ENFORCEMENT
eop_ipec_jointstrategicplan_hi-res
eop_ipec_jointstrategicplan_hi-res
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Joint Strategic Plan on Intellectual Property Enforcement<br />
SECTION 2<br />
dedicated to intellectual property infringement. In July<br />
2013, leading ad networks also announced a set of Best<br />
Practices Guidelines for Ad Networks to Address Piracy and<br />
Counterfeiting. Also in 2013, the IAB updated its Network<br />
and Exchange Quality Assurance Guidelines to include a<br />
ban on selling ad inventory on “copyright infringement”<br />
and “warez” sites. In June 2014, the IAB also announced<br />
its Trustworthy Digital Supply Chain Initiative, identifying<br />
fighting Internet piracy as one of its five objectives, along<br />
with eliminating fraudulent traffic, combatting malware, and<br />
promoting brand safety through increased transparency,<br />
and creating accountability.”<br />
21<br />
The initiative is spearheaded by the Trustworthy<br />
Accountability Group (TAG), which was created by the<br />
Association of National Advertisers (ANA), the American<br />
Association of Advertising Agencies (4A’s), and the Interactive<br />
Advertising Bureau (IAB). According to its website, TAG is a<br />
“cross-industry accountability program to create transparency<br />
in the business relationships and transactions that undergird<br />
the digital ad industry, while continuing to enable innovation.<br />
A joint marketing-media industry program, TAG was created<br />
with a focus on four core areas: eliminating fraudulent digital<br />
advertising traffic, combating malware, fighting ad-supported<br />
Internet piracy to promote brand integrity, and promoting<br />
brand safety through greater transparency.” TAG, “About Us,”<br />
accessed from http://www.tagtoday.net/aboutus/.<br />
22<br />
See Trustworthy Accountability Group (TAG), “Largest Brands<br />
And Agencies Take TAG Pledge To Fight Ad-Supported Piracy<br />
For All Digital Ads” (December 8, 2015), accessed from https://<br />
tagtoday.net/largest-brands-and-agencies-take-tag-pledge-tofight-ad-supported-piracy-for-all-digital-ads/<br />
(noting that “many of<br />
the world’s largest brand advertisers and agencies have pledged<br />
to require their ad partners to take aggressive steps to help fight<br />
the $2.4 billion lost to pirate sites each year.”)<br />
23<br />
See, e.g., Digital Citizens Alliance, “Good Money Gone Bad:<br />
Digital Thieves and the Hijacking of the Online Ad Business,”<br />
at pp. 3, 9 (February 2014), accessed from http://media.<br />
digitalcitizensactionalliance.org/ 314A5A5A9ABBBBC5E3<br />
BD824CF47C46EF4B9D3A76/4af7db7f-03e7-49cb-aeb8-<br />
ad0671a4e1c7.pdf.<br />
24<br />
Kat.cr is subject to a number of court-ordered injunctions<br />
due to copying infringement, and is described in USTR’s 2015<br />
review of “notorious markets” as “the biggest torrent site in<br />
terms of visitors and popularity.” Office of the United States<br />
Trade Representative, “2015 Out-of-Cycle Review of Notorious<br />
Markets,” at p. 14 (December 2015), accessed from https://<br />
ustr.gov/sites/default/files/USTR-2015-Out-of-Cycle-Review-<br />
Notorious-Markets-Final.pdf. Screen shots from were<br />
captured on May 2, 2016, featuring third-party advertisements<br />
on behalf of the likes of GoDaddy, GAP, West Elm, Edible<br />
Arrangements, Jaguar, Sephora, National Geographic, Giant (and<br />
Tide), Starwood (and American Express), Verizon, Pottery Barn,<br />
Gilt, and the Ad Council (on behalf of the U.S. Forest Service).<br />
25<br />
See, e.g., United States Department of State, Bureau<br />
for International Narcotics and Law Enforcement Affairs,<br />
“International Narcotics Control Strategy Report, Volume II:<br />
Money Laundering and Financial Crimes,” at p. 95 (March<br />
2016) (discussing the laundering of criminal proceeds in<br />
China), accessed from http://www.state.gov/documents/<br />
organization/253983.pdf. See also Financial Action Task<br />
