2nd Annual IP Enforcement Report Released

The 2011 Annual Report on Intellectual Property Enforcement from the U.S. Intellectual Property Enforcement Office was recently released. It is the second of three reports stemming from the 2010 Joint Strategic Plan.

Some of the highlights include:

• Coordination with payment service groups to deter sales of counterfeit goods
• Coordination with internet service providers to notify subscribers regarding misuse of peer to peer to networks to deter online piracy
• Formation of a non-profit conglomeration of private companies to combat fake online pharmacies

There was also a notable uptick in seizures – 200% increase for counterfeit pharmaceuticals, 44% increase for counterfeit safety and critical technology goods, and 24% increase in overall seizures.

The government also touted its increased arrest and conviction rates as well as increased sentences.

The Report also notes that 3 members of the Notorious List – Baidu, Savelovskiy Market and Ladies Market have now been removed from the list.

The Report also emphasizes a focus on economic espionage and trade secret theft. (The discussion includes specific examples and criminal cases.)

The Enforcement coordinator also advocates legislation that gives Customs the right to issue penalties for infringing exports. (Currently, Customs can only seize exports and have them forfeited.)

Off the Naughty List

This past holiday season has proved that that checking the list twice paid off.

The U.S. Government has removed Baidu from its Naughty List.

See my previous posts for more information on the Naughty List and Baidu.

It seems that Baidu’s efforts to clean up music piracy on its website contributed to the removal from the government’s list. Baidu entered into a license agreement with recording companies which according to reports included a royalty payment system.

The influence of the Recording Industry cannot be underestimated if Baidu can be removed from the government’s notorious list by reaching a settlement with music companies.

The Naughty List

As part of the 2010 Joint Strategic Plan on Intellectual Property Enforcement, the United States Trade Representative released a list of Notorious Markets. The list includes marketplaces that have been the subject of enforcement action or that may merit further investigation for possible intellectual property rights infringements. This list is intended to include places which enable or support piracy and counterfeiting.

Some of the places are physical locations such as Bahia Market in Ecuador and Silk Market in Beijing, while others are online locations such as ThePirateBay and Baidu which is alleged to be among the top ten visited sites (and number one in China).

Other types of websites include BitTorrent trackers and indexers, live sportscasts streamed over the internet, and software applications for mobile phones.

The Naughty List is available with the USTR report here.

The USTR seeks cooperation of authorities to investigate further and pursue legal action to combat piracy and counterfeiting.