyers. Illicit activities reportedly continue at the Silk
Market despite welcome efforts by Chinese authorities to work with management and engage in
enforcement actions, and even though some rights holders have successfully sued the market’s
operators. Vendors at the Silk Market reportedly have access to a supply of newly-manufactured
counterfeit products to replace those that have been confiscated, and their profits appear to far
exceed financial penalties that have been imposed on them. It appears that past civil and
administrative enforcement efforts, although imposing some costs, have not actually ended
infringement.

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 All of the shops at Zengcheng International Jeans Market (Zengcheng) reportedly represent
factories and sell to retail and wholesale clients in China and worldwide, particularly in Africa.
Most shops at the market also claim to sell counterfeit merchandise on Taobao.com.

Ecuador
Pirated DVDs, CDs, and software, clothing with counterfeit logos, and counterfeit electronic
items remain widely available for sale in La Bahia Market (Guayaquil). The occasional
administrative enforcement efforts that occur at the market focus mainly on protecting domestic
IPR, and are insufficient to address the overall problem. The current absence of criminal
penalties for counterfeiting and piracy makes Ecuador an attractive host for organized criminal
activity.

India
Numerous markets in India have appeared in past Lists, with no identified meaningful, effective
response by the Indian government. The United States continues to raise the importance of IPR
protection and enforcement with India, underscoring the need to combat counterfeiting and
piracy in both online and physical markets. The United States encourages India to take sustained
and coordinated enforcement action at the Nehru Place (New Delhi), previously-listed markets,
and numerous other non-listed markets in its territory.

Indonesia
Harco Glodok (Jakarta) is Indonesia’s largest trade center for consumer electronics and related
goods. This market reportedly also serves as the retail distribution point for a complex piracy
and counterfeiting network. The Government of Indonesia’s efforts over the past few years have
failed to rid this otherwise legitimate market of IPR-infringing goods and services. USTR urges
the Indonesian Government to launch a sustained, coordinated, and effective effort to tackle
widespread counterfeiting and piracy at Harco Glodok and elsewhere.29

Other markets in Indonesia, including those named in previous Lists, were not identified in response to this year’s
Federal Register Request, but nonetheless require attention.
29

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 Mexico
In the 2014 Notorious Markets process, Mexico ranked first in terms of number of nominated
markets. Although several rights holders commented positively on the IPR enforcement efforts
of Mexican authorities at the Tepito (Mexico City) and San Juan de Dios (Guadalajara)
markets, significant levels of piracy and counterfeiting reportedly continue in these, and
reportedly in dozens of other markets across Mexico. The United States encourages Mexico to
continue coordinated law enforcement efforts, including against high-level targets in the
distribution chain, to reduce the availability of counterfeit and pirated product in markets across
the country. We further encourage Mexico to empower customs officials to interdict infringing
imports on their own authority as well to enforce against counterfeit and pirated goods moving
in-transit.

Nigeria
The situation in Nigeria exemplifies why both effective import controls at the destination market
and export controls at the country of origin are essential in stopping the flow of counterfeit and
pirated goods. Nigerian authorities face challenges in allocating sufficient resources and
building the necessary infrastructure to engage in effective import controls against the tide of
foreign-manufactured counterfeit products. In addition, Nigeria-based piracy operations that
target both foreign and Nigerian films and music present challenges for authorities.

Computer Village Market (Ikeja, Lagos State) is known to be the largest market for knockoff
computer products and accessories in Nigeria. Raids by regulators continue, but up to an
estimated 80 percent of the wide variety of electronic devices, music, movies, and other products
available here are counterfeit or pirated. Store owners reportedly cooperate with each other to
frustrate or prevent enforcement activities. Enforcement in this market is considered dangerous.

Counterfeit and substandard household items and appliances, are available in the Ebutte Ero
Market (Lagos Island, Lagos State). IPR enforcement here is not a priority for resourcechallenged regulators. The market has been described as tightly organized and difficult to
monitor, and enforcement would be a challenge even if resources were available. Stopping

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 counterfeit goods at borders, before they reach the retail distribution level, may be an effective
way to address markets such as this.

Sale of counterfeit soft drinks, spirits and popular consumer goods is prevalent in the Oke-Arin
& Apongbon Markets (Lagos Island, Lagos State). Regulatory agencies have conducted raids
and made some arrests, but the chaotic nature of this densely populated market makes
enforcement difficult.

Paraguay
Ciudad del Este, Paraguay has been named in either the List or the Special 301 Report for over
15 years. Regional organized crime groups are reportedly trafficking in counterfeit and
copyright-infringing goods in Ciudad del Este. The border crossing at Ciudad del Este and the
city itself reportedly have served as a hub for the distribution of counterfeit and pirated products
in the Brazil-Argentina-Paraguay triple frontier region and beyond. During the past 18 months,
the Cartes Administration, primarily through the National Directorate of Intellectual Property
(DINAPI), General Enforcement Directorate and partner law enforcement agencies, has engaged
in several enforcement efforts. The United States applauds the Cartes Administration’s goal of
transforming Ciudad del Este into a legitimate marketplace, with all its attendant benefits. While
Paraguay’s recent efforts merit acknowledgement, years of relative inattention have created a
situation in Ciudad del Este that will require further coordinated and sustained enforcement
efforts to resolve.

Thailand
IPR holders face a difficult environment in Thailand due to the large number of markets offering
counterfeit and pirated goods and services, and a relative lack of enforcement. Last year, USTR
identified 13 Thai markets in the List. We appreciate the Government of Thailand’s efforts over
the past year and for the enforcement statistics it provided in response to the Federal Register
Request. However, reports indicate that pervasive counterfeiting and piracy continue in all of the
previously-listed markets, including at Talad Nat on Wireless Road (Bangkok), near the U.S.
Embassy. USTR requests that Thai authorities conduct sustained, coordinated enforcement

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 actions at the “Red Zone” markets listed in last year’s report, or at any nominated markets in
which counterfeiting and piracy are rampant. USTR will continue to monitor the situation.

Uruguay
Despite Uruguay’s otherwise positive reputation for respecting IPR, there has been an increase in
reports of counterfeiting and piracy in its Free Trade Zones (“FTZs”), including Florida Sur
and Libertad.30 USTR encourages the Government of Uruguay to work with rights holders to
address concerns regarding counterfeit goods, including footwear and apparel, being trafficked in
its FTZs. USTR will continue to engage with Uruguay on this issue.

Public Information

The 2014 Notorious Markets List is the result of the fifth OCR of Notorious Markets, which was
initiated on September 26, 2014, through a Federal Register Request for Public Comments. The
request and responses are available at www.federalregister.gov, Docket Number USTR-20140017. USTR developed the 2014 List in coordination with the Federal agencies represented on
the Special 301 Subcommittee of the Trade Policy Staff Committee (TPSC). Information about
Special 301, the TPSC, and other intellectual property rights-related processes and issues is
available at https://ustr.gov/issue-areas/intellectual-property.

To assist U.S. rights holders and consumers who confront IPR infringement online, the U.S.
Government continues to expand the tools available on www.STOPfakes.gov, including by
providing links to infringement reporting mechanisms at a number of popular online retailers and
markets. These resources are available at www.STOPfakes.gov/business-tools/retailerreporting. Victims and interested parties may report IPR theft to U.S. law enforcement agencies
either through a link at www.STOPfakes.gov or directly at www.iprcenter.gov/referral.

*****

30

Information on the general challenge of enforcing IPR in FTZs is available at www.iccwbo.org/Advocacy-Codesand-Rules/BASCAP/International-engagement-and-Advocacy/Free-Trade-Zones.

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