Force (FATF), Organization for Economic Cooperation and<br />
Development, “Trade Based Money Laundering,” at p. 1 (June<br />
23, 2006) (discussing three types of money laundering: the use<br />
of the financial system, the physical movement of money, and<br />
the physical movement of goods), accessed from https://www.<br />
treasury.gov/resource-center/terrorist-illicit-finance/Documents/<br />
Trade-based-ML_062006.pdf.<br />
26<br />
See Section II.<br />
27<br />
See Financial Action Task Force (FATF), Organization for<br />
Economic Cooperation and Development, “Trade Based<br />
Money Laundering,” at pp. 3-7 (June 23, 2006), accessed from<br />
https://www.treasury.gov/resource-center/terrorist-illicit-finance/<br />
Documents/Trade-based-ML_062006.pdf.<br />
28<br />
This Figure is found in Financial Action Task Force (FATF),<br />
Organization for Economic Cooperation and Development,<br />
“Trade Based Money Laundering,” at p. 18 (“Case Study 10”)<br />
(June 23, 2006), accessed from https://www.treasury.gov/<br />
resource-center/terrorist-illicit-finance/Documents/Trade-based-<br />
ML_062006.pdf.<br />
29<br />
See, e.g., Kinetz, Erica, “Chinese banks serve as safe haven for<br />
booming counterfeit goods trade,” The Associated Press (May<br />
7, 2015), accessed from http://www.usnews.com/news/business/<br />
articles/2015/05/07/ap-exclusive-chinese-banks-a-haven-for-webcounterfeits;<br />
Hong, Nicole et al., “China’s Banks Test U.S. Legal<br />
System: Bank of China says turning over account records would<br />
violate Chinese law,” The Wall Street Journal (November 18,<br />
2015), accessed from http://www.wsj.com/articles/chinas-bankstest-u-s-legal-system-1447822800;<br />
“Bank of China fraud: Italy<br />
seeks trial for 300 people,” BBC News (June 21, 2015), accessed<br />
from: http://www.bbc.com/news/world-europe-33214450<br />
(prosecutors in Italy allege that more than US $5 billion in<br />
proceeds from counterfeiting, prostitution, labor exploitation, and<br />
tax evasion was transferred from Italy to China, and that nearly<br />
half went through the Bank of China’s branch in Milan).<br />
30<br />
See Kinetz, Erica, “Chinese banks serve as safe haven for<br />
booming counterfeit goods trade” The Associated Press (May<br />
7, 2015) (quoting the President of the International Anti-<br />
Counterfeiting Coalition), accessed from http://www.usnews.com/<br />
news/business/articles/2015/05/07/ap-exclusive-chinese-banks-ahaven-for-web-counterfeits.<br />
31<br />
The academic investigation is reported in Simonite,<br />
Tom, “Spam Trail Leads to China’s Three Largest Banks,”<br />
MIT Technology Review (January 29, 2016), accessed<br />
from https://www.technologyreview.com/s/546311/<br />
spam-trail-leads-to-chinas-three-largest-banks/?utm_<br />
source=The+Sinocism+China+Newsletter&utm_<br />
campaign=3357bb065c-Sinocism02_01_162_1_2016&utm_<br />
medium=email&utm_term=0_171f237867-3357bb065c-<br />
29652241&mc_cid=3357bb065c&mc_eid=f4df4b6d0d,<br />
and in Shahani, Aarti, “How Major Chinese Banks Help Sell<br />
Knock-Offs,” National Public Radio’s All Things Considered<br />
(February 16, 2016), accessed from http://www.npr.org/sections/<br />
alltechconsidered/2016/02/16/466340567/how-major-chinesebanks-help-sell-knock-offs.<br />
See also Kinetz, Erika et al., “AP<br />
Investigation: How con man used China to launder millions,” The<br />
Associated Press (March 28, 2016), accessed from http://bigstory.<br />
ap.org/article/7500da6eb1d94e1dbb7e5650d1c20bd6/apinvestigation-how-con-man-used-china-make-millions<br />
(reporting<br />
that China is “emerging as an international hub for money<br />
laundering,” including as part of the counterfeit trade network).<br />
32<br />
See, e.g., United States Department of State, Bureau<br />
for International Narcotics and Law Enforcement Affairs,<br />
“International Narcotics Control Strategy Report, Volume II:<br />
Money Laundering and Financial Crimes,” at p. 95 (March<br />
2016), accessed from http://www.state.gov/documents/<br />
organization/253983.pdf.<br />
84