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SECTION 2 CONTENTS HELPING TO PROMOTE A SAFE AND SECURE INTERNET: MINIMIZE COUNTERFEITING AND INTELLECTUAL PROPERTY-INFRINGING ACTIVITY ONLINE A. Targeting Financial Support Flowing to Criminals: A “Follow-the-Money” Approach to Combating Online Commercial Piracy and Counterfeiting............................................................................ 61 1. Strengthen Payment Processor Networks’ Efforts to Curb Illicit Proceeds................................................... 62 2. Strengthen Online Advertising Networks’ Efforts to Curb Flow of Illicit Revenue........................................ 63 3. Strengthen Foreign Banking Practices to Curb the Financing of Illicit Trade............................................... 66 B. In Furtherance of a Healthy Domain Name System......................................................................................... 68 1. Assessing the Enforcement Challenge of Domain Name Hopping.............................................................. 68 C. Reducing Online Piracy and Counterfeiting by Increasing the Ability of Consumers to Locate Content and Products Through Lawful Means.................................................................................... 69 1. Support Consumers’ Identification of Websites Offering Legal Goods or Services..................................... 69 2. Support Practices and Policies to Improve DMCA Notice-and-Takedown Processes.................................. 70 3. Support Practices and Policies Within Social Media Channels to Curb Intellectual Property Based Illicit Activity........................................................................................................................................ 71 4. Support Practices and Polices to Reduce Intellectual Property Infringement Facilitated by Mobile Apps............................................................................................................................................ 73 5. Putting the Consumer First: Combatting Operators of Notorious Websites by Way of Consumer Education.................................................................................................................................... 74 6. Encourage Efforts that Support Content Platforms Offering Content Legally and Minimize Deceptive Sites That Operate with a Commercial “Look and Feel”............................................................ 76 7. Opportunities to Curb Sales of Counterfeit and Pirated Goods on E-Commerce Platforms....................... 77 D. Support Responsible 3D Printing Communities and Business Models......................................................... 79 E. Address Cyber-Enabled Trade Secret Theft..................................................................................................... 80
INTRODUCTION From the operation of stand-alone websites dedicated to illicit IPR-based activity, to the exploitation of legitimate platforms and services by illicit actors, opportunities exist to support and develop enhanced mechanisms to curb counterfeiting and infringing activity online. This includes an examination of a “follow-themoney” approach to disrupt illicit financing models (via payment processors, ad networks and the like), to practices and policies aimed at curbing abusive practices within e-commerce platforms, social media channels, the domain name ecosystem, and the search environment, among others. A. TARGETING FINANCIAL SUPPORT FLOWING TO CRIMINALS: A ‘FOLLOW-THE-MONEY’ APPROACH TO COMBATING ONLINE COMMERCIAL PIRACY AND COUNTERFEITING. The online infringement of IPR is a lucrative activity. Commercial-scale counterfeiters and pirates enjoy the fruits of another’s labor, profiting from famous brands, hit songs, television shows, movies and the like without having to make major investments and absorb the risks facing legitimate businesses and entrepreneurs. On the content side, it is time consuming and expensive for authors and legitimate entities to create and produce original content (“first copy”), but it costs next to nothing to make an unauthorized copy. As a result, the digital commercial pirate can enjoy staggering unearned and unlawful profits, reportedly ranging from 80 percent to close to 100 percent, in connection with digital piracy and the sale of pirated digital video discs (DVDs) and compact discs (CDs). 1 Turning to brands, counterfeit medicines, for example, require no research and development and are manufactured under minimal cost, and thus enjoy profit margins reportedly as high as 3,000 percent; a $1,000 investment in counterfeit prescription drugs may result in a $30,000 return, which is 10 times the reported profit rate of trafficking heroin. 2 Similarly, a 40-foot container of counterfeit cigarettes may cost as little as $70,000 to produce, but carry a street value of approximately $3,000,000 – $4,000,000, a profit margin of more than 5,000 percent. 3 SECTION 2 61
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U.S. JOINT STRATEGIC PLAN ON INTELL
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B. In Furtherance of a Healthy Doma
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PREAMBLE A Reflection on Creativity
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INTRODUCTION IP-intensive industrie
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SECTION 4 CONTENTS PROMOTE FRAMEWOR
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ACKNOWLEDGEMENTS With thanks to, an
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