Alibaba (BABA) Evades US Privacy List

Alibaba Group Holding Ltd

avoided being on the U.S. government's annual "Notorious Markets List" on Thursday. The evasion is considered a triumph for Alibaba Group. Shares of Alibaba Group traded down-1.26 percent during last trading session, closing at $83.56. The U.S. Office of the Trade Representative commented that Alibaba Group was cautioned to make a greater effort to stop the sale of fake and pirated products on its online platforms and was increasingly concerned with the company's enforcement programs. According to the warning from the Trade Representative, "The company has to do a better job of fighting the sale of counterfeit goods and pirated materials on its e-commerce websites if it wishes to remain off the U.S. government's annual "Notorious Markets List." The trade representative called for Alibaba Group to simplify the process for its stakeholders to request enforcement action, lodge complaints, reduce the timelines for removing counterfeit goods and levying fines against sellers, and make procedures to remove counterfeit products available. Alibaba commented in an emailed statement that it "is committed to the protection of intellectual property rights and the fight against counterfeiting." "Counterfeiting is an issue all global e-commerce companies face, and we are doing all we can to address and fight it." Alibaba Group was being called on the Notorious Markets List for hosting the sale of counterfeit goods after it lobbied to avoid enclosure on the US blacklist. If Alibaba Group was included on the annual list, it would create further challenges by escalating the existing beliefs that its sites are riddled with counterfeits. Alibaba was removed from the Notorious Markets List in 2012. The Trade Representative noted that it will continue to monitor Alibaba's sites during 2016 to see if the overall efforts to penalize fake sellers and remove counterfeits are effective. "Despite these new procedures, USTR is increasingly concerned by rights holders' reports that enforcement program of Alibaba is too slow, difficult to use, and lacks transparency," stated the Trade Representative. Alibaba Group has a market value of $209.94 billion. The worst hit in its 52 week range is $57.20 per share, with $111.20 as its 52 week best price.