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Joint Strategic Plan on Intellectual Property Enforcement SECTION 1 25 European Union Intellectual Property Office, “Research on Online Business Models Infringing Intellectual Property Rights: Phase 1 - Establishing an Overview of Online Business Models Infringing Intellectual Property Rights” (July 2016) at p.7 et seq., accessed from https://euipo.europa.eu/tunnel-web/secure/ webdav/guest/document_library/observatory/resources/Research_ on_Online_Business_Models_IBM/Research_on_Online_Business_ Models_IBM_en.pdf. 26 See, e.g., Europol, “The Internet Organised Crime Threat Assessment - Overview” (2014) (“Criminals can misuse/abuse WHOIS data in a number of ways” including “[g]iving false WHOIS credentials to Registrars to avoid identification, in order to conduct illegal or harmful Internet activities” and “[u]sing of the private domain registration (domain names registered via privacy or proxy services or offshore) to obscure the perpetrator’s identity”), accessed from https://www.europol.europa.eu/ iocta/2014/chap-4-3-view1.html. See also European Union Intellectual Property Office, “Research on Online Business Models Infringing Intellectual Property Rights: Phase 1 - Establishing an Overview of Online Business Models Infringing Intellectual Property Rights” (July 2016) at p. 9 (“operators behind the IPR-infringing activities often either conceal their identities by using privacy shield services for the registration of their domain names or provide inadequate, false or otherwise misleading contact details on the website thus hampering or even precluding enforcement actions”), accessed from https://euipo.europa.eu/tunnel-web/ secure/webdav/guest/document_library/observatory/resources/ Research_on_Online_Business_Models_IBM/Research_on_Online_Business_Models_IBM_en.pdf. 27 See Europol and Office for Harmonization in the Internal Market, “2015 Situation Report on Counterfeiting in the European Union,” (April 2015) at p.33, accessed from https://euipo. europa.eu/tunnel-web/secure/webdav/guest/document_library/ observatory/documents/publications/2015+Situation+Report+on+Counterfeiting+in+the+EU.pdf. See also European Union Intellectual Property Office, “Research on Online Business Models Infringing Intellectual Property Rights: Phase 1 - Establishing an Overview of Online Business Models Infringing Intellectual Property Rights,” (July 2016) at p. 9. 28 Both Popcorn Time and The Pirate Bay—entities that have been included by the Office of the U.S. Trade Representative as representative “Notorious Markets” in the Out-of-Cycle Notorious Markets Review—have advertised and promoted anonymizing services alongside their respective listing of free movies, music and other content. See Office of the U.S. Trade Representative, “2014 Out-of-Cycle Review of Notorious Markets,” (March 5, 2015) at pp. 5 and 17, accessed from https://ustr.gov/sites/default/files/2014%20Notorious%20 Markets%20List%20-%20Published_0.pdf. See also Robertson, Adi, “Popcorn Time’s Best-known App Comes Back to Life,” The Verge (February 26, 2016) (reporting that torrent streaming application Popcorn Time added “a paid VPN anonymizing service alongside its free movies”), accessed from http://www. theverge.com/2016/2/26/11119290/popcorn-time-io-moviestreaming-piracy-back-online. See also Stone, Jeff. “The Pirate Bay Pushing Free VPN Amid Blockade, Torrent Site Facing New International Scrutiny,” International Business Times (October 25, 2014) (“Swedish torrent site Pirate Bay in the past few days prominently featured advertisements for a free virtual-private network, or VPN”), accessed from http://www.ibtimes.com/ pirate-bay-pushing-free-vpn-amid-blockade-torrent-site-facingnew-international-scrutiny-1713144. 29 European Union Intellectual Property Office, “Research on Online Business Models Infringing Intellectual Property Rights: Phase 1 - Establishing an Overview of Online Business Models Infringing Intellectual Property Rights” (July 2016) at pp.31-37, accessed from https://euipo.europa.eu/tunnel-web/secure/webdav/ guest/document_library/observatory/resources/Research_on_Online_Business_Models_IBM/Research_on_Online_Business_Models_IBM_en.pdf. 30 See Section II. 31 In this context, adware is designed to co-opt the consumer’s computer into advertising fraud schemes. It is highly invasive software, running the background, designed to make money by serving pop-ups to the user even when s/he is not browsing, and by collecting the user’s personal data to identify and target delivery of the most profitable ads relevant to that user. 32 See Digital Citizens Alliance, “Digital Bait: How Content Theft Sites and Malware are Exploited by Cybercriminals to Hack into Internet Users’ Computers and Personal Data,” (December 2015) at p.9 et seq., (“A botnet is a system of connected computers acting as a group at the command of a ‘Bot controller,’ who directs the enslaved computers to accomplish certain tasks, such as to carry out spam and phishing campaigns and to fake advertising traffic”), accessed from