USTR relists Alibaba as counterfeit market for auto parts

WASHINGTON — The Office of the U.S. Trade Representative (USTR) has relisted the Taobao.com platform of e-commerce giant Alibaba Group Holding Ltd. as a "notorious market" for counterfeit products, specifically counterfeit auto parts.

The USTR issued its 2017 Out-of-Cycle Review of Notorious Markets Report on Jan. 12. The new report lists Alibaba as one of 43 online and physical markets around the world that engage in and facilitate substantial copyright piracy and trademark counterfeiting, after having delisted it in previous reports.

In the report, the USTR calls on Alibaba to consider banning widely counterfeited products, such as brake pads and other auto parts that are not normally sold on consumer-to-consumer marketplaces. It also urges Alibaba to develop more effective tools to address the concerns of U.S. auto parts businesses that find counterfeit products on Taobao.

The Auto Care Association (ACA) praised the USTR's decision to relist Alibaba on the notorious markets list.

"Counterfeit parts represent a significant danger to the safety and welfare of the general public, and also pose a significant economic threat to our industry," ACA President and CEO Bill Hanvey said in a press release.

Mr. Hanvey wrote the USTR in October, urging the relisting of Alibaba, Taobao and another Alibaba site, AliExpress, on the notorious markets list.

In its report, the USTR calls Taobao.com China's largest mobile commerce destination and the third-most popular website in China.

The USTR also notes that Alibaba Group has undertaken efforts to curb the offer and sale of infringing products on Taobao.com, and some right holders report an improved outlook as a result.

At the same time, though, the USTR said the "prevalence of infringing listings and sales continues to be a challenge and there are additional steps Alibaba must take to address ongoing concerns.