US labels Alibaba a ‘notorious market’ for knock-offs

The US has again labelled Alibaba Group Holding Ltd. one of the world’s largest destinations for fake goods, a major embarrassment for a Chinese e-commerce titan trying to shake off its reputation as a haven for counterfeiters.

The US Office of the Trade Representative on Wednesday restored Alibaba to its annual Notorious Markets blacklist -- just four years after the Chinese company managed to get off.

“We are very disappointed by the USTR’s decision,” to include Alibaba’s Taobao unit on the list, “which ignores the real work Alibaba has done against counterfeiters,” Michael Evans, president of Alibaba Group, said in a statement.

The agency warned last December that Alibaba needed to do better if it wished to avoid the designation, reserved for websites and markets where there’s large-scale copyright infringement.

Rejoining the global name-and-shame list damages Alibaba’s credibility in the US, where its shares trade and it’s trying to cultivate relationships with retailers, brands and entertainment companies. Shares of Alibaba were down 0.4 per cent to US$89.52 at 3 p.m. in New York.

Alibaba has argued it’s doing all it can to combat piracy. In October, the company said it had tightened policies against copyright infringement and made it easier for brands to request fakes be removed. It took down 380 million product listings and closed about 180,000 stores on its Taobao platform in the 12 months to August, the company said in a letter to the USTR.