https://media.gractions. com/314A5A5A9ABBBBC5E3BD824CF47C46EF4B9D3A76/0f03 d298-aedf-49a5-84dc-9bf6a27d91ff.pdf. 33 Digital Citizens Alliance, “Digital Bait: How Content Theft Sites and Malware are Exploited by Cybercriminals to Hack into Internet Users’ Computers and Personal Data,” (December 2015) at p.1 (“the cyber security firm RiskIQ found that one out of every three content theft sites contained malware. The study found that consumers are 28 times more likely to get malware from a content theft site than on similarly visited mainstream websites or licensed content providers”), accessed from https://media.gractions.com/314A5A5A9ABBBBC5E3BD824CF47C46EF4B9D3A7 6/0f03d298-aedf-49a5-84dc-9bf6a27d91ff.pdf. See also Federal Bureau of Investigation, “Consumer Alert: Pirated Software May Contain Malware,” (August 1, 2013) (“Our collective experience has shown this to be true, both through the complaints we’ve received and through our investigations. It’s also been validated by industry studies, which show that an increasing amount of software installed on computers around the world—including in the U.S.—is pirated and that this software often contains malware”), accessed from https://www.fbi.gov/news/stories/pirated-software-may-contain-malware1; Ernst & Young, “IAB U.S. Benchmarking Study: What is an untrustworthy supply costing the US digital advertising industry?” (November 2015) (finding that fraudulent impressions, infringed content, and malvertising cost the U.S. digital marketing, advertising, and media industry $8.2 billion annually), accessed from http://www.iab.com/wp-content/ uploads/2015/11/IAB_EY_Report.pdf; European Union Intellectual Property Office, “Digital Advertising on Suspected Infringing Websites,” (January 2016) at pp.23-24 (discussing the relative prevalence of click generators and malware in “high risk sector” online advertisements in the EU), accessed from https://euipo. europa.eu/ohimportal/documents/11370/80606/Digital+Advertising+on+Suspected+Infringing+Websites; European Union Intellectual Property Office (EU IPO), “Research on Online Business Models Infringing Intellectual Property Rights,” (July 2016) at p.4 (“IPR is also being used to disseminate malware, carry out illegal phishing and simple fraud”), accessed from https://euipo.europa. eu/tunnel-web/secure/webdav/guest/document_library/observatory/resources/Research_on_Online_Business_Models_IBM/ Research_on_Online_Business_Models_IBM_en.pdf. 34 European Union Intellectual Property Office (EU IPO), “Research on Online Business Models Infringing Intellectual Property Rights: Phase 1 - Establishing an Overview of Online Business Models Intellectual Property Rights” (July 2016) at p.4, accessed 48
Office of the Intellectual Property Enforcement Coordinator from https://euipo.europa.eu/tunnel-web/secure/webdav/guest/ document_library/observatory/resources/Research_on_Online_Business_Models_IBM/Research_on_Online_Business_Models_IBM_en.pdf. 35 See Microsoft.com, “Breaking New Ground to Fight Online Piracy” (March 5, 2013), accessed from http://blogs.microsoft. com/on-the-issues/2013/03/05/breaking-new-ground-to-fightonline-piracy/. 36 See Microsoft.com, “Breaking New Ground to Fight Online Piracy” (March 5, 2013), accessed from http://blogs.microsoft. com/on-the-issues/2013/03/05/breaking-new-ground-to-fightonline-piracy/. 37 Office of the United States Trade Representative, “2016 Special 301 Report,” (2016) pp.19-20, accessed from https://ustr. gov/sites/default/files/USTR-2016-Special-301-Report.pdf. 38 See, e.g., Schouten, Christopher, et. al., “The New Face of Pay-TV Piracy and How to Fight It,” (2016) pp.3-5 (summarizing evolution of piracy, from signal piracy, to P2P and web piracy, to IPTV piracy), accessed from https://www.kudelskisecurity.com/ sites/default/files/files/Kudelski%20Security_The%20New%20 Face%20of%20Pay-TV%20Piracy%20and%20How%20to%20 Fight%20it_White%20Paper.pdf. 39 See, e.g., Deloitte, “Television’s Business Model: Fit for a Digital World” (2014), accessed from http://www2.deloitte. com/content/dam/Deloitte/global/Documents/Technology-Media-Telecommunications/gx-tmt-ibc-report-2014.pdf. Increasingly, “over the top” (OTT) content providers like Netflix and Amazon are producing original programming for distribution, integrating the content production and distribution streams. See, e.g., Huddleston, Jr., Tom, “Netflix Could Win Big at the 2016 Emmys,” (Fortune: Sept. 16, 2016) (“The company is spending a reported $5 billion this year on its ever-expanding roster of original series and films. It plans to churn out roughly 600 hours of original programming in 2016”), accessed from http://fortune.com/2016/09/16/emmys-preview-netflix/. 40 See, e.g., U.K. Intellectual Property Office, “Protecting Creativity, Supporting Innovation: IP Enforcement 2020” (2016) at p.20, accessed from https://www.gov.uk/government/uploads/ system/uploads/attachment_data/file/522847/IP-Enforcement-Strategy.pdf. 41 See, e.g., National Intellectual Property Rights Coordination Center, “Intellectual Property Rights Violations: A Report on Threats to United States Interests at Home and Abroad,” (November 2011) at p. iv, accessed from https://www.iprcenter. gov/reports/ipr-center-reports/IPR%20Center%20Threat%20 Report%20and%20Survey.pdf/. 42 See, e.g., National Intellectual Property Rights Coordination Center, “Intellectual Property Rights Violations: A Report on Threats to United States Interests at Home and Abroad,” (November 2011) at p.iv, accessed from https://www.iprcenter. gov/reports/ipr-center-reports/IPR%20Center%20Threat%20 Report%20and%20Survey.pdf/. See also U.S. Government Accountability Office, “Intellectual Property: Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods,” (April 2010) at p.10 (“counterfeiters have increasingly diversified beyond their traditional products, such as luxury goods, to more functional products such as baby shampoo and household cleaners, and will continue to expand their product portfolios since the profit incentives are large”), accessed from http://gao.gov/new.items/d10423.pdf. 43 See National Intellectual Property Rights Coordination Center, “Intellectual Property Rights Violations: A Report on Threats to United States Interests at Home and Abroad,” (November 2011) at pp.iv,18, accessed from https://www.iprcenter.gov/reports/ipr-center-reports/IPR%20Center%20Threat%20Report%20 and%20Survey.pdf/. 44 See Organization for Economic Co-operation and Development, “The Economic Impact of Counterfeiting and Piracy: Executive Summary,” (2007) at p. 5, accessed from https://www. oecd.org/sti/38707619.pdf. 45 See International Trademark Association (INTA), “Fact Sheet: Protecting a Trademark,” (April 2015) (“To deceive consumers into thinking that a product sold online at a discounted price is the real thing, online sellers of counterfeits often advertise the discounted product under a nice photo of the real product. Only after the consumer has received the product in the mail will that consumer realize that he or she has been tricked into buying a counterfeit.”), accessed from http://www.inta.org/ TrademarkBasics/FactSheets/Pages/Counterfeiting.aspx [subscription required]. See also, Jacobs, Deborah, “Online Scams Lure Shoppers With ‘Luxury’ Handbag Ripoffs,” (Forbes.com: April 17, 2014) (“The proliferation of online sites…makes it easier than ever to get snookered. Some have professional sounding names; include pictures that look like the real thing…and price merchandise so it seems like they’re discounting the real thing, rather than overcharging for a knockoff.”), accessed from http://www.forbes.com/sites/deborahljacobs/2014/04/17/online-scams-lure-shoppers-with-luxury-handbag-ripoffs/#73f780b- 129fe; City of London Police, “Two Arrested in ‘Wake Up— Don’t Fake Up!’ Campaign,” (May 21, 2015) accessed from https://www.cityoflondon.police.uk/advice-and-support/fraud- and-economic-crime/pipcu/pipcu-news/Pages/Two-arrested-in- ‘Wake-up-–-don’t-fake-up!’-campaign.aspx. 46 See United Nations Office on Drugs and Crime, “Transnational Organized Crime in East Asia and the Pacific: A Threat Assessment” (2013) at p.125, accessed from https://www.unodc. org/documents/data-and-analysis/Studies/TOCTA_EAP_web. pdf. 47 See McNiff, Eamon, et al., “Counterfeiter Tricks of the Trade: How Fake Goods Might Get Past Inspectors,” (ABC News: May 13, 2015), accessed from http://abcnews.go.com/ US/counterfeiter-tricks-trade-fake-goods-past-inspectors/story?id=30961441. See also Section III. 48 United States Department of Homeland Security, Customs and Border Protection, “Intellectual Property Rights Seizure Statistics - Fiscal Year 2015,” (April 2016) at p.10 (stating that, by dollar value, 52 percent of goods seized by CBP in FY 2015 originated in China, and 35 percent in Hong Kong), accessed from https:// www.cbp.gov/sites/default/files/assets/documents/2016-Apr/ FY%202015%20IPR%20Stats%20Presentation.pdf. 49 See European Union, “Report on EU Customs Enforcement of Intellectual Property Rights: Results at the EU Border 2015,” (2016) at p.19 (stating that, by dollar value, 58.37 percent of goods seized by EU customs in FY 2015 originated in China, and 20.23 percent in Hong Kong), accessed from https://ec.europa.eu/taxation_customs/sites/taxation/files/2016_ipr_statistics.pdf. 50 See United States Department of Homeland Security, Customs and Border Protection, “Intellectual Property Rights Seizure Statistics - Fiscal Year 2015,” (April 2016) at p.10, accessed from https:// www.cbp.gov/sites/default/files/assets/documents/2016-Apr/ FY%202015%20IPR%20Stats%20Presentation.pdf. See also United States Trade Representative, “2015 Special 301 Report,” SECTION 1 49
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U.S. JOINT STRATEGIC PLAN ON INTELL
Page 6 and 7: B. In Furtherance of a Healthy Doma
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Page 23 and 24: 1 THE GLOBAL SCALE OF INTELLECTUAL
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ENDNOTES Office of the Intellectual
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SECTION 4 CONTENTS PROMOTE FRAMEWOR
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ACKNOWLEDGEMENTS With thanks to, an